Economic Warning Signs Across All Retail Sectors
CONSIDER this reality: it’s not just automobiles anymore. Even discount retailer Walmart is starting to see cracks in the armor in the economy. Their CEO came out and said that consumers are being stressed financially and their value went down by 22 billion because consumers are not buying as much. And this is Walmart. This is not Saks Fifth Avenue or Gucci or Tiffany or any high-end retailer. This is Walmart. So if Walmart is seeing stressed behaviors in consumers, that’s happening everywhere.
The Direct Impact on Your Vehicle Financing
WHAT does that have to do with your car loan? Well, it means that the values of used cars is going to drop. It means that people with high interest rate and high balance car loans are going to be in trouble financially because if employment starts to drop and you start having more inflation on pricing, it’s going to be tough to pay your car note. If you have a car payment that’s seven or eight or nine hundred dollars or more, 20% of people have a car payment that’s over a thousand dollars.
Rising Financial Stress Among Vehicle Owners
YOU’RE going to start seeing more and more people not being able to afford them. That’s why a car short sale is becoming more of a popular option. It’s a way to get out of your car loan where if you’re upside down in your car, meaning that you owe more than it’s worth, it’s a way to have that car loan still be able to be resolved or you can sell your car, get into a new vehicle or not have the vehicle and not have to come out of pocket in cash that entire negative equity amount.
Understanding the Broader Consumer Crisis
SO, don’t feel like this is exclusive to you. Consumers in every category are starting to be stressed out on finances. It’s affecting car loans and it’s probably making the value of your used car less because there’s fewer buyers that can afford to buy even used cars. And with the payoff as high as yours is, you’re not going to be able to get a buyer that high.
The Solution: Short Sale Strategy
THAT’S why you need to get a short sale approved so you can sell your car for less money than what the loan is and be able to get out from underneath that high car payment that’s probably stressing your budget.
