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 ...
OTOH, we used our COVID BUX to buy new high efficiency windown, to replace all the old WWII single-pane double hungs this place had. So far, despite lower winter temps & a much hotter summmer, power bills have been $40+ lower month over month.
Had already used procedes from a land sale to pay off all debt; and pay cash for badly needed newer car, pickup, and tractor. Mortgage was alredy long since paid off.
Not much in the way of toys; but I do have priorities.
“What kind of maroon would agree to car payments that high?”
25 to 40 year old Tesla owners (Bank owned actually) They are the 21st Century version of “keeping up with the tree hugging Joneses”
One good tip is to shop on the last day of the month and keep them there until midnight. They are always eager for that one last sale to meet their number or blow it out. We’ve done that a couple times and have gotten some great deals.
We bought extended warranties on two cars and both times they paid off big time with major repairs well in excess of the warranty cost. But it’s a complete crap-shoot.
“Not much in the way of toys; but I do have priorities.”
I’ve recommended the book “The Millionaire Next Door” to lots of people. You don’t need it.
Now it is "hard lessons learned" time.
I could’ve paid off mine, but have a fixed rate of 1%, so why bother?
I own a 2003 Toyota Avalon (low mileage, mint condition), 2009 Toyota Camry (high mileage, good condition) and a 2015 Town & Country Mini Van (low mileage, mint condition).....I’m 66, retired, run on site Airbnb’s. Life is good.
Hmmm . . .
To put it this way, the warranty insurers are betting that you won’t have a major breakdown, and you are betting that you do. Guess who has researched the data more?
If you couldn't afford your car payment you probably weren't keeping it up properly either. I'll pass on repos.
In my neck of the woods good times bring out a lot of guys who think they are hot shot contractors. In their mind, a hot shot contractor NEEDS a minimum of a 3/4 ton pickup, with all the bells & whistles.
When bad times hit they discover that they aren't such great contractors, and those trucks come on the market at very good prices. I got one at the end of the great recession, diesel, with few enough miles that maintenance didn't really matter. In about a year it might be time for an updated one...
I have owned only new GM or Ford cars since 1964.
On average I have traded them in for another new car every 5-7 years. My total repair cost over 59 years is less than $750!
But I have a degree in mechanical engineering and I diagnose the exact problem before walking into a repair shop and tell them exzactly what needs repaired. That has saved me many 4 figure repairs.
Paid cash.
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.
1995 F-150 here. Bought brand new 28 years ago for $16K. Daily driver, 174,000 miles. Always garaged and maintained...cherry.
My truck will outlive me.
Paying in cash avoids this issue.
I remember a new article a few months ago stating that car loans is the next financial crisis. I believe it.
‘07 Honda Civic here with 350k miles, and I put well over 1600 miles a month on it still.
“When you buy used, you buy the previous owners problems”
A two or three year old vehicle, still under warranty but already took the depreciation hit can be a good deal.
I like not having a car payment either.
One of Dave Ramsey’s preachings: Never finance a depreciating asset.
I have a 2010 Ford Expedition with 300K miles. Paid cash for it in ‘12. When it craps out, I will get a used Tacoma and keep it for 10+ years.
There are millions of them. 75% of all the cars ya see on LA freeways are owned by banks. These fools are paying anywhere from 500.00 to 2k and up per month for a car. They offer people 6 year financing plans for cars....yukyuk
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