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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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1 posted on 02/26/2023 2:25:29 PM PST by RomanSoldier19
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To: RomanSoldier19

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


2 posted on 02/26/2023 2:28:03 PM PST by Lizavetta
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To: RomanSoldier19

I’m glad I paid-off my vehicle as quickly as possible when I saw Joe was going to occupy the White House.


3 posted on 02/26/2023 2:28:26 PM PST by EvilCapitalist (81 million votes my ass.)
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To: RomanSoldier19

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


4 posted on 02/26/2023 2:28:49 PM PST by Round Earther
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To: RomanSoldier19

(16% of American consumers paying at least $1,000 a month for their cars)

Absolutely crazy


5 posted on 02/26/2023 2:29:55 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

2008 is coming again

Prepare as best you can


6 posted on 02/26/2023 2:30:52 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

A nation of credit abusers with a government that abuses credit.

Something about the Lord poking hold in pockets comes to mind.


7 posted on 02/26/2023 2:31:39 PM PST by Rurudyne (Standup Philosopher)
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To: RomanSoldier19

Looking for the joke with a microscope
I’m a repo repo repo man


8 posted on 02/26/2023 2:31:48 PM PST by Round Earther
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To: SaveFerris

Maybe people trying to buy BMW’s on a Ford Focus budget.


9 posted on 02/26/2023 2:32:40 PM PST by EvilCapitalist (81 million votes my ass.)
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To: EvilCapitalist

Yeah.

I couldn’t even afford a Focus these days.


10 posted on 02/26/2023 2:33:37 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: Lizavetta

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

One of my renters who seemed to have her head screwed on very well got the free Covid money. She got around ten thousand dollars from Uncle Sam, for free. I thought she’d save it and it would really help her in the future. No. She bought each of her three kids new cars. Not ordinary cars but Dodge super cars. (The other two renters on the program got into drugs and I had to throw one out and the other stole a car and fled back to the mountains.)

A car dealer I follow on YouTube said that lots of people used the free Covid money to buy cars they would not have otherwise bought; Mustangs and Chargers. The lease is coming up and these cars will be dumped on the market and sold at low prices.


11 posted on 02/26/2023 2:33:50 PM PST by Gen.Blather (Wait! I said that out loud? )
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To: SaveFerris

75% of Ford F-150 buyers.


12 posted on 02/26/2023 2:34:22 PM PST by Tijeras_Slim
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To: RomanSoldier19

Direct link, because MSN did not author this:

https://moneywise.com/loans/auto-loans/americans-behind-on-car-payments


13 posted on 02/26/2023 2:36:28 PM PST by ConservativeMind (Trump: Befuddling Democrats, Republicans, and the Media for the benefit of the US and all mankind.)
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To: EvilCapitalist

“Maybe people trying to buy BMW’s on a Ford Focus budget.”

I’ll get a good deal on a repoed Beamer.


14 posted on 02/26/2023 2:38:36 PM PST by Round Earther
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To: RomanSoldier19

70 years old here. Hoped my 2008 Milan would last but it was on its last legs. Leased a 2023 Elantra for 390/month. 39 month lease, and when that is done I may just buy out the rest of the lease.


15 posted on 02/26/2023 2:40:01 PM PST by mware
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To: RomanSoldier19

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.


16 posted on 02/26/2023 2:41:14 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: Round Earther

My next vehicle will likely be a Toyota, since they are being smart and sticking with the internal combustion engine.


17 posted on 02/26/2023 2:41:21 PM PST by EvilCapitalist (81 million votes my ass.)
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To: Tijeras_Slim

I believe it

I know about a guy paying $900 a month for a used pickup truck

He’s having trouble keeping up with the payments


18 posted on 02/26/2023 2:43:34 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: Gen.Blather
I knew an electronics technician back in the mid-80s who bought himself a brand new Firebird Trans-Am, all tricked out with options. Part of the engine was coming through the hood. I think it was about $18K at the time, which would be like $40K now.

Anyway, he was making like $7/hr I think, something like that. So he got a seven-year car loan for the thing. He even admitted it was stupid, but he had to have that car.

I had recently paid off my car, which was a 1982 Chevy Cavalier, which I think cost about $7.4K. That was unpleasant for me, and I made almost twice what he did.

19 posted on 02/26/2023 2:45:07 PM PST by Steely Tom ([Voter Fraud] == [Civil War])
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To: RomanSoldier19

Must be the people buying these 70 to 100k trucks.


20 posted on 02/26/2023 2:46:00 PM PST by Husker24 (Pp)
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