Americans Owe Over $1 Trillion on Their Cars

[Truefan31]

The average new car price in the US is over 33k, I could not find adjusted numbers for 2017 for a source. New-Car Transaction Prices Up 2 Percent In March 2016, Along With Increases In Incentive Spend, According To Kelley Blue Book Most Americans cannot afford a new or even a lightly used car with the median average income in the US.

Also considering the fact that Americans have smaller amounts in their savings you will have to have longer loan terms to sell cars. 5K down a 40K car is stll close to $700 a month on a 5 year loan depending on taxes and fees.

It amazes me that people still buy cars with the escalating costs of a new car. Once you add in insurance and gas you could be in a new car for $800 a month. 72 - 84 month car loans will become the norm with the average ownership period for a car being 11 years. Homes and cars keep going up but wages do not. Tough times ahead.

40k for a damn car

It's because people are willing to get into these stupid loans. Car prices will continue to rise as long as people keep doing these loans. Again like student loans, take away these dumb options and you'll see the price of cars/college drop dramatically.

 

[International Playa]

have only and will only purchase reliable cars, in cash. never been in debt on a car and never plan to be. Yall can keep the bmws, im good with my mazda thatll last twice as long

Im driving a 2005 Mazda, doesnt give me problems at all. Very reliable, have saved a lot

 

[tahoj4]

40k for a damn car

It's because people are willing to get into these stupid loans. Car prices will continue to rise as long as people keep doing these loans. Again like student loans, take away these dumb options and you'll see the price of cars/college drop dramatically.

I don't see the price of cars dropping any time soon. Even with platform sharing the cost of development, manufacturing, and labor will be passed on to the consumer. Especially if you think about all of the tech that goes into a new car. Most people do not want to buy an older used car and have to pay for repairs / upkeep on that vehicle. If you can do some of your own work on it you can come out ahead but being a shade tree mechanic is a dying art.

The extended loan rates are a direct product of the price of the car. This is why leasing is so popular right now. It is the only good way to get a nice new car at a decent payment. Consider that a semi loaded honda accord is closer to 30k and you can lease for around $350 while buying will get you a 450 - 500 dollar a month payment most will lease.

This trend will continue. I would bet smart people will continue to buy off lease cars at deeper discounts. Prices of used cars are coming down as well so this will be a good strategy for those of us that want to own. You will need to have the cash to play though which is a whole different subject.

 

[MJ Truth]

Depending on where you live, in a lot of major cities (people used to think you could only do it in New York), you're better off just walking and having a bicycle, and just Ubering everywhere of any distance anyway.

 

[Artificial Intelligence]

.......................

 

[The Don]

Americans Owe Over $1 Trillion on Their Cars -- The Motley Fool

I think this is the most alarming thing.

Who the hell takes out a 6-7 year car loan? I would have never thought over 1/3 of people with car loans take out one that long.

People do it cuz the payment is way lower. Still not smart tho

 

[Originalman]

it's these dumb long loans that allow people to be ok with paying stupid prices for cars.

The auto makers and banks work together. The auto maker has a shyt ton of inventory they must sell. So the banks make this process easier by making it easy as hell to get a car loan.

 

[Originalman]

have only and will only purchase reliable cars, in cash. never been in debt on a car and never plan to be. Yall can keep the bmws, im good with my mazda thatll last twice as long

Yep plus you can always get a better deal when paying cash. You just have to haggle and finese these dealers when you shopping around.

I an ignorant.......I have in the past walked in a car dealership with the cash in my pocket. Haggle for the car and if the dealer aint trying to meet my number. Pull the cash out stack it on the desk and say give it to me for this amount or I am walking out now....


But I done chilled over the years since a few of my business partners are used car dealers. I just go to the auction and pay what the got damn dealers pay for their cars and get the car from the auction. fukk dealing with the middle man.

 

[Truefan31]

The auto makers and banks work together. The auto maker has a shyt ton of inventory they must sell. So the banks make this process easier by making it easy as hell to get a car loan.

Yeah. The breaking point is near though as inventories creep up. But you'll see more crazy ass loan terms.

People should realize cars last longer than ever now. Tons of good used cars.

40k for a damn new car, 50k+ for a new truck now is just comedy

7 year auto loan

The best is the ones that give you a tv when you buy

 

[Mike Nasty]

Sub Prime Auto loans are real. Just another bubble about to burst. Very soon.

Why? It's not like the housing bubble where all it took was a couple months to crash the whole thing. Theres going to always be a demand for cars and people are going to always want to floss, it's American culture. Soccer aren't going to be riding around in buckets. This will keep going, same with student loans.......are kids going to stop going to college? No!

 

[Originalman]

Yeah. The breaking point is near though as inventories creep up. But you'll see more crazy ass loan terms.

People should realize cars last longer than ever now. Tons of good used cars.

40k for a damn new car, 50k+ for a new truck now is just comedy

7 year auto loan

The best is the ones that give you a tv when you buy

I know breh. They just dumping this shiny shyt on consumers and taking advantage of them.

Then folks dumb as shyt talking about I don't want a used car I want a new one. Talking about they want the new car smell. So buying a used 2014 honda accord is gonna save you thousands instead of buying a 2017 accord. But you want the 2017 because of a car smell.......


Then wonder why these foreigners come here and kick our asses cause they don't have bad spending habits.

 

[Truefan31]

I know breh. They just dumping this shiny shyt on consumers and taking advantage of them.

Then folks dumb as shyt talking about I don't want a used car I want a new one. Talking about they want the new car sell. So buying a used 2014 honda accord is gonna save you thousands instead of buying a 2017 accord. But you want the 2017 because of a car smell.......


Then wonder why these foreigners come here and kick our asses cause they don't hqve bad spending habits.

"I need something dependable not some old used car that'll break down all the time. So it gotta be new"

Not realizing that cars last longer than ever now and YouTube can make anyone a basic mechanic with ease.

But people are more advanced now, even though they can't even check an oil dipstick on a car

 

[Originalman]

"I need something dependable not some old used car that'll break down all the time. So it gotta be new"

Not realizing that cars last longer than ever now and YouTube can make anyone a basic mechanic with ease.

But people are more advanced now, even though they can't even check an oil dipstick on a car

Real talk homie..... Folks be having me dying how they killing themselves to get into debt.