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The $25k car is going extinct?

(media.hubspot.com)
319 points pseudolus | 1 comments | 29 Jun 25 15:59 UTC | HN request time: 0s | 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. rfwhyte ◴[30 Jun 25 22:59 UTC] No.44428824[source]▶
The thing you're missing here is that the automakers have spent billions upon untold billions of dollars lobbying politicians and on PR campaigns targeted at the public to convince people that literally the ONLY way American cities could possibly exist is in a form that is utterly dependent upon the automobile.

Transit ridership in the US was higher in the 1950s than it is today and it was the automakers that killed public transit. They literally bought up popular and profitable public transit companies just to shut them down so people would be forced to drive.

The problem isn't "Consumerism" it's a culture of car dependency that's largely the result of intentional action on the part of the automakers to grow and protect their profits.

The reason there's so much auto loan debt in the US is people literally HAVE TO OWN a car just to get to work to support their families in the vast majority of US towns and cities. People don't want to go into debt just so they can buy some shitty fucking KIA so they can sit in traffic for two+ hours a day so they can get to one of their three minimum wage jobs, but when the alternative is being unemployed and homeless, a lot of folks will do what they have to do to provide for themselves and their families.