Late car loan payments hit record

https://www.linkedin.com/news/story/late-car-loan-payments-hit-record-5528729/


Late car loan payments hit record
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By Rob Sacks, Editor at LinkedIn News
Updated 2 hours ago


Millions of Americans are having trouble paying their car loans, in a potential sign of trouble for consumer spending. The percentage of loans that are at least 60 days late rose to 6.11% in September, the highest on record, according to Fitch Ratings. Driving the problem: higher borrowing costs, more expensive cars and the resumption of student loan payments. Borrowers struggling to keep up also face the risk of having their cars repossessed. Average monthly payments for new and used vehicles are $770 and $592, respectively, according to Cox Automotive.

I've been waiting to see what the impact of student loan repayment coming back into the fray will be, and how it will ripple.

770 for a new car? What are they buying? BMWs?

This is where trillion dollar tax cuts, billions in pandemic bailouts and the great grift gets you. Then drown that in inflationary corporate greed and badabing badaboom, You are here. Yep, teetering on economic doom and gloom for the working class while the upper class and elite gain even more wealth. But your side will blame Biden and my side Trump, while it’s truly a combination of everything since Reagan.

Its called people spending beyond their means. Do they really need a new BMW?

Typical MAGA GOPER behavior. Buying champagne on a beer budget. Going bankrupt and starting over is the goper way. Their fearless leader has done it multiple times. Monkey see monkey do.

More like libtard behavior. Libtards think they are special snowflakes who need special things.

Lol the current republican controlled house can’t pay off the debt they accrued during trump. So sorry, it’s a MAGA GOPer thing. Not paying the bills and closing down the government is their way.

New and Used car prices are only now just starting to cool off from the COVID craziness.

Spend spend spend has always been the libtard way. You pass enormous spending bills with no plan to pay for them. We have libtards to blame.

Cars are $30k and up. Trucks are $50K and up.

Without interest, $30K = $500/month, and $50 = $833.

People are so used to buying with nothing down, so they usually carry negative equity over to a new car. (especially since their 1st several car payments cover their sales tax and fees only, with no money down)

Also, a lot of dealers took serious advantage of people when the plants couldn't keep up with demand. I got really lucky when I bought my Ram, because I went to my old boss, and he cut me a great deal. Ther is a local Dodge dealership that was stuffing some enhancement package on all of their trucks, ($1500, IIRC) and they also wanted $1000 or more over sticker.

As far as the government, both sides do a lot of stupid stuff, fiscally and otherwise.

My daughter's 2024 is costing her 717/month. I was there with her, and I know a good deal about finance/cars. $12,200 down.

The cost of new vehicles is crazy, and that makes used cars/trucks go up as well.

What did she buy?

Blazer.

That is not a low end car. When I was her age I was buying base model compact cheap cars. Frquently used. I wasnt bitching about the cost of cars because I wasnt living beyond my means.

And Sooga isn't complaining either.

https://www.bankrate.com/loans/auto-loans/average-monthly-car-payment/#:~:text=the%20best%20deal.-,Car%20payment%20statistics,of%202023%20were%20used%20vehicles.

The average monthly car payment for new cars is $729. The average monthly car payment for used cars is $528. 40.72 percent of vehicles financed in the second quarter of 2023 were new vehicles. 59.28 of percent of vehicles financed in the second quarter of 2023 were used vehicles.

The average monthly car payment for new cars is $729.
The average monthly car payment for used cars is $528.
40.72 percent of vehicles financed in the second quarter of 2023 were new vehicles.
59.28 of percent of vehicles financed in the second quarter of 2023 were used vehicles.
Of consumers purchasing new vehicles in 2023, 79.70 chose to finance their vehicle, versus 83.49 percent in 2022.
Credit union financing made up 24.98 percent of all auto loans during the same period.
The average cost of car insurance is about $168 per month.
New loan amounts are up only 0.2 percent in the second quarter of 2023.
SUVs and wagons increased financing share, hitting 60.87 percent of new vehicles financed in the second quarter of 2023.
Overall loan balances grew 6.50 percent in the same period.


Average auto loan terms

Cedit score New cars Used cars
781 to 850 (super prime) 61.60 months 64.70 months
661 to 780 (prime) 70.15 months 68.41 months
601 to 660 (nonprime) 74.20 months 68.34 months
501 to 600 (subprime) 73.80 months 66.27 months
300 to 500 (deep subprime) 72.79 months 62.85 months

My 07 Camry is doing great... I did buy a truck this year but kept the Camry as my main car....

I'm not surprised by this article... I think it's going to get a lot worse now that school loans are being paid again... will be interesting to see what the housing market does.

I agree they spend too much, but have you seen the debt numbers under the administrations going all the way back to Reagan?

I think what irks me about modern day R’s, and we can take the last admin just for an example, is that it’s a death spiral combination of increased spending with decreased revenue.

Well just raise the minimum wage to 30 bucks an hour. Problem solved.

Hell yea. Get them Hellcats repoed so I can get one on the cheap!

Hold up. How do I get a repo Hellcat??

Either a police auction or just wait for one to pop up at a dealership on auto trader or whatever car site you like using.

Google auto repo auctions in your state. You may need a dealers license to attend, but you can get one fairly easily: https://www.bryantsuretybonds.com/blog/ohio-dealer-license

I knew a couple of guys that had licenses just to buy and resale years ago. They never had a lot or official dealership. And I know some collectors get licensed for auctions.

I also think dealers can take limited guests, but not sure if that is still a thing.

Thanks guys.

I need a side-hustle to support my exotic liquor habit. And I'm bored as hell.

Along the same lines. I see Hell Cats and Demons sell at 20-30g over invoice on the internet.

I'm wondering how the hell people get ahold of those brand new without being a dealership. I'd be more than willing to break them in for free.

As far as I know, for new cars, you have to be part of a dealership program via a manufacturer. The guys I knew dabbled in quality used cars. Buy it for a few K, resale it for 3 or 4 times that. And one guy I knew bought exclusively Datsun trucks, those tiny ones. I was too young too see or know why, but he had a niche market making a living by buying, fixing up, and selling those for most of the 20 plus years that I knew him before he passed.

I’m hoping to do that with Scions.. Once they discontinue a livery like Datsun and Scion they become vintage collector pieces. I have a 2010 XD and I turned down a $12 offer. I bought it new for $14ish. Seems hopeful.