Buyers owe an average amount of $5,500 on vehicle trade-ins, close to the levels they were before the pandemic.
It’s getting bad out there, folks. There are cars that continue to get more expensive, the average monthly car payment heading towards $800, Millennials and Zoomers neglecting their car payments, and the highest number of people paying over a grand a month for their car in a decade. It almost seems like people should stop buying cars and rethink their financial situation. But people are still buying cars, and the situation may be worsening: Bloomberg reports that a record number of Americans are upside down on their auto loans.
The amount people are underwater is concerning everyone, from the drivers of the cars to the dealers who are financing these people. Bloomberg says dealers are reporting more buyers than ever rolling up to lots with $10,000 and more in negative equity looking to trade their vehicle and roll that debt into another loan. Take one owner Bloomberg spoke with. After he realized his family needed a bigger vehicle, they did something unusual: they traded in both of their vehicles for a Ford Explorer. Including what was owed on the two cars, plus the registration and all other dealer fees, the couple ended up paying $66,000 for a $49,000 Explorer.
Crazy. I have a 10 year old Ford with 200k on it. Runs fine and still looks good. Instant gratification crowd needs a reality check. If you can’t pay cash for it, you don’t need it.
So true 7:16! If you can’t pay cash for it you shouldn’t buy it. When I was a kid my parents taught me that. Whatever I earned from shoveling driveways or washing cars was mine and I could spend that, or not. I learned about needing things vs. wanting things. Borrowed money is not your money. Debt is not money that you have. Credit is biblically forbidden, yet so many people sin with it anyway. And the result, predictably, is disaster.
Good time to get a CCW permit and buy a roll back truck
If you can’t afford it you shouldn’t but it! The bible says you shouldn’t be a borrower or a lender, yet so-called Christians just won’t obey the Lord.
bible talk?
All on Biden !!!!!!
In debt with cars, credit cards, mortgage, school loans.
The majority of the US is in some sorta debt, not to mention the Fed by $32 Trillion.
Where does one start?
People live in DUMPS but think having a nice car is a status symbol. Guess what…..no one is watching or caring about what you drive. We all know it’s not paid off and uninsured.
And that still is called a stereotype. Been that way now since the 1960s.
1960s…interesting eh?
Repo them all !!!! Mine PAID FOR !!!!! LOL LOL
Not ever Financing any more !!!!
Need 30 year fixed Mort on Vehicles now that they are at Housing prices !!!!!!!!
Never again buy New !!! Hell NO Payments must GO !!!!!