Car affordability is getting worse -- here’s why

Buying a car has long been seen as a step toward independence, with the freedom to hit the open road. But today, it carries a burden that feels more like a house—and Edmunds data backs that up. New car buyers are signing up for longer loans. More than a third are taking on a 73-month loan or longer—that’s up 27% from a decade ago. Stretching out the loan can make the monthly payments cheaper, but you pay for it in the long run. Total interest adds up while the car loses value. And even though people are looking for lower payments, the average monthly payment for a new car is the highest it’s ever been: $777. With Michigan’s wild weather and wildlife, you also need good insurance. While costs can vary from person to person, U.S. News & World Report says Michigan drivers are paying an average of $3,121 a year. Your age, driving record, and insurance company can all influence that. They found Geico and Travelers the cheapest, and State Farm the most expensive. And you’re not going anywhere without gas. A gallon of regular in the metro is about $4.23 this morning. That’s 28 cents more than a month ago, and well over a dollar more than last year. Matthew Degen, a senior editor at Cox Automotive, joined Local 4 Live to talk about why it’s getting much harder to afford something most people rely on.