Clark.com Biweekly Newsletter (Mondays and Thursdays)
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Clark Biweekly 10 30 23

Clark Biweekly 10 30 23

Anthony Hazzard
October 30, 2023

🚗 Car Payments Breaking the Bank for Some

Some Americans are struggling to keep up with their auto loan payments.

Car repossessions were up more than 20% year over year as of July.

Now, 6.1% of subprime auto loan borrowers are 60+ days behind on their payments. That’s the highest rate in a dataset that goes back to 1994.

Of course, the price of new and used vehicles skyrocketed after COVID-19 reached the United States. At the same time, Americans were temporarily saving more of our income than we have since the 1970s.

We felt empowered to spend money on vehicles at inflated prices as we enjoyed stimulus checks, a pause on student loan debt payments and historically low interest rates.

Now, subprime borrowers face auto loan rates of 14 to 21%. The personal savings rate has fallen from 5.3% in May to 3.4% in September — near all-time historical lows.

The good news is that just 0.27% of prime borrowers are delinquent.

One of the best ways to avoid that situation? Limit your loan to a maximum of 42 months.

“If you can’t afford the payment on a 42-month loan, then you should buy a cheaper car,” Clark says.

💵 Today’s Top Stories

The #1 Bill You Should Get By Mail

E-statements are convenient (and sometimes cheaper). However, there’s one bill Clark says you should get in the mail and review each month. Read more.

How Much Is My Car Worth?

You should know what your car is worth even if you’re not planning to sell. It has become tougher to figure out with valuations changing fast, but Clark has some good tips. Read more.

Should You Spend an Extra $5 a Month for a Costco Executive Membership?

Here’s how much you need to spend at Costco annually in order to make the top-rung membership worth it. Read more.

Why Are Retailers Adding an Additional $1 Charge on My Credit Card?

Have you ever noticed unexplained small charges on your credit card? These “preauthorization” charges aren’t a scam and don’t cost you anything. Here’s what they are and how they work. Read more.

Do I Really Need To Put Premium Gasoline in My Vehicle?

I just bought a vehicle that recommends that I use premium gasoline. But that’s expensive. Do I really need it? Read more.

📊 Stat of the Day

🏠️ 52%: The premium you pay on the average new mortgage payment right now vs. the average apartment rent. The data goes back to 1996 and the previous high peak came in 2006 at 33%.

💰️ Deal Alert: Today’s Top Deals

The best early Black Friday deals at Target

Get this deal .

Costco’s Black Friday ad: The best deals + deals starting now!