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The $25k car is going extinct?

(media.hubspot.com)
319 points pseudolus | 2 comments | 29 Jun 25 15:59 UTC | HN request time: 0.407s | source
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paxys ◴[29 Jun 25 20:52 UTC] No.44416339[source]▶
One fact not mentioned in the article - Americans now owe $1.64 trillion in auto loans, and cars make up 9% of all consumer debt in the country. In fact we now owe more on cars than student loans. The average loan term is rising - almost 6 years now. 60-day delinquency on auto loans is at 6.6%, the highest ever recorded, and is as high as 9% in some states.

So while car prices keep going up, people also keep going deeper into debt to buy one they can't afford.

You can blame manufacturers or banks, but ultimately the problem is unchecked consumerism and treating cars as a status symbol, which is sadly pervasive in this country.

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1. crystal_revenge ◴[30 Jun 25 02:52 UTC] No.44418788[source]▶
> problem is unchecked consumerism

Problem is if the US consumer had the “moral awakening” you propose (and to be clear you are claiming that basically we are in this situation due to the weak moral character of the average American) then coincidentally our entire economy would begin to crumble. It’s not just car loans, our entire economy works because of debt, and has for at least the last 20 years. The idea that nearly every one benefits financially from this behavior and yet we see this behavior at scale solely and coincidentally because of a sudden mass moral failing is a bit hard to believe.

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2. leakycap ◴[30 Jun 25 03:50 UTC] No.44419173[source]▶
Well said, but I would add that it seems reasonable if we take debt too far, it will indeed crumble.

I'm not sure we didn't pass that point before the pandemic, and decision-making since has not helped.