That number is expected to almost double this year, which is not a sign of a booming economy. Furthermore,
the average price of a new vehicle is now $50.000, which is out of reach for many people. Yes, people can buy used cars, but with used cars comes increased maintenance and repair costs. One thing I have always wondered about is why the consumer can't buy directly from the manufacturer? Why do we need to go through a dealership, a middleman, instead of buying directly from Ford? That would cut down immensely on the price of a new car and make them more affordable, yet I never hear any of the politicians talking about this.
An increasing number of Americans are falling behind on their car payments, mimicking a trend commonly seen at the start of major economic downturns.
Last year, 1.73 million vehicles were repossessed, which is the highest number since the year following the 2008 financial crisis, according to a report by the CFA seen by the Wall Street Journal.
"Delinquencies, defaults, and repossessions have shot up in recent years and look alarmingly similar to trends that were apparent before the Great Recession," said the report.
Delinquency, which refers to being late on loan repayments, can devastate investor confidence and lead to an economic crash.
