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Car Repossessions Surge 23% as Americans Fall Behind on Payments
(www.bloomberg.com)
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this post was submitted on 27 Jul 2024
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The Fed raising rates only affects recent car buyers, so it can’t account for a 23% surge. What the Fed raising rates does do—and is intended to do—is cause unemployment, which inevitably results in missed car payments, and even missed mortgage payments.
Why not? I don't see this logic
The Fed raising interest rates affects lots of things directly, including the cost of home and auto loans, not just unemployment rates, which are indirectly affected
Exactly. Auto loans are relatively short-term, and you're probably more likely to default relatively early into the loan than later, esp. since you would no longer be upside-down later on.