As auto prices soar, more buyers take out 6½- and 7-year loans

[Carolina Jim]

Experian: "more than a third of all new vehicles bought in the fourth quarter were financed with loans with terms of six years or more"

Are automakers - together with government agencies who keep mandating unnecessary shit on every vehicle made - are they killing the 'golden goose'?

For a frame of reference, see all the recent articles on 'student loans'. Once vehicles become too expensive for most folks to buy....I suppose the government plans to start giving them away for free

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[Jawaburger]

Sounds like a lot of people are buying vehicles that are out of their budget more than anything else.

 

[Carolina Jim]

Sounds like a lot of people are buying vehicles that are out of their budget more than anything else.

In 2021, Edmunds.com reported that the average new car price is over $39,950.....while the Census Bureau reports the real median household income reached $68,703 in 2019.

Sounds like a bubble to me!

 

[Felix808]

Sounds like a lot of people are buying vehicles that are out of their budget more than anything else.

Yep, if you have to take a 7 year loan for a vehicle, you can't afford that vehicle. 1 mishap and you will be so far upside down.

 

[Swabodda]

Sounds like a lot of people are buying vehicles that are out of their budget more than anything else.

It's the American Way ®

In 2021, Edmunds.com reported that the average new car price is over $39,950.....while the Census Bureau reports the real median household income reached $68,703 in 2019.

Sounds like a bubble to me!

There's not nearly enough outstanding auto loan debt to even remotely consider calling this a bubble. It's also quite easy for the banks to repossess cars and sell them again.

 

[kodiakisland]

Who makes money on gap insurance? They should be doing well.
7 years. Man, that used to be a boat loan.

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