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‘Tip of the negative equity iceberg’: A record number of Americans are grappling with $1,000 car payments and many drivers can't keep pace — stay ahead by dodging these 2 loan mistakes
monewise via msn ^ | 2/24/23 | Bethan Moorcraft

Posted on 02/26/2023 2:25:29 PM PST by RomanSoldier19

With a record 16% of American consumers paying at least $1,000 a month for their cars, it's no surprise that drivers are starting to fall behind on their bills.

The percentage of borrowers at least 60 days late on their car payments is higher today than it was during the peak of the Great Recession in 2009.

There are multiple factors driving this trend. Car financing costs are climbing as the Federal Reserve continues its aggressive campaign of interest rate hikes to combat persistent inflation.

At the same time, used car values are dropping, leaving debtors at risk of owing more money than their cars are actually worth.

(Excerpt) Read more at msn.com ...


TOPICS: Business/Economy; Front Page News; News/Current Events
KEYWORDS: automotive; bideneffect; bidenflation; bidenomics; economy; payments; subprime; wboopi
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To: SaveFerris

There’s still plenty of lease deals in the $269/mth range in my area.


21 posted on 02/26/2023 2:46:32 PM PST by Roman_War_Criminal (Jesus + Something = Nothing ; Jesus + Nothing = Everything )
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To: Gen.Blather

Probably not well maintained cars either. Bet the oil changes were prolonged with a lot of hot rodding.


22 posted on 02/26/2023 2:47:31 PM PST by CommieCutter
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To: RomanSoldier19

Not long ago $1000 a month would have been a mortgage payment not a car payment.


23 posted on 02/26/2023 2:47:55 PM PST by jimwatx
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To: EvilCapitalist

While each time I have shopped for a car, I start out looking at BMW, Volvo, VW or Subaru but always come to my senses and get a Honda or Toyota.


24 posted on 02/26/2023 2:49:00 PM PST by Round Earther
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To: Lizavetta

“”What kind of maroon would agree to car payments that high?””

“”higher today than it was during the peak of the Great Recession in 2009.””

I will never forget, in 2005-2008,hearing radio commercials for 120%-140% mortgages. Some of the insane ads touted buying a boat or car with the ‘extra’ money. At the same time, there were many ads to ‘pull the equity out of your home.’

Recently, I have heard the ‘pull equity’ ads again. Insanity.

Our 2006 Ford Taurus runs like a champ. Fully paid off, it ‘charges’ at the gas station in under 5 minutes. After 400 miles, it takes another 5 minutes for a full charge. If you keep up on oil changes and general maintenance, many cars can last quite a while. The insurance / registration is less.

Except for large purchases, our parents suggested you wait and save up to purchase things. By the time you have enough cash to buy it, sometimes you find you didn’t really want / need it.


25 posted on 02/26/2023 2:50:11 PM PST by Ronaldus Magnus III (Do, or do not, there is no try)
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To: Roman_War_Criminal

I keep praying 🙏🙏🙏🙏✝️🛐🛐🙏🙏 to 🛐🛐🛐🛐 get my oldest car fixed.

I’ve finally gotten the tool to get my wheel locks off. Hope to start putting on my new tires in the next couple of weeks or so.

Then I can try to move forward on a particular job.


26 posted on 02/26/2023 2:50:17 PM PST by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: jimwatx

27 posted on 02/26/2023 2:50:29 PM PST by RomanSoldier19 (Res ad Triarios venit;“We are your ghosts, in this game played by monkeys, organized by lunatics” )
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To: RomanSoldier19

Mistake #1: Not keeping Old Betsy running until she has 180,000 miles on her.
Mistake #2: Not buying a used car.
Mistake #3: Not saving a serious down payment while driving Old Betsy to the ground.


28 posted on 02/26/2023 2:50:37 PM PST by ProtectOurFreedom (There is lots of money and power in Green Communism and we all know where Communism ends.)
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To: Gen.Blather

PLEASE!! Show me where I too can buy three new cars with a $10,000 COVID payment from Uncle Sugar.


29 posted on 02/26/2023 2:52:04 PM PST by ProtectOurFreedom (There is lots of money and power in Green Communism and we all know where Communism ends.)
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To: Round Earther
The market has corrected and there will be good deals on repos.

If you couldn't afford your car payment you probably weren't keeping it up properly either. I'll pass on repos.

30 posted on 02/26/2023 2:55:03 PM PST by AlaskaErik (There are three kinds of rats: Rats, Damned Rats, and DemocRats.)
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To: jimwatx

That’s about 1 1/2 mortgage payments for me.


31 posted on 02/26/2023 2:55:53 PM PST by HartleyMBaldwin
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To: RomanSoldier19

“With a record 16% of American consumers paying at least $1,000 a month for their cars, it’s no surprise that drivers are starting to fall behind on their bills. The percentage of borrowers at least 60 days late on their car payments is higher today than it was during the peak of the Great Recession in 2009.”

People that can’t manage money usually lose it pretty quickly. As one who sacrificed to stay out of debt I know that it can be done. It just takes common sense and discipline.

Of course it helps if you have a decent job and income. But even if you don’t you can still live within your means. Buy used cars - cash no loan or payments.


32 posted on 02/26/2023 2:56:52 PM PST by plain talk
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To: EvilCapitalist

If you want a BMW on a Ford Focus budget, buy a silver Ford Focus and drive like a prick,. People will think you are driving a BMW.


33 posted on 02/26/2023 2:57:06 PM PST by Cold Heart
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To: ProtectOurFreedom

Only thing I disagree with is Mistake #2. When you buy used, you buy the previous owners problems. I prefer to buy new. Otherwise Mistake #1, and Mistake #3 are spot-on.


34 posted on 02/26/2023 2:59:05 PM PST by EvilCapitalist (81 million votes my ass.)
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To: Cold Heart

Lol!


35 posted on 02/26/2023 2:59:28 PM PST by EvilCapitalist (81 million votes my ass.)
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To: Cold Heart

🤣😃


36 posted on 02/26/2023 2:59:38 PM PST by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: RomanSoldier19

Great movie although, don’t look in the trunk.


37 posted on 02/26/2023 3:00:24 PM PST by SkyDancer (Hold on tight to your dream)
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To: Lizavetta
$3000 beaters cash. Run it for ten years. Liability only.

If you need a long trip 1,000 miles or more, rent from Enterprise. $250 for a whole week. Unlimited mileage.

Paid for is my God in both cars and houses. DO NOT PAY ANY ATTENTION to commercials on television.

I have six properties and vacation homes. Don't become influenced by the influencers.

Be your own spirit in equity and liabilities.

38 posted on 02/26/2023 3:02:58 PM PST by blackdog ((Z28.310) Forget "Global Warming", new grants are for "Galaxy Dimming")
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To: ProtectOurFreedom

Dealers were desperate to make deals during covid. They probably used the 10K for downpayment, and the dealer knew they couldn’t make it.


39 posted on 02/26/2023 3:03:06 PM PST by Tijeras_Slim
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To: SaveFerris

Wheel locks, you mean rim locks???
Get a 4 way lug wrench, find the size that fits over the lock, pound it on with a hammer, after it’s loose wriggle the 4 way lug wrench off the lock and spin it off. Reinstall new lug nuts. If you don’t have a 4 way use a deep well socket slightly bigger that the lock.


40 posted on 02/26/2023 3:03:08 PM PST by Keyhopper (Indians had bad immigration laws)
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