The Burden of Rising Car Loan Debt in America
Car ownership in the U.S. has become increasingly expensive due to factors such as the Covid-19 pandemic, supply chain issues, inflation, and interest rate hikes. With over 100 million Americans having car loans, auto loan debt has reached a record high of $1.5 trillion. The average monthly loan payment for a new vehicle is projected to be $725 in 2023, up from $650 in 2022. Lenders determine interest rates and terms based on factors like credit score, income, and expenses. Some buyers have had negative experiences with car purchases, leading to lawsuits and complaints against lenders. Consumers are advised to be cautious and protect themselves when taking out auto loans.
