Who’s Paying More Than $1,000/Month for a Car?

How grand! The vehicle brands with the most $1,000+ car payments [View in browser]( Proprietary Data Insights Top Specialty Retail Stock Searches This Month Rank Name Searches #1 Blue Apron 153,014 #2 GameStop 133,412 #3 Bed Bath & Beyond 96,085 #4 Carvana 72,655 #5 Party City Holdco 47,093 #ad [3 Top Investment Trends]( Source: [Google Finance]( Number four in our proprietary Trackstar database of the specialty retail stocks investors searched for most over the last month. Number one on the list of stocks we wish we shorted. Carvana (CVNA). Down 90% over the last year. Crushed a whopping 39% this past Friday alone. Why? Because the company missed analyst expectations on Q3 earnings. - Gross profits down 31% year-over-year. - A loss of $2.67 per share in Q3. - Retail units sold down 8% annually. - Gross profit per unit crashed by about $1,100 to $3,500. Due to economic uncertainty, Carvana didn’t provide 2023 earnings guidance. Morgan Stanley thinks CVNA could end up a $1 stock. The how to the why? The going thesis: High interest rates and recession fears have consumers thinking twice about making what is ultimately, as Carvana [calls]( it, “an expensive, discretionary, often-financed purchase.” And, even though they’re still up 7.2% year-over-year, used car prices continue to fall, dropping another 1.1% between August and September. This is a double-edged sword. Carvana sells used vehicles, so as prices drop, the company simply can’t charge as much. But, with prices still high, consumers don’t necessarily want to make the purchase, especially in this high interest rate environment. Makes sense. However, for as many people holding off on a new (or used) set of wheels, quite a few are paying obscene prices. The Juice has eye-opening data on that now. Brought to you by [Trackstar]( [What Financial Professionals Are Researching]( Every quarter, we compile data from millions of retail and pro stock investors’ searches across our vast network of financial publishers. We reserve these timely, actionable insights exclusively for our newsletter subscribers. This info can help you decide what to do in your portfolio – so you can protect the money you have and generate bigger gains. [Click here now to download the FREE TrackstarIQ Q3 2022 Report.]( Inflation Who’s Paying More Than $1,000/Month for a Car? Key Takeaways: - The percentage of people paying more than $1,000 a month for a new vehicle hit a record. - Three types of vehicles are the culprit: trucks, EVs, luxury models. - Even middle of the road or low level cars and trucks will set you back meaningfully. [Monthly payments] Source: [Edmunds]( Let this sink in: - 25.7% of people in Wyoming agreed to a monthly new vehicle payment of $1,000 or more in Q3. - Texas came in second at 20.8%. - California isn’t far behind at 18.3%, good for fifth overall. We’ll explain what’s happening in a second, but first a quick, related thought on Carvana. If you’re going to pay through the nose for a used vehicle, why not just buy a new one? The Juice thinks this is one viable explanation for Carvana’s woes and the record number of people committing to new vehicle payments of $1,000 or more in Q3. - Overall, 14.3% of consumers took on $1,000+ new vehicle payments in Q3. According to Edmunds, you can blame large trucks (and SUVs) in aforementioned Wyoming and Texas as well as Utah, which came in third at 19.1%. People in these states prefer these types of vehicles and are willing to pay big for them. Every vehicle on this list of the makes and models sucking up the most market share of $1,000+ monthly payments is a large truck or SUV. [Market share] Source: Edmunds Going Electric - 26% of people who financed an electric vehicle in Q3 added $1,000+ payments to their monthly budgets. If what The Juice sees around our San Francisco and Los Angeles offices is any indication, this makes sense. You can’t blink without seeing a Tesla. As we [recently detailed](, the typical monthly payment on a Tesla easily crosses a grand. Going Luxury The brand commanding the highest percentage, by market share, of $1,000+ monthly payments: Porsche at 72%. Followed by: - Land Rover (66%) - Jaguar (51%) - BMW (50%) - Mercedes (42%) While Edmunds didn’t include Tesla on its list, The Juice thinks Elon Musk’s company ranks at or near the top. Unless you’re putting a ton of money down or paying cash, you’re most likely into four-figure territory to finance a Tesla EV. Going Basic Even standard, run-of-the-mill vehicles aren’t easy on the monthly budget. While more accessible brands such as Hyundai, Kia, and Honda only capture single-digit shares of the $1,000+ monthly payment market, they’re not cheap. This has a lot to do with interest rates. - The average monthly payment for financed new cars hit $703 in Q3. Up from $678 in Q2 and $630 in Q3 of 2021. - The average amount financed is $41,347. - A formidable $6,453 down at a 5.7% interest rate generates that $703 monthly payment. [Quarters] Source: Edmunds The typical monthly payment on a new car was $73 higher in Q3, 2022 than it was in Q3, 2021. [Our Best Stock Pick Every Day]( Stop wasting time scouring the internet for stock picks. Get daily rankings and expert analysis of popular stocks and rare finds – including our top pick – directly to your inbox when you sign up for The Spill. [Sign up here]( The Bottom Line: Needless to say, stay away from Carvana stock. Not so straightforward - the math on monthly payments. While we assume the wealthy among us can comfortably afford Porsches, Teslas, and other luxury brands, it’s also safe to say some people stretch themselves to make what is as much an aspirational purchase as a discretionary one. Edmunds notes you can save money by going with a shorter loan term. This might get you a break on your interest rate from the automaker, but even if it doesn’t, a shorter term tends to result in less interest paid over the life of the loan, albeit at a higher monthly payment. Of course, you’ll need good to excellent credit to score deals, particularly on interest rates. Which leads us to the most important takeaway: Ensure you can comfortably handle whatever monthly payment you take on. The last thing you want to do is miss a payment (or more) and put your credit at risk. News & Insights Freshly Squeezed - From The Spill: [Blood in the REIT Street]( - [Take Your Investments to the Next Level]( - [Does Trading Account Size Matter?]( - [15 Best Strong Buy Stocks to Invest In]( [We want to hear from you! Let us know your thoughts by clicking here]( # [submit to reddit]( [submit to reddit]( [submit to reddit]( [submit to reddit]( To ensure delivery of all emails, [allow us on your list](. Update your email preferences or unsubscribe [here](. View our privacy policy [here](. Copyright ©2022 InvestingChannel. All rights reserved. 1325 Avenue of the Americas, Floor 27 & 28 New York, New York 10019 Disclaimer: This is not investment advice. This InvestingChannel, Inc. newsletter is for information purposes only and opinion-based. Futures, forex, stock, and options trading are not appropriate for all investors. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can ensure returns or against losses. No representation or implication is being made that using any of these methodologies or systems will generate returns or ensure against losses. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions. [Link](