Posted on 11/13/2024 8:19:17 AM PST by RomanSoldier19
ccording to Edmunds, more Americans are stuck with cars worth less than what they owe. This troubling trend has become increasingly common and their data shows how widespread it has become.
When you look at the numbers, in the third quarter of 2024, about one in four people trading in their vehicles were in negative equity or "upside-down" on their car loans. The average negative equity hit an all-time high of $6,458 – and some owe even more. Edmunds reports that these figures are a growing issue affecting many car owners
(Excerpt) Read more at msn.com ...
What does one expect with $50-60,000 cars and pickups that either are electric or fewer cylinders with turbos both of which won’t last as long as prior cars.
Must be a lie. Ive been reminded numerous times about the robust economy Trump is inheriting.😂
I seriously wonder if in a large way financing IS the problem.
I think at some point there will be a tipping point, esp with EV’s. If the average person can only afford to take out a say 7 year loan. But, the EV’s battery only lasts for 5 (as an example). People will just start walking away from that loan, and let the car be reposessed.
There has to be a point where if finance Co’s will not write loans that the car prices must come down.
Quick, Uncle Joe! You’re still the Big Guy.
Run out a $Trillion gimme plan to save these people from the excesses of the Biden economy.
New cars (and trucks) cost more then the home I bought in 1985. 39 years later my home is worth today way more then what I paid for.
I can guarantee you most new cars (and trunks) bought today will be worth zero (if they are even still working).
Something more then inflation is at work here.
Talk about math ignorance. The average is X and some are even more than X.
Think twice before you pay for that tattoo. They’re not cheap.
EVERY car loan is upside down when you drive a new car off the lot. You don’t start gaining equity for a few years.
Solution: Don’t trade the car in, and keep paying it down.
And next time, buy a car you can afford.
Put 5k down on a 80,000 pick up, drive it off the lot, and you’re upside down.
A house is a “lasting” thing.
Cars are consumables. (with few exceptions).. They are meant to be used and then scrapped).
With the prices continuing to rise, and the short life span of EVs, coupled with the criplling cost to replace batteries..
I could easy see cars going to the way of software.
You just don’t buy Ms Office anymore, you pay monthly. Maybe it moves to that kind of model, where you just rent forever and never buy/ own.
Or piercing.
You take a loan out for a $30,000 car that depreciates to $27,000 as soon as you drive it off the lot. In one year it drops to $24,000 and in two years it drops to $20,000.
https://www.edmunds.com/car-buying/how-fast-does-my-new-car-lose-value-infographic.html
whatever happened to a simple 2 door pickup?
I haven’t seen one in ages!!
Last week I doubled the value of my car. I bought snow tires.
It’s been probably 30 years since I have financed a car. Like most everything else (your home maybe excluded), if you can’t afford to pay for it in cash, don’t buy it.
That’s my problem. I only buy cars I can afford...so my mechanic gets all my money instead of the dealer. :)
I paid 6400.00 for my 2005 SUV in 2016. I’ve had to put a couple thousand dollars worth of work into it over the years, but it’s still a solid vehicle and I have no plans to get rid of it anytime soon. The AC died in the middle of the Georgia summer, but I suffered through it. I’ll get the AC replaced over the winter so it will be ready for next summer.
We have purchased one vehicle that could be considered “new’ over the past 40 years. The dealer’s manager had driven it a bit and it had a couple hundred miles on it. That was my husband’s work truck and was needed for his commute.
It’s foolish to purchase and finance a brand new vehicle at current prices. But, I’m all for more people doing so and trading in those perfectly fine cars and trucks. The used car market needs more cars available for us working class grunts.
You vill own nuzzink und you vill be happy.
...or else!
This is good old fashion bad decision making. Until recently I was reading articles about dealers complaining they couldn’t get enough of the high end models to sell.
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