Americans falling behind on car payments, Elon Musk reminds of Feds

A report reveals that Americans are falling behind on car loan payments at a higher rate than in 2009 and Elon Musk mentioned of the Feds and the increase in interest rates be responsible for this issue.

Elon wrote “Every time Fed raises rates, they’re increasing monthly payments for anything bought with debt”

Every time Fed raises rates, they’re increasing monthly payments for anything bought with debt

— Mr. Tweet (@elonmusk) January 27, 2023

The number of people more than two months behind on their car loans, according to Cox Automotive, was up 26.7% this December compared to a year ago.

“Sticker prices have gone up so people are borrowing more money. That’s left a lot of households with monster payments, says Greg McBride, a chief financial analyst for Bankrate. “Those $700 or $800 a month car payments can be an absolute budget buster. So, particularly for our customers with weaker credit, we’re already seeing an increase in delinquencies and defaults that may foretell a broader trend in that direction if the economy slows as the year progresses.”