From “CNBC”: 2024-10-15 11:38:54

A cyber attack on CDK Global disrupts operations at around 15,000 U.S. and Canada car dealerships, impacting sales and service management.

A report from Edmunds.com reveals that the average amount owed on upside-down car loans has reached a record high of $6,458 in the third quarter of 2024, signaling financial strain for American consumers.

The Federal Reserve notes a significant increase in delinquency rates on auto loans, well above pre-pandemic levels, indicating heightened financial pressure on borrowers.

More than one in five consumers with negative equity in their cars owe over $10,000, with 7.5% owing more than $15,000, posing potential financial risks for vehicle owners.

To mitigate upside-down car loans, consumers are advised to hold onto vehicles for longer periods and ensure regular maintenance to prevent further depreciation and expenses.

A surge in upside-down car loans is attributed to consumers buying new vehicles during the pandemic when inventory was low, leading to overpaying and faster depreciation rates as the auto industry normalized.



Read more at “CNBC”: American consumers are increasingly underwater on their car loans