Posted on 09/15/2025 9:12:47 AM PDT by algore
Many Americans love the feeling of driving a new car, but the price of that thrill is pushing household budgets to the edge. Auto loan delinquencies are spiraling, the nation now owes a staggering $1.66 trillion in auto loans, and some figures show scary similarities to the period right before the 2008 financial crash.
That’s according to a new report titled “Driven to Default: The Economy-Wide Risks of Rising Auto Loan Delinquencies” from the Consumer Federation of America (CFA). It describes auto finance in the US as being “at breaking point,” and criticizes Congress and the country’s federal watchdogs for stepping back, despite evidence showing they’re needed more than ever to protect buyers from unscrupulous dealers.
One of the reasons owners are struggling to keep their heads above water is the high cost of monthly car payments, caused in part by high interest rates. Figures show the typical monthly payment is $745 and 20 percent of buyers are saddled with monthly bills of at least $1,000. Things could get worse quickly because the $7,500 EV tax credit is due to disappear imminently.
And this time it’s not just subprime borrowers who are feeling the heat. Car buyers with above-average credit scores are twice as likely to fall behind on payments as they were before the pandemic. Younger buyers are hitting the payment skids in high numbers and the repossession rate across all age groups jumped by 43 percent between 2022 and 2024, according to Cox data.
Moreover, the CFA warns that we should be concerned about more than a few cars getting repossessed because people haven’t kept up with payments. It says Americans have a tendency to prioritize their car bills over other household and living expenses, meaning the delinquency rates could be pointing to much more widespread and significant problems across the US economy.
“Now is the time for policymakers to take a hard look at the auto lending market to call out exploitative practices that raise prices and require our federal regulators to stop sleepwalking their way through this crisis while Americans suffer,” the organization suggests.
Great advice. What kills car purchases I Michidan is the insurance. Our car insurance is crazy high here
Exactly. On the backs of the taxpayers with a bail out from Uncle Sam.
Transportation is a basic human right just like water and air, don'tcha know?
Banks and lenders aren't about to repo these vehicles. You already know that. So do the borrowers. I
It would start a race war.
I’ve been looking at a newer midsize or small pickup. The prices are unbelievable. A new Toyota Tundra is in the 60k range. I see brand new ones everywhere. And Sprinter vans. A novelty “van life” fantasy toy is in the $150k range. FOR A VAN!!!
I have visited several car lots, used and new. They never tell you what the vehicle costs. It is always “It’s only (x amount) per month.” Or. “What can you afford monthly?”
JUST TELL ME WHAT IT COSTS and I’ll write a check and be on my way. They hate that. But I still can’t bring myself to spend such a crazy amount of money on a newer vehicle.
I’ll stick to my 30 year old vehicles. Maybe, with a “sub prime car loan” crash I can buy something on the cheap. But I’m not holding my breath.
Will never understand why people pay $70k for a truck. A TRUCK!
Meanwhile, I drive my creaky, 18 year old Subaru Legacy GT Turbo Wagon with 258k miles. But no $600+/month payments!
My neighbor’s 30YO kid took out a $50K loan on a new pickup truck, he does DoorDash for a living. Shaking my head..... Best part, and get this, he hates living in his parents house and want’s to move out, but he can’t afford to.
I lay this directly on his parents! The day I graduated from high school, my dad gave me 2 choices, free room and board while I went to college or trade school for a few more years, or I could start working for & paying room and board, or I could move out. I chose the latter.
I have heard people in the office complain that they are getting ripped off by a mechanic for fixing an older car so the “will save money buying a new car.”
Doing the simple math... I can do a whole lot of upgrades and repairs on my car for $750 per month. People just want an excuse to buy a new car. To me, a car is a tool. To many others, they wear their car as a fashion statement.
“While that may seem good, the problem is that deadbeats who default on car loans probably did not maintain the vehicle.”
I bought a new Tahoe in 2000, the 2001 model.
5.3L, LT edition...leather, the works.
I put 204,000 on it over the ensuing 20 years. All I did was change the oil and replace tires. Had the original plugs in it.
Just would not die. Drove like it was new.
Finally gave it to my niece. She’s since put another 40K on it. Still runs strong.
If you find one with under 50,000 miles, it’s barely broken in. The 5.3L V8 by GM is the best engine they ever made, bar none.
I always get a kick out of scam added features car dealers charge for.
“Seats. -$4200”
“Steering wheel. - $5090”
“Windshield. - $6700”
“Customer Satisfaction Happy Fee. - $6590”
Unfortunately a nice 10 point buck decided to commit suicide using my wife’s 6 year old Sorento on Labor Day morning.
We have been shopping since, and dear God is this depressing. Last couple of cars we bought we went 1-2 year old lease returns and saved about 30% off of sticker, now they are so close to new car prices it’s not even worth the bother.
This is just on a small SUV, while we were perusing the lot I went over and checked the price of a new Superduty like I have.
Guess I’m keeping that bad boy until they take my keys away now.
“Guess I’m keeping that bad boy until they take my keys away now.”
Amen.
OK ...
https://www.bls.gov/data/inflation_calculator.htm
That $4031.40 works out to $42,131.51 today.
For that, you get a car with better gas mileage, seat belts, and a body designed to absorb impact. Among other features that you might, or might not, actually care about. Also, it will give you much more than 100,000 miles of use.
If you’re “mad”, be “mad” at the creeps that run a monetary system designed to deliberately devalue the currency.
That fact can all but be guaranteed. The people who neck deep in auto debt are paying the $90+ for an oil change or any other basic maintenance. All most of them know is you need to put gas in it, and that’s it.
Sure! Also credit card forgiveness, mortgage forgiveness, and a pony for Christmas.
I do recall singing "Oh Lord, won't you buy me a Mercedes Benz" but it never happened...
Agree on all points
Indeed. I just checked prices of Ford F-150 pickup trucks in my area ... ~90% of them have a price listed on "edmunds dot com" of $60,000 +/- $10,000. I tried to figure out what the trucks listed for $141,000 (yes!) had that the others lacked, and came up empty handed ...
In today’s new car market, the loan extends past the life of the vehicle. Vehicles are so expensive today that the common wage earner is priced out of the market, even for a used vehicle. And then there’s the price of gas………
“tried to figure out what the trucks listed for $141,000 (yes!) had that the others lacked, and came up empty handed”
‘
I occasionally watch Thomas Seibers YouTube channel @WheelsandWallets........he goes to dealerships and shows sticker prices of vehicles on the lot.
A while back he showed a Jeep Wrangler that had a sticker of IIRC in the neighborhood of $80k.
The sticker showed the lift, tire and wheel package that the dealership added was $15k.....I added a lift, tire and wheel package to my jeep for $5k.
Dealerships are doing add ons like charging $500 for window tint or $10k for “special edition” vehicles which usually consist of nothing more than badging and vinyl graphics.
I have very little use for car dealerships or salesman either for that matter.
Bunch a damned thieves IMO.
Fashion statement? Most of these new cars look like sh*t. Body styles that look like shoes...Most all of them look the same nowadays. Not only that, but I’m trying to imagine paying $800 a month for a stinking car, and coming out of Walmart and seeing the zombies had used the shopping carts for target practice on your $800 a month car.
$80k for a Wrangler is in the same “taking advantage of idiots” box as the $141k F-150.
Ditto...I don't know how they stay in business. Throw in fuel, registration, taxes, insurance etc...Might as well live in the new car.
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