Driven to Default: The Economy-Wide Risks of Rising Auto Loan Delinquencies
17 hours ago
- #debt crisis
- #auto finance
- #consumer protection
- Americans owe over $1.66 trillion in auto debt, signaling a breaking point in auto finance.
- Delinquencies, defaults, and repossessions have surged, resembling pre-Great Recession trends.
- Car prices are at record highs due to economic factors and predatory financing practices.
- Dealers and lenders use deceptive tactics to inflate prices, exploiting buyers for profit.
- Federal oversight by the CFPB and FTC has weakened amid the growing crisis.
- The auto debt burden exacerbates the cost of living crisis, demanding urgent policy action.
- Policymakers must address exploitative practices to make car buying safer and more affordable.