‘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

[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.

[HamiltonJay]

Carvana is by far the dumbest concepts since Webvan.

Sooner they, and the various clones die, the better off everyone will be.

[Harpotoo]

My 2018 forester was paid off in 2021. I owed 7k on my 2019 tucson. I sold it to carmax last year for 22k when I retired.
We only have 1 car now and it’s working out just fine.

[Karma_Sherab]

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

The same kind that falls for weekly payments on things......

Growing up in B'ham Alabama, there was a dealership I passed every day - Curt's Cars, in the black section of town.

Apparently, someone didn't like their deal and had changed their sign to read:
Curt's Cars
Buy Here! Pay Here!
we F*CK you Free!

always struck me as funny

[Bubba_Leroy]

What, you shouldn’t take life directions from some kid who has never held a job other than making YouTube videos from his mother’s basement?

[Bubba_Leroy]

My Dad use to tell me never go beyond 48 months on a car note

My Dad use to tell me never go beyond 36 months on a car note, but the last new car he financed was in the 1960s. After that, he only bought used cars for cash, which is what I have done since the late 1990s (the last new vehicle I bought was a 1996 Ford F-150).

My kids are in their late 20s and have never owned a new car or had a car note. They all own their own homes though.

[central_va]

Coupes are good. Sedans are ugly.

[wardaddy]

I think today insurance companies issue rebuild or salvage titles if the airbags go off I could be wrong

If I buy an old car for cheap and run it in the ground in 2 to 3 years I don’t care about the title so much

Today you have to be rich to buy a new nice car in my opinion when nice cars luxury cars start at 75 80,000

[dragnet2]

My parents bought a BRAND NEW home in CA, on ONE income.

Try that in todays economic meat grinder.

[SaveFerris]

Heh

Or some woman who tells strangers how to live their lives. Might as well watch CNN and MSNBC and believe their nonsense.

[SaveFerris]

White, black and red.

Then silver with an occasional blue.

A couple of yellow.

Looks like they have a few cars. 🚗🚗🚗🚗🚗🚗

[cgbg]

I have never purchased a “luxury car” and have no desire to do so—just don’t get it at all—and I could afford it even at today’s prices.

All I want is cheap and reliable transportation—and that is still doable today in ways discussed on this thread.

[SPDSHDW]

It’s help if the damn feds would stop mandating all this frivolous bs be added in cars.

It all adds to the damn price

[slouper]

I know but i’m just to old to strap one on these days. I need room and comfort that’s why I drive and old mans cruiser.

[SaveFerris]

Yes

[Chode]

cash for clunkers 2

[Elsie]

The BOOK says to owe no man.

[Elsie]

Where in CA?

[ApplegateRanch]

>>what’s this “covid bucs” you talk about?<<

The so called “Stimulus” money.

[CommieCutter]

And that’s what I’m saying. You know they don’t. Why would they?