Photoshop contests at Mechapixel | Forums
 
The golden bit is back!
Gain exclusive benefits and help support Mechapixel with Mecha+
Learn more - Subscribe
HomeContestsQueueShowcaseArcadeForumsMembersAboutContact
'SamuraiMP' by Repoman
Go Back   Mechapixel Forums > Main > Aarkie's Corner
Post New Thread Reply
Thread Tools
Unread 2019-11-09, 11:25   #1
aarkieboy's Avatar
aarkieboy
Moderator

Feb 5 2003
86,125 posts
Age 63
Male
Somewhere on this ball we call "Earth"
 



"John Schricker took out a loan to buy a car in 2017. Then he took out another. And then another.

In two years, the 40-year-old electrician signed up for four auto loans, each time trading in the previous car and rolling the unpaid balance into the next loan. He recently bought a $27,000 Jeep Cherokee with a $45,000 loan from Ally Financial Inc.

Consumers, salespeople and lenders are treating cars a lot like houses during the last financial crisis: by piling on debt to such a degree that it often exceeds the car’s value. This phenomenon—referred to as negative equity, or being underwater—can leave car owners trapped.

Some 33% of people who traded in cars to buy new ones in the first nine months of 2019 had negative equity, compared with 28% five years ago and 19% a decade ago, according to car-shopping site Edmunds. Those borrowers owed about $5,000 on average after they traded in their cars, before taking on new loans. Five years ago the average was about $4,000.

Rising car prices have exacerbated an affordability gap that is increasingly getting filled with auto debt. Easy lending standards are perpetuating the cycle, with lenders routinely making car loans with low or no down payments that can last seven years or longer." (More)
My SignatureDisplay Signature Reply With Quote
Unread 2019-11-11, 10:48   #2
RepoMan's Avatar
RepoMan
Moderator

Jun 24 2003
33,253 posts
Age 50
Male
On the trails
 



John Schricker bought this Jeep Cherokee last year to accommodate his growing family.

Stopped right at the picture caption.

If you can't afford it, STOP GROWING YOUR FAMILY.

Click the image to open in full size.
Reply With Quote
Go Back   Mechapixel Forums > Main > Aarkie's Corner > A $45,000 Loan for a $27,000 Ride: More Borrowers Are Going Underwater on Car Loans
Post New Thread Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -5. The time now is 14:11.

Powered by vBulletin®
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.