Inflation does not effect everyone equally. It is not neutral.Anything the government (including the Fed) does that promotes inflation is a regressive tax, hitting the “paycheck-to-paycheck classes” harder than the “live on 50% of your income classes.”
From the article
Americans Fall Behind on Car Payments at Higher Rate Than in 2009
Automobile repossessions are climbing as inflation forces struggling consumers to make tough choices.
. . . Now, more Americans are falling behind on their car payments than during the financial crisis. In December, the percentage of subprime auto borrowers who were at least 60 days late on their bills rose to 5.67% . . .
Car Owners Strain as More Loan Payments Soar to $1,000
Portion of new-auto owners with such debt rises to almost 16%
Average new-car price has soared to a record of nearly $50,000
Almost 16% of consumers who financed a new car in the fourth quarter have monthly payments reaching that level, . . .The share of auto owners paying that much was just 6.7% in the fourth quarter of 2020.
For the median household currently earning about $70,000 annually, that would be roughly 17% of their monthly income,” while the “typical payment-to-income ratio is closer to the 4%-to-6% range for most car buyers.”
Faster actually.
Last time it took almost 3 years for auto delinquencies to climb this much.
This time a same-size climb happened in just over 12 months post pandemic.
It took a while to max out the credit cards first. Now many are down to only having their take home check pay period to pay period. Cards are maxed, savings are gone. Some are deciding that the car is more important than the home (buy or rent), food and utilities coming before either.
I have very little sympathy for these folks who bought expensive cars without thinking long-term. I used to just do without until I could afford not to. Nothing wrong with choosing a 2005 Corolla rather than a 2021 Camry when you are going to get it repoed anyway.
Libs crap on people and say it’s their fault when things go bad! But when things go right they sure do take credit for it like with Trump! The first thing Trump did was kill Obamas policies and the economy grew, Biden first day killed Trumps policies and here we are. This is simple cause and effect! Dims answer is live with it and eat Beanie weenies and be happy!
Not buying anything else unless it’s cheap crap in cash.
The Civic will be getting some upgrades though. First thing, new blow off valve and full cat back exhaust. And a Type R imitation bumper. Eventually a clean set of BBKs and drop it about two inches. Gonna rice this little bastard out.
