Bidenomics has been a disaster for the American economy, with massive inflation, high interest rates, and high credit card debt. The lack of consistent savings for most Americans drives down the standard of living even further.
One segment of the market that has been especially negatively impacted is auto loans. Upside-down auto loans, which occur when the borrower owes more than the vehicle is worth, have reached a new high with an average of $6,054 in November. High interest rates have also contributed to auto repossessions.
Shockingly, rates for used cars averaged 11.6 %, and new cars at approximately 7.4%.
It’s no surprise why so many people can not afford to keep their cars.
Consumers face increasing financial difficulties due to elevated inflation, a generational high in interest rates, maxed-out credit cards, lack of personal savings, and two years of negative real wage growth amid the mounting failures of ‘Bidenomics.’ The latest distress is that the number of Americans in upside-down auto loans has reached the highest level since 2020.
According to automotive research firm Edmunds.com, the number of Americans with auto loans “underwater” or “negative equity” in November reached an average of $6,054, the highest level since April 2020.
“It’s a precarious spot for many Americans, coming after a twin surge in car buying and interest rates has strained finances and fueled an uptick in automobile repossessions,” Bloomberg explained, adding the average rate for a new car loan is 7.4% and 11.6% for a used car.
With average car loans at about $40,000, combined with high interest rates and personal debt, Americans are having an increasingly difficult time surviving the Biden economy.
Subprime auto loans that are 60+ days past due also rose during this period, to over 6% in September, the highest ever recorded.
Bidenomics has been such a disaster for the economy that even Joe Biden himself is distancing himself from the term.
Democrats are also increasingly reluctant to use a term they fear is backfiring.
Nothing is left untouched by Biden’s economic failures not even Christmas. The cost of a Christmas tree is up about 10% this holiday season compared to last year. The average price is $80 to $100 per tree, according to the National and the American Christmas Tree Association.
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