Thursday, October 4, 2012

The Uncertainty of Buying Now and Paying Later

The following chart shows the average amount financed on a new car divided by the average hourly earnings of production and nonsupervisory employees.

Click to enlarge.

1,800 hours of work appears to be the limit. This is in addition to the interest on that financing.

The following chart shows the year over year change.

Click to enlarge.

This post inspired by Auto financing and consumer credit as seen at Wasatch Economics.

Source Data:
St. Louis Fed: Custom Chart

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