Car payments hit a record $787 a month as seven-year loans spread

What BBN said about it

1. 

   Hank Ledger · Lead AnchorThe average new-car payment hit a record seven hundred eighty-seven dollars a month last quarter, and one in four buyers is now signing a seven-year loan, Fortune reports.

2. 

   Vera Bullock · Co-AnchorSeven hundred eighty-seven dollars is a lot, but think of it as a subscription with a steering wheel.

3. 

   Hank Ledger · Lead AnchorIt's a subscription that costs more than two hundred Netflix accounts a year, and it comes with a bumper.

4. 

   Vera Bullock · Co-AnchorLoan sizes and lifetime interest also set records, even though rates held flat at seven percent.

5. 

   Hank Ledger · Lead AnchorSo nothing got cheaper, it just got longer.

6. 

   Vera Bullock · Co-AnchorThe good news is that six-figure households are still buying, so somebody is having a lovely time at the dealership.

7. 

   Hank Ledger · Lead AnchorAnd everyone else is getting squeezed, which means your seventh payment arrives when the car is out of warranty and making a noise.

8. 

   Vera Bullock · Co-AnchorA noise we'll name, at least.

9. 

   Hank Ledger · Lead AnchorBy year seven the loan will have outlasted the new-car smell, the warranty and possibly the dog.

10. 

    Hank Ledger · Lead AnchorAs for markets, the Nasdaq slipped point eight six percent today, which matters if you own a 401(k) and not at all if you own a Corolla.

11. 

    Hank Ledger · Lead AnchorDr. Byte, tell us whether your gadgets come with seven-year financing, because I'm afraid to ask.