More than 100 million Americans have an auto loan and auto loan debt in the U.S. is at a record high of $1.56 trillion. Between the Covid-19 pandemic, supply chain issues, alleged predatory lending practices, inflation, and the Federal Reserve’s interest rate hikes, getting an auto loan is getting increasingly difficult and costly. CNBC spoke with Chase Auto and Toyota Financial Services to learn what’s happening in the auto loan industry and what consumers can do to make sure they’re protected.
Chapters:
00:00 — Introduction
01:51 — How auto loans work
05:49 — Market changes
08:19 — Alleged predatory lending
13:19 — Consumer protection
Produced and Edited by: Emily Lorsch
Animation: Alex Wood, Jason Reginato
Senior Managing Producer: Tala Hadavi
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Why Americans Are Falling Behind On Car Loans
I've never had a vehicle payment in my life.????
Sounds like they're cooking up another market crash same thing was happening in 2003 2005 2008 because of all these high interest rates the weakening of the buying power of currency ???? people have less money to spend in the economy less money spent in the economy means fewer jobs people default on credit card home and car loans banks invest your deposit money the money that you actually withdraw is from credit card and home payments that people have made when all this happens the stock market goes down and there is a problem
Me likey Joanna Dean ???? Me likey her a lot
I will drive mine just like in Africa until everything fall apart and then tape and fix and drive more ????
I haven’t been able to afford a car, ever, or a home, too much student loan debt following me for years and not making enough money to live and pay the sh**t off. I should never have had kids, and I shouldn’t have ever gotten into a relationship. Stay single and don’t have kids, you’ll be far happier trust me, and for those who are still living with their parents, and your not paying rent, save your money and get a car asap, and find a simple apartment asap.
Anyone looking to get into post secondary, unless your got parent that give a sh**t and was saving for all those years you were conceived just forget it and find a job and grind and make money.
wake up America, you are being fked. the dealerships are all trying to steal and lie and cheat. .. go in, look at car, drive car, sit down, listen to the liar, and then say "fk you, I'm out of here and everything is save to video" and walk. I heard of someone who recently went to a dealership, after one lie and then another he told the sales freak "if you say one more word, I'm going to break some of your bones" .. the sales kid ran into the back room and he walked.
keep an eye on this….definately has a possiblity to cause a financial crisis. Loan to value ratio is so out of wack right now on cars.
I soold cars for a couple dealerships for over 10 years. You can mark up the rate by 2 points and the dealership keeps the profit. As far as minority buyers. They would seem to have lower credit scores or have more repossessions. That plays a huge roll. Also, You could have two people with a 650 credit score and they would get diffrent rates due to specfics on thier credit report. How much debt they have been loaned in the past and how much income they make a month are two good examples.
WOW and to think my friends bragging about new cars, purses, and houses actually made me feel bad about myself. Now that I have kept my head down and focused on my craft I can purchase their debts all cash when they sell their stuff for pennies
The cars spy on you like the phones but worse
Its bc they watch the spygrid and damage property ontop of hr bias if they see bad stuff
I dont trust NONE of you reckless jacka$$es on the road and based on the way you people drive it would be naive to even consider driving anything other than a beater…buying a new car would be the equivalent of just setting a trashcan full of money on fire ???? if your in debt thats where you put yourselves trying to keep up with the Jones's
I have no idea why people find it the best idea that buying a 80000 car when you have to save for retirement, buy a home, and finance daycare
All I'm going to say is I have noticed A LOT of tow trucks in my area lately and they are not towing damaged or broken down vehicles. They are towing vehicles that look like new. People need to stop buying what they know they can't afford.
STUPID people buying what they can not afford I can not afford a car I bring home $1,200 a month $900 a month to own a car with insurance no thanks I commute on a bicycle no car payment no gas no insurance I rid 365 days a year and I love it
I think I’ll buy myself a tow truck
So much financial illiteracy. It’s sad.
I financed 3cars in my life im 28 i stopped back in 2019, the last 5cars ive owned have all been cash purchases, now i have two cars i sont pay a monthly bill & i couldnt be happier, my ex from back in 2018 financed two cars in the past few years & shes so underwater its hilarious watching her go back and begg daddy for a place to stay because she didnt learn her lesson when i co signed a 2019 corolla for her for $50000 out of spite back in 2019 ????, financing is a filthy game and can send you back years especially when you have bad partners cutting your tires braking your windoes and stealing your cars dont do it kids.
Find a finance guru here on YT and most have calculators to show you how much car you can afford. Don’t determine this amount alone.