As Joe Biden’s economy continues to spiral downward for most Americans, a new report finds that more Americans than ever are upside down in their car loans and owe far more on their loans than their car is worth.
Interest rates have been extremely high for U.S. car buyers in the Biden era.
Interest for used car loans now averages 11.6 %, and new cars are approximately 7.4%. The rates add thousands to the end result of a car loan and hundreds a month extra in costs for car buyers.
For most Americans, a car is not a luxury that can be cut out of the budget. Most Americans need their cars to get to work and transport their family members around each day.
But now, according to the car research firm Edmunds.com, the “negative equity” Americans are being forced to suffer has risen to $6,054 per loan, the highest level seen since 2020 when the scamdemic was raging.
“It’s a precarious spot for many Americans, coming after a twin surge in car buying and interest rates has strained finances and fueled an uptick in automobile repossessions,” Bloomberg reported.
With an average loan for a new car reaching $40,000, many Americans are being priced out of buying a new car, and many of those who get the loans anyway are defaulting at a growing clip. In fact, according to the New York Post, car loan defaults are at a 29-year high.
“We’re in this situation where combined with the cost of the vehicles being so high and the interest rates being so historically high, you have a lot of people who are in bad car loans,” Joseph Yoon, consumer insights analyst for Edmunds, told Bloomberg.
Bloomberg reported that car loan borrowers at least 60 days past due on their payments topped 6.11 percent in Sept.
One might argue, though, that this is a feature, not a bug, to Biden and his climate change fanatic pals. They want to drive Americans out of their cars, and if bankrupting everyone is the way they can do it, then so be it. The ends justify the means.