Auto loans are fixed. It's the cost of food, gas and utilities that are eating up people's checks. The rising interest rates affect what resellers can get for the cars they buy at auction. Used car rates have always been really high, but bow they're astronomical, like 10% with good credit, as high as 20 for bad. At 20% you've doubled the price of the vehicle, so most people's income won't even qualify them for a loan.
Canada probably has better consumer protection laws that make it harder to repo, would be my guess.
Auto loans are fixed. It's the cost of food, gas and utilities that are eating up people's checks. The rising interest rates affect what resellers can get for the cars they buy at auction. Used car rates have always been really high, but bow they're astronomical, like 10% with good credit, as high as 20 for bad. At 20% you've doubled the price of the vehicle, so most people's income won't even qualify them for a loan.
Canada probably has better consumer protection laws that make it harder to repo, would be my guess.