CHARLOTTE, N.C., July 28, 2020 /PRNewswire/ -- A monthly auto
loan payment is just a fraction of the true cost of car ownership.
Drivers need to consider auto insurance, routine maintenance and
gas, as well. But one aspect of car ownership can be much less
predictable: car repairs. About 43% of Americans have gone into
debt because of car trouble, and 28% of drivers would not be able
to make a $500 car repair without
going into debt, a July 2020
LendingTree survey found.
Full Report:
https://www.lendingtree.com/personal/car-repair-debt-survey/
Key Findings:
- 43% of drivers – and 58% of millennials – have been in debt
for car trouble. Of that number, 21% said their debt occurred
in the four months since the coronavirus outbreak started in the
U.S. in March 2020.
- Consumers of color are disproportionately dealing with debt
due to car trouble. Black Americans (59%), Hispanic Americans
(52%) and Asian Americans (47%) vehicle owners have been in auto
repair debt at higher rates than white Americans (38%).
- About 28% of Americans would not be able to cover a
$500 car repair without taking on
debt. That's especially true for Black Americans (39%), those
who were laid off due to the COVID-19 pandemic (34%) and women
(32%).
- Nearly 6 in 10 (58%) have skipped a necessary car repair
because they couldn't afford it, including 71% of
millennials.
- About 1 in 6 (16%) consumers would not be able to get to
work if their car broke down. That number spikes to 30% of
those earning less than $25,000 per
year.
- People whose income was affected by the pandemic are
struggling with debt from car trouble. About a third (35% of
those who were furloughed and 30% of those whose salary or hours
were cut) have been in debt for that reason since March, versus 11%
whose income was not impacted.
When it comes to paying for car repairs, it's best to pay in
cash. That way, consumers aren't paying the potentially high
interest that may be charged with other financing options, like
credit cards and personal loans. The survey found that about a
third of respondents (32%) would use cash or checking accounts to
cover the cost of the repair, and 1 in 5 (20%) would pull money out
of savings. While it's ideal to pay for car repairs in cash,
not all consumers have that kind of money stowed away in an
emergency fund. More than a quarter of respondents (27%) would
charge their credit card, and 4% would opt for a personal loan.
To view the full report, visit:
https://www.lendingtree.com/personal/car-repair-debt-survey/
About LendingTree
LendingTree (NASDAQ: TREE) is the nation's leading online
marketplace that connects consumers with the choices they need to
be confident in their financial decisions. LendingTree empowers
consumers to shop for financial services the same way they would
shop for airline tickets or hotel stays, comparing multiple offers
from a nationwide network of over 500 partners in one simple
search, and can choose the option that best fits their financial
needs. Services include mortgage loans, refinances, auto loans,
personal loans, business loans, student refinances, credit cards
and more. Through the My LendingTree platform, consumers receive
free credit scores, credit monitoring, customized recommendations
to improve credit health, and notification when there are
opportunities to save money. In short, LendingTree's purpose is to
help simplify financial decisions for life's meaningful moments
through choice, education and support. LendingTree, LLC is a
subsidiary of LendingTree, Inc. For more information, go to
www.lendingtree.com, dial 800-555-TREE, like our Facebook page
and/or follow us on Twitter @LendingTree.
Media Contact:
Nancy Jones
Nancy@lendingtreenews.com
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SOURCE LendingTree.com