Could this be a harbinger of serious impending economic decline:
Posted by TW on September 15, 2025, 11:59 am
Cars are more expensive than ever, according to the CFA report, "Driven to Default: The Economy-Wide Risks of Rising Auto Loan Delinquencies." The average vehicle sells for nearly $50,000 and almost 20% of new car buyers are paying $1,000 or more a month, the report said. Nearly 1 in 5 new car buyers in the first quarter of 2025 have a loan that is seven years long. Used car prices had also risen 6.3% year over year in June 2025, CFA said.
CFA sent the report to members of Congress on Sept. 10, calling for an end to "exploitative practices," including interest-rate kickbacks, where dealers and lenders "conspire to secretly inflate interest rates and share the profits gleaned from the consumer's overpayment."
Americans owe more than $1.66 trillion in auto debt and a crisis is happening "just as our nation’s federal watchdogs – the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) – have taken significant steps back from oversight and enforcement of predatory practices in the auto market," the report said.
I've never owned a brand-new car in my life. Not only that, but I just can't part with the amount of money they want for a new one. Particularly, when they lose so much in value by merely driving them off the lot. A $1000 or more a month car payment for 6 or 7 years isn't something I'd care for either. And the insurance on that much car....not for me. I'd like to have owned a brand-new car. But for me, it's just not prudent. I've got a feeling it wasn't that prudent for a large number of Americans either. I think too many people place too much importance on their means of transportation. Reliability is of course important. You can get that without buying brand new.
Re: Could this be a harbinger of serious impending economic decline:
I have only bought 1 New car in my life. It was a small sedan. It was a 'milestone' of sorts in my life when I was young because I could.
And because I can, I have always been a resourceful DIY guy with almost everything I own. I have saved myself thousands of dollars by learning to maintain and repair my 'things'. But it's harder to do in a disposable world.
My wheelchair accessible van is 20 yrs old. I treat it like a handicapped family member now too because I have to finesse some of the normal functions, but it gets us from A to B.
live long and prosper as best you can Jacque
Of course it is. The economy is tanking under trump
Maybe those f***ing tariffs that add a ton of $$ to their manufacture? Before, without tariffs, cars and their parts were sent between Mexico and Canada along with key components imported from China. Now, every part and much of their assembly is subject to tariffs.
At this point, the expensive union jobs that were eliminated with the manufacturing being sent between countries would be cheaper. However, it's too late to bring them back with the factories shuttered and workers either retired or moved on to other jobs.
..you couldn't get a used car for less than $20,000 unless you knew somebody. I ended up leasing a car, leasing another one now (Hyundai). At the time I couldn't get a Honda anytime soon, and Mazdas were overpriced.
I tried two from Carvana, both had problems (though not old). One they couldn't start to get it off the trailer!
Like housing, it's becoming a crisis.-greenman
Certainly Covid caused a lot of problems! we lost our refrigerator in early 2021
and couldn't get another for over 9 months! Anyfhing available was outrageously over-priced and sold the second it hit a store.
We finally found one in an upstate NY store, but at nearly DOUBLE its regular price! It wound up costing us over $$3,100 plus shipping to buy it plus $400 for a 3 year warranty. Our previous one died at 3 years, 2 months, right after its extended warranty expired due to a known defect that LG refused to cover because ours had the Kenmore label even though LG made it. Via multiple class action suits forced them to cover every LG branded one that died due to a dead compressor. Didnt help us.
Believe me, I never want to go without a full size fridge again. We had 2 tall dorm-sized ones from our kids' college days, and a large stand alone freezer, but had to use a large cooler for everything that didn't fit in the little dorm units. We kept the local ice businesses afloat!
So I remember well the shortages of essential goods, including computer chips that run everything.
Expect some of the same issue with the ridiculous tariffs. Even low cost items are being charged VAT
It was like 8 years old at the time with a 10 year warranty. They gave us a new compressor, but we had to pay four or five hundred for the labor to fix it. We decided that if it goes out again, we will just replace it. Fortunately we do have other fridges, and also an extra washer and dryer, so if we do go into a recession, depression or period of hyper inflation… we are pretty well covered.
Had a friend with an LG fridge that the compressor went out on.
They had to cover the part for over 5 for their own branded refrigerators up to 10 years by court order, but not labor for over 5.
They knew for more than 15 years that their compressors and design were faulty. They just kept producing them and began making them for Kenmore and someone else, knowing that many would fail.
It was the proprietary design with a fully enclosed system that caused the outrageous costs. Any other design or compressor would be much cheaper and easier to fix.
Our current one is a GE also stainless steel, with French doors, bottom freezer, and wicked large, BUT it is not an enclosed system. It is also not a proprietary system so can use any parts that fit. It should considering how expensive the damn thing was during Covid.
(Probably more now 4 years later) several hundred for labor since they had to take the whole thing apart to get at it. Also, a 2 month wait for service, if lucky, and a major risk of Covid while it was still raving.
So we were furious but decided that a new one, even at double the price, was better than risking Covid.
It arrived during winter with ice everywhere so they wouldn't take it around back to bring it inside, instead leaving it in the garage after the trouble they had getting the old one out. Both are wicked large and very wide, stainless steel so heavier overall, with French doors and a heavy pull out freezer section. Tapibg everything closed took a long time and they were visibly annoyed about everything so I agreed to let them leave it in the garage and have my husband and his pals bring it inside later on.
on September 15, 2025, 11:59 am
