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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: usconservative

“Drive it like you stole it”

Sure is a lot of that going around.

Reminds me of a saying from my mounted shooting days.

“Ride your horse like you stole it, shoot like you want to keep it”


141 posted on 02/26/2023 7:13:21 PM PST by Cold Heart
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To: CFW

My monthly house payment=P I T I= $161 in 1966. ONE DOLLAR a month more than the 2nd floor 2 bedroom unfurnished apartment I was in.


142 posted on 02/26/2023 7:15:28 PM PST by ridesthemiles
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To: dragnet2

“A big part of my strategy for many years ago was to own my own vehicles outright. I see debt as slavery. Payment slavery.

I was able to do that many years ago and never looked back. To this day, my vehicles are older, super maintained by myself, and owned clear and free.”

______________________________

In comparison to you we are newbies to being debt free, our home has been paid off for 5 years, no CC or other personal debt, our commuter car is a 2012 Ford Escape paid off 7 years now and my truck, a 2020 Tacoma, is as of December paid off. So no debt and will not have any debt if we cannot afford it will do without.

We spent a good chunk of our adult lives thinking it is impossible to be debt free but changed on that during to boom years and went ballistic on our debt, best decision ever.


143 posted on 02/26/2023 7:24:57 PM PST by fatboy (')
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To: mware

in December of 2019 I leased a 2020 Mazda CX30, I negotiated a deal where I paid $139 a month for the lease. I am now buying the vehicle and my payment is about $244, I may end up paying if off totally. Not in the market for another vehicle as I only have 14,700 miles on mine now.


144 posted on 02/26/2023 7:26:18 PM PST by Captain Peter Blood
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To: HereInTheHeartland

“...the Chevy Suburbans etc...”
I had a Chey Suburban for 19 years and got over 360,000 miles on it. I hauled boats, animal trailers, FFA kids, dogs, hay and even a sheep in the back. Oh, and hauled my 400lb old fashioned anchor cross country. I only sold it because the rest of the family was embarrassed by the wood grain side. It outlasted the guy I sold it to after he put many more thousands on it.

My daughter has a suburban now. She hauls FFA kids but won’t allow hay or sheep in the back.


145 posted on 02/26/2023 7:29:53 PM PST by Cold Heart
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To: RomanSoldier19

Repo scum are targets...


146 posted on 02/26/2023 7:34:23 PM PST by mabarker1 ( (Congress- the opposite of PROGRESS!!! A fraud, a hypocrite, a liar. I'm a member of Congress !7)
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To: Keyhopper

How does using an OVERSIZED tool get a grip on the locking lug nut ?


147 posted on 02/26/2023 7:44:36 PM PST by mabarker1 ( (Congress- the opposite of PROGRESS!!! A fraud, a hypocrite, a liar. I'm a member of Congress !7)
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To: Round Earther

The market has corrected and there will be good deals on repos.

If by ‘the market has corrected’ you mean to say that incomes have not kept up with interest rates so nobody can afford the new cars, causing downward pressure on pricing, You could make an argument.

The economy is teetering and inflation is about to take over the federal budget payments via interest, yet they cannot stop spending money.

We are heading toward a uniparty-induced financial cliff of epic proportions. Biden is an economic-wrecking-ball that will leave no one untouched.

Repo agents, start your engines.


148 posted on 02/26/2023 7:52:55 PM PST by Bshaw (A nefarious deceit is upon us all!)
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To: mabarker1

The rim locks are tapered. Get a deep socket that fits tightly on the nut. Pound it on with a hammer. Once it’s loose, wriggle it back and forth to get it off the rim lock, the unthread off the stud.


149 posted on 02/26/2023 8:40:25 PM PST by Keyhopper (Indians had bad immigration laws)
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To: fatboy

Same here...basically on every point. We got to the point where we couldn’t afford to have debt/payments nor did we want it. After having a mortgage in CA for many years, it was a serious beat down with little left for anything else every month. After selling and bailing out of CA, never again.


150 posted on 02/26/2023 9:18:51 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: Keyhopper

OK, I’ve done many that are not tapered in 38 years of wrenching.

I’ll Try on the next tapered ones.


151 posted on 02/26/2023 11:08:14 PM PST by mabarker1 ( (Congress- the opposite of PROGRESS!!! A fraud, a hypocrite, a liar. I'm a member of Congress !7)
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To: RomanSoldier19

New car prices are absurd

I’ll buy a 7000 dollar used crossover and it lasts another 150,000 or so I’m happy


152 posted on 02/26/2023 11:43:28 PM PST by wardaddy (Truth is treason in the Empire of lies)
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To: mware

Great if you don’t drive much


153 posted on 02/26/2023 11:45:04 PM PST by wardaddy (Truth is treason in the Empire of lies)
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To: Tacrolimus1mg

Tote the note

They are everywhere

Only choice for some folks


154 posted on 02/26/2023 11:47:26 PM PST by wardaddy (Truth is treason in the Empire of lies)
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To: RomanSoldier19

I’m buying a car next few days

I’ll spend under 10k for some awd with 75-140,00 miles

I do 200 miles day

Hopefully I get two decent years out of it

I used to have a sweetheart deal on hertz cAuse I washed all their cars

Fresh off the lot New half ton truck every 90 days 600/month unlimited

Then covid killed car production and rates went to 1100

I quit

I had that deal 8 years

All makes of pickup

Back when trucks were 35000 loaded I buy new

I bought dodge 1500 crew cab whites 4wd for 17,000 new in 2008

I still have one 340,000 miles I’m driving tomorrow

I put leather in it aftermarket for 1200 and a new crate motor and OEM tranz

My other car is an FJ with high mileage and a manual maxima

I know how to get most out of my cars

Id drive any of them to kali tomorrow


155 posted on 02/26/2023 11:58:10 PM PST by wardaddy (Truth is treason in the Empire of lies)
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To: wardaddy
we were rear ended last week and I think our car is totaled but we'll find out soon....it was an excellant vehicle and we drove it all over the country thus it may not be financially sound to fix it....

but it was solid and the body was still in good shape and the radio worked...

we can not replace our rav 4 with whatever the insurance company thinks it was worth....

so when the dust settles, we'll be looking at the used car inventory.....

156 posted on 02/27/2023 12:13:51 AM PST by cherry
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To: SamAdams76

our car is 7 yrs old and has close to 200,000 miles on it....that 60000 miles seems very light..


157 posted on 02/27/2023 12:19:05 AM PST by cherry
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To: ApplegateRanch

what’s this “covid bucs” you talk about?......we got nothing....nada....


158 posted on 02/27/2023 12:20:23 AM PST by cherry
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To: blackdog

For a while I was buying decent used 5spd saturn sl2’s for between 1200 and 1500.

Went thru 3. Probably drove over 250k miles between the 3.

The cash for junkets and inflation have stripped all those deals away.


159 posted on 02/27/2023 3:18:38 AM PST by reviled downesdad (Some of the lost will never believe the Truth.Rinos)
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To: dragnet2

“Same here...basically on every point. We got to the point where we couldn’t afford to have debt/payments nor did we want it. After having a mortgage in CA for many years, it was a serious beat down with little left for anything else every month. After selling and bailing out of CA, never again.”

_________________________________

We left NJ for PA 18 yrs ago. Our property taxes are about 1/3rd of what they were in NJ.

For the last 2 years we have been working hard to lower our living costs with the goal to meet our recurring expenses on what we would both get from SS if that were all we had. Based on 2022 dollars we are at the point where we could survive on just what I would receive from SS.

That means that my spouses SS, her pension, our 401K/403B,IRA,Roth IRA and cash savings will all be extra. I intend to stay in the workforce for a number of years. It’s good to have a plan, it is amazing how many our age don’t.


160 posted on 02/27/2023 4:28:12 AM PST by fatboy (')
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