TULSA, Okla. — Oklahoma drivers refinancing their vehicles face some of the highest payment burdens in the country, according to a new study.
A new ConsumerAffairs.com study finds the average length of a vehicle refi loan in Oklahoma is 75 months — just over six years. The median monthly payment on a refi in Oklahoma is $640, with a median monthly income of about $4,000.
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Jailyn Rodriguez, a consumer affairs analyst, said the numbers reveal just how much of a financial strain vehicle loans can be.
“We compared their monthly car payment to their monthly income.”
The findings show a hard hit to the wallet.
“So that’s about 1 in every $6 going straight towards your car. That’s about 16% of your income going towards payments.”
Rodriguez said the burden is even heavier for some Oklahoma drivers.
“1 in 10 drivers in Oklahoma, specifically in our data, they pay over $1000 a month for their car. And again, this is based on a median monthly income of just $4000. So, a massive chunk of your paycheck going towards just the car bill.”
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Credit scores may be contributing to the problem.
“We saw that Oklahoma has the 7th lowest average credit score in the country. It’s actually at 693 compared to 713 nationally.”
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Whitney Ruggles, a vehicle owner, knows firsthand how a low credit score can affect borrowing.
“I was young and I had a bunch of credit. They gave me all this money and I spent it and I didn’t do very well paying it back.”
Ruggles told 2 News Oklahoma rebuilding her credit took years.
“I spent 10 years building it back.”
Rather than refinancing, Ruggles now uses a different strategy to pay off her vehicle faster.
“I pay a couple $100 extra each time that I can.”
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Rodriguez said that approach is worth considering for anyone who can manage it.
“That’s important. Um, if you are in the position where you’re able to pay more towards the principal and get your car paid down faster, that is, of course, the way to go.”
Paying extra toward the principal can potentially save thousands in interest charges while allowing drivers to pay off their vehicle faster.
Ruggles said her previous vehicle was on a five-year note, but by paying a couple of hundred extra toward the principal balance let her pay off the car in just a couple of years while at the same time avoiding years of monthly interest charges.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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