A lot of car loans are underwater. Is this a sign of coming economic collapse or something we can shrug off?
I tend to look at scary news on car loans with a bit less fear than if it were home loans — we learned in 2008 what happens when homeowners start defaulting en masse. Having your car repo’d is pretty bad, might even cost you your job, but losing your home is obviously worse.
Also, the auto industry has been, well, weird for a long time now. So perhaps the fact that a lot of car buyers bit off more than they could chew isn’t necessarily an indicator that’s representative of the larger economy.
On the other hand, it’s not exactly good news.
What say you? Sound off below.
[Image: Nan Tun Nay/Shutterstock.com]
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