Record 7 million are 3 months behind on their car payments

[tiddlywinks]

Auto loan delinquencies rise as the cost of monthly payments hit record high

https://www.cnbc.com/2019/02/27/aut...e-as-cost-of-monthly-payments-hit-record.html

My takeaways...
The automotive website Edmunds says the average transaction price for a new vehicle, what consumers actually paid dealers, in December hit an all-time high of $37,260, an increase of $6,598 from December 2010. As a result of the higher prices, the average new vehicle auto loan in the fourth quarter climbed more than $600 to $31,722, according to Experian.

Experian says the average monthly payment for a new vehicle hit a record high of $545

Experian says the average used vehicle loan in the fourth quarter topped $20,000 for the first time, with the average used car having a monthly loan payment of $387.

 

[wrbtrader]

With that many (7 million car owners deliquent)...I don't recommend anyone to buy a car unless they can pay cash (one paynment) and if they can't do that...

Buy a used car instead (much cheaper) but still only pay cash. There's just too many people out their with good jobs but struggling to pay their mortgage and/or car payment...slowing killing themself with debt...living month to month or with only a few months of emergency money.

With more and more people communiting to work via automobile and less cities building transit connections (trains, public buses) that connect towns/suburb to cities...

Its tough situation even for people to move close to their jobs so that they can bike or use the bus/train to commute...its tough to do with the frequency of how many times people change jobs while still living in the same location.

wrbtrader

 

[ironchef]

With that many (7 million car owners deliquent)...I don't recommend anyone to buy a car unless they can pay cash (one paynment) and if they can't do that...

Buy a used car instead (much cheaper) but still only pay cash. There's just too many people out their with good jobs but struggling to pay their mortgage and/or car payment...slowing killing themself with debt...living month to month or with only a few months of emergency money.

With more and more people communiting to work via automobile and less cities building transit connections (trains, public buses) that connect towns/suburb to cities...

Its tough situation even for people to move close to their jobs so that they can bike or use the bus/train to commute...its tough to do with the frequency of how many times people change jobs while still living in the same location.

wrbtrader

But we have to support the automative industry.

 

[southall]

I don't recommend anyone to buy a car unless they can pay cash (one paynment) and if they can't do that...
Buy a used car instead (much cheaper) but still only pay cash.

But we have to keep up with the Joneses. And the Joneses are leasing brand new German cars and SUVs every few years. Including one for each member of the family who reaches driving age.

 

[wrbtrader]

But we have to support the automative industry.

Yeah, I understand that the auto industry is an important part of our economy and economic development especially more in the futures when electric cars take the center stage.

wrbtrader

 

[ironchef]

But we have to keep up with the Joneses. And the Joneses are leasing brand new German cars and SUVs every few years. Including one for each member of the family who reaches driving age.

Maybe in your neighborhood. In my neighborhood most drive pickups.

 

[southall]

Maybe in your neighborhood. In my neighborhood most drive pickups.

Not many of those in the UK