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Wednesday, March 6, 2013

Car Buyers Take Out Bigger Loans, Set New Record

Nothing has changed.  Years of kicking the can down the road has introduced moral hazard into nearly all aspects of Western society.  As Druckenmiller suggests, this will end as it always does - badly.

Society may push us to act irresponsibly, but only self-reliant, those that trust their internal voice over foolish character defined by social norms, will endure the next panic.  The choice is yours.

Headline: Car Buyers Take Out Bigger Loans, Set New Record

American car buyers, attracted by new models and cheap financing, are taking out bigger auto loans and stretching out the terms of those loans to a new record length.

New analysis from Experian Automotive shows the average new car loan in the fourth quarter of last year was $26,691 and stretched out over an average of 65 months. The length of the average loan is one month longer than the previous record set in the third quarter of last year. Experian said 4.1 million auto loans were written in the last quarter of 2012.

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1 comment:

  1. I guess we're finally seeing the results of all that massive stimulus the FED has been injecting. The illusion has sunk in to the minds of many.

    You're right of course, it'll end badly.

    ReplyDelete

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