4 in 5 New-Car Buyers Finance Purchases as More Consumers Fall Underwater on Loans
Updated
Updated · Chattanooga Times Free Press · May 16
4 in 5 New-Car Buyers Finance Purchases as More Consumers Fall Underwater on Loans
2 articles · Updated · Chattanooga Times Free Press · May 16
More car buyers are getting trapped in negative equity, trading in vehicles worth less than the balance still owed on their loans.
Four out of five households that buy a new vehicle finance the purchase, leaving a large share of buyers exposed when values lag debt.
Sharp increases in vehicle prices and borrowing costs since 2020 have deepened that mismatch, making it harder for consumers to keep up or exit existing loans.
The trend points to growing strain in household auto finances as higher prices and rates continue to reshape the car market.
With record delinquencies and $1,000 monthly payments, is the US auto market driving towards a 2008-style crash?
As 'Buy Here Pay Here' loans surge 214%, are the riskiest borrowers being systematically set up to fail?
Lenders now use AI to manage debt. Can technology solve the affordability crisis it helped fuel?