Georgia is among the states with the most $1,000-a-month car payments. Here's why

For a growing number of Americans, their monthly car payment feels like a second mortgage payment.

A new LendingTree analysis found that nearly one in 10 Americans with an active auto loan now has a monthly car payment of $1,000 or more. In Georgia, the share is even higher.

According to LendingTree's analysis of approximately 180,000 anonymized credit reports, 12% of Georgia borrowers with active auto loans have at least one monthly payment of $1,000 or more. That's the fourth-highest rate in the nation, behind only Texas, Alaska and Wyoming.

The numbers reflect the financial reality of life in a state where driving is often a necessity.

Whether it's commuting from Cherokee, Paulding or Henry counties into metro Atlanta, or simply running errands in much of rural Georgia, owning a vehicle isn't optional for many families.

"What we've found is that most of the states that were the most likely to have thousand-dollar monthly car payments were bigger, sparser states with a lot of ground to cover," said Matt Schulz, LendingTree's chief consumer finance analyst.

Georgia, he said, is a unique mix of urban and rural driving.

"Georgia is interesting because it's obviously got a big urban center in Atlanta, but most of the rest of the state, you're going to need a car to get around," Schulz said.

Of course, the monthly loan payment is only the beginning.

Insurance premiums continue to rise. Gas prices fluctuate. Tires wear out. Oil changes become brake jobs. Unexpected repairs have a way of arriving at the worst possible time.

By the time the key turns in the ignition, many families have already committed a substantial portion of their monthly budget just to keep a vehicle on the road.

One of the more surprising findings in the LendingTree analysis is who is carrying these four-figure payments.

It's not younger buyers.

Instead, it's Generation X — people in their 40s and 50s, often in their peak earning years and more likely to have the strong credit scores needed to qualify for larger loans.

That doesn't necessarily mean those loans are affordable.

"I suspect that a lot of what we're seeing with this thousand-dollar monthly car payment is coming from people wanting the luxury SUV or car or the big truck," Schulz said.

Amir Bazli, owner of Million Mile Motors in Lawrenceville, Georgia, says consumers often make one critical mistake before they ever drive off the lot: They focus on the monthly payment instead of the total cost.

"You don't want to look at the payments," Bazli said. "Look at the total price. Multiply it out by the total months of the term, and you'll see what you're truly paying."

Bazli recommends arranging financing before visiting a dealership, comparing loan offers, avoiding six- and seven-year loan terms whenever possible, and resisting the pressure to buy a vehicle the same day.

"When you come into the dealership, and you need a car today, right now, you're going to make a bad decision," he said. "If you want to make a deal bad enough, you'll do a bad deal."

According to LendingTree, a $1,000 monthly car payment represents about 14% of the median U.S. household's gross monthly income before taxes.  That figure doesn't include insurance, fuel, maintenance or repairs.

Those expenses, Schulz says, can crowd out other financial priorities like emergency savings, retirement investing or a future home purchase.