The Car Loan Crisis DESTROYED the American Dream!

Video Description

The Car Loan CRISIS within the United States has single-handedly destroyed the American Dream. - Americans have an unprecedented $1.6 Trillion in car loan debt! - Nobody owns anything! - Average new vehicle price just ticked over $49K here in Q1 2025. Highest it’s ever been. - Average new truck prices is over $64K now… monthly payments are over $1000 with half of truck buyers. - Average new vehicle monthly payment being over $770. $550 for used. - inventory inspected to increase by 10-15% by end of 2025. - Keeping up with the joneses… comparing ourselves to our neighbors and what we see online. - Americans are suffocated by debt… and auto loans are a lead offender. - Vehicles are depreciating assets and people often forget that. - Not only are paying overpaying for vehicles now, interest rates are killer and depreciation is hurting more than ever. - Depending on the vehicle, expect a roughly 20% drop the first year. Another 15-20% the second year and 5-10% year after year beyond that. The second you drive it off the lot, expect a 10% hit in most cases! - Cars trucks and SUVs have become status symbols. But now that getting a car loan has become to easy, the opposite is becoming true. People without a fancy new BMW are being seen as smarter individuals with more financial literacy. Now if you sport a new car, people are safe to assume you are buried in debt. - Look at the wealthiest 1% of people, they tend to drive Toyotas and Hondas. - The best type of vehicle is a paid off vehicle! - Cost of everything has shot up: insurance premiums, repair costs, cost of living, mortgage rent and groceries. - Used car prices are skyrocketing right now because people cannot afford new anymore. - The pandemic allowed for hyperinflation. Money was cheap, demand far exceeded supply. - The global chip shortage or semiconductor shortage hamstrung the entire car market market. - We’re all paying for the rise in vehicle prices… insurance premiums have hiked because of the cost of vehicles have hiked, it’s a catch 22. - We are all paying for the failed EV efforts of vehicle manufacturers. Stellantis, Chevy, and Ford losing billions. - High specced and high trimmed examples have larger profit margins compared to bare bones models. - Inventory levels have grown exponentially over the last 2.5-3 years. - Auto manufacturers are stifling their inventory and production levels right now. This allows them to sustain their higher price tags. - Repo rates continue to surge. - Still seeing the highest levels of 30 day, 60 day and 90 day auto loan delinquencies. People are no longer able to pay these prices. - Repair costs have gotten out of hand, the new tech and sensors within all components are driving repair costs up. - No more EV subsidies. It has proven to be hugely detrimental for the car market and US economy in general. We’re all paying for these EV subsidies, that money doesn’t come out of thin air, the American taxpayer foots the bill. - Tariffs will put the consumer in the driver seat even more. Dealers are already struggling bad, upping MSRPs won’t help. It’ll just weed out the dealers that aren’t willing to adapt and get creative for the customer. - Student loans, mortgages, credit large debt, auto debt surpassed student loans as the second largest debt for US citizens. - Financing costs on current vehicle prices are suffocating. - So many lending institutions are now offering extended auto loans… instead of 5 or 6 year norms… we’re seeing lots of 84 month offerings. Crazy. - Interest rates are between 7-7.5% right now on new vehicles. 11-12% on used cars. - Repo rates continue to rise… 23% increase - Dealers have become even shadier as time moves forward… markups during pandemic, selling inflated protection packages, huge dealer “doc fees”, extended warranties, bogus ceramic coating, window tint, nitrogen filled tires, preferred lenders so they get a kickback, you name it. - Dealers will do their best to sell you a monthly payment, even at your own detriment - Feat mongering tactics are huge right now with tariffs. Don’t fall victim to this! - $50K car purchase… with fees, taxes and registration added let’s chalk this loan up to $55K. On a 72 month loan at the national average 7.5% APR interest rate, you’ll be paying $950 per month with a total of about $13,500 in interest alone bringing the final price up to $68,500. - By the time you pay off that loan, that $68K vehicle will be worth around $15-20K in most cases. Pretty sickening. - On top of that $950 monthly payment, you’ll be subject to ever-increasing insurance premiums. - People are holding out now, instead of swapping out their vehicles every 3-5 years, they’re holding onto their current vehicles for 5-7… 7-10 years. Performing necessary service and maintenance since it’s a lot cheaper versus buying New! Thank you for taking the time to watch. If you enjoyed this video, please consider Liking and Subscribing! -Stay Untamed... #vehicles #carmarket #autoloans