Author Topic: Auto Loans up to $886billion  (Read 1624 times)

dude

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Auto Loans up to $886billion
« on: March 17, 2015, 07:21:43 AM »
Largely due to the drop in gas prices:

http://finance.yahoo.com/news/why-auto-loan-debt-hit-213500406.html

It always cracks me up that people act as if these low gas prices will be around forever, i.e., they are completely ignorant of history.  Sure, they MAY stick around for a while, but then again, they may NOT. 

skunkfunk

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Re: Auto Loans up to $886billion
« Reply #1 on: March 17, 2015, 07:50:28 AM »
The economy gets a little boost from this drop as people go buy more stuff. Really, though, gas is such a small part of the budget I don't see how it makes that much difference to anybody. When prices go up, everybody will freak out as if we hadn't ever had to deal with that before.

slugline

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Re: Auto Loans up to $886billion
« Reply #2 on: March 17, 2015, 09:48:47 AM »
By "average" I assume they're talking about arithmetic mean. But I'd also like to see what the median cost of a new car is. Just like houses, I suspect there are some high-dollar sales skewing that average upward from what middle America is really paying.

Norioch

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Re: Auto Loans up to $886billion
« Reply #3 on: March 17, 2015, 10:52:19 AM »
Really, though, gas is such a small part of the budget I don't see how it makes that much difference to anybody.
That's probably true if you're a mustachian who walks or bikes to work. It's not true when you have a 100-mile mega-commute.

frugalnacho

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Re: Auto Loans up to $886billion
« Reply #4 on: March 17, 2015, 11:04:40 AM »
Really, though, gas is such a small part of the budget I don't see how it makes that much difference to anybody.
That's probably true if you're a mustachian who walks or bikes to work. It's not true when you have a 100-mile mega-commute.

My FIL purchased a prius brand new and has over 200k on it.  I've only known him for 6 years, so he has done that in less than 6 years.  I have tried talking about the high cost of a long commute, but they aren't having any of it.  I have probably driven less than 200k in my entire life including close to 30k miles in long distance vacations i've taken.

MgoSam

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Re: Auto Loans up to $886billion
« Reply #5 on: March 17, 2015, 11:10:19 AM »
I am somewhat happy when gas prices go up. I don't drive all that much, and will pay the going rate. Higher prices means more incentives for the auto industry to work on more fuel-efficient cars, and more incentives for developing technology to reduce our dependence on oil. Also, I smile each time I see someone on FB complaining about gas prices when they drive a huge car.