Cars may be driving large numbers of American’s into recession At least, that’s what many economists are claiming.
According to the most recent figures, over 7 million Americans have taken out loans on cars that they could not afford, and subsequently, they have gone into serious delinquency on these loans.
The Federal Reserve Bank of New York has cautioned that this large amount of delinquent car loans could signify a massive shift in America’s economy. As a result, they have raised interest rates at the US Fed and are warning consumers to carefully consider any purchases along with the burden it may place on their finances.
In America, many Americans have continued buying cars even while sales have stalled across the globe. Europe, which is suffering from a recession, has had the lowest car sales in recent history. Conversely, although Americans are continuing to purchase new vehicles, many are constantly racking up auto-loan debt which insinuates that they may not be as comfortable with their finances as originally suggested.
