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.
Bought my stock preowned Wrangler in 2019, out the door was $32k and I felt like I got ripped off......of course, every single time I’ve purchased a vehicle at a dealership I’ve felt that way except for one.
My neighbor was parts manager at a local dealership and asked the sales manager to take care of me, which he did....he actually told me the truth.
After that experience I saw how absolutely corrupt most dealerships are.
Dude, I’ve seen dealers add $1,500 for window tinting! About 3 years ago I paid $200 to have my windows tinted.
I bought my wife a new car last year and the payment was $30,000, but just one.
A “friend” of mine at a local dealership emailed me about a new vehicle. We recently paid off the used Escape we purchased 4 years ago. It has a lot of miles, but it is still a fine vehicle.
He “knows” we are in the market for a new vehicle and they have a great deal for us. They have F150s deeply discounted. I can trade in my Escape and get a new F150 for $745 a month for 84 months. Such a deal!
Things dealerships do are outright criminal.....congress really needs to rethink the whole you gotta buy new vehicles from a dealer laws
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The whole freakin’ paradigm needs to change.
Giddy up, giddy up, giddy up 409.
The life of a repo man is always intense.
See if they'll go 108 months.☺
My first new car was a 1970 Ford Maveric. 302 engine. Grabber package. $2,300.
Now I drive a 96 Dodge, 3/4 ton, 2018 JEEP and 2007 Nitro. All paid for of course.
#48 remember the air in your tire fee and if you want to refill then there is the ‘do want the air valve included with the tires’ fee....
65 MPG CAFE and EV Mandates gave us this.
The long road from Pelosi’s 2007 law that she rammed down veto-proof at 35 MPG was the first step. Obama seizing opponents was step two. Biden’s 65 MPG + EV Mandates were the last.
The elitist cabal believes in reducing car ownership.
I do not believe there is a single brand of new car priced under $20,000.
CAFE led to high costs via taxes. And then the automakers focused on the elite buyers who want more because they create the most profit.
Those with the last profit are the fleets. Focus on maximum revenue with the people who will spend the most, and it’s not fleets.
CAFE ballooned the size of trucks. Now some “trucks” are just jacked-up cars.
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