Quote:
Originally Posted by MetroMPG
Just another datum for the pile...
Outstanding auto loans hit record $1.1 trillion
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Inconceivable!
$1.1 trillion in loans, the 1 in 5 of which are subprime, 2 in 5 of which are underwater. This is a recipe for disaster, the only question is when does this collapse?
One good thing... the trend here at EcoModder seems to be that of avoiding auto loans entirely. Like many here, I had one auto loan, hated it so much that I've paid cash for every other vehicle I've purchased (and that's a long list...). I hate making payments on a depreciating asset.
Every time we try to boost the economy by financing products, we inflate the cost, and place more burden on the consumers trying to acquire those products. Whether it's housing, autos, or college, the solution is to make it
more difficult to get loans, rather than easier to get loans.