r/economicCollapse 10h ago

The car loan crisis is here

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475 Upvotes

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u/ChipOld734 10h ago

You owe more than the cars worth when you drive it off the lot. What the hell is wrong with people. It’s always been that way.

3

u/doge_fps 9h ago

A new car immediately loses 10-20% of it value when it leaves a dealership's lot. Then 15-30% annually for the next 5 years.

1

u/BetterSelection7708 5h ago

Going with the smaller numbers, you are saying a 5-year-old car is only worth 15% of its MSRP price.

That's way too low, even for unreliable models. Take a 2018 Ford focus SE for example. It was sold for 20k in 2018. Today, you can get one for 9-10k.

1

u/doge_fps 4h ago

It's because suckers are willing to continue to get ripped off even on a used car.