Monday, March 17, 2025
Home USA Disturbing new sign that US economy is teetering on brink of recession

Disturbing new sign that US economy is teetering on brink of recession

by Abella
0 comments

Americans are on the back of car payments at record rates – following the warning signals of the 2008 financial crisis.

Almost 6.6 percent of subprime carpenters – who, with low credit scores that are considered a higher risk – were, according to Fitch ratings, at least 60 days late on their car loans in January 2025.

The speed was at 2.58 percent as recently as May 2021 before steadily higher trending.

Before the 2008 recession, an increase in standard settings on subprime mortgages led a financial collapse.

Now there is a similar pattern in the car rings market, which expresses concern that the American economy could be on its way to a new decline.

Buyers are confronted with higher prices for vehicles, insurance and repairs at the same time if they fight with rising rent and costs in the supermarket.

In the meantime, the trade war of President Donald Trump seems to be up with Canada and Mexico to increase the price of new vehicles even more.

The delinquency percentage for subprime automatic borrowers – the highest since Fitch ratings started collecting data more than 20 years ago – is another sign that the top position of the world is affecting a recession.

Resident of Los Angeles Alejandra Graciola is one of those who have difficulty keeping up with her car payments.

Disturbing new sign that US economy is teetering on brink of recession

More Americans than ever before cannot be kept up of payments on car purchases

Trump's trade war with Mexico and Canada could increase new vehicle prices by $ 10,000

Trump's trade war with Mexico and Canada could increase new vehicle prices by $ 10,000

She bought an electric vehicle of $ 60,000 in 2023 and cannot keep up with her monthly payments of $ 930.

“Almost $ 1,000 for a car is just a bit crazy,” Graciola told CBS News. “Now I'm stuck.”

Some buyers also opt for extensive reimbursement plans, so that they can make their monthly costs more affordable.

The average costs of a new car have risen to $ 47,000 and $ 25,000 for used vehicles.

The loan interest has also risen to more than 9 percent on new cars and almost 14 percent on used cars.

Owners are also affected by higher incidental property costs.

The car insurance rates have risen by 19 percent year after year, while the repair and maintenance costs have risen 33 percent since 2020.

Jessica Caldwell, an expert at the car data company Edmunds, says that buyers show increasing signs of stress in a turbulent economy.

Los Angeles resident Alejandra Graciola is struggling to keep track of car payments on its $ 60,000 electric vehicle

Los Angeles resident Alejandra Graciola is struggling to keep track of car payments on its $ 60,000 electric vehicle

“People who are in the middle of their loan can touch the point where the costs of living they have come, and they can no longer make these payments,” she says.

More signs indicate that the American economy is on its way to a recession.

US stock markets closely closed last week in the midst of increasing uncertainties arising from Trump's often shifting policy, including tariff threats against US trading partners.

Treasury Secretary Scott Bessent said in an NBC news interview on Sunday that there are 'no guarantees' that the American economy will not experience a recession.

But he excluded the idea of ​​a financial crisis.

Bessent rejected fears about recent stock market decreases, and said that corrections were healthy and that the markets 'will do well' if the administration puts a good tax policy, deregulation and energy security in place.

In an earlier interview with Fox News, Trump also does not exclude the chance of a recession in the US.

He said that his economic policy could cause disruptions in the short term, but would ultimately lead to prosperity.

Trump says that his rates can cause disturbances in the short term, but refused to exclude the opportunities for a recession

Trump says that his rates can cause disturbances in the short term, but refused to exclude the opportunities for a recession

He threatens to draw 25 percent rates on goods imported from Canada and Mexico.

That would give a big blow to the car industry, whose supply chains extend across American boundaries to those two countries.

If they come into force on 1 April, new car prices can rise $ 4,000 to $ 10,000, estimates from the Economic Group of Anderson show.

Some electric vehicles on batteries could see even larger price peaks.

A recession is a period of economic decline that is characterized by less production, investments, income and employment levels.

They are usually defined as two consecutive neighborhoods of economic contraction.

You may also like

Leave a Comment

Soledad is the Best Newspaper and Magazine WordPress Theme with tons of options and demos ready to import. This theme is perfect for blogs and excellent for online stores, news, magazine or review sites.

Buy Soledad now!

Edtior's Picks

Latest Articles

u00a92022u00a0Soledad.u00a0All Right Reserved. Designed and Developed byu00a0Penci Design.

slot resmi
sbctotosbctototata4dvisa4dvisa4dwasiat4dwasiat4dvava4dvava4dkopi4dkopi4dyes4dyes4donictotopamtototimnas4dtata4dtogel62 halte4d wasiat4d sisil4d ungutoto desa4d bahagia4d aksitoto EUROTOGEL VISA4D visa4d togel62 timnas4d neng4d timnas4d wasiat4d nmax4d papua4d wangi4d amanahtoto ak4d wifi4d sbctoto timnas4d kebaya4d RASA4D visa4d neko4d wasiat4d nasa4d amanahtoto tante4d kopi4dcermin4dBungker CorpSakka Sportweartimnas4dnmax4dmoyang4dtimnas4dhonda4dhonda4dubud4dsbctotoeurotogelsbctotototo88slotmeriah4deurotogeltata4dmeriah4dtimnas4dubud4dubud4deurotogelpower4dsortotosbctoto
eurotogel dragon4d sortoto
visa4d