zzdcar
Home
/
Reviews
/
Buying
/
Over Half a Million Americans Are 60 Days Late on Their Car Payments
Over Half a Million Americans Are 60 Days Late on Their Car Payments-June 2024
2024-02-19 EST 22:09:19

Mini's sitting on dealer showroom floor

Expensive new car prices are tough enough to swallow. But the price of vehicles in general, with the average price of a new car hitting , and continuing to hover there; used car prices are averaging almost $31,000. It hasn’t deterred people from buying them, but it turns out many owners may be in over their heads. The number of delinquent auto loans has increased substantially, to 1.65 percent, as pandemic forgiveness programs come to an end, reports. And while that doesn’t sound like a big number to worry about, it’s the highest percentage of delinquencies in over a decade.

Data from TransUnion shows that about 200,000 people took advantage of auto loan accommodations during the early days of the pandemic. These programs were put in place to protect people whose income had been affected after losing their job or any other ill-effects of the pandemic.

Those programs have since ended, bringing those owners to a harsh reality.Those same 200,000 people who took advantage of the program, are now 60 days delinquent on their auto loans, according to TransUnion. Another 100,000 loans are also 60 days delinquent but are in similarly designed accommodation programs that continue to keep their cars from being repossessed.

While the country experiences some of the highest delinquency rates on auto loans (and accompanying rising rates of auto loans), the vice president of TransUnion, Satyan Merchant, thinks the auto market still remains healthy, for now. “If we get into a position whereemployment starts to be a challenge in the United States and unemployment increases, that is when the industry will really start to be concerned about a consumer’s ability to pay their auto loans,” he said to CNBC.

However, he loses sight of the fact that employment doesn’t necessarily mean someone can’t be late on a car payment. People are still buying vehicles and getting themselves into risky financial situations doing it. , with the average rate for new vehicles hitting 5.2 percent in September and near subprime around 9.7 percent for used cars. To make matters worse, many buyers , upwards of 84 months, to make these payments work for budgets. Automakers seem to be encouraging it. Go to any build and price tool for something a Ford F-150 or Chevy Tahoe and payment terms for financing will default to 72 or 84 months. That’s 6-7 years of payments.

People really need to think things through when purchasing a vehicle and make sure what they’re buying works for them financially. I know it’s hard to resist that shiny new metal toy and not buy a car impulsively that you really can’t afford. In some cases, folks have had little-to-no choice because of the state of the market and they need a car to get them to and from places. But if you can, try to avoid getting yourself into a loan situation you know you can’t get out of. It’s only going to hurt you more later on.

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Buying
Grand Prix Two Plus Two Equals $8,000!
Grand Prix Two Plus Two Equals $8,000!
Seeing how Ford's Aerobird performed on NASCAR's speedways caught GM off guard. With a plastic nose and a glass fastback, today's Pontiac helped GM's Sunday prospects, and, for $8,000, could help yours all week. Two proved not to be cheaper by the dozen yesterday as a slim 52% of you...
Jun 23, 2026
2011 Ford F-Series Super Duty: First Drive
2011 Ford F-Series Super Duty: First Drive
The 's a gamble. Ford's newest heavy hauler abandons the well-known Navistar-supplied Powerstroke diesel for a brand new all-Ford designed powerplant supposedly delivering monstrous power, squeaky-clean emissions, better fuel economy and the same price. Seems suspiciously impressive. Full disclosure: Ford wanted me to drive the new Super Duty so much...
Jun 23, 2026
How Green Was My Volvo for $8,999!
How Green Was My Volvo for $8,999!
Kermit the Frog once intoned that it isn't easy being green. As much as respects the opinion of our friend with a hand up his ass, this bio fuel-ready Volvo wagon could prove him wrong. As expected, yesterday's caused some consternation when it came to the vote. But in the...
Jun 23, 2026
Hennessey MaxBoost 435 Lincoln MKS: First Drive
Hennessey MaxBoost 435 Lincoln MKS: First Drive
Ford perversely uses "EcoBoost" to describe their direct-injected and turbocharged engines when everyone knows fuel economy is merely the side effect of more power. The is a with the right name and 435 HP. When I was out at the Hennessey world HQ earlier this month to sample the —...
Jun 23, 2026
Hey Bulldog for $5,500!
Hey Bulldog for $5,500!
Before Honda discovered Jazz, or got Fit, they had a pet Bulldog. Right now, wants to know if $5,500 for this Kei Cur will get your tail wagging. Pretty much nobody was green with envy over yesterday's gray market . In fact, the crack pipe lever was yanked by a...
Jun 23, 2026
2001 Mercedes Wants You to Egg Your Driveway for $12,000!
2001 Mercedes Wants You to Egg Your Driveway for $12,000!
They say that, to make an omelet, you're going to have to break some eggs. Well, today has an egg-shaped Mercedes, and if you want to make it, you'll need to break out twelve grand. Small, turbo'd and phone booth-thin ruled the day yesterday, as, in a 60/40 split, we...
Jun 23, 2026
Copyright 2023-2026 - www.zzdcar.com All Rights Reserved