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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: ProtectOurFreedom

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

I have no idea what the overall financial situation was. As you point out just $10,000 wouldn’t do the trick. The problem I noticed with the free money was that people get free money and act as if it will never end. Since the Covid money stopped I’ve had to wait up to two weeks to get her final rent payment for that month.


41 posted on 02/26/2023 3:03:30 PM PST by Gen.Blather (Wait! I said that out loud? )
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To: EvilCapitalist

In 40 years of marriage, we’ve bought three new cars, all the rest were used. We get them with low miles, normally under 20,000. We let somebody else take the 25% hit when they drive it off the lot. We always make sure we have the fully warranty, too. It’s worked well for us.

My last used car was a 2014 Ford Expedition we bought in 2016. I got the last model year that had a V8 engine. Many model years of Expedition experienced no recalls (2010-11 and 2013-17), something which is very unusual. Unfortunately, the Ford 5.4-liter Triton V8 has a habit of spitting spark plugs out.


42 posted on 02/26/2023 3:05:11 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: ProtectOurFreedom

She split it into down payments. Here in Chicago, places will hand you a car with junk credit and $1000. Interest rates are through the roof and your payments are high each month, but that’s not their problem - it’s yours.


43 posted on 02/26/2023 3:06:11 PM PST by Tacrolimus1mg (Do no harm, but take no sh!t.)
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To: RomanSoldier19

You know, there are still cars that can be bought for 20-25K new. They are really nice cars too. Get a base CX-30, Versa, or Corolla not a loaded F-150, save 45K. The only way you’d make a $1000 a month payment on those is you have a 20 month loan.

Yes, it is really that simple.


44 posted on 02/26/2023 3:06:31 PM PST by Fai Mao (Starve the beast and steal its food!)
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To: Keyhopper

Yeah I was gonna do that.

Auto dealer hooked me up with manufacturer. Got it for less than the dealership was going to charge to remove it.

Thanks


45 posted on 02/26/2023 3:06:57 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: Round Earther

I hope so. I NEED a Knight XV real bad


46 posted on 02/26/2023 3:07:37 PM PST by oldasrocks (quew)
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Perhaps if people didn’t buy ginormous trucks that require 3 parking spaces to park. Maybe if people learn to work in their cars. I currently have 2, one is a 2001 SUV that gets battered that I bought in 2006, and a 1966 toyota landcruuser that I bought in 1996. They both get used and beaten and maintained and run quite well


47 posted on 02/26/2023 3:09:02 PM PST by dsrtsage ( Complexity is just simple lacking imagination)
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To: RomanSoldier19

I haven’t had a car payment since 1990.

I do not buy brand new cars. I always go for cars that are at least a few years old. My newest car right now is a 2007.

I own 8 cars, so none gets driven a lot.


48 posted on 02/26/2023 3:10:30 PM PST by CarmichaelPatriot (Recovering Kalifornian... Loving Alabama!)
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To: blackdog

(Don’t become influenced by the influencers.)

Absolutely some of the best advice these days. I say the same thing though not so eloquently.

I’m more like: “Stop listening to these idiots that you don’t know personally!”


49 posted on 02/26/2023 3:11:02 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

Every vehicle that I have purchased over the past 25 years has been used and for cash. The last new vehicle I ever purchased was a 1996 Ford F150. I drove it for over 20 years until.the engine finally went out at close to 250,000 miles.


50 posted on 02/26/2023 3:12:44 PM PST by Bubba_Leroy (Dementia Joe is Not My President)
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To: Tijeras_Slim
They probably used the 10K for downpayment, and the dealer knew they couldn’t make it.

The dealers don't care. Once you have the loan, you're the loan company's problem.

51 posted on 02/26/2023 3:13:22 PM PST by TwelveOfTwenty (Will whoever keeps asking if this country can get any more insane please stop?)
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To: Lizavetta

Me.

J/K


52 posted on 02/26/2023 3:13:25 PM PST by Jonty30 (THE URGE TO SAVE THE WORLD IS ALMOST ALWAYS AN URGE TO RULE IT)
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To: RomanSoldier19

Awesome movie. You that John Wayne is a …


53 posted on 02/26/2023 3:13:48 PM PST by thegagline (Sic semper tyrannis! Goldwater 2024)
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To: RomanSoldier19

hold up... theres another thread popping up that 72% of Gen X-ers net worths are 75 to 450K on average... so how can this possibly be??


54 posted on 02/26/2023 3:15:11 PM PST by sit-rep ( )
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To: CarmichaelPatriot
I bought a new car once in 1987. It was required for my job.

180,000 in two years. Then I moved up to aircraft, which present a whole new set of transportation write-offs. Never did such a stupid thing again. We all learn.

55 posted on 02/26/2023 3:17:42 PM PST by blackdog ((Z28.310) Forget "Global Warming", new grants are for "Galaxy Dimming")
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To: SaveFerris

I had the good sense to buy a double wide in 2016 with the payment and escrow being around 520-600 monthly. My wife had to fight for her disability for 1.5 years and we had to surrender two vehicles that totaled 950 monthly, cashed out my retirement to buy a vehicle. now we have taken the payments over for our son’s Kia and then my 28 yo truck laid down and with my credit I am paying 16% interest on a 12k Xterra. 373 a month. One dealer was willing to put me into a tiny SUV for 600 a month and I told them to fly a kite, but no doubt if I got a tax return I could easily get a 1000 loan on a used 4x4 pickup if I was that stupid.


56 posted on 02/26/2023 3:18:12 PM PST by rebel25 (No creative or funny tag line available now; please check again later...)
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To: Round Earther

You’re smart.

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

coupe when you can get a sedan. Also never ever lease a car.


57 posted on 02/26/2023 3:18:17 PM PST by slouper (LWRC SPR 5.5 6)
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To: SaveFerris

(Aircraft yes. Car financing, NO!)


58 posted on 02/26/2023 3:19:26 PM PST by blackdog ((Z28.310) Forget "Global Warming", new grants are for "Galaxy Dimming")
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To: RomanSoldier19

Banks really thought people would keep making $1,000 payments...


59 posted on 02/26/2023 3:21:11 PM PST by roving ( Pronouns- libs/suk)
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To: RomanSoldier19

bkmk


60 posted on 02/26/2023 3:21:31 PM PST by sauropod (“If they don’t believe our lies, well, that’s just conspiracy theorist stuff, there.”)
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