zzdcar
Home
/
Reviews
/
Buying
/
Over Half a Million Americans Are 60 Days Late on Their Car Payments
Over Half a Million Americans Are 60 Days Late on Their Car Payments-October 2024
2024-02-19 EST 22:09:19

Mini's sitting on dealer showroom floor

Expensive new car prices are tough enough to swallow. But the price of vehicles in general, with the average price of a new car hitting , and continuing to hover there; used car prices are averaging almost $31,000. It hasn’t deterred people from buying them, but it turns out many owners may be in over their heads. The number of delinquent auto loans has increased substantially, to 1.65 percent, as pandemic forgiveness programs come to an end, reports. And while that doesn’t sound like a big number to worry about, it’s the highest percentage of delinquencies in over a decade.

Data from TransUnion shows that about 200,000 people took advantage of auto loan accommodations during the early days of the pandemic. These programs were put in place to protect people whose income had been affected after losing their job or any other ill-effects of the pandemic.

Those programs have since ended, bringing those owners to a harsh reality.Those same 200,000 people who took advantage of the program, are now 60 days delinquent on their auto loans, according to TransUnion. Another 100,000 loans are also 60 days delinquent but are in similarly designed accommodation programs that continue to keep their cars from being repossessed.

While the country experiences some of the highest delinquency rates on auto loans (and accompanying rising rates of auto loans), the vice president of TransUnion, Satyan Merchant, thinks the auto market still remains healthy, for now. “If we get into a position whereemployment starts to be a challenge in the United States and unemployment increases, that is when the industry will really start to be concerned about a consumer’s ability to pay their auto loans,” he said to CNBC.

However, he loses sight of the fact that employment doesn’t necessarily mean someone can’t be late on a car payment. People are still buying vehicles and getting themselves into risky financial situations doing it. , with the average rate for new vehicles hitting 5.2 percent in September and near subprime around 9.7 percent for used cars. To make matters worse, many buyers , upwards of 84 months, to make these payments work for budgets. Automakers seem to be encouraging it. Go to any build and price tool for something a Ford F-150 or Chevy Tahoe and payment terms for financing will default to 72 or 84 months. That’s 6-7 years of payments.

People really need to think things through when purchasing a vehicle and make sure what they’re buying works for them financially. I know it’s hard to resist that shiny new metal toy and not buy a car impulsively that you really can’t afford. In some cases, folks have had little-to-no choice because of the state of the market and they need a car to get them to and from places. But if you can, try to avoid getting yourself into a loan situation you know you can’t get out of. It’s only going to hurt you more later on.

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Buying
At $8,600, Would You Go Topless In This 1994 Cadillac Eldorado?
At $8,600, Would You Go Topless In This 1994 Cadillac Eldorado?
The seller of today’s Caddy claims they should be selling it at auction but says who’s got time for that? Let’s see if we have the time for this custom convertible at its non-auction price. Many of you agreed that the $950 asked for yesterday’s was “chump change.” Even...
Oct 22, 2024
At $18,500, Would You Lean Toward Buying This 2022 Ford Mustang?
At $18,500, Would You Lean Toward Buying This 2022 Ford Mustang?
Today’s Mustang is being sold by a towing yard, which means it’s probably a lien sale. Let’s see if this clean title convertible is priced to put a new buyer on the hook. The general consensus on last Friday’s was that it would be the perfect car for someone...
Oct 22, 2024
Someone Willingly Paid $16,000 For A Maserati Ghibli On Cars & Bids. Don’t Make The Same Mistake
Someone Willingly Paid $16,000 For A Maserati Ghibli On Cars & Bids. Don’t Make The Same Mistake
Let’s cut right to the chase: buying a is not a good idea unless you have deep enough pockets for the upkeep. For those not in the know, they’re sirens. They draw you in with their premium Italian image and sweet songs of and then go in for the...
Oct 22, 2024
Which One Of You Suckers Is Going To Pay Over $32,000 For A 25-Year-Old Toyota 4Runner
Which One Of You Suckers Is Going To Pay Over $32,000 For A 25-Year-Old Toyota 4Runner
The (and Tacoma) have a death grip on used values. It’s been this way for years. Go ahead, go try and buy any TRD trim that’s a couple of years old; it’ll cost you as much as a new one — not that you could buy a new one...
Oct 22, 2024
At $950, Would You Go All-In On This 1984 Plymouth Colt GTS Turbo Project?
At $950, Would You Go All-In On This 1984 Plymouth Colt GTS Turbo Project?
One of the calling cards of today’s Plymouth Colt is its “Twin Stick” overdrive gear change, which gives the car eight speeds going forward and two in reverse. Let’s see if this project car has anything else to offer. Just as Goldilocks discovered when appropriating Papa Bear’s lifestyle and...
Oct 22, 2024
At $5,900, Is This 1984 Nissan 720 4X4 A Solid Deal?
At $5,900, Is This 1984 Nissan 720 4X4 A Solid Deal?
According to its seller, today’s Nissan 4X4 shows “pride of ownership.” Let’s see if it would take swallowing one’s pride to pay its asking price. Opinions were split on how well the design of yesterday’s has held up over the years. Some of you commented that the design still...
Oct 22, 2024
Copyright 2023-2024 - www.zzdcar.com All Rights Reserved