Susan Tompor, columnist for the Detroit Free Press, has this piece today: $4 gas is forcing late car payments.

A snippet:

Mark Zandi, chief economist at Moody’s Economy.com in West Chester, Pa., said auto loan delinquencies will keep climbing for another 12 months. By his estimate, auto delinquencies would hit a peak in the second half of 2009.

His reasoning? We’ll be looking at a weaker job market, falling values for SUVs and trucks, high levels of debt — and yes, budget-busting gas prices.

Think of it this way: If some consumers are already paying an extra $65 to $70 a month to put gas in one car, they have even less money to put toward a $400 or $500 monthly car payment.

By the way, if you live on, or are adjusting your income down, to Monroe County’s most recently reported median income of $55,823 – roughly the equivalent of two wage earners making $14 an hour – you cannot afford $400 or $500 a month in car payments.

I did a household budget analysis report on that income bracket, using Crown Financial Ministries’ household budget program, to explain to readers what this means for specific expenses.

A snippet:

Auto: $6,086 a year or $508 a month. This includes auto payment, auto repair, maintenance and auto insurance. Given the auto insurance rates in Michigan, a Monroe County median income family is rarely going to be a three-car family. They are more likely to be a two-car family with one car possibly designated as a backup or “go-to-work” car rather than daily transportation. (Can it be done even with three drivers? Yes, we did it.) Now here is the other reality for Monroe County families – 47 percent of local workers commute to another county for work. A median income family could handle gas and maintenance expenses for one commuter, but auto-related expenses for two commuters will cause a lot of budget headaches.

What if your vehicle expenses go beyond the recommended percentages? I hope your housing and debt expenses are lower than average – because housing, auto and debt are the three “budget busters” on this system.