Phones are less expensive than a car, I get that, but here’s another bullet point to help illustrate the fact that more people are struggling to make their auto loan payments: Americans are prioritizing their phone bill over the car, reports Bloomberg.
Americans have an insatiable, burning appetite for large trucks and SUVs right now, and so dealers are handling it by doling out auto loans with record terms. A record amount of loans have 72-month terms, but now more lenders are moving toward 84-months to keep the sales drive churning, reports Bloomberg.
Good morning! Welcome to The Morning Shift, your roundup of the auto news you crave, all in one place every weekday morning. Here are the important stories you need to know.
It’s easy to get on your high horse and look down on people who have found themselves in a tough financial spot because they didn’t do the math before they bought their car, or because they need a car so badly they had to take on a rough deal. But this loan term on a six-figure Porsche Cayman GT4 reveals that money…
There are all kinds of websites, platforms and startups that are supposed be “disrupting” the whole car buying process, yet every day people end up with bad deals. But the most powerful tool is something buyers have had for a while, and they don’t even have to download it.
I know a few good salespeople who would rather lose a sale than put someone in a car that is going to strain the buyer financially. But that level of ethical sales is rare in the industry. There are far too many stores that will do whatever it takes to get you to sign that contract, even it means crushing debt.
Buying a car shouldn’t be that complicated. You shop around, you get a quote, and make your purchase. Still, we all know it’s not simple because some dealers will use various deceptive and tiresome tactics to make it seem like their quote is the best when it may not be—including pairing a crazy low price with a…
A little less than four years ago, I agreed to accept $9,600 from Bank of America at an interest rate of 4.24 percent, so that I could buy a 2008 Honda Fit from a friend. This morning, I paid it off. I have had, in other words, a lot of time to contemplate the deep stupidity of taking out a loan on an asset that…
Right away most of you have read the headline and thought, “Of course not, McParland! How obvious do you need to get?” I too thought this was common sense—until I got an alarming amount of emails from readers that have put themselves in a tough spot because they agreed to finance their buyers.
The mathematical skills of the American population are, for the most part, pretty poor. Dealerships and lenders will often use this as an opportunity to take advantage of people, but sometimes the opposite happens when someone with bad math skills walks away from a good deal because they don’t understand how the…
One day last December, Tanisha Coley visited a Kia dealership in Stamford, Connecticut and filled out a computer-based credit application to figure out what kind of car she could afford. Soon after, she left without buying a vehicle, but ended up more than $17,000 in debt anyway.
There’s a confusing, bureaucratic mess playing out right now at the Consumer Financial Protection Bureau, an independent federal watchdog that oversees financial institutions. And it could scuttle a possible lawsuit the agency was preparing against a bank notorious for issuing subprime auto loans.
Santander Consumer USA, the subprime auto lending subsidiary of the Spanish banking giant, has replaced its chief executive following years of regulatory scrutiny that has mired the company in controversy.
There is a battle happening on dealer showrooms right now. Right now, heavily discounted new cars are facing off against an excessive inventory of pre-owned models. The winner of this fight could be you, if you play your cards right. In order to help move used cars, automakers and banks are offering incredibly cheap…
It’s unfortunate that some people get buried in debt. I frequently get emails from folks underwater on their car loans and most are hoping for some solution that defies the laws of mathematics. Here’s the real answer: there is no real answer.
Things felt like they were finally turning around for Aaron Woodrum in March 2015 after several months of unemployment. The 38-year-old had fallen behind on bills, causing his credit score to slip. But, thankfully, he’d secured a new job, bolstering his prospects. He just needed a car.
Automakers have come up with some creative incentives and rebates in order to make the sale price a bit more palatable. One of the more, uh, interesting ones is a rebate offered by a Fiat Chrysler dealer for having a low credit score. I can’t say I’m surprised.
Buying a new car can be exciting. The chance to score a great deal is especially alluring and right now seems to be the perfect time to buy a car. Car sales are down, incentives are up and used car prices are falling. A good chunk of you should probably hold off for awhile, however.
Several weeks ago, we mentioned how investors are getting nervous because the number of “deep-subprime” loans—that is, those given to consumers with credit scores below the 550 FICO range—are rapidly increasing. Well, here’s another potential point of concern: borrower fraud in U.S. auto loans is also surging, …
Technology has made car buying much easier, but also much more perilous. You can get price quotes and even apply for a loan with just a few clicks. But some unscrupulous dealers are using electronic loan contracts to take advantage of buyers and even sell them cars they didn’t even know they bought.