Record number of Americans behind on auto loans

[Slater]

So, don't buy a $50,000 pickup truck on Wal-Mart wages?


"A record 7 million Americans are 90 days or more behind on their auto loan payments, the Federal Reserve Bank of New York reported Tuesday, even more than during the wake of the financial crisis.

Economists warn that this is a red flag. Despite the strong economy and low unemployment rate, many Americans are struggling to pay their bills."


https://www.washingtonpost.com/busin...=.8c52b45bbe32

[FromMyColdDeadHand]

Manufacturing is way down too, and I can tell you that isn't just a number. I'm surprised that the MSM isn't talking this up ( or down) more.

[markm]

People are fukkin retards.

I see all these morons driving 50k "mullet" trucks with lifts and thin tires on ghetto rims. Not surprising.

[uffdaphil]

I’d wager a large percentage of these defaulters also got 60-72 month loans for their high dollar wheels.

A couple of other recent coal mine canary stories that keep me stocking up on ammo are the large numbers of people nearing retirement with zero money saved and the many who could not come up with a thousand bucks in an emergency without begging from others. Virtually all future if not current voters for tax redistribution.

[pinzgauer]

I see the vehicles driving in and out of neighborhoods near me. Big disconnect between the vehicle expense (Big Beamers, MB's including G-wagons, high end lexus, escalades, etc) and the home price/neighborhood nature.

IE: Their car payments/leases are probably close to their home payments/rents.

Makes no sense to me.

[sundance435]

I’d wager a large percentage of these defaulters also got 60-72 month loans for their high dollar wheels.

A couple of other recent coal mine canary stories that keep me stocking up on ammo are the large numbers of people nearing retirement with zero money saved and the many who could not come up with a thousand bucks in an emergency without begging from others. Virtually all future if not current voters for tax redistribution.

I did a 60 month loan because I can still get a better return on the money saved in payments vs. 3.75% borrowing rate. I have no idea how this "no retirement savings" thing is going to go. My guess is that it will hasten the arrival of a true welfare state. I just saw something that the average 60 year-old has about $120,000 saved for retirement. That's 5, maybe 6 years, if you really stretch it + social security, of living like a miser. It's no wonder people are working into their late 70's and early 80's.

[jpmuscle]

People are fukkin retards.

I see all these morons driving 50k "mullet" trucks with lifts and thin tires on ghetto rims. Not surprising.

I was truck shopping awhile back and it was a total mindfvck what sticker was/is on new stuff. Like gtfo kinda pricing.

Granted I was looking at 3/4 ton diesels but even 1/2 ton gas jobs winds up being damn near a mortgage payment. It’s lunacy. And then pricing on a new Tahoe??? Fffffffff

I decided nah fam I’m going to run my accord until it dies.

I blame government, I blame cafe standards, etc


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[Slater]

Pickups and SUV's are the cash cows of the auto industry today.

[ramairthree]

It’s not unusual for a young single guy to have a vehicle that between gas, car payment, and insurance is about 50% of their take home pay.

Young guys do dumb young guy stuff.

If they get married, have a kid, etc. before it is payed off,
Or continue to buy such high payment to income vehicles after that,
Things get out of hand.

It’s not just cars.
I see people with a tenth of my income buy more expensive phones more often, top available internet service, top expensive phone plans, max cable, have a dozen streaming services, bigger TVs, etc.

All things without any, or little to no future value.

[ABNAK]

I was truck shopping awhile back and it was a total mindfvck what sticker was/is on new stuff. Like gtfo kinda pricing.

Granted I was looking at 3/4 ton diesels but even 1/2 ton gas jobs winds up being damn near a mortgage payment. It’s lunacy. And then pricing on a new Tahoe??? Fffffffff

I decided nah fam I’m going to run my accord until it dies.

I blame government, I blame cafe standards, etc

No shit there. I just payed my GMC Sierra off in May. Essentially the same truck with the same options is ~ $8K more than 4 years ago. That's right around 4% per year increase in price, which exceeds inflation.

I don't do loans longer than 4 years so these $600-700 monthly payments are ridiculous for 5 or 6 years. Of course I always have an equity trade involved, so I'm not buying at full price.