Good news: car prices are changing, they have fallen by more than 6% since the beginning of the year. But, they are still more expensive than last year. This means people are withdrawing more money to fund that purchase as rates rise and inflation affects the prices of everything we buy.
“All of a sudden they find the cost of other things going up, whether it’s rent, food, and other materials, and they have this big car payment, and they’re behind,” said Forbes Dixon, economics professor at Wake. Technology.
In North Carolina, 10.3% of people with a car loan are 30 days or more overdue, 5.8% of people are 60 days overdue and 4.1% overdue by three months or more, according to Experian. – a credit assessment company. Data on delinquent auto loans is from the third quarter of 2021, so before inflation and interest rates rose, North Carolina residents were struggling to make their payments.
“There can be tough times for people who have taken out big loans,” Dixon said.
The percentages of people who do not pay their car loans ranks North Carolina 8th in the United States. Washington DC, as well as most countries in the South, all have double-digit percentages. Dixon believes that financial literacy is a big reason why.
“It’s kind of like a cycle in that it’s made up of itself until if I’m that person, I have to make decisions to stop the bleeding and put my situation in order. financial,” Dixon said.
Dixon says now that everything has higher prices, people need to take that into account when making financial decisions.
“People – when their income increases, so does their lifestyle, not just their savings.”