Americans increasingly upside down on auto loans as used car values fall

many of the responses we see here from rabid, Democrat voters could be deemed as arrogant. Not all of the folks who find themselves in poor financial straits are ignorant or GOP voters. Some voted Democrat and the resulting inflation and snowball effect rolled over them as well. Folks go to work, raise their families and then find that they are behind with respect to how far their dollars now go. Before you cast aspersions upon some folk, stop for a moment as one of those folks may well be a fellow Democrat voter.

 

Yeah, gas lighting and propaganda seems to be the stock and trade of many threads exactly like the OP. America's foes can appreciate the hard work...

 

Not to mention, Biden's EPA has made stricter MPG regulations so that everyone will have to buy EV's, pricing the poorer out of having cars and increasing the cost of vehicles and insurance rates to everyone else.

 

Inflation is definitely lower than when Biden took office. It was 7% when he took office, and now its 3.2%

So explain how they have “diminished” ?

 

why? you have participated in threads about

foreclosures
commercial real estate
401 k's being raided to pay daily expenses
defaulting on credit cards
defaulting on vehicle loans
inflation
cost of living

the list goes on

yet despite your activity in those threads, you make the above post. How about some empathy for your fellow citizens and put down the Democrat pom poms

 

Picked up my 2008 Truck at the shop yesterday after a grand of routine maintenance. Runs great. Maintenance is the key. No need to buy a new car every 4 years.

 

So now you agree that the economy isn't that bad, but you want me to agree that financial problems for individuals still happen ? OK, I agree, they happen all the time. The frequency and the scope are better defined by the overall economy….which is still good right now.

 

Fear not my fellow Americans... give it time and Joe Biden will buy your votes with tax payer money by paying off your car loan.

 

Electric only

 

why waste my time w you

things may just be swell for you

it's not swell for many

 

OK, was thst the case under Trump also ?

 

This really isn't a surprise.

People bought cars that were massively over priced due to parts shortages and now that prices have dropped they are feeling massive depreciation.

To add insult to injury, they paid higher interests rates, extending the payments out longer and they can't catch up to the depreciation.

 

No

 

Ahh, I don't think this is great advice.

I have bought multiple cars I could pay cash for, but at a 1.5% or 2% rate, leaving the money in a high yield at 4.5%

 

In a situation like that, and if the car you're describing doesn't shed value like a snake sheds its skin, then you could 'come out ahead' in the long run -- when you keep the bulk of your money in a high-yield CD or other investment. But that "1.5% - 2%" borrowing scenario is a very rare one... especially today!

If you find a finance arrangement where the loan's cost-per-thousand is that low, it's almost always because the price of the car itself is extremely high. Never forget -- these banks and car dealers have seen it all, and done it all... they know how to make money! But you just have to catch them "with their pants down", and that time is coming.