Challenges of Owning a Car Amidst Rising Costs and Loan Rejection Rates

SOURCE www.cnn.com
Many Americans are struggling with the rising costs of owning a car due to high inflation and interest rates, leading to increased delinquencies and repossessions. Auto loan rejection rates are at record highs, making it challenging for consumers to finance a vehicle.

Key Points

  • High inflation and interest rates have made owning a car financially burdensome for many Americans
  • Auto loan rejection rates have reached record levels, particularly for auto loans
  • Consumers are facing difficulties in securing credit for vehicle purchases due to stricter lending requirements
  • Despite falling vehicle prices, lenders are imposing higher down payment and credit score standards

Pros

  • Falling prices of vehicles, especially used cars, may increase affordability for consumers.

Cons

  • Increased delinquencies and defaults on auto loans
  • Record-high rejection rates for auto loan applications
  • Challenges in securing credit due to stricter lending criteria