If you’re struggling to make ends meet, your problem may not be too many lattes or dinners out. It may be sitting in your driveway.
Your monthly car payment is the tip of the iceberg.
Counting gas, registration and taxes, depreciation, tires, insurance and finance charges, Americans spend $8,700 a year on average — $725 a month — for the privilege of owning a typical midsize sedan, according to AAA, and more than $10,600 a year for an SUV. If you’re struggling with bad credit, the increased cost of financing and insurance will push those numbers even higher.
In my latest for NerdWallet, how to determine if you have too much car in your driveway.