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A record 7 million Americans are 3 months behind on their car payments, a red flag for the economy

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A record 7 million Americans are 3 months behind on their car payments, a red flag for the economy

Source: Washington Post

By Heather Long February 12 at 11:26 AM 

A record seven 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. 

Despite the strong economy, many Americans continue to struggle to pay their bills. People who are three months or more behind on their car payments often lose their vehicle, making it even more difficult to get to work, the doctor or other critical places. 

“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. 

There are over a million more “troubled borrowers” now than there were at the end of 2010, when unemployment hit 10 percent and delinquency rates on auto loans peaked. Unemployment today is 4 percent and many more Americans have jobs now, yet a significant number of people still can’t pay their car loan. 

-snip- 


Read more: https://www.washingtonpost.com/business/2019/02/12/record-million-americans-are-months-behind-their-car-payments-red-flag-economy/

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Its all Gingers fault. He shamed them out of buying the entry level units in favor of the loaded ones.

Edited by steve from amherst
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How much of that is because people just have to have the latest and greatest car, truck, house, phone, motorcycle, boat, ect... and overextend themselves? 

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9 minutes ago, xtralettucetomatoe580 said:

How much of that is a product of the govt shutdown I wonder? 

None.  But you have to dig to find the dates of the report which, cleverly appealing to the masses of retards, WAPO doesn't list.  Report was compiled 4th quarter of 2018.  Also, this number has steadily continued to climb since FY13.

But.....

 

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Gotta be Trumps fault people can’t manage their money. I just can’t think of anyone else to blame. :dunno: 

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9 minutes ago, xtralettucetomatoe580 said:

How much of that is a product of the govt shutdown I wonder? 

Can't imagine much.   They only missed one paycheck and there were 800,000 impacted.   

 

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20 minutes ago, Mainecat said:

A record 7 million Americans are 3 months behind on their car payments, a red flag for the economy

Source: Washington Post

By Heather Long February 12 at 11:26 AM 

A record seven 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. 

Despite the strong economy, many Americans continue to struggle to pay their bills. People who are three months or more behind on their car payments often lose their vehicle, making it even more difficult to get to work, the doctor or other critical places. 

“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. 

There are over a million more “troubled borrowers” now than there were at the end of 2010, when unemployment hit 10 percent and delinquency rates on auto loans peaked. Unemployment today is 4 percent and many more Americans have jobs now, yet a significant number of people still can’t pay their car loan. 

-snip- 


Read more: https://www.washingtonpost.com/business/2019/02/12/record-million-americans-are-months-behind-their-car-payments-red-flag-economy/

The share of auto loan borrowers who were three months behind on their payments peaked at 5.3 percent in late 2010. The share is slightly lower now — 4.5 percent — because the total number of borrowers has risen so much in the past several years

While defaults on auto loans are a red flag, they are unlikely to take down the entire financial system like mortgages did in the lead-up to the 2008-09 financial crisis. The total auto loan market is just over $1 trillion, far smaller than the $9 trillion home mortgage market.

Rates can vary substantially depending on a borrower’s credit score and where they obtain a loan. A “prime” borrower with a credit score in the range of 661 to 780 can get an auto loan rate of about 4.5 to 6 percent, according to NerdWallet. In contrast, a subprime borrower is typically looking at rates between 14.5 and 20 percent.

Fewer than 1 percent of auto loans issued by credit unions are 90 days or more late compared with 6.5 percent of loans issued by auto finance companies.

Edited by Highmark

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8 minutes ago, Edmo said:

Gotta be Trumps fault people can’t manage their money. I just can’t think of anyone else to blame. :dunno: 

Definitely Trump

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Buy here/pay here. Title loans?  Does MC have a break down of the loans?

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54 minutes ago, Woodtick said:

Buy here/pay here. Title loans?  Does MC have a break down of the loans?

Nope he's too busy having a break down here daily

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1 hour ago, JEFF said:

How much of that is because people just have to have the latest and greatest car, truck, house, phone, motorcycle, boat, ect... and overextend themselves? 

 

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1 hour ago, Highmark said:

The share of auto loan borrowers who were three months behind on their payments peaked at 5.3 percent in late 2010. The share is slightly lower now — 4.5 percent — because the total number of borrowers has risen so much in the past several years

While defaults on auto loans are a red flag, they are unlikely to take down the entire financial system like mortgages did in the lead-up to the 2008-09 financial crisis. The total auto loan market is just over $1 trillion, far smaller than the $9 trillion home mortgage market.

Rates can vary substantially depending on a borrower’s credit score and where they obtain a loan. A “prime” borrower with a credit score in the range of 661 to 780 can get an auto loan rate of about 4.5 to 6 percent, according to NerdWallet. In contrast, a subprime borrower is typically looking at rates between 14.5 and 20 percent.

Fewer than 1 percent of auto loans issued by credit unions are 90 days or more late compared with 6.5 percent of loans issued by auto finance companies.

 

Proves exactly the type of partisan shit coming out of the media.

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If they are late on their payments because they aren't making enough money how in the fuck did they get the loans in the first place?

Image result for scratch head meme

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1 hour ago, racer254 said:

Proves exactly the type of partisan shit coming out of the media.

Funny , yesterday talking about tax returns NBC just said people are getting less. NPR took the time to explain that they got more in their check all yr long.

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5 hours ago, racer254 said:

Proves exactly the type of partisan shit coming out of the media.

That was copied from the link you dumb fuck :lol:

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7 hours ago, xtralettucetomatoe580 said:

How much of that is a product of the govt shutdown I wonder? 

zero 

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7 hours ago, JEFF said:

How much of that is because people just have to have the latest and greatest car, truck, house, phone, motorcycle, boat, ect... and overextend themselves? 

most if it .

 

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8 hours ago, Highmark said:

The share of auto loan borrowers who were three months behind on their payments peaked at 5.3 percent in late 2010. The share is slightly lower now — 4.5 percent — because the total number of borrowers has risen so much in the past several years

While defaults on auto loans are a red flag, they are unlikely to take down the entire financial system like mortgages did in the lead-up to the 2008-09 financial crisis. The total auto loan market is just over $1 trillion, far smaller than the $9 trillion home mortgage market.

Rates can vary substantially depending on a borrower’s credit score and where they obtain a loan. A “prime” borrower with a credit score in the range of 661 to 780 can get an auto loan rate of about 4.5 to 6 percent, according to NerdWallet. In contrast, a subprime borrower is typically looking at rates between 14.5 and 20 percent.

Fewer than 1 percent of auto loans issued by credit unions are 90 days or more late compared with 6.5 percent of loans issued by auto finance companies.

 

OWNED!!

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9 hours ago, XCR1250 said:

OWNED!!

:lol:

another nimwit. Skidmark copied and pasted that from the same article MC posted. Maybe you should read things before claiming “owned” or accusing the author of manipulating readers like racer did?

 

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18 hours ago, Mainecat said:

A record 7 million Americans are 3 months behind on their car payments, a red flag for the economy

Source: Washington Post

By Heather Long February 12 at 11:26 AM 

A record seven 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. 

Despite the strong economy, many Americans continue to struggle to pay their bills. People who are three months or more behind on their car payments often lose their vehicle, making it even more difficult to get to work, the doctor or other critical places. 

“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. 

There are over a million more “troubled borrowers” now than there were at the end of 2010, when unemployment hit 10 percent and delinquency rates on auto loans peaked. Unemployment today is 4 percent and many more Americans have jobs now, yet a significant number of people still can’t pay their car loan. 

-snip- 


Read more: https://www.washingtonpost.com/business/2019/02/12/record-million-americans-are-months-behind-their-car-payments-red-flag-economy/

For eight years you posted nothing negative about the economy when Obama was president.  You live a miserable existence 

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