On average, AutoNews reports that 3.58 percent of 18 to 29-year-olds and 2.62 percent of 30- to 39-year-olds have been late on their auto loans by at least 90 days. For some context, just 2.13 percent of all borrowers are late. Keep in mind, these numbers are overall. In the first quarter of 2023, 4.55 percent of 18- to 29-year-olds were at least 90 days late. 3.66 percent of 30- to 39-year-olds were equally late. We haven’t seen numbers like these since The Great Recession.
We cannot afford car loans not because car loans are expensive, but because we cannot afford anything.
Why not both?
The average American spends $1k a month per car on auto loans, insurance, gas, and other car-related expenses, and the average family has 2.5 cars per household.
Maybe cutting those down or out completely would make people more financially resilient. Of course, businesses should pay people better, too, but decades of studies have shown us that planning our cities in a way that increases car dependency is more expensive and unsustainable for everyone.
Not having a car in a city is feasible. It’s much less feasible if you live in a rural or even sub urban location.
Inb4 “just move to the city then!?” Living in a city is typically significantly more expensive than rural or suburban areas. If they’re already struggling financially, moving to the city probably isn’t the answer.
I’m not saying everyone should move to the city, nor am I saying that we should get rid of all the cars. I’m saying the way we build our cities needs to change. We can’t afford not to.
I live in a rural area; we could still have better public transit and less sprawl to help those who shouldn’t own a car for financial reasons.
My guy just said sell the car 😂
That’s probably because we can’t afford shit
Car loans kinda stupid. Like, if you can’t afford a car now, and the only option for you get it is to finance It, then just get a used Toyota from a private seller.
But the Joneses!
Boo-fucken-hoo
The transaction price for new car purchases keeps on going up. All these young people think they deserve some $50k luxury SUV on their near minimum wage barista salary. No one wants to live within their budget.
Just over $48k is the average price of a new car right now. To realistically be able to afford that much car, you should be making well over $130k. Are you making that much money? So why the fuck do you think you can afford a nearly $50k car??
There are plenty of cars that sell for way less than $48k, but everyone these days thinks they deserve luxury thanks to brainwashing by influencers and FOMO.
I think a big part of it is also financial literacy. No eduction on how to manage your finances whatsoever and people make dumb mistakes when paired up with predatory dealers/financing.
I’m kind of sick of the excuses, quite honestly. Yeah, there is a lot of financial illiteracy out there, but there is also more importation out there to teach people than ever before. A simple google search of “how much car I can afford” or “car loan calculator” will pull a ton of sites which give you good, honest results for what you can REALLY afford. But people rather watch influencers with their rented out Bentleys than search for financial advise.
You can lead a horse to water but something something 30% APR something something.
You’re assuming these car loans taken out are exclusively for new vehicles - new car purchases have been increasingly the domain of the “rich” who will continue to skew the “average” up and up. Bentley just celebrated the best financial results earlier this year and will do a lot to push up the average even with what Gen Z that can afford new on their own hypothetically buying Mirages and Versas.
Something something Bill Gates walking into a bar and everyone inside becoming a billionaire on average.
And certain job sectors being hit en masse probably doesn’t help those who did buy new but that’s pure speculation on my part.
That’s a whole lot of yapping for “I don’t want to live within my means”. Could have saved you a bunch of typing.
Decided to axe my snarkier comment to instead express that I hope you feel better and are more amenable to learning about mean/median/mode as well as the demographics of who buys new in the future.
I think that you shouldn’t finance a car in the first place. If yoy can’t afford new buy maybe a couple years old but a car is think not worth financing. Especially because it loses value so quickly
Buying used cars is even more eco friendly. Much of the car pollution in the lifetime comes from creating it. Ideally you should use it until it dies on the streets to be eco friendly
Much of the car pollution in the lifetime comes from creating it.
That’s simply not true, but I am guessing you will continue to regurgitate it as if it is fact.
