How much more can the auto loan bubble blow up before it pops?
Total auto loans and leases outstanding for new and used vehicles increased by another 4.3% year-on-year in the third quarter, according to the latest data from the Federal Reserve. This was a factor in pushing total American consumer debt to a new record of $4.15 trillion in September.
Meanwhile, auto loan delinquencies are surging.
Vehicle loans and leases outstanding have soared to a record of $1.19 trillion. Since Q3 2009, auto loan balances have grown by 62%. That compares to a 19% increase in CPI with a population growth of 8%. In other words, the overall burden of auto loans has increased in real terms.
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As long as everyone wants a vehicle that is beyond their means this will happen.Just barely enough vehicle is never enough any more.That next step up doubles the payment.
ReplyDeleteYou bet When a truck cost as much as my house did 10 years ago yeh no wonder..im looking for a truck now and the prices are insane...
ReplyDeleteEventually, they will get the hint....expensive vehicles dont fit our budget
ReplyDeletesomeone will design a simple and sturdy, gas economical vehicle, that wont take you broke to have one
than my friends, that company will FLOURISH to meet the needs of WE THE PEOPLE
4:31
ReplyDeleteThe person who tries to market your idea will be murdered.
And you thought it was a novel idea. Nobody ever thought of it. Right?
You are naive my friend.
I hear truck payments now are running around $900.00 per month for 7 years
ReplyDeleteThat is insane
My last 2 trucks I bought I paid 20,000.00 for one then 25,000.00 for the other one and still driving both of them today
Don't buy a new vehicles
Total rip off
Broke Millinials
ReplyDeleteAnd when can I start buying the repos for a song and a dance? Won't happen. The dealerships sold overpriced vehicles to people that they knew couldn't afford them. And the finance companies will re-sell them as overpriced used cars. If it's not a private sale, you got ripped off...for big bucks.
ReplyDelete1:10
ReplyDeleteDealerships sell them back as "Certified" pre-owned so that they can sell it as a gently used new car! Check the repo lot on Naylor Mill Road!
It will be on the Certified pre-owned lot very soon!
Need Mortgages these days !!!
ReplyDeletePlus Dealers are Crooks who need to be Regulated by Govt
Raping customers !!! Far toooo Looong !!!