[Vendome]

I know several people who bought vehicles they shouldn’t be able to afford

One kid bought a $67K truck

He makes about $35K

I just shook my head knowing what is coming

[JesusIsLord]

Edmunds says avg price of new car in Dec 21. was $45K. My guess is that lenders have been financing car loans they had no business financing. Sound familiar? Remember what caused the 08 real estate crash? It was banks lending large sums (mortgages) to financially ill-equiped people.

[Vermont Lt]

I found out that I was due a small pension from a company I worked for in my youth.

Turns out…it was the same amount as a low, low interest loan for my truck.

It impacted my cash flow by about $10 a month. The truck will be paid off just in time to collect the “real” money—and it should last ten years past that.

Silly millennials and z’ers.

[AlaskaErik]

Many dealers charged huge markups over MSRP. I saw $10k for a Toyota Tundra and $7k for a Corolla Cross at my local Toyota dealer. All these fools that paid it are now stuck with much higher payments and they’re way underwater as far as the value of the vehicle is concerned. As used car prices come down to earth it’s going to be the same for those owners.

[minnesota_bound]

7 year loans for a car is ridiculous.

[Zathras]

Again, the same thing happened late 70’s under Carter.

[Responsibility2nd]

A lot of Freepers argue against car payments and financing a car. But why should anyone pay cash for a $50,000 car?

If you can afford a $50,000 car, then why should you take the cash out of an income earning account with a yield of four or 5%? Why not finance that at 2%?