Why auto loans with $1,000 monthly payments are becoming more popular

It has become more common for car dealers to sell new vehicles to customers financing the purchase with an auto loan requiring a monthly $1,000 payment. CNBC's Phil LeBeau joins 'Squawk Box' with the details. For access to live and exclusive video from CNBC subscribe to CNBC PRO: cnb.cx/2NGeIvi
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[@djc7039]

When I got my first job in high school I asked Dad to cosign a car loan (like all my friends were doing) he refused and said you won't know if you really want that car till you have to hand over the money you saved to buy it. I am now retired and have never had a car payment or payments on the boats and RV's I've had, only payments were for houses. Thanks Dad

[@simonnoum2728]

😂

[@lppoqql]

depending on the interest rate, you might have actually lost some money because of this. You need to do the math first.

[@djc7039]

@@lppoqql well back then I think interest was around 12%. But borrowing for an asset that declines in value is bad news = paying interest to lose money. Maybe you learned some new math at the Government School?

[@lppoqql]

@@djc7039 WTF? are you home schooled? lol

[@shanarobinson7672]

Go Dad!!!👏🏿👏🏿👏🏿👏🏿

[@Luther_Luffeigh]

And I thought my $400 payment 5 years ago was too much

[@michaelc1063]

🤣🤣

[@philderrick6305]

Sad sad

[@alananderson7903]

It is too much. You just think it's not too much now because you're comparing it to $1,000 per month, but it's still WAY too much.

[@davidhughes6048]

@@alananderson7903 unless you know his income, can you really tell a complete stranger on the internet how much he can afford? 🤔

[@starwreck]

it is

[@nuttysquirrel8816]

The last three dealerships I visited installed low Jack devices on all their cars before putting them on the lot for sale. The installation cost was charged to the buyer and passed of as _"this is great to have, you'll love it."_ Each dealership also initially presented outrageous payment plans. For example, the first car I wanted was a 2011 Cadillac Escalade Platinum. The price on the website was $18,494. The out the door price came to somewhere between $24,500 and $24,900. The loan was for $616.00 for 60 months. I turned it down. It's as though they're anticipating defaults and repos. The low Jack was for their convenience, not mine.

[@eligreg99]

Used car market will crash soon mark my words.

[@xst9880]

@@eligreg99 I hope so! Car industry needs serious legal reforms!

[@MarthaMartinez-ez4vd]

i always look at all their hidden fees and got them to remove some bs fees and the added insurance last time i got a car. I agree you need to read it closely and carefully.

[@stephanied1028]

Well at least it’s a tangible add on. I had a dealer charge at clear coat fee. They claim they put a clear coating on all their vehicles to protect the pain job. What a joke! I doubt they put anything on the car. S

[@6time686]

Police don't even use LoJack anymore. It's been outdated. and replaced by license plate readers. Honda and VW are trying to pass off this same scam.

[@yeswecan4312]

Insane. Average monthly wages in the US was $4,600. That’s a quarter of their income in car payments.

[@njfinests]

For white males, all others is less!!!

[@samsvong2294]

Yeah so they can sleep in it too worth it

[@jasielm5258]

Plus 300$ in fuel plus 200 or more for insurance depending on age and history. I’m happy with my old as car. Great thing I still have a cheap rent and no car payments

[@630Cars]

$4,600 before taxes.

[@wa210]

I used to buy new cars once every couple years. Boy I learned the hard way. Never again buying new. Found a great buy over 3 years ago on a 3 year leased Pathfinder. Driven 7,500 miles a year, religious 3 month oil changes. Platinum edition in mint condition, under 25k. I'll let others take the fall from now on. Since I only average under 750 miles a month, no need for a car for at least 10 years. My 2015 has under 54k miles on it now.

[@dave1956]

I remember when my parents bought their first new car in 1966. The window sticker was $2,800 and they had a 3 year loan with a $78 payment.

[@bluemax2072]

If it's costing that much to buy a car we need to invest in good Nationwide public transit

[@jerryneil8558]

public transportation is terrible in where I live in Maine it is for bigger city like Portland where I live in Gray there is none or uber or taxi's

[@johna1857]

Exactly, besides, when you do not buy cars manufacturers die.

[@krecikowi]

Sure, with very low population density driving empty busses is not very economical. Cities maybe, but even there population density is not sufficient to be sustainable to keep busses going. Do the math, stop making emotional statements and save environment by saving money.

[@rileyrfitzpatrick]

@@krecikowi Let's be clear. Every bit of research we've done on this topic shows that car dependency is bankrupting America. Unfortunately, it's due to the design of our communities and not something that can be fixed by putting public transportation in a community that already was designed for cars.

[@krecikowi]

@@rileyrfitzpatrick what design? People do what is possible.

[@BrandonClark-StocksPassports]

"$1000" is the NEW "$500" in this economy basically

[@Typhoonturky]

Just wait until the layoff starts, and people start defualting on 75-100k vehicle loans.. Is there really going to be any difference, between a 1k-1500k car payment, and a 1k-1500k mortgage payment 15 years ago.. Bout to find out.

[@zakkrick]

No more car payments for me, the last car payment for me was in 2013. Kept the car all this time, maintenance and drives like new. Don’t even look at dealerships NO more when I drive past by. As you get older, auto payments is a way to be broke and keep you poor but you can’t live without a car. The older you get, you’ll understand about debt and how it can impact you financially moving forward.

[@dc100dc100]

This is intentional. The car industry wants to drive up the costs of buying a car to be unreasonable so that everyone will move to monthly leases. They hate when people have paid off their cars and are driving around for free.

[@nonyabizz3533]

100% bro. They dont want us to own anything. Want life to be paid monthly

[@calebprice7896]

I bought a 2022 VW AWD Taos for 25k in January. with 2k down and 6 year term my monthly is 330 and I’m very happy with that. Especially with 3.54% apr

[@nuttysquirrel8816]

Wow!!

[@666dynomax]

Your math does not add up

[@johnjriggsarchery2457]

Too bad it's not a 200,000 mile car.

[@tonythaiger93]

$1000 covers my food and rent/utilities in Thailand pretty good. I eat sushi and steaks :D Paying $1000/month for cars that go down in value 30-50% in 3 years is what I call nuthead.

[@DanStratocaster1]

I love my 11 year old Chevy Volt more every day. No payments, almost no gas.

[@jasielm5258]

Keep it and ride it will it dies 😅. That’s what I’m doing and happy with having the extra cash to splurge on some ammo and 🥩

[@michaelc1063]

The Bubble explosion is going to be violent

[@MrTom-kl7hy]

Never made a monthly car payment in my 67 years. Bought my only new car, a 2015 Honda Fit for $17,100 cash. Driving it today with minimal maintenance costs, but that reliable, inexpensive commuter car with most everything most people really need, was discontinued in the USA market due to low sales. Gotta get me a truck or a huge SUV said the American buyer... Sheesh...

[@njfinests]

Repo's will be at all time highs!!! Especially after the car gets old(warranty is out) & starts having problems. They won't be able to get it fixed & will walk away from it. Not to mention, they will owe more than what it's worth, especially on American cars, that hold no value!!

[@justinh2444]

thats like 3-4 years away

[@seantyler7401]

That’s outrageous

[@JF-rz3rh]

High cost, and high payments are not equal to average earnings. My daughters friend works at a taco shop, 19 years old and the dealer put her in a jeep with 5k down and $800. a month car payment.😳 So insane. When I was 18 20+ years ago my first car payment was $224, and I remember struggling to stay consistent at paying it on time. Car crisis is going to be what the 2008 home crisis was. Repo lots and car auctions will be over filled!!!😳Wages are not rising with these higher payments! Craziness

[@rabidgoon]

oh great, another young woman in a jeep to clog the roads

[@InternetUser._]

She’s going broke pretending to be middle class 😂

[@JF-rz3rh]

@@rabidgoon The good thing. She took it back. She had the option to cancel in 72 hours. She returned it the next day after getting mass advice it was a horrible buy.

[@JF-rz3rh]

@@InternetUser._ She returned it next day.. She had 72 hours to change her mind.. But I agree! Craziness!

[@InternetUser._]

@@JF-rz3rh I don’t know her but I’m really happy to hear that lol. That’s insane that they even approved her for that predatory loan.

[@BenDover-8088]

Sub prime auto loans. How long before auto loans collapse the way housing did in 2008/2009? Every time I see a 4 door pickup that in 2019 sold for $45,000 now going for $75,000 my thoughts are how can they afford that payment.

[@DanielA23]

What's really crazy is I bought my 2018 Tahoe Premier for 35k in 2020 and its worth at least $50k right now. By worth I mean still people dumb enough to pay that for it. As long as new is 75K+ I will never buy new. Maybe a Corvette Z06 or ZR1 but nothing else.

[@alejandromazariegos9223]

To start that’s money that you can use when you get older and just have a non expensive car for now until you can really afford an expensive one. So people are dumb when they get a car loan. Sorry but is true

[@wa210]

They can't and you will see hordes of people filing BK. Then, it will spill over to the housing market. History repeats itself, in this case 15 years. Give it time and you'll see dealers begging for used car buyers. For now, they think they can charge the moon. Give it another year, and then you will see a buyers market again, especially CASH buyers. Banks won't finance used cars in time.

[@conchobar]

The car resale industry bubble is going to burst first. Right now, car Auction houses are struggling to move cars, and Carvana may file for bankruptcy any day now.

[@wa210]

@@conchobar Carvana should go buh bye. Totally overcharge on used cars by a easy 2k. I have been on the lookout for a 2015 Armada, and on car sites, Carvana along with Vroom, always way overpriced. American's that are smart and do their homework, know they are a ripoff used car dealer, just like Carmax and Autonation. The bad press of Carvana not issuing titles to customers are also nailing the company's coffin shut. The hard part in used cars is finding a dealer not out to rip off consumers with all kinds of fake add ons, like "nitrogen filled tires" or other BS. If car dealers have that crap on their stickers, I just leave . I won't even let the dealer talk to me. Good riddance Carvana...like buh bye...

[@tbates757]

That’s it. I’m getting a beater for cash.

[@MountainMan.]

People sign contracts they know they can't honor over the full term. The dealership just wants the sale. Materialism is the god of this country.

[@oscar18777]

That’s ridiculous! This is why Americans are so stressed and angry because they are drowning in tons and tons of debt!! Just because you can make the payment doesn’t mean you can afford it!! DEBT IS DUMB. CASH IS KING!

[@johnjriggsarchery2457]

I don't mind a little rust or basic cars. It's a better feeling owning a car and truck outright than having a bunch of technology and luxury.

[@YT-mp7ei]

There are so much subprime loans/credits in the economy it’s just a matter of time.

[@littlemax8851]

The business comment section is great when it’s not spam. Love reading people’s perspectives!!

[@thegreat9481]

Pretty sad how they allow these bots to fudge numbers right.

[@johnp.5134]

Got to buy those three row SUVs and short bed trucks!

[@AKAAAK]

7 & 8 yrs loans 🤣. Paying almost a $1000/mo on a car that's worth $5-10k after 5 yrs

[@RealPolitik-dy4it]

You better believe that cars will be on sale shortly…

[@wa210]

Yep, plenty of suckers running around in America these days.

[@viffer94]

Also becoming popular, car loan defaults by people living beyond their means going into a recession.

[@TheContrarian09]

America needs Dave Ramsey.

[@studsauce7803]

Dave Ramsey’s advice was great 10 years ago. Times have changed and his advice does not really work anymore.

[@kyleskitco7235]

@@studsauce7803 so you think that spending $1,000 a month on a depreciating asset is justifiable?

[@studsauce7803]

@@kyleskitco7235 No, but on the other hand the car market does not offer a whole lot of affordable options. Car manufacturers in the US are moving away from affordable cars. Instead going to expensive SUVs and trucks because that’s what’s in demand.

[@kyleskitco7235]

@@studsauce7803 true I hate that about the automotive industry rn, that’s why you should always buy used and an economical car. People need to think having a car is for getting to point A to point B and not as a status symbol

[@cozyslor]

@@kyleskitco7235 You think tithing 10% of your income makes sense?

[@davidmount7560]

Madness!!! Here comes the auto repos just around the corner

[@MrGriff305]

That's like a home mortgage payment

[@marcussimmons2708]

Yes but can people really afford that payment these days?!? I expect loan defaults to go up in the next year or so… 🤔🤔🤔

[@kyleskitco7235]

Dave Ramsey punching the air right now

[@beverly8480]

Thanks for the insight, but I'm still confused why Bitcoin and crypto prices keep dropping? This drop follows a number of other significant drops in recent weeks. I still hold enormous value of cryptos and it scares me. Whats your take on this?

[@kevinemily8015]

There are many reasons for this drop in value. One of the main reasons is that there is an ongoing debate about whether or not Bitcoin should be regulated as a security or as a currency.

[@fataiomariam3829]

I would advice you to trade your assets rather than hodl for a future you aren't sure about, only predictions.

[@beverly8480]

@@fataiomariam3829 Well, I've tried but was so confused with the inflation in price, due to the pointers on how to make substantial progress in earnings?

[@fataiomariam3829]

@@beverly8480 If you are not conversant with the markets, I'd advise you to get some kind of advise or assistance from a financial/investing coach. It might sound basic or generic, but getting in touch with an investment broker was how I was able to outperform the market and raise a profit of $2.5M For me, its the most ideal way to jump into the market these days

[@beverly8480]

@@fataiomariam3829 That's sum cool profit. I dream of that

[@nala3038]

What's even crazier to me is you can get 20, 25 or 30 year loans on RV's. How is this even allowed?

[@WavyMaxy313]

Stop paying payments on cars and pay cash for the darn car. You obviously can't afford if you making payments. Stop being normal and be weird

[@joeb1522]

People are financing cars with high monthly payments as they havent had to make student loan payments for almost 2 years and now taxpayers will pay off their student loan debt. Another reason inflation is high.

[@eggsinsideme]

Student loan repayment begins in January. The vast majority of student loan holders have balances significantly over the $10k in forgiveness.

[@joeb1522]

@@eggsinsideme Makes sense. I'm just pointing out that people haven't had to make payments for almost 2 years, so they have extra cash to spend on other things, like cars, which in turn puts upward pressure on inflation.

[@havok5565]

Lol blaming it on student loans. Get over it. Haha. It’s more likely that they still have saving from the stimmies from 2 years ago

[@joeb1522]

@@havok5565 There are many factors thst contributed to high inflation. Inflation occurs when there is too much money chasing too few goods. When you increase money supply or decrease goods, inflation goes up. Several reasons inflation is high now include student loans (not making payments), huge unemployment benefits (people still get paid, but there are less goods produced, thus higher inflation), supply chain issues with shutdowns, and unprecedented government spending.

[@nonyabizz3533]

@@eggsinsideme But they havent had to make any payment in almost 3 years

[@studsauce7803]

I bought my 2007 Mazda 3 for $14,500 brand new off the lot. Still driving it today with spending less than $100 on repairs outside of normal maintenance. Try doing that today with what’s offered. Times have changed and car manufacturers are just making them unaffordable. Don’t blame customers blame EPA rules and manufacturers. Also auto unions are out of control and put a huge extra cost on vehicles. Laziness and overpaid is becoming the normal in unions. Go to Kokomo, Indiana and tour the Chrysler plant and this will prove what I’m saying.

[@eggsinsideme]

I’d happily go tour a Chrysler factory to observe how not to build a car.

[@studsauce7803]

@@eggsinsideme I worked as a contractor there for 6 months. People were sleeping in corners during work hours. Playing cards in the basement. One guy was caught stealing transmissions, was fired, then the union got his job back with back pay. Supervisors no where to be seen because the grab the work phone and go home. The list goes on and on and they got paid very very well to basically be useless.

[@wa210]

Lol...always the union 's fault, while the CEO's and top management are on average making 10+ Million a year. Yeah, blame the workers that actually make the products, but never step on the never ending pay hikes to the top. Some people are so easily brainwashed, not just in politics but business as well. Is Tim Cook really worth dishing out a $100 Million a year? But, heyyy, wait a darn minute if you're planning on upping a grunts wage.

[@2332Stephen]

Yeah cuz everybody just has to have that 72,000 dollar truck loaded with everything no matter if they'll be in debt to pay it to a credit card or whatever

[@wa210]

Yep, and the BK lawyers are going to be ultra busy moving forward.

[@jerryneil8558]

they complain about the student loans but they don't complain about most of your paycheck going to your car payment for high mileage cars which is a joke

[@philderrick6305]

And the minimum wage is still the same at 9.50 smh

[@iswatmoths1862]

Maybe in your state. Federally it's still $7.25!

[@fernandovazquez7272]

I’ll tell you why, because customers think giving a downpayment is a bad idea 😂

[@jabe55]

Dealerships have been known to pocket down-payments and leave you paying the same without one

[@sethcampbell7834]

$2,500 per 2022 rang Rover

[@ceciliaruns72]

That's INSANE!!! I just refinanced my $375 per month payment to $310 because I thought it was too high! I have 15k left to pay in 2023 then debt free....

[@tobymofield6597]

And just think, If you would of invested that $375.00 in a Mutual fund you would of made money, Not lost money. Debt free is a beautiful place to be.

[@liveandlearn5320]

I don’t care who you are $1000 a month car payment is insane no one has that much money believe me if you could pay $1000 a month for a car you could save $1000 a month and in 40 months buy a $40,000 car pay cash and makes no sense to me to have a payment that high go buy a used Toyota Highlander for about $16,000 with 100,000 miles on yet put the other 24,000 in the savings account add to it each month and plan on putting about $1000 a year into maintenance I should know I Own a 2008 Toyota Highlander with 208,000 miles on it change the oil synthetic every 5000 miles the engine still purrs like a kitten in the car runs fine

[@murr9704]

We need a consumer union!!

[@kylesmith8128]

People on AVERAGE are borrowing 41,000 DOLLARS for a vehicle???? LOL.....misplaced priorities. And they balk at paying $100/year for taxes to pay for road repair and construction. Humans are so.....dumb.

[@theholyregime7131]

Inflation, low supply so people are paying over MSRP, switching to EV whose price seems to be 5-6k more than it’s gasoline comparison.

[@MaxMustermann-yj1wz]

They hike till everybody is unemployed 😊

[@robertagren9360]

They're doing a man's job son. Helping the economy in the right track by putting them away from making more stupidity.

[@MikeBDaniels-bv8io]

Ok, $703 a month but how many months? The term for a standard car loan back in the day was three years. I’m guessing that $703 a month payment (or even the $1,000 a month payment) is for five or six years! And sure, the dollar isn’t worth anywhere near what it was back in the day, but still, writing a check monthly for $703 (or worse for a $1,000 plus) is a hefty whack to most guys’ checking accounts!

[@jaywavy5734]

There’s nothing popular about a $1K car payment

[@stevenhochman1]

I won’t pay it

[@silbarret4684]

I was lucky enough to buy my car cash for 18k/used. No car payment. I am ok with that.

[@brianreardon7700]

The only car I’m buying is made of legos lol..

[@chri6393]

Well I'll never buy a new car again lol. Oh well

[@kstar1956]

Right🤣🤣🤣 but looking at the PRICE of these cars now it’s insane. Like the average min is starting at 45k😳

[@a-roh942]

Even used cars are skyrocketing

[@st_eunice8818]

Thanks FED, MMT, QE.

[@agl6183]

Thanks for let me know to keep my savings. Cause repossessions are going to sky rocket. Which means I can buy a car cash. It sitting at 15% higher now then 3 years ago. Markets about crash hard.

[@milton4867]

Is it because lower budget households are not buying as much vehicles? That could potentially increase the weight of wealthy households purchases in the total sales percentage wise.

[@mygooya]

plus car dealerships have low supplies and are not selling base models, so a list 30K model is selling for over 40K, only option is placing a special order and waiting 2-3 months

[@kylesmith8128]

Then why would average loans be 41,000 dollars? Rich people pay in cash.

[@nateflora732]

@@kylesmith8128 i used to take care of this doctors child whom was born autistic and he told me some rich people like him take the loan which happens to be better interest than most and put all the money for said loan in seperate account that slowly pays loan off with 100% on time payment and have perfect credit too haha

[@lukethompson5558]

@@kylesmith8128 Exactly… this IS people overextending themselves. No person who’s any bit close to being wealthy would pay a 5%+ interest on a car

[@brainsmasher6617]

My first car was a Plymouth Duster.

[@DoubleshotEspresso77]

Insane 😮

[@jacobrivera7224]

We think about it everyday....thanks

[@HandlewasNo]

I smell a bubble. I wish I had a ISDA and could short auto loan ABS securities

[@LTXsp]

Auto Loan BUBBLE!

[@MarthaMartinez-ez4vd]

if you can afford it and know exactly what you paying then go for it. but if you just want to keep up with the Joneses and have no idea how much you end up paying in interest and other hidden fees than you deserve to get scammed.

[@pololedodo7981]

Most of those people total net value is smaller than the value of their car...

[@delarosae]

Not including insurance, gas, maintenance and repairs … yikes

[@jordanslingluff287]

How many of these people still owe money on their previous car?

[@miguelberrios19]

And then afterwards they call on Mr Dave Ramsey for assistance.

[@vincem257]

Why!? Literally why!? Why would anyone sign into a loan like that. You can Uber across the world for that price.

[@DrewM-sp7go]

I pay 775 a month for a 2018 BMW 320i which is super high but hey least it’s a Beamer

[@davidkennedy8929]

I’m surprised people can afford it! Why not just buy a cheap second hand looked after vehicle?

[@davidkennedy8929]

@@BizznessBox fair enough, I know buying a second hand vehicle is a lottery but it’s worth it if you find a good one!

[@eggsinsideme]

Nowadays used cars are selling for more than they sticker when new. People would rather pay more for used and have it now than get on an 18 month waitlist for new.

[@jerryneil8558]

the cheap cars on the side of the road for example are now going for sky rocket prices with almost 200k miles on them so what do you do then

[@wa210]

Because it's called KEEPING UP WITH THE JONESES.

[@Sandraamarr]

Not reliable

[@user-vi2dk1qz5f]

That's so crazy. I bet auto loan defaults are up. People should stop buying new cars.

[@lousclue9567]

It really is all over.

[@2CabrasLocas]

Interest rates at our credit union up almost a full percentage point this week alone. This is how auto manufacturers & banks greed will bankrupt them.

[@mygooya]

I just turned 60 and am a bi-national, my monthly transportation cost in London/UK is zero! Free Tube, Free bus, and Free National rail rides/no car. When in U.S. my car payment/insurance/gas totals to around $1,200/month

[@rammanohar8161]

Buy a Corolla, why will it be 1200

[@wasidanatsali6374]

I lived in London for awhile. You couldn’t pay me to get on the tube. It’s filthy. King’s College found the London underground is one of the worst polluted places in Europe, with levels of air pollution reaching 8X the amount found on London surface streets.

[@timt6860]

not free, paid by taxpayers and money printing/inflation

[@nicholaslamantia9597]

They don’t teach kids in schools what depreciating and appreciating assets are.

[@RaabsIn513]

what's considered a normal car is much more expensive today. I don't think you can make a blanket statement like that

[@vanmasterflash7153]

😂 oh man that’s expensive

[@OGSAFUNKATEER1901]

1k house payment lol when in the 1990s

[@JJ-mh3hb]

Cant wait to pick all these heavily discounted repo'd vehicles in a couple of years.

[@hiker0100]

I'd be careful- if they can't afford the monthly payments, they likely also couldn't afford maintenance/repair bills, either

[@user-ot4ul5if4l]

My mortgage with interest is 994 $ at 2.5%

[@danbam465]

this is like the housing market crash but for cars

[@Cfb2987]

I feel like more information is needed here. Not a lot can be understood from a single data point.

[@slo77vak]

The mean provides the headline, but what is the median? What vehicle class drives this? Is EV vs ICE a significant difference? "Think about that guys" says Mr. Lebeau, who has done little thinking on the depth of his own reporting. This content could be so much better.

[@donnynguyen9011]

$1k is crazy

[@havok5565]

Why are they more popular. Because that’s how crazy the prices are.

[@jainamcgee2081]

I won't pay over $400 a month

[@Exhaustedmom]

I have a decent condition 2015 Chrysler. I pay 200.00 dollars a month for this car. I’m gonna take care of this car until I won’t allow me anymore. This is insane.

[@pgppe9488]

Average amount borrowed is 42,000 dollars which is a problem. Drive a beater for five years and invest the monthly average car payment and your life will be changed for ever.

[@Omari1125]

The banks are the stupid ones. I sold two rebuilt cars, a '09 BMW and a '12 Porsche Boxster. Both buyers credit was below 600 and both had multiple repos on their report. Out of spite I took them my personal bank to see if they could get approved and 'what da ya know' they got aprroved @ a 23% intrest rate. I highly doubt they're gonna pay those loans off. Never thought I would see the day where I would be wishing the lender and the borrower good luck.😂

[@KWizard__]

Gotta pay those CEO salaries!! How the hell else are vehicles averaging 50k.

[@libertysprings2244]

it'll keep the repo guy busy

[@Bliz33]

my 750/mo payment was torture after that smell faded...i paid it off after 4 years i was so sick of it

[@johnkla7866]

People in the US are no longer able to save money, either because through decades of mass consumerism they have lost all ability to understand its usefulness or because financially they are just too squeezed out with loans and the low wage level. This is what is triggering these massive credit bubbles in all sectors. They will pop if the Fed raises rates further but I doubt they will continue to raise.

[@realnapster1522]

It’s due to low wages which have not kept up with inflation. People have no choice than to get predatory loans from banks.

[@neonghost8608]

@@realnapster1522 people are buy out of their means nobody is forcing them to buy new cars they should be looking at a used car they can afford

[@Bear_toe]

Save up and pay cash for the car. Then you have all the control over the dealership.

[@ftr911drvr]

People aren't very bright people are also paying 10k to 50k over sticker, do you really think dealers and manufacturers will lower prices knowing people are dumb enough to do that? Those people have created the very problem they're complaining about, the car market will stay this way for years to come because there is no incentive for it to go back to a buyers market in the eyes of these dealers

[@willriley1619]

People are stupid. That is the price of a mortgage in many places. I bought a $1000 Volvo 240 drove it around for 6 years and was able to buy a house 2 boats and 3 more cars. My mortgage is about half that

[@RIGTHEGIANT]

30 year loans to buy a car 😂

[@smileychess]

Higher than my mortgage.

[@Chris-xv7wd]

Imagine thinking we are on the right path