Record number of defaults on auto loans

[tmontague]

Originally Posted by Hamster

I don't think it's all the safety regulations. Yes, that adds to the cost of cars, but it's not really that bad. Car prices are still very reasonable. A Kentucky-made Camry LE can be had for as low as $25,000 MSRP, with of course the actual purchase price being a few thousand dollars less than that. I think it's all the SUV's. Pretty much any SUV will cost tens of thousands of dollars more than what a car costs. Everywhere I look I see SUV's, and I don't understand how everyone suddenly became able to afford one. Well, probably they can't. Banks are handing out auto loans like candy. Someone in my family bought a SUV, specifically a fully-loaded Jeep Grand Cherokee, with a loan, for $50,000. And trust me, everything this guy owns is paid for with debt.

You're correct, people cannot afford them, they just don't want to come back to reality and admit that because the base Civic doesn't get much social media cred. But a civic type R certainly does - who cares if you can't afford it, you'll get all the likes in the world.

This current generation struggles with the concept of living within their means. I see it with my circle of friends a lott. They drive cars they have no money for, or are therefore car poor and cannot afford anythig else. They then complain that that they still live with their parents while they drive around their $80,000 Challenger Hellcat.