I dislike Dave Ramsey's politics but he's dead right on subject of new car loans. There's an article on NBC called "Out of Gas", stating what we already know that most Americans can't afford to buy new cars. Dave points how silly it is for a person to buy a 25K auto when they only make 26K a year! LOL!
However, what really worries me folks are all the people getting new cars with "sub-prime" loans. I had no idea people with little money can actually buy a new car with a high interest loan that does not pay principle?? I also read these loans could very well create a bubble that can expload with the banks not having funds to create more loans. A very similar situation to the real estate collapse.
Out of Gas: Most Americans Can't Afford New Cars - NBC News