Posted on 11/08/2022 6:13:34 AM PST by ConservativeInPA
A growing percentage of Americans with auto loans are struggling to make their monthly payments.
Subprime borrowers in particular are feeling the impact of higher prices for both new and used vehicles.
The rise in delinquencies also follows the end of loan-accommodation programs set up during the pandemic.
With inflation cutting into the budgets of Americans, a growing percentage of people with auto loans are struggling to make their monthly payments.
TransUnion, which tracks more than 81 million auto loans in the U.S., said Tuesday the percentage of loans that are at least 60 days delinquent hit 1.65% in the third quarter, the highest rate for 60-day delinquencies in more than a decade
(Excerpt) Read more at cnbc.com ...
sarcasm/
Average monthly new car payment >>> $667
That was mortgage money not too many years ago...
One of the first things I did in 2021, after it was apparent the Joe was not going anywhere, was pay off my car loan as quickly as possible. I’ve been car loan free for about a year and a half.
The average price of a new car today is around $45,000. Which is more than what I paid for my first house. Which I bought in 1983.
My first new car was a $2300 Chevy. That won’t buy a new golf cart these days LOL.
There was still a covid “loan accommodation” program in almost 2023?
That’s exactly my monthly mortgage soon to be no more after a couple more pmts.
Did you have a variable rate auto loan? If not, early payoff offers little advantage as inflation increases.
Watch the student loan defaults as those moratoriums run out as well.
Q4 and Q1’23 are going to be nasty.
That is a great feeling, isn’t it?
It allows you to pay for the groceries, gas, and insurance as those prices rise. But yeah, fixed rates are good in inflationary periods.
I had to buy a car last year and was prepared to pay cash, however the 2% loan made huge sense with inflation even then, now it a win
Well if you were preparing to live in your new mobile home, that is a house payment today thanks to The Bidet.
A 3 year loan is not enough to pay for new gas cars costing at least $20,000 to $50,000. The electric cars are far more expensive. The way the gas cars are built the new cars should be $10,000. I do not need all the electronics they build into a car. They could have modules to sell later or as a option when buying that can be plugged in like a new radio, display, heated seats etc.
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