America's Car Loan Debt is out of Control
#2
EvoM Guru
iTrader: (1)
Cars are going to be the next financial bubble. Leases are terrible too. GM and Ford are preparing for it with their recent business model changes..
#4
Newbie
iTrader: (4)
Well my friends sometimes the truth hurts what people need/want in life does not match wages that stay the same. Do you honestly think big cities like New York or California have all these people in rush hour traffic because they are debt free...it’s cause we got to pay for what we need/want.
#7
Evolved Member
iTrader: (2)
I don't think the issue actually is with people and newer cars. It's people living pay check to pay check in jobs with little to no advancement opportunity. Because public transportation in the US sucks, the vast majority of people need a car to get to work. So for these people barely making it by, all it takes is one medical emergency or unexpected car repair, and now they are behind on payments on their used car. My wife works with foster care youth and these kids are barely surviving. All it takes is something like a parking ticket which they can't afford to pay or anything else (medical issue, etc), they either get in trouble for not paying the ticket, or get behind on car payment on their $2000 car, lose the car, lose their job, etc. Some of these kids are homeless and living out of their cars.
The following 2 users liked this post by spdracerut:
alpinaturbo (Feb 25, 2019),
jayevo23 (Feb 25, 2019)
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#8
EvoM Community Team Leader
iTrader: (60)
Seems like used car prices are on the rise, for anything desirable. I blame Bring A Trailer and their inflation tactics LOL
Some states make owning an older car a pain in the ***. I'm talking to you ,Kalifornia.
I never buy new because I can't be okay with the depreciation. There is no new car that I will keep long enough to not loose my shirt in the sale.
older cars are better ,anyway.
#9
Evolving Member
We are in the best economic times, so there shouldn't be this problem with auto loan defaults. We are seeing signs of what some are calling the everything bubble.
#10
Evolved Member
Thread Starter
This. I see countless people who just bought a brand new car a year or less ago chasing after the latest getting less than what they owe on their trade in driving the purchase price even higher. It blows my mind.
#11
Evolved Member
iTrader: (29)
I don't think the issue actually is with people and newer cars. It's people living pay check to pay check in jobs with little to no advancement opportunity. Because public transportation in the US sucks, the vast majority of people need a car to get to work. So for these people barely making it by, all it takes is one medical emergency or unexpected car repair, and now they are behind on payments on their used car. My wife works with foster care youth and these kids are barely surviving. All it takes is something like a parking ticket which they can't afford to pay or anything else (medical issue, etc), they either get in trouble for not paying the ticket, or get behind on car payment on their $2000 car, lose the car, lose their job, etc. Some of these kids are homeless and living out of their cars.
#12
Evolved Member
In the local classifieds the Chevy dealer is offering a Suburban with $10,000 of incentives, just the vehicle any soccer mom wants to helicopter her children around in. This brought the selling price down to seventy grand. Take the paperwork to the courthouse and you are back at eighty grand. I remember when I bought my Evo new for way less money and the lady at the courthouse looked across the counter at me and said, "I'm sorry." She looked sincere.
#13
EvoM Community Team Leader
iTrader: (60)
In the local classifieds the Chevy dealer is offering a Suburban with $10,000 of incentives, just the vehicle any soccer mom wants to helicopter her children around in. This brought the selling price down to seventy grand. Take the paperwork to the courthouse and you are back at eighty grand. I remember when I bought my Evo new for way less money and the lady at the courthouse looked across the counter at me and said, "I'm sorry." She looked sincere.
#14
Evolved Member
I'm assuming this is a serious question. The DMV. She was sorry because of the amount of money I was having to produce to cover sales tax, property tax, wheel tax, registration and plating. Also, I needed the vehicle insured beforehand. The price of a vehicle is not just the sales price.
#15
EvoM Community Team Leader
iTrader: (60)
I'm assuming this is a serious question. The DMV. She was sorry because of the amount of money I was having to produce to cover sales tax, property tax, wheel tax, registration and plating. Also, I needed the vehicle insured beforehand. The price of a vehicle is not just the sales price.
Also thought paying less was a good thing so wasn't sure why sorry. I totally missed all that haha
Last edited by kaj; Feb 28, 2019 at 03:21 PM.