7 Million people are late with car payments

[nthach]

Originally Posted by edyvw

There is also that educational part. I get it, 99.99999999999999% of people are not BITOGers or whatever "ers." But, few weeks bask, colleague, in 30's, called road assistance to change his flat on Outback. .


I know plenty of "manly" guys who are into sports, guns, hunting and fishing but have no clue about checking the fluids on their cars/trucks or defer maintenance. And I know some of my woman friends who DIY the maintenance on their cars, one rebuilt the engine on her motorbike. I'll teach my future offspring to change a tire and check the fluids(unless of course, Tesla or self-driving car).

I have a AAA Premier membership mostly for towing and jump starts - but with some cars that come with run-flats or those BS "mobility kits" that don't fix more than a nail puncture in the tread area and almost always trash your TPMS sensor/wheel, I'll call for a tow instead. Or when I'm somewhere where I can't safely drive to a well-lit, SAFE area to change a tire.

 

[StevieC]

Originally Posted by cjcride
Originally Posted by StevieC
We need to get back to 6-10% to curb the usage of cheap debt and the more time we spend with chronically low interest rates the longer we extended the scope of the problem and punish savers at the same time. But I think they are scared because cheap debt is really the only thing keeping the economy a float.

and keeping Canadian real estate prices where they are.

Yes although traditionally when interest rates are high housing prices cool or recede as they did in the 1980's when interest was ridiculous.

 

[Elkins45]

Originally Posted by SeaJay
Late model used minivans from a certain manufacturer these days are going for a small song and a dance. But there are many folks that would cut off their right hand before being seen driving a minivan


If you don't mind my asking, what manufacturer are you referring to here?

 

[Andrew1972]

Originally Posted by HM12460
Threads comparable to this often pop up from time to time, and many of you/us tend to chime in with how fiscally responsible you are and how you bought your new car with cash blah, blah, blah... Tend to see a lot of the same characters. Have any of the responder's claiming to be of superior fiscal intelligence ever considered no one here cares? Just asking.


I think wealthy folks have a right to brag. It's not about how much money you make getting wealthy. Its about the choices you make all the way especially resisting want vs need.

Anyone can buy a new car (to them) cash. It may be a $1500 car but until they save for next one cash they limp about in that.

 

[PimTac]

Originally Posted by HM12460
Threads comparable to this often pop up from time to time, and many of you/us tend to chime in with how fiscally responsible you are and how you bought your new car with cash blah, blah, blah... Tend to see a lot of the same characters. Have any of the responder's claiming to be of superior fiscal intelligence ever considered no one here cares? Just asking.





So the way I interpret that is some people do not want to learn how to be more responsible and prudent financially. That's a shame.

 

[edyvw]

Originally Posted by Elkins45
Originally Posted by SeaJay
Late model used minivans from a certain manufacturer these days are going for a small song and a dance. But there are many folks that would cut off their right hand before being seen driving a minivan


If you don't mind my asking, what manufacturer are you referring to here?

When I bought Sienna, it was 4-5000 cheaper than same year, mileage Highlander. Not brainer which is more practical. What surprised me is that Sienna drives better than Highlander, probably due to lower center of gravity (both vehicles are on same platform).

 

[Mr Nice]

Originally Posted by madRiver
Originally Posted by HM12460
Threads comparable to this often pop up from time to time, and many of you/us tend to chime in with how fiscally responsible you are and how you bought your new car with cash blah, blah, blah... Tend to see a lot of the same characters. Have any of the responder's claiming to be of superior fiscal intelligence ever considered no one here cares? Just asking.


I think wealthy folks have a right to brag. It's not about how much money you make getting wealthy. Its about the choices you make all the way especially resisting want vs need.

Anyone can buy a new car (to them) cash. It may be a $1500 car but until they save for next one cash they limp about in that.

Lots of wealthy people I know buy new cars under $30K.

 

[02SE]

Lots of wealthy people got that way, due to living well within their means. They practiced discipline, bought only what was absolutely necessary instead of always having the latest and greatest whatever, so that eventually they wouldn't be one paycheck away from 'living in a van, down by the river'*...






*RIP, Chris farley

 

[CKN]

Originally Posted by Mr Nice
Originally Posted by madRiver
Originally Posted by HM12460
Threads comparable to this often pop up from time to time, and many of you/us tend to chime in with how fiscally responsible you are and how you bought your new car with cash blah, blah, blah... Tend to see a lot of the same characters. Have any of the responder's claiming to be of superior fiscal intelligence ever considered no one here cares? Just asking.


I think wealthy folks have a right to brag. It's not about how much money you make getting wealthy. Its about the choices you make all the way especially resisting want vs need.

Anyone can buy a new car (to them) cash. It may be a $1500 car but until they save for next one cash they limp about in that.

Lots of wealthy people I know buy new cars under $30K.


I guess there are different kind of wealthy folks. I can drive through many parts of affluent Western Cities and never see anything worth less than $50,000.00

 

[Cujet]

Originally Posted by Kurtatron
summed up
I don't need this short term satisfaction.
I need to be diligent about keeping my older car maintained.
I need to do my research buying a used car.
I won't care about what others think.


While that may all be true, driving is not free or cheap. The class of vehicle driven has a KNOWN cost. Over many a vehicles lifetime, fuel, repairs and insurance will far outstrip it's purchase price.


Originally Posted by DoubleWasp

There is a Devil's Triangle that exists in many areas:

1. Poor wages
2. Incompetent or Non-existent Public Transit
3. Long commutes
4. Cost of living? Insane. [snip]


One must have a car, and breaking down before or on the way to work means the apocalypse. Only answer? A new [or newer] car.




I have a second home in PA. The cost of living, as you so skillfully point out as "insane" is STUPIDLY high by comparison to Florida.

I'd like to expand on this a little: City life with it's public transportation, is not a viable solution for many American families. Non manufacturing jobs (the kind you find in major cities) for average people pay poorly, and "insane" costs abound.
I moved out of Connecticut in 1989 due to zero chance of a reasonable quality of life, even though I was making over $80,000 per year, I could not afford any viable house within commuting distance of work in NYC. I was unwilling to live in absolute squalor in the city. (Remember, NY city, state and Fed taxes took a huge bite)

I took a job for a flat $38K in tax free FL and my standard of living went from run down apartment living, rusty cars and 1.25 hour commutes to beautiful single family home, 2 SeaDoo's and a couple of nice used vehicles that had no rust and needed no expensive inspections.

Half the pay, twice the standard of living.

 

[xxch4osxx]

Originally Posted by cjcride
Originally Posted by StevieC
We need to get back to 6-10% to curb the usage of cheap debt and the more time we spend with chronically low interest rates the longer we extended the scope of the problem and punish savers at the same time. But I think they are scared because cheap debt is really the only thing keeping the economy a float.

and keeping Canadian real estate prices where they are.



I agree. Priced waaaaay out of the budget of a regular working family.

 

[Cujet]

Originally Posted by 02SE
Lots of wealthy people got that way, due to living well within their means. They practiced discipline, bought only what was absolutely necessary instead of always having the latest and greatest whatever, so that eventually they wouldn't be one paycheck away from 'living in a van, down by the river'*...


It's great advice, but only part of the equation. There are a great many other life choices that are involved in something other than a token quantity of money. As I point out above, where you live is very important. NYC people clearly understand the great wealth there, but the vast majority struggle for a lifetime, even with "reasonable" pay. They are lured by the observable prosperity, only to live in squalor. In my mind, that's a poor choice.

I work for one of the worlds most wealthy. I promise you he did not get that way by "saving". He developed fortune by incredible intelligence, and a series of insightful choices.

I truly believe that absent disaster, even one poor choice has lasting consequences.

 

[Mr Nice]

Lots of people from up north retire and live like a king in Florida with their $100+ K pensions.

No need to stay in the North if you're retired.

 

[StevieC]

Originally Posted by Mr Nice
Lots of people from up north retire and live like a king in Florida with their $100+ K pensions.

No need to stay in the North if you're retired.

That's my plan although I won't have a $100K pension. I'll just have retirement savings and I most likely will be in Arizona. Humidity isn't a good thing for my lung problems.

 

[02SE]

Originally Posted by Cujet
Originally Posted by 02SE
Lots of wealthy people got that way, due to living well within their means. They practiced discipline, bought only what was absolutely necessary instead of always having the latest and greatest whatever, so that eventually they wouldn't be one paycheck away from 'living in a van, down by the river'*...


It's great advice, but only part of the equation. There are a great many other life choices that are involved in something other than a token quantity of money. As I point out above, where you live is very important. NYC people clearly understand the great wealth there, but the vast majority struggle for a lifetime, even with "reasonable" pay. They are lured by the observable prosperity, only to live in squalor. In my mind, that's a poor choice.

I work for one of the worlds most wealthy. I promise you he did not get that way by "saving". He developed fortune by incredible intelligence, and a series of insightful choices.

I truly believe that absent disaster, even one poor choice has lasting consequences.




As I and others have said repeatedly when this topic comes up: Make wise choices, live within your means, and obviously if you're living where you have to live in squalor to get by, then maybe you need to reevaluate where you choose to reside.

And of course there are no guarantees in life... except death and taxes.

 

[Garak]

Originally Posted by PimTac
Yep, those were interesting times. Jobs were scarier than hens teeth. Inflation and high interest rates were the norm.

Those were the times you were glad to be even driving taxi.

 

[Andrew1972]

Some more stats would help make that number stronger. At the very least it's likely 150 million people have a car(s) in USA. 7 million is not a large number to me. Although the key stat is how many people are financing the car overall to compare 7 million against.

 

[JeffKeryk]

The makeup of the 7M is what makes me curious.
Perhaps some are people with prior defaults who are getting 30% loans on beaters.
So it continues...

 

[CKN]

Originally Posted by JeffKeryk
The makeup of the 7M is what makes me curious.
Perhaps some are people with prior defaults who are getting 30% loans on beaters.
So it continues...


You bring up an excellent point. It would be interesting to see a further break down of demographics. Such things like average transaction price/loan amount of vehicles, how many defaults on vehicles under $10,000.00 verses over $10,000.00. Credit scores, etc.

 

[SeaJay]

Originally Posted by Elkins45
Originally Posted by SeaJay
Late model used minivans from a certain manufacturer these days are going for a small song and a dance. But there are many folks that would cut off their right hand before being seen driving a minivan


If you don't mind my asking, what manufacturer are you referring to here?


Dodge