On average, AutoNews reports that 3.58 percent of 18 to 29-year-olds and 2.62 percent of 30- to 39-year-olds have been late on their auto loans by at least 90 days. For some context, just 2.13 percent of all borrowers are late. Keep in mind, these numbers are overall. In the first quarter of 2023, 4.55 percent of 18- to 29-year-olds were at least 90 days late. 3.66 percent of 30- to 39-year-olds were equally late. We haven’t seen numbers like these since The Great Recession.
Car loans kinda stupid. Like, if you can’t afford a car now, and the only option for you get it is to finance It, then just get a used Toyota from a private seller.
But the Joneses!
This is as short sighted as saying purchasing on a credit card is stupid. There’s a whole slew of reasons why financing something makes more sense than paying cash. Sure there’s plenty of situations where financing is a poor choice, but to make that as a blanket statement is simply incorrect.