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A record 7 million Americans are 3 months behind on their car payments. That is not stellar news for the economy. (on phone, can't post WP article) Wanted to share. Let's keep eyes open for other troubling indicators.

Beowulfsfriend 9 Feb 12
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I have never owned a new car. I always buy ones that are at least 3-5 years old with decent gas mileage. The best ten years of my life were when I lived in a city without a car. No gas, no upkeep, although it would have been nice for laundry and groceries (these were the days before Uber).

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Senator Sanders posted that earlier today.
[washingtonpost.com]

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One problem is people's seeming need for newer cars. My own daughter kept taking out leases on cars until we talked some sense into her. Cars have become so expensive it is senseless to keep buying something new and something you have to take out a large loan for. I wonder how many simply are lured with the glitzy ads for some fancy SUV. If the car companies can't provide cars people can afford the companies will suffer. Perhaps it's time to get away from big, expensive cars and something that's more affordable for everyone.

Yea, my nephew was complaining, at the dealer, about how many miles were on his, precious, truck and so the dealer offered him a solution: same monthly payments for a new truck...…. longer time of course.

@Beowulfsfriend I hope your nephew understands it is the dealer that will profit more from this than your nephew.
I have a 93 Ranger and bought it used from the original owner.. He had done some major repairs (Clutch, water pump and alternator) and I got it for $3 grand. In the mean time I have sunk another $4 grand into it and it runs well (it could use another $2,000 in repairs but it is not used often and the repairs are not serious). Before I bought the truck we looked around and for $7K I could not get as much (extended cab, liner, matching bed cover and massive aluminum rack (it's on my profile). It has only 145K miles on it. Too many people are too anxious to get a new car and they don't realize that the almost instant loss of market value often is more than repairs of their old car. Cars are built better these days and should last a lot longer then previously.

@JackPedigo i know and agree. I won't buy a new vehicle. I used to do most of my own repairs. Lost all my tools and space in divorce and live in a small apartment now. I was now pure mechanic, but did many things, if I knew what to fix. My brother was a licensed mechanic and when in was young (he was 14 years older) he would make me get dirty and fix my car while he told me a few things. My one son used to work on his vehicle as well. My college prof son had his years of getting dirty (masonry in the summers) behind him and just pays for repairs. Neither will buy a new vehicle though. They have said I could always find a good cheap car. Since the destruction of so many used cars a number of years ago that has become more difficult. No 700 dollar cars that run for five years with little work.

@Beowulfsfriend My first car was a British car (Truimph Herald) and I had to learn about basic mechanics fast. The next car was a Austin Healy Sprite but I was in the military and had access to a military shop and help so I learned more. As time went on I learned more and more. Unfortunately, today some much is connected with computers and it is difficult to do repairs. I also learned that instead of getting a new car and making payments buy a used car, pay cash and then save. When you have enough pay cash and then save for the next new car. Our last car was a 2013 Toyota PriusC. We paid case and wanted something that got great mileage, was small and easy to drive. My late partner was petite and this car worked for her size.

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the auto manufacturers are going to stop making small affordable cars which low income people might be able to afford.
so now they'll be even more buying SUVs when they can't even afford to rent a decent apartment.

No, then they go to buy here, pay here high interest places to buy cars.

@sewchick57 ,
uhhh OK.

@callmedubious And then when they can't pay for that car, I sue them and pile on more debt. People make some really stupid financial decisions.

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According to some of my industry contacts, the construction industry on the Eastern Seaboard has dried up in the past 6 months. The number of leads we get from that region has declined sharply as well. The same thing happened in the year leading up to the 08 crash.

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Really don't like payment plans so I always pay cash for cars.

I pay cash for everything and pay myself the interest of a loan. Of course not everyone is in the financial position to do this.

@jlynn37 I just save enough to buy what I need before purchasing anything. The only loan I ever took out was to buy my current 5 bedroom house. I paid it off in about three years. Nice having more then 50% down.

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The sad part is, then they add to their own financial disaster with title and payday loans.

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