Automotive
Repossessions Are Climbing Due To Inflation
The pie - Some things, like compassion, are not like pie, no matter how big a piece somebody gets there is still plenty to go around. Other things, like a worker’s paycheck, are like pie, and the bigger slice the grocery store gets the less there is to go around.
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Car repossessions are on the rise.
The rate of auto loan defaults among the lowest-income Americans is higher than in 2019 and inching toward 2009 levels.
The facts.
- Average monthly payments are currently $718 a month.
- Unemployment rates are low
- Gas prices are falling
- BUT inflation continues to raise the price of goods, and wages need to catch up.
- People able to pay $500-$600 a month in 2020 are spending more on survival, putting their cars at risk.
Ripples of the now 2.2% delinquencies will impact the economy as non-remote workers cannot reach their jobs. Rates are projected to hit 3.8%, which will be just shy of 2009's 4%.
