$787 a Month for a New Car? The Growing Cost of Getting Behind the Wheel

As car loan payments reach record highs, University of Mary Washington business expert Kashef Majid examines the financial pressures facing consumers and the rising cost of vehicle ownership.

Oct 13, 2026

2 min

Kashef A. Majid

Buying a new car is becoming an increasingly expensive proposition for American consumers, with monthly loan payments now averaging a staggering $787.


According to a recent DC News Now report, the average new-car loan is approaching $45,000, raising concerns about affordability, household debt and the long-term financial commitments consumers are making just to get behind the wheel.



And the monthly loan payment is only part of the equation.


Insurance premiums, maintenance, fuel and other ownership expenses can push the actual cost of driving considerably higher. For consumers already managing rising household expenses, the decision to purchase a vehicle has become increasingly complicated.


Beyond the Sticker Price: What Consumers Need to Know



Dr. Kashef Majid, Associate Professor of Marketing at the University of Mary Washington, has studied how consumers value hybrid and electric vehicles, including the financial and environmental motivations behind purchasing decisions.


He was also named one of the 50 Best Undergraduate Business Professors of 2024 by Poets & Quants.


View his profile


Majid has also shared his expertise with WalletHub, offering first-pen perspective on car insurance costs, pricing fairness and the importance of making informed decisions when shopping for coverage.





His insights are particularly relevant as Americans face record-high car payments, with insurance premiums adding another significant expense to the overall cost of vehicle ownership.


As consumers grapple with rising costs, Majid can help explain what's driving vehicle affordability challenges, how purchasing decisions are changing and what motorists should consider before taking on substantial financial commitments.


If you're interested in speaking with Dr. Kashef Majid about rising car payments, vehicle affordability, insurance costs and consumer behavior, simply click on his profile below to arrange an interview today.


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Kashef A. Majid

Kashef A. Majid

Professor of Marketing

Dr. Majid is an expert in marketing strategy, consumer behavior and reputation management, with a focus on sustainability.

Marketing ResearchDigital MarketingMarketing StrategyInternational MarketingMarketing for Social Good
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