More North Carolinians are paying $1,000 a month for their car

According to a new report from LendingTree, nearly one in 10 Americans with an auto loan now pays at least $1,000 every month for their vehicle.

North Carolina is no exception. The report found that 8.5% of borrowers in the state have monthly car payments of $1,000 or more, a sign of just how expensive financing a vehicle has become.

Several factors are driving those higher payments. Vehicle prices remain elevated compared to just a few years ago; many buyers are choosing larger trucks and SUVs with higher price tags, and longer loan terms can leave borrowers paying more over time.

If your car payment is stretching your budget, financial experts say there are several options to consider before falling behind.

Refinance your loan: If interest rates have dropped since you bought your vehicle or your credit score has improved, another lender may be willing to offer a lower interest rate, reducing your monthly payment.

Ask your lender about restructuring the loan: Some lenders may allow you to extend the repayment period. While that can lower your monthly payment, it will likely increase the total amount of interest you pay over the life of the loan.

Consider trading down: If you have positive equity in your vehicle, selling it and purchasing a less expensive car could significantly reduce your monthly payment.

Most importantly, experts say don't wait until you've missed a payment to ask for help. Contacting your lender before you fall behind gives you the best chance of finding a solution and avoiding damage to your credit.

They also caution shoppers not to focus solely on the monthly payment when buying a car. A lower payment can be achieved by stretching the loan over a longer period, but that often means paying substantially more in interest over time.

Instead, pay attention to the total purchase price, the interest rate, and the length of the loan. Those three factors determine the true cost of owning the vehicle, not just what you pay each month.

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