the Voice of
The Communist League of Revolutionary Workers–Internationalist
“The emancipation of the working class will only be achieved by the working class itself.”
— Karl Marx
Jan 6, 2020
Currently, U.S. car buyers owe more than a TRILLION dollars in car loans. Each car buyer owes on average more than $30,000 per car. It is so much money to pay back that one third of these car owners will end up getting another car, while still owing money on the previous car. At the moment, seven million car owners are three months behind on their loans.
Car manufacturers and dealers love this situation, as it makes their sales look better. In reality, the money they get back per car from the loan is three times as much as the money they make by selling a new car. They even have employees who do nothing but try to collect payments when people are late in paying.
Wall Street investors also love this situation, because they take bundles of car loans and turn them into bonds—which makes them profits.
It’s certainly a win for “everyone”—except the car buyer, paying $400 or $500 per month!