More people are falling at least two months behind in making payments on their auto loan, a new report showed Tuesday.
As more borrowers have qualified for loans amid higher national employment rates, and with new-car sales booming as a result, the total amount of auto loan debt climbed to $987 million in the fourth quarter, up 11.5% from the same quarter in the previous year, reports Experian Automotive. The credit-reporting service says that the total is the highest since it began keeping track in 2006.
Along with the rising auto loan tallies has come growth in serious delinquencies. The percentage of people who are at least 60 days behind on their payments rose to 0.77%, up from 0.72% in the same period in 2014. Experian says it's still short of a record. Sixty-day delinquencies reached 0.94% in 2009.
And the rate of those who are 30 days behind on payments fell in last year's fourth quarter to 2.57%, down from 2.62%
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8 comments:
another bogus article filled with lies
higher national employment? you mean the 2 part time jobs?
this is what is really going on
the loan companies have not updated their debt ratio levels, taking into consideration the impact of obamacare. PLUS, now they are dragging out your loans to .. 10 years so that you qualify for the new car. AND if you still owe on your trade that also get tacked on to your loan.
So no dummy, you never really did have the money for the new ride, but they won't tell you that.
I never would have thought that automobile costs would be more than the first home I purchased years ago. Who needs a vehicle badly enough to pay that kind of money and sign a five year (or longer) loan just to be seen in a "Luxury" car. This country's morals are screwed up.
I am getting ready to turn my car in $355 month x 6 yrs done with it.
Thia is another bubble waiting to burst - just like the mortgage debacle a few years ago. People incapable of making payments are being given loans to stimulate the auto industry. Pretty soon, you an I will be paying for it!
The rule is that if it takes you more than 3 years to pay off a car, you couldn't afford it. Buy a good used car if you can't afford a new one.
7:54 DITTO...the new car loses 20% just driving off the dealers lot.
It was a car dealer that came up with the mean statement that "You are what you drive."
Well....sort of....if you car is a filthy mess and the floors are covered with garbage....yes....you are what you drive. Filthy.
If places like the Car Store wouldnt coerce people into buying high mileage, over priced vehicles by using such disgusting sales tactics more people would be current on payments. They sucker folks in that have less than perfect credit and then stick them with 24.99% financing for 66+ months knowing full well that the person cant afford it. Did not happen to me, but it did to a family member, and an awful lot of others. After a month or two the buyer realizes they really cant afford it, even though the slimebag salesperson told them they could.
They target young, inexperienced buyers with little or no credit and then slide in all the bullspit into the contract and say "sign here, here, and here. Dont worry, all these papers are just a formality. You can afford this 2012 -92,000 mile vehicle for $12000. But then with that 25% interst rate they end up paying close to $25,000 over 5.5 years. Its crazy. Theyre crazy.
Screw the Car Store and Ed Wilgus.
I totally agree with your 7:21.. They do that and they also like to make the buyer feel that they can't get a better deal anywhere else. Geesh, I wonder why.... They not only target the young and inexperienced, they also target those that have less then perfect credit, who are trying to rebuild their credit. Such a shame!!
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