Unfortunately many people do not care about the total cost of the vehicle. They care about the monthly payment. As long as they pay less than 700 USD a month it’s affordable. Even if it’s stretched over a 7-8 year loan at 5% interest.
So if you want people to stop paying high prices, you need to get them to look at the total cost of the vehicle. And you need to get lenders to stop handing out loans longer than 4 years. Unfortunately they don’t have an incentive to do this because long, high interest loans are profitable.
So if you want people to stop paying high prices, you need to get them to look at the total cost of the vehicle. And you need to get lenders to stop handing out loans longer than 4 years. Unfortunately they don’t have an incentive to do this because long, high interest loans are profitable.