Georgia ranks fourth for $1,000 monthly car payments, report finds

Georgia ranks among the states with the most car payments that are more than $1,000 per month, according to a LendingTree report.

The report says that one in 10 Americans with an active car loan pay $1,000 or more per month. In Georgia, that rate goes up to 12%, making it the fourth-highest rate in the nation behind Texas, Alaska and Wyoming.

Matt Schulz, LendingTree’s chief consumer finance analyst, told CBS News Atlanta that Georgia is a unique situation because of its mix of urban and rural areas.

“Georgia is interesting because it’s obviously got a big urban center in Atlanta, but most of the rest of the state, you’re going to need a car to get around,” Schulz said.

The people most likely to have these larger payments are people in their 40s and 50s, or Generation X, who are often in their peak earning years.

“I suspect that a lot of what we’re seeing with this thousand-dollar monthly car payment is coming from people wanting the luxury SUV or car or the big truck,” Schulz said.

A $1,000 monthly car payment represents about 14% of the median household’s gross monthly income before taxes and doesn’t include other costs associated with owning a vehicle, such as insurance, gas and maintenance costs.

Schulz said spending on car payments and other costs can take priority over other financial planning, such as emergency savings and retirement investments.