30 Ways Cars Are Keeping U.S. Citizens Poor

19. Easy To Get Car Loans

Have you noticed how difficult it is to get a mortgage or a credit card with a high limit, and yet it’s easy to qualify for a $30,000 car loan? Money is still money no matter where you borrow it from. However, car companies make it extremely easy for people to take on debt. Most people justify getting a car loan because they realize that they need a vehicle to get to work, so lenders take full advantage of American’s need for transportation. Often, this takes the form of high interest rates, sometimes nearly as high as credit card rates, or lousy loan terms that leave people in a tight spot for repayment.

One of the biggest mistakes people make when purchasing a vehicle is not shopping for car financing. They will often ask the dealership to apply for loans on their behalf. It’s far better to look for car loans from your existing bank and credit card companies. They will often give you a much better deal on interest and monthly payments. Unfortunately, many car companies and auto financing outfits are now basically replicating the conditions of the 2000s housing market crash but with auto loans. They are issuing loans they know likely won’t be repaid without considering what this will do to the markets or the people affected.