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Repossessions on the Rise

Managing Credit

KAHOOT�VERSION

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1. Data showed about one in six new car buyers spent a monthly amount of ______ for their car in early 2023.

about $250
about $445
just under $730
more than $1,000

REPOSSESSIONS ON THE RISE MARCH 10, 2023 EDITION | NEXT GEN PERSONAL FINANCE

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1. Data showed about one in six new car buyers spent a monthly amount of ______ for their car in early 2023.

about $250
about $445
just under $730
more than $1,000

REPOSSESSIONS ON THE RISE MARCH 10, 2023 EDITION | NEXT GEN PERSONAL FINANCE

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2. Which of the following is another term experts use to describe underwater loans?

a) positive equity

b) negative equity

c) neutral equity

d) diminishing equity

REPOSSESSIONS ON THE RISE MARCH 10, 2023 EDITION | NEXT GEN PERSONAL FINANCE

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2. Which of the following is another term experts use to describe underwater loans?

a) positive equity

b) negative equity

c) neutral equity

d) diminishing equity

REPOSSESSIONS ON THE RISE MARCH 10, 2023 EDITION | NEXT GEN PERSONAL FINANCE

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3. Which of the following correctly describes an underwater car loan?

a) borrowing money for a car that can’t float

b) a car loan with an outstanding balance higher than the value of the car

c) auto loans for cars damaged in a flood

d) any loan that is paid in full well before the agreed upon end date

REPOSSESSIONS ON THE RISE MARCH 10, 2023 EDITION | NEXT GEN PERSONAL FINANCE

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3. Which of the following correctly describes an underwater car loan?

a) borrowing money for a car that can’t float

b) a car loan with an outstanding balance higher than the value of the car

c) auto loans for cars damaged in a flood

d) any loan that is paid in full well before the agreed upon end date

REPOSSESSIONS ON THE RISE MARCH 10, 2023 EDITION | NEXT GEN PERSONAL FINANCE

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4. True or False? If you don’t pay your car loan, the lender can repossess the car and you may still owe money.

a) TRUE

b) FALSE

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4. True or False? If you don’t pay your car loan, the lender can repossess the car and you may still owe money.

a) TRUE

b) FALSE

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5. What do experts suggest you do if your car is worth less than the balance you owe on your car loan?

a) sell the car for as much as you can

b) gift the car to someone else and buy a cheaper one

c) write the car off as a tax business expense

d) get the most value from the car by keeping it as long as possible

REPOSSESSIONS ON THE RISE MARCH 10, 2023 EDITION | NEXT GEN PERSONAL FINANCE

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5. What do experts suggest you do if your car is worth less than the balance you owe on your car loan?

a) sell the car for as much as you can

b) gift the car to someone else and buy a cheaper one

c) write the car off as a tax business expense

d) get the most value from the car by keeping it as long as possible

REPOSSESSIONS ON THE RISE MARCH 10, 2023 EDITION | NEXT GEN PERSONAL FINANCE

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You’ve completed the exercise, now it’s time to learn

more about the current event:

REPOSSESSIONS ON THE RISE MARCH 10, 2023 EDITION | NEXT GEN PERSONAL FINANCE

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Discussion Prompt:

Would you be okay with owing more money towards your auto loan than your car is worth? Why or why not?

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Extend Your Learning

Three Relevant Resources from NGPF:

What's the average interest rate on a car loan for someone with bad credit? (QOTD)
Auto Loans and Leases (Lesson)
Loan vs Lease (Video)

References:

Monthly Payments on New Cars Hit Record High of $1,000+ (Yahoo Finance)
Data shows car repossessions on the rise after pandemic low (ABC)
Car repossessions are on the rise in warning sign for the economy (NBC)
How to get out of a car loan when you’re upside down (Credit Karma)

REPOSSESSIONS ON THE RISE MARCH 10, 2023 EDITION | NEXT GEN PERSONAL FINANCE