Car loan defaults on payments are said to be a probable trouble in the near future as the number of car loan payments that are over 60 days late rise this quarter. Some argue that car loan payments often fall near the end of the year but there may be worse news on the horizon as defaults on car loans look to be the next step.
Many people have taken out car loans and just like some homeowners are struggling to make payments due to loss of income or losing a job to the recession. Even those who took advantage of the Cash for Clunkers program are in danger of falling into the default category despite many saying to the contrary.
The problem with car loans defaults and car owners struggling to make their car payments is twofold: one it further hurts the auto industry and secondly it is the result of a much bigger problem.
The auto industry has been hit hard by the recession and even with bailouts there are still few, if any car companies thriving. If an increase in car loan defaults on payments were to become a problem there would be even more damage done to an industry that frankly can’t take it.
Also, many who argue that being 60 days behind on a car payment is nothing to worry about this time of year don’t seem to be taking into consideration that the bigger problem, unemployment, is going to make it all the more difficult for car owners to catch up with their payments and cause more and more car loans to fall into default.
Despite worries there are those who feel that auto loan defaults may only be a problem for a small part of the nation and other areas of the country and the economy as a whole are going to be just fine. No matter the point-of-view, a rebound from car loan delinquencies is the hope of all who watch the economy slowly recover and hope no speed bumps arise that will put us off course.
When seeking the lowest refinance loan rates it might be a good idea to consider multiple options. Most banks that offer personal loans will offer some type of car or auto loan as well. By scouring the Internet, most potential car buyers or loan refinancers will be able to find multiple resources.