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 era.

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

"The substantial and growing number of distressed borrowers suggests that not all Americans have benefited from the strong labor market," economists at the New York Fed wrote in a blog post.

A car loan is typically the first payment people make because a vehicle is critical to getting to work, and someone can live in a car if all else fails. When car loan delinquencies rise, it is a sign of significant duress among low-income and working-class Americans.

"Your car loan is your No. 1 priority in terms of payment," said Michael Taiano, a senior director at Fitch Ratings. "If you don't have a car, you can't get back and forth to work in a lot of areas of the country. A car is usually a higher priority payment than a home mortgage or rent."


https://www.investmentwatchblog.com/...t-the-economy/

what do you know a large % of people are fckn lazy and idiots

welcome to the new working class, lazy entitled and think they deserve way more than they can afford.

lol @ leasing or taking a loan out for a car.

its more of a sign of stupidity then "duress" , how much you wanna bet that most of the people have the latest smartphone too, trying to live beyond their means

got to have a hot ride for pics on instagram

One and done.

THIS! how many of these people have big TVs, new shoes every 2 months, eat out twice a day, etc.....it's not a question of "distress" it's a matter of intelligence.

That’s why you see a lot of new cars with dents and damage, owners can’t afford to fix their brand new cars so they use the insurance money for personal needs.

I thought you like had to pay your car payment or they like super hurt your credit and might even take it back? I have been one week late once because I thought I already paid it but like I never missed a payment because I thought you just couldn’t.

Laughing as I read this while sitting in my car I bought straight cash.

Feels good men.

No car payments crew, paid that piece of chit off as quickly as possible

How many boomers had big houses, cars, TV's, all of which where on credit?

You guys continue to point fingers and ignore the big picture. The cost of living is too damn high. But yes just "Pull yourself up by the bootstraps." Amirite?

it still comes down to intelligence lol

its a no brainer the cost of living is much higher now, so you would think sacrifices would be made somewhere

but boomers got to have it, so i gotta have it too, even if itll make me poor

It would be really interesting to see an age breakdown of who is in default. Maybe even by location.

Who has cars? I fly everywhere in my plane

Fixed.

How hard is it to not be an idiot? Go to any business that employs working class folks and the parking lot will have tons of brand new cars. My plant just hired a new girl who's making $12/hour - she drives a 2018 Mustang. Another guy drives a 2017 Acura, another one drives an Audi. One guy that works there has three cars. These are all working class folks who don't make ****

Pure Delusion.

Where do you live and what cars do you see? I don't about you, but I don't see BMWs, Audi, or Mercedes being driven everywhere, I see Hondas, Toyotas, cheap KIAs with American cars thrown in. All of those are supposedly cheap makes, yet still cost a lot. People aren't buying $45k luxury sedans. They're buying cheap lower tier cars that can reliability get them to work without breaking down.

It's not about boomers having everything, is that the only thing you got out of the argument? It's about making things more affordable. One man could support his family in the 60s. House, car, college, all payed for by one man. If not, little Jr. was easily able to a few jobs and pay off his degree.

mind = blown at both of these articles srs

brb People can't afford the high prices of cars

brb Car manufacturers refuse to lower cost and just let their unsold cars rot in landfills instead

strong everything

Buy quality used crew checking in.

Do my own maintenance crew

The "norm" is stupid. Way too many people in their 20's taking out student loans, car loans for a new vehicle, and even racking up consumer credit card debt. Can you imagine if borrowing money (at a consumer level, not a business level) wasn't something that actually existed, and was abolished? People would have to actually EARN the things that they "own." People want the latest 2020 technology package sedan from their brand of choice to drive it around as a status symbol... but they haven't actually EARNED it, instead they signed up to submit to overpaying for the ownership of the product, due to interest, on an already depreciating asset. What idiots.

Same goes for those who prioritize their social life over their financial situation. Student loan debt, vehicle debt, credit card debt... yet you still think you should go to the bar and drop $100+ on overpriced drinks/food/tips for the weekend?

People want instant gratification, they don't care about OWNING it, they care about LOOKING like they own it, and they're paying the price for it. Idiots are lucky that there's state / federal laws that allow them to go several months without payments before they lose ownership of their assets.

It's due to the similar thinking above that I'm also against the idea of "forgiving" those who took out student loans from the government. You wanted the education, you wanted the degree, you chose the overpriced school/program, own up to your decisions. One of my coworkers told me he's only paying the minimums on his student loans, and will continue to do so for eternity with the hopes that the government turns around and forgives his debts. FAT CHANCE. And if something like that does happen, there'd be an outrage from those of us who actually DID fully pay off our loans, or fully funded our own college tuition.

I work at a dealer, and especially the used car department, they can get ANYONE financed. A lot of those cars are going to the repo man. Next year when they get my, I mean "their taxes back" they will walk in and put a fat down payment on the next one.

Im assuming the dude that has 3 can pay for them, otherwise theyd be gone

I agree if theyre completely neglecting savings, but the present moment is important too

If some dude or person is happy everytime they get in a car vs. Being unhappy in a chitbox

Provided it doesnt absolutely sink them (yes. I know the op is about people who cant afford it) id say its worth it

It's funny how you mention people taking out student loans

Considering the posts on the misc and looking at job prospects, it's almost like you HAVE to take out a student loan. What else are people supposed to do? Work minimum wage and save up? What about other living expenses like rent and utilities

The job market and college have pushed people to go to college. You're a loser if you go to trade School. CC is a good alternative, but that's still money out of pocket

Cause you can sleep in your car but you can't race your house right?

Lol asinine advice. If it's between paying rent and having a roof over my head or making my car payment I'm gonna pay rent.

I understand why, from the manufacturer's point of view. If they annually sell the overstock for dirt cheap, what incentive would the buyer have to pay full price for a new car? Same thing as to why a third party wouldn't be able to buy all the overstock and sell them at a reduced price. People would just wait to buy with the significant price drop. Even if these cars were sold 'as is' and no warranty, I bet a majority of people would still buy the reduced price cars. It's already (I would assume) a big hit to new car sales that most people now are smart enough to buy a 1 or 2 year old used car, where the initial depreciation is out of the way and still get an almost new car at a much better price.


It is sad to see all these cars just rot and go to landfill. I hope at least some of them are able to be recycled in some way to reduce all that waste. It's almost as retarded as when the UK did the "cash for your old car buyout" as an incentive for people buy new cars. With the kicker being that people that gave over their old cars, they could not be re-sold or licensed to be driven. They went straight to the crusher. Masses of fully road going cars wasted.

Completely missing the point. There is enough wealth in the US for working class to afford a much higher quality of living, however as you know, that wealth is concentrated at the top of the income bracket.

What you apparently don’t know is much of this was straight given to them through bank bailouts and subsequent quantitative easing. People who happened to own bonds in 2009 and after were simply in the right place at the right time, nothing to do with how hard they worked or how smart they were.

Take this how you want but I’d argue that people like you who are satisfied selling their time for a minuscule return are the perpetual low class and true low intellectual.

I mean if anything thats smart. If I get a little dent in the bumper skirt of the car and my insurance company gives me $900 to get it fixed. i'm gonna look at that check, then look at that dent, and laugh. That money is going into savings/towards college debt or to upgrade my computer.

My co-worker said I drive a girl car. I said lets compare bank accounts. IRS took 100% of his tax money and every dime in his bank because he owed tickets from 2004 lol.

Sitting in my girl car with zero financial worries.