QOTD: Are You Worried About Auto Loans?
We reported on auto-loan delinquencies yesterday since they're at a record high, though subprime loans are the biggest cause for concern.
Still, the high level of delinquency isn't exactly a great sign for the industry or the overall economy.
On the other hand, we learned during The Great Recession that car loans going delinquent isn't nearly as scary as when housing loans aren't paid.
So what do you think of this news? Reason to worry, or just something to shrug off as a temporary blip since car prices are so high and might someday drop to a more affordable level?
Sound off below.
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Tim Healey grew up around the auto-parts business and has always had a love for cars — his parents joke his first word was “‘Vette”. Despite this, he wanted to pursue a career in sports writing but he ended up falling semi-accidentally into the automotive-journalism industry, first at Consumer Guide Automotive and later at Web2Carz.com. He also worked as an industry analyst at Mintel Group and freelanced for About.com, CarFax, Vehix.com, High Gear Media, Torque News, FutureCar.com, Cars.com, among others, and of course Vertical Scope sites such as AutoGuide.com, Off-Road.com, and HybridCars.com. He’s an urbanite and as such, doesn’t need a daily driver, but if he had one, it would be compact, sporty, and have a manual transmission.
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I hear that students hoping to have their student loans paid off by Resident Biden, will have to start paying those back in the fall. Hopefully they didn't take out a car loan before establishing a career based on their studies.
Not at least in the short term. I have no credit card debt (pay that in full every month), refinanced my mortgage in 21 before the rates went up (and it is less than rent on houses 1/2 the size of mine), and only have a small truck loan that I can pay off tomorrow if necessary.
The worry I have is that Brandon and his hoarde will want responsible people like me to subsidize the stupid decisions of those who are in over their head in car debt.
I've got four cars and one car loan, which is a 0% loan so it would be dumb to pay it off. It will mature in early 2025. We may buy another car before then, but if we don't it'll be nice to have no payments.
Auto loans - not my circus, not my monkey.
I have too many cars (and a truck) already, and have never financed a vehicle. The banks getting out of the business are just making space for those that want to get in. The best way to finance is through a credit union. BofA and WF can go the way of Sears, Woolworth and Montgomery Ward for all I care.