Window sticker for 1964 Chevy Impala SS.
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.
I tell people who are thinking of buying a car to put the proposed car payment in a savings account for 6 months, and if they have no problem doing that without destroying their budget they are probable ok, and have a nice down payment too.
The supply of used cars is about to increase and drive down prices.
While that may seem good, the problem is that deadbeats who default on car loans probably did not maintain the vehicle.
Might be a good way for me to get a used car way cheaper. Should be plenty to choose from.
Yea some Kia Rio bought by a ghetto rat, where Shanuiqua never changed the oil and it will smell like hair straightener, and sickly sweet air fresheners.
Insane!
I couldn't believe he would say, yet alone believe anything so stupid.
Window sticker for 1964 Chevy Impala SS.
Our cars are over ten years old and long ago paid off.
They work fine and we will keep them that way.
Haha. Probably not that. With a Carfax you can check the maintenance history of course and find out the previous owner and where it’s located.
What's this hogwash? "The nation" doesn't take out car loans, student loans, unsecured credit card debt or other of that sort of thing.
Individuals do. Individuals who cannot pay back used to be called "bad risks" and DEADBEATS. But they will be called victims, because of this, that and the other. Blah-blah.
Those lenders who IMPROPERLY qualify borrowers will be on the hook, and in a nanosecond they too will call themselves victims.
Neither a borrower nor a lender be. Said someone, who was oft repeated. And precious few heeded.
Anybody that agreed to pay $100k+ for a friggin’ pickup truck deserves what they get......stupid SHOULD hurt.
Many moons ago, we began using a similar process for larger purchases. Instead of using credit, or even no interest arrangements, we waited and saved until we could pay cash. By the time we could pay cash, we had plenty of time to really consider and determine if we really needed the item.
Here is another amusing anecdote.
Last year we were purchasing a new clothes washer and dryer. While I had read about all the fancy new 'systems' available (yes, they even call the appliances 'smart') we just wanted something simple. When we were browsing at the store, some of the new fangled appliances looked like the 2001 computer Hal.
We eventually found your basic washer and dryer from good 'ol General Electric .
What do they want? Auto loan forgiveness?
Totally absurd. The loans have big payments because the cars are expensive.
The cars are expensive thanks to government regulations requiring them to have features people don't actually need.
Scrap the bs car regs and people can have affordable cars again.
This is not the result some sort of bank scam.
My dad had a 74 Pontiac Grand Ville he bought at an estate sale several years ago and the invoice wasn’t much higher than what you posted. The previous owner kept good records.
Great car.
Yep. I cannot fathom the level of hedonism people have that they would be willing to fork over so much for a new vehicle with the prices they are at especially.
I first saw the 86 month loan thing on a banner at a Harley dealership I was pulling into back in 2008.....my first thought was anybody agreeing to that is a moron......and here we are.
An 86 month car loan is like a mortgage. A car is a depreciating asset. It’s one thing to take out a mortgage on an appreciating asset but it makes no sense to do it for a car.
Another for price comparison and perspective, this one for a 1969 Camaro.
When we bought our Niro in 2023 the guy opened with, “most people have a $700 car note these days.” I said we have 20% down and stellar credit and income. We will offer MSRP and that is it. Got it done in less than 3 hours.
Delete seat belt. Those were the days.. LOL!
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