Americans are getting themselves into car debt that they can’t afford

Defaults are definitely a sign of bad things to come, but auto loans aren't all bad. Only bad when brainlets keep refinancing, don't pay, or use it to live outside their means.

I had the option to buy my car outright with cash, but I opted to finance because I was able to get a credit union loan with such a low interest rate that I only pay $168 interest over the 48 month term. Make your money work for you if you have the opportunity.

what do you think 3 months behind their payments means? theyre overleveraged and don't understand financing. also it says subprime auto loans which im sure are like 5-7%.

unforunately, unless its a systematic widespread crash it wont do shit. just like in "the big short", these ratings agencies and shit are all crooks. youll just bleed money until you get liquidated.

>Fall
They're auto loans, most of them are like a few thousand dollars. This is a scare piece meant to play off the 2008 housing crisis, with a problem that's like 1/1000th the size. It's literally nothing. Notice how they quote a general stat about the average amount financed for a car which has NOTHING to do with the average amount financed for a car where the borrow is defaulting.

Boomers don’t get car loans, they lease. Much better deal.

Industry insider here, average loan balance at charge-off is $8~10k and the banks typically recover half of that after repossessing and auctioning the car

Attached: 433EB455-0FEE-4DBC-970E-C6DCF3D8071C.jpg (640x963, 623K)

They need to ban 96 month fucking financing @ 28% apr.

Fuck it no bailout let this dumb fuckers go broke.

The Federal reserve will never allow this to happen

By sustaining the economy through quantitative easing, they can continue to lend at low interest rates.

They never have to face a downturn because any country that wants to overtake the dollar as the world reserve currency knows the US will go in and overturn their government

This is at least what most of us were taught in grade school if you actually paid attention in your American classes

Eurocucks pajeets and chimps will never understand the power of living in the first world knowing your government will annihilate any threat to your /comfy/ lifestyle in US

There won't be a bailout.
Cars just get repossessed.
If anyone is gonna get a bailout it'll be the financing departments of the auto manufacturers.

Feels nice being the Jews top fight dog. We ransacked your country and we at least get your scraps after we give your people to the Jews.

Non American cope

>average amount finance for a car is >$30k

What the fucking hell is fucking everyone in the fucking US fucking doing?

Literally a wide open used market full of cars, many of which are in great condition, but noooo people need the newest 20XX year car.

Very few cases where that new shiny car is ever needed imo, only when you're a millionaire or your job literally depends on giving clients rides from time to time (and no, not fucking uber).

cars are the new homes. welcome to 2007

It will only be a problem if the used car market becomes so saturated that repos don’t cover their own cost, in which case the automakers will get a bailout (again) because no one is buying their new production because they can go buy a 2018 for something like $5k.

>Makes the fat bitches driving overpriced Wranglers even funnier.

I saw this on reddit before. She financed a wrangler with 2k down and took out a 22k loan. I just read the comments and not her post.

reddit.com/r/personalfinance/comments/aq5xfk/dealership_changed_tradein_to_100_lost_2000_down/

>burgers are bankrupt
>burger government is bankrupt
>0 social cohesion, burgers HATE each other
>98% of burger companies are ponzu scams
>95% of GDP is not even real
I dont understand how burgerland even exists.

Yeah, no fucking shit.
>murrka fucked up their urban planning so that without a car you're fucking fucked (I know, I don't have a car and have to turn down job ops all the time because getting to these locations in a timely manner without a cage is impossible)
>cost of living skyrocketing, wages stagnated 20 years now
>no one has spare money, no one can save money
>for most people buying a 5k shitbox in cash is a pipe dream, but $200 a month car note is affordable
>shekelstein will give you financing on anything
>get into debt because it's the only way to survive
I wish it would all fucking collapse already. We're so screwed I couldn't even explain it effectively.

>Proud to be a nation of imperialist tyrants
The founders are rolling in their graves

They're decent, dependable cars for the price. I know everyone thinks Toyota's are the car you can neglect and it will keep on ticking, a lot of base model Hyundai's were designed to be beaten to shit and use crap quality petrol without trouble all why up until now the interior fell apart first. I've been a mechanic for Hyundai for a while and I will keep buying them on the cheap.

Still people are fucking morons for financing any car that is non essential to their lives that is over 15k. How stupid do you have to be to take out a 5-7 year loan on something that costs 3x the amount you make in a year. Fuck Ford for introducing 7 year car loans, way to fuck over idiots.

Not to mention your lovely capitalism gave way to car and oil companies to lobby to create your poor urban planning and destroy public transport and push car ownership to create the lovely traffic jams in major cities.
America loves capitalism but fails to see all the damage it's created by giving free reign to these companies.
Corporations run government at this point.

the more I learn about it, the more it resembles the soviet ca. 1990

>Fuck Ford for introducing 7 year car loans, way to fuck over idiots.
People need(want) cars and they can't afford it so in the name of glorious capitalism, companies will find ways to make things seem affordable.

Imagine being stupid enough to take out a debt to buy a new car

Yes goy dont look at the total interest paid or the depreciation...its only $350 bi-weekly. Hurry and sign you dont want to be late to your cuckwage job, your wifes son depends on your child support money.

We you'd also highly advice you purchase yourself a service plan. It's only $75 a month. Mere pennies compared to your $350 bi-weekly payments.
Also if you really care about this important investment you'd get yourself an extended warranty.
Sign here and we'll go through the inspection and on the road fees.

>he thinks leasing is bad
>he hasn’t done the math himself and takes boomers word for it
I guarantee you listen to Dave Ramsey. Kek. Kys NPC.

>not buying a used car for less than 2k and doing all the necessary work yourself.

Gotta get that 3 series to flex on your neighbors and friends.

>Buying a hooptie

Dont buy garbage vehicles. Not everyone has the time or skill to work on their vehicle. Thanks to Cash 4 Clunkers u need at least 5k to buy something decent.

my pizza place has a ton of drivers too don't know if they even get a full work week in hours.

Yes, those black men of the Continental Congress are doing and have been doing 360's in theirs...

Only idiots buy new cars these days. Leasing a new car every year is the way.

depends on your situation.

I bought my Toyota Tacoma 4x4 for $25k out the door in 2011.

It not has 122k miles, and it has been the most useful vehicle I've owned.

Even with basic maintanance, tires and all, my monthly payments since then is still cheaper than a lease.

If you're a company man living in the city, then yeah, I would most likely lease some shit box sedan for less than $150.

My gf is 22 and before she got a job she had a 550 dollar a month car payment, 6 year loan with an 8% interest, and was only making around 800-900 a month but they still have her a loan.

My friend just got a 2016 Mustang and works at chick Fil a and loves with his mom at 22 yrs old and has a 600 dollar a month car payment and makes barely 1500 a month. His loan is for 7 years.
How much longer is this shit going to go on. It’s getting ridiculous.

>old man camry with 96k miles
>$2000 cash
who’s laughing now normies

Attached: DC9EDD45-BFB1-41C5-8461-F4C64AF61227.gif (312x213, 973K)

I see domino drivers with new mustangs, and cameros. I drive a Toyota. Wtf

Friends of mine, married couple with degrees and decent income, DINKs, just both bought brand new '19 model cars and give me constant shit because I refuse to buy a new car on principal. I am savvy with hand tools and know how to watch YouTube tutorials. Since 2012 I have effectively only owned two used cars, one is a former police cruiser and the other is a Honda coupe with nearly a quarter million miles on it. I still own and drive both of them.

Am I wrong for thinking I made a better choice by not having any long term car payments while they are both elbow deep in debt with 6 years left before they actually own their cars? I mean, they are nice cars, but as far as I'm concerned a car is only needed to get from A to B safely.

Attached: tenor.gif (480x360, 3.23M)

Is there a way for us to make money off of this?

No user. All a car needs is to run. Maybe buy a cheap bluetooth stereo and you are golden. That is smart money handling.

Who takes out money to buy a car. Is this just a black and Puerto Rican/Mexican thing?

At what point can I get one year old barely driven diesel trucks at a normal price?

I am the same way so maybe I am biased, but no there is nothing wrong with that.
Why financially shoot yourself in the dick for an item that is functionally almost identical to ones ten times less expensive than it?

I know plenty of early 20s white people who take out car loans at atrocious interest rates for 10-25k, while making 1-2k a month, and already owing thousands on student loans

Why?

i paid off my truck years ago,

got it in 2006

now has 250k miles.

What magical place do you live where they still garantuee 30 minute delivery or it's free? I always thought that shit was an ancient legend

Invest in Repo industry
Invest in tissue and other grief based industries
Invest in jenga and fish stew
Invest in used bicycles
Invest in tobacco