“3 MILLION Cars Will Be Repoed” - Will America's Auto Debt CRISIS Trigger The Next Recession?
Auto Loan Extension Crisis Signals Echoes of 2008 Collapse
Analyze why extending car loans to 7 or 8 years is leading to surging repossessions and how these trends mirror past financial crises.
Short Summary
- Over 3 million car repossessions are projected for 2025, marking the highest rate since the 2008 financial crisis.
- Stretching loans dramatically increases total interest paid; an 84-month loan costs $5,300 more in interest than a 48-month loan on a comparable vehicle.
- Subprime borrower delinquency rates (60+ days late) hit 6.43% in August, signaling broad affordability struggles for middle America.
This discussion unpacks the danger of the "payment mentality," contrasting long-term financing with fiscally conservative approaches, while detailing the underlying economic pressures driving defaults following the spike in used car values.
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Top Comments (10)
I don't see how regular people afford a $1000 car payment. Even $600 seems crazy to me.
But yet the price of used cars is still ridiculous. I refuse to buy a car at these inflated prices.
I’m driving a 2008 Honda accord 195,000 mls😂
all i see are 100k+ trucks here in CA its just ridiculous no one can be affording this shit. its a facade.
A car is a tool to get you from place to place, everything else is vanity. It's the same with houses; you don't need the 5000-SQF when 1500 will do. Peace of mind is priceless.
Regular trucks costing 75K to 100K is crazy
driving 58 years-no tickets and no accidents. I'm an insurance company's dream except they won't give me any discounts!!
My neighbor's son just turned 18. He absolutely had to have a Doge Challenger. Mom bought him a used one 2 years old. $700/month payment and $600/month insurance. She makes $45k/yr. Its insanity.
I live in a rural town of about 6000 people. The last 4 years, everyone has a shiney new truck. Ive been wondering how all of a sudden a bunch of poor people can suddenly have an 80k truck.
We have to allow deflation. Let prices fall for homes, cars, tuition, all of it. Stop the govt bailouts. No stupid 10 year car loans or 50 year mortgages. Allow the defaults to happen!!!! No bailouts.
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Top Comments (10)
I don't see how regular people afford a $1000 car payment. Even $600 seems crazy to me.
But yet the price of used cars is still ridiculous. I refuse to buy a car at these inflated prices.
I’m driving a 2008 Honda accord 195,000 mls😂
all i see are 100k+ trucks here in CA its just ridiculous no one can be affording this shit. its a facade.
A car is a tool to get you from place to place, everything else is vanity. It's the same with houses; you don't need the 5000-SQF when 1500 will do. Peace of mind is priceless.
Regular trucks costing 75K to 100K is crazy
driving 58 years-no tickets and no accidents. I'm an insurance company's dream except they won't give me any discounts!!
My neighbor's son just turned 18. He absolutely had to have a Doge Challenger. Mom bought him a used one 2 years old. $700/month payment and $600/month insurance. She makes $45k/yr. Its insanity.
I live in a rural town of about 6000 people. The last 4 years, everyone has a shiney new truck. Ive been wondering how all of a sudden a bunch of poor people can suddenly have an 80k truck.
We have to allow deflation. Let prices fall for homes, cars, tuition, all of it. Stop the govt bailouts. No stupid 10 year car loans or 50 year mortgages. Allow the defaults to happen!!!! No bailouts.