This article looks like a very early warning of what might happen in the used car market. 5% are behind? okay. 50% underwater? okay. Where is the news?
I would have guessed 50% behind on payments and 99% were underwater for this to be news.
I'm genuinely asking because I want to understand it if people think that it is actually like the 2008 housing crisis and how?.
the housing market imploded because they were giving out bad loans and then paying off regulators to classify them as good loans so that other people would buy them. and the reason it closed a recession was because people weren't buying houses to live in them but they were buying houses under the assumption that the price would go up and they would use the price of selling the house to pay off the loan but they took out to buy the house..
so obviously when the housing bubble collapsed the price of the house didn't go up which means they couldn't sell it for more than they bought it for which meant that all the loans defaulted and the housing prices collapsed and it hurt the economy because so much of the economy was based around real estate prices..
I don't see much of the economy based around car prices or the idea that your car will be worth more a year after you buy it then what you paid for it..
so I can certainly see a lot of repossessions and then as a result they probably the cost of used cars would go down but the economy doesn't seem to be hinged on the price of usedd cars
I went looking for a used car, this was right before covid and the collapse of shit, but I found THREE nearby places online and went to them and all experienced the same thing.
None of them were willing to sell me a car.
I walked in from their online ads (they had good prices) and was looking to buy a car outright for cash, paid in full (12-15k range standard sedans). They refused to sell me the car, their entire business was based on financing loans for people with shit credit and like 25% interest.
The image used in the article OP posted is for SALES ACTIVITY, NOT DELINQUENCY.. THE AUTHOR IS A FUCKING MORON.
There have been slight increases in delinquency this year particularly in the subprime market but that has always been the case which is why the interest rates are so high, to accommodate much higher delinquency in subprime borrower default rates.
Banks don’t get fucked. You, me and everyone else that has enough money to not be poor, but not enough money to be part of the elite, are the ones that get fucked.
OP has a YouTube channel. Did this as a video for clickbait. Article is transcript of video. OP is the size of a fifth grader and has terrible “Little Man Syndrome”.
I mean if the economy completely crashes like end of the world type shit it will fuck the banks, but with the supply side being so fucked up, it would take a ridiculous amount of subprime loans defaulting to move the wholesale market any noticeable amount. I remember having discussions with retards that thought when avis was shitting the bed it would flood the market. I did math and it would have added 5 or 6 cars to dealer inventories and they were already on a lower day supply than recent years.
So - random but I've been trying to figure out the play here, any advice would help:
I am a 2 car home looking to move to 1 car (selling one on like, caravana). I'm not sure how all this plays out nor what the play should be - but I have 2 loans on 2 different cars and want to get rid of one
The used market is wacky right now. It's very regional, but here I'm seeing a lot of luxury cars come on the market at steep discounts, and economy cars like Ford Escapes and CR-Vs are going for a premium - 2012 models for 19k, which is probably the MSRP when then sold new. (Asking prices, not what they're selling for.) You can get a fairly new high end Audi for half of what others are asking for Escapes.
My rider friends say motorcycles are gold right now, too, old beaters going for a lot more than they should.
You might. Asking price = actual selling price, but used car prices on economy cars are through the fricking roof, especially here, because $6 gas is insanity.
I was considering getting rid of my slow ass 4 banger embarrassment, because god damn I miss my V8 Mustang. But not now.
Untrue, dealerships, like everybody else want your car for as cheap as you will sell it for, just like you want asuch as someone will pay for it. Carvana, autonation, vroom might pay more for your car or they might not. A local dealer or camax might pay more. My advice is to get multiple quotes. Carvana wanted to pay me 59.5k for my tahoe, my local che vy store gave me 63k
Well you of course go with the highest bidder, just so I have more info, did you have a loan on your Tahoe or did you own it outright, because it matters at a dealership.
Well my 25 years in the car business would say it doesn't matter to a dealership if you have a lien. The only thing you have to be concerned about is a captive leasing company not releasing the lien to an off brand dealership.
Most people who sell to dealerships wind up walking out with another car and a new loan, I’m familiar with the industry, it’s suppose to work that way.
Ford dealership offered me 30% more than carvana and carmax for a 2017 F150. They were the only ones to look at it too, the others just wanted to do it online based on miles, vin number and years. Dealership wanted to see it and offered more.
I got a fantastic deal with carmax. I’d recommend using them instead of caravana if you can, and going to the actual location rather than selling online.
Got an offer and sold it within a day for only about 20% less than what I bought it for new 6 years ago.
You will do better than that if you take the time for private sales if you have a desirable car.
They refused to sell for the first part, but I also assumed that they probably had a bunch of early payment clauses in them where you got to pay at least like 30% of the interest or something.
Two of the places were actually like "dude trust me don't buy your car here, we aren't here for people like you."
Spez: They also seemed to be "selling" the cars at like 10-15% below others, which is why they were the first places I went to.
They did you a favor. Buy here pay here lots sell junk. Not just junk, but auction junk. CEL and airbag bulbs removed, wrecked and "repaired", and flood cars. Their whole business model is to get that down payment and a monthly payment or two, then repo it and sell to the next sucker.
source: am L1 Master Tech 30 years in the business
Was it an actual 'used car lot' place? I pretty much only buy my used cars from either close contacts, or major institutions like dealerships. If you were trying to grab a car at Big Bill Hell's Used Cars that'd make sense.
A lot of those loans are securitized. Some are likely sold within days of closing on your loan.
Whey does that matter? It lowers the underwriting standards if the lender knows they won't have to hold the loan. They are just there for the initiation fees, not the interest.
The investment vehicles that purchase these loans are usually only available to accredited investors, and I've seen several implode. It's very similar to what they were doing with subprime loans leading up to the Financial Crisis of 2008-9, only far less collateralized.
Not if their business model is selling to customers with bad credit who won't be able to keep up with their payments, repoing the car after a few months, then repeating. Selling outright and taking a car out of that cycle isn't as profitable as continuing to churn it.
You assumed wrong. It’s a simple interest loan. You could literally “agree to finance”, sign the documents to get the rebate/discounted prices & send the entirety of the balance in on a check the next day. The finance manager may lie to you and claim “you have to make X payments or...” but that is a lie & you can sue them. No one “refused to sell” you anything, you refused to educate yourself on the process & are now lying about what happened.
From my experience the vast majority of car loans you can’t pay down the principal like with a mortgage. If you wanna pay it off early you still have to pay the interest. I forget the details but my wife worked at a bank and explained how it worked.
I’m so glad I don’t have to buy a car right now. Although, I did just sign a lease on a place that I know is way overpriced and will likely plummet soon with the impending recession.
Hell I've experienced this even at places that cater to high credit score customers 750-800+ only.
Got refused for trying to pay cash. I even offered to pay a few thousand over sticker!
I don't fuck around with credit so I have no credit score. I hate that shit even though I definitely lose out on significant savings by not participating.
Tbh with the interest rate being 2.9% ...
I'm too lazy to do the math rn...
... but I'm basically certain you'd actually SAVE FUCKING MONEY paying sticker AND interest over 3 years on 2.9% loan, vs just paying it all in cash immediately thanks to the magic of our high inflation rate.
You could probably increase those savings if you factor in the opportunity cost advantage of maintaining control of a large portion of your payment funds in the immediate term depending on how you hold them until payment.
Jesus we really are Weimar Germany 2.0. Usury runs rampant and our govt officials delight in their torture of us. There are going to be a lot of very, and I mean VERY upset millennials and Gen Z'ers.
Hard to get a vibe on Gen Z, but so far it seems like their top two concerns are internet points and avoiding work at all costs. It'll be interesting to see how Chads respond in the post Roe era. When they get hit with a kid or two and start getting 30% of their wages garnished. Do they lie flat or assume responsibility for their get?
I suspect they're simply just not going to do anything.
I have two millennial and two gen Z kids (I am genX). My younger two spent very little time in state schools while the older two were K-12. The difference between the pairs is shocking. My younger two have a different mother as well and we are still happily married.
The two Gen Z will be able to choose their career and employer because they know how to work hard, be respectful and personable - and appreciate what they have. The older two - one is entitled and butt hurt by everything and the other simply never to blame - it is always someone else's fault.
You really could do a case study on my family. I even had full custody of older two. Public school and their insane mother w/ visitation rights trumps solid, moral home life apparently.
Don't conflate "having both parents" with only married parents parents. Not having a father (single parent) is by far the bigger issue in most cases. My kids had both of their parents in their life. That was the problem. There is a reason I won custody.
I mean both parents performing their duties right. When I said "have both parents" I meant acting functional also. One parent not doing shit but still being there isn't the same.
My kids were born in 94, 96, 00 & 01. I was born 1970. I am correct. Go ahead and check yourself. I know more about the subject if my family than you do, lol.
Older kids had every advantage. They were loved and well provided for, attended church regularly and went camping, vacations together all the time, blah blah blah.
I went broke after they left home and younger kids thrived under adversity. Their mother who got them twice a month and state schools is the difference. That is why I said you could do a case study on us.
Kids involved in a divorce get fucked up. It doesn’t matter how well you think everything was before the divorce. Like, for the kids it obviously was not as good for them as you make it out to be. No matter the age.
And I’m sure they’d be thrilled with you as a dad if they knew you were shit talking them on the internet after the fact by blaming them for not adjusting well to it all.
Not saying divorce isn't tramatic. However, having a toxic, mentally ill drug addict parent in their presence 24/7 is worse. I would have no problem having this conversation with them, either - and have had it after they became adults. They were 2 & 4 yrs old during divorce and I sheltered them as best I could, but the court required their mother get time with them and they would come back with eldest asking why I took mommy's house and money from her. I took them to therapists and psychiatrists and church and youth group. She took them to bars and crashed at various friends houses where no telling what happened. All told, I spent over a quarter million dollars on legal fees as a guy in his 20s and literally couldn't protect them from her.
They might end up aimless and just drifting in life if you let them choose their own careers. you need to have all that sorted out from an early age to get them prepared for the work environment they will be going into.
You say "avoid work at all costs", but you ignore their entire generation being raised in an era where minimum wage won't even purchase 2 gallons of gas.
Why the fuck would you work if you literally can't afford housing and food?
That's why so much of their generation are degenerate gamblers I think.
To be fair, I'm a millennial (30s), and I make a damn good living. It's held us down throughout this inflation crisis. It bought us a hyperinflated house. We have a kid coming soon. It's bought all the nursery items. I know I'm not the norm. BUT what bugs me is that it still feels like I'm living paycheck to paycheck for all these expenses that I had little options over. I wish the dollar had the purchasing power that it did in the 80s. I'd be a king. Lol. My wife is a teacher. Her coworkers are screwed. There's no way they'll ever have a house of their own in this market on a 45k a year salary.
My wife is a teacher. Her coworkers are screwed. There's no way they'll ever have a house of their own in this market on a 45k a year salary.
Teachers still do way better than most. they get decent benefits and higher pay than an unskilled industrial worker who has to risk injury and heatstroke every day.
I don't know what an industrial worker makes. Trades tend to do pretty well. My FIL works on trains. He does well. Teachers in my state don't do well. Teachers back in Texas do way better.
Wonder what the American version of lying flat will be. It's a lose lose for them too since being stuck with a Liberal Democrat for a wife is worse than death.
I have an old truck that is currently worth more than I paid in 2016. This is an 04 (!) F150. Planning to sell it for a minivan. Wondering if I should sell it now and then wait for auto prices to collapse and buy the van.
If you can hold off without both vehicles for 6-9 months, then YES. When the bottom falls out there will be a period before repos hit the market. Start finding out about auctions and when you are ready, pay for a title background check service (to make sure it wasn't wrecked, flooded, stolen, etc) and then go shopping!
Speaking as a global cad admin for a large company, this is a fact. "We can hire 3 India engineers for the price of one here in America" Turns out these India engineers are hacks with paid off degrees. It takes twice the man hours for legit engineers to fix the garbage they produce.
We bought a new 2022 Odyssey last year when we had another kid and it was an insane experience. We had to take whatever the dealership could find. My friend from church sold their 2016 odyssey for more than they paid and traded it in for loaded 2020 odyssey
Yeah cars suck these days. I bought mine 2012 bone stock manual everything and no useless garbage in my dashboard. Now I'm on the hunt for a reliable truck but It's literally impossible to find a new one without all the extra crap that I will never use and just inflates the price. Who the fuck needs a rear facing camera? In dash gps/computer? Auto braking? Thousands of dollars right there that is 100% unnecessary garbage.
In weimar Germany, people were elated to find that the furniture they bought 15 years ago was being sold for 3x what they paid. Houses, everything.
So all these people sold every possession and temporarily enjoyed their windfall of cash. Only to learn that to get new furniture the next week, that it was 5x what they had paid for the original set.
I would hold on to a pre electronic car for multiple reasons. Namely being that inflation doesn't cause isolated price increases.
Agreed, except my family is growing and we need a minivan. I'd hold onto the truck as a 3rd vehicle, but I need the funds to buy the van outright, since I want to avoid financing it.
You might be better off financing it. You can always sell the truck later to retrieve the cash value and pay it off. In theory, as inflation skyrockets, the value of that money you financed decreases, in essence paying you back somewhat. Now, insurance would be a constant extra drain. And, if that minivan breaks down with a high repair cost, you can buy time driving the truck while you save up for those repairs. Financing isn’t always evil if you can get a really low interest rate and do something with the money you didn’t spend up front. Plus, can that minivan tow much? I REALLY miss my truck…
If you can do without it, it's not a bad idea. But sell it private party.. dealerships don't like paying too much for 18 year old vehicles because they are a pain in the ass to find lending on.
Same thing with my 2003 Dodge Dakota. Granted, it's a garaged mint condition truck with only 65k but here in TX, people love pickups and will grab them up.
Just imagine if insurance companies were legally allowed to discriminate based upon political affiliation... actually, sounds like a good business model!
Ironically the easy loans made the prices increase by creating more demand for the same cars at higher prices than they are worth, just like mortgages, student loans, health insurance etc
Another national market crash courtesy of redistributing wealth to black people. First it was the subprime lending standards for achieving racial equity in home ownership. This time it’s “enhanced unemployment” which was a free windfall for anyone who lacked a sense of dignity
There is a lot more to this. The used car market went insane due to large companies buying up all the used cars to corner the market. Collusion was rampant on auction sites to drive up prices. Selling similar cars not even for sale to straw buyers at inflated prices. Used trucks were going for more than a new one, if you could even find one. The whole thing needs to collapse. Lending needs to collapse. Pay cash. Save until you can afford something. Drive people using leverage out of our communities
They will plummet when the manufacturers finally ramp up production. Our new inventory is still operating at like 17% of what it should be, and we're actually one of the fortunate dealerships. We're probably still about a year out from that by my estimates.. even then you still will have a hard time finding a fuel efficient car/EV. Civics, corollas, sentras ect are virtually snapped up as soon as they come off the transport.
The irony of fools buying hybrids and EVs and such though is that their demand has caused prices to explode — and the whole reason they were buying them is to save money (on gas).
“I’m gonna spend $10,000 extra dollars to buy this hybrid and save $6 a gallon every week on gas!”
I love my gay Chevy Volt that’s paid off. It’s half hybrid and half electric. So, when the power grid goes down I exclusively am able to use gas. When gas prices go up, or there’s shortages, I’m able to default to electric.
Fantastic at least you're enjoying gasoline savings at no cost. Maybe the cost of replacing battery for a Chevy Volt is lower than for a Tesla and perhaps the prices will come down by the time you need a new one so maybe you won't have to junk it
There are so many cars waiting to find a place on a ship. Once the log jam at ports goes you will be surprised how fast the inventory level increases. Chips supply is slowly going away. We just need the war to end.. now that can go on for years lmao
Same, I bought a pretty standard Sedan with like 20K miles for $12k in 2019. I put on a lot of miles, it is now like 60k miles, and they want to buy it for $12k....
Hopefully this means cheap as fuck mid 90's cars, where they have enough tech to be fuel efficient, but not enough fucking garbage to where they are fucking traceable.
Exactly. but is any of these people lose their jobs and have to Move, they wont be able to sell their house at those prices. it will go to foreclosure or have to do a Short sale on it. the discounts will be coming
Only three things need to happen...prices Exceed the the worth of the property and the second thing is The Mortgages have to be more than the people can afford. and the Third thing is the bubble needs to Burst. First two things have already happened. the third thing is already starting to happen. When 2023 hits there will be TONS of Foreclosures
My Plymouth 1989 minivan lasted 30 yrs, 200,000+ miles and it was a lemon. In the 1990s we started buying used cars instead of brand new. They all lasted over 200,000 miles. Be sure to do the oil changes.
So pay rent that costs as much as a mortgage for a tiny apartment or pod so that in 40 years you can buy a house and pay in full then die five years later and your kids have to sell it because they can't pay the inheritance taxes?
With housing you'll have to pay for somewhere to live while you're saving.
If you're buying a used car correct. However if you can get a car financed at under 3% interest without dealer contribution on the rate, something like a credit union pre-approval, you're better off with $30,000 investing. You can wait 6 months for the real estate market to drop and leverage some real estate and rent it out or put $30,000 in the stock market in growth stocks or you can short stocks and still make money. Way better than putting so much cash down on what will go back to being a tremendously bad investment which is a car unless it is a used car at a heavily discounted price
Buy a manufacturer backed warranty (price several dealerships). Most manufacturers only warranty their electronics for 3 years/36,000 miles. These things are VERY expensive to replace right now because of the chip shortage.
Yeah I don't know that doesn't make sense. Nobody profits from a bad loan. The 2008 crash was enormous amounts of fraud being carried out by the banks because they were intentionally hiding bad loans because they know nobody would've wanted them if they knew.
The 2008 situation was fairly unique and that's not the situation here.
CarMax probably will give you a loan application and tell you all this stuff about being preselected and your low interest rate, but I bet you once it gets to underwriting they clamp down on that shit hard.
And a $25,000 jeep Cherokee for my daughter with $2000 down.
I am a shadowy aviation security contractor (580 credit score - I am not good at accounting) and can’t even tell you who I work for much less showproof of income and there you go.
I just put like nonsense in the credit app. I guess they don’t care. It used to be really hard to get a car loan. 🤷🏻♂️
My credit score is similarly in the toilet and I also got approved for a loan for a Jeep for only about 3k down. I have decent income but it's mostly cash, and pretty much zero credit history except one credit card I screwed up with in my early 20s. I ended up not going through with the loan and just buying an older Jeep with cash outright. Probably should have done the loan just to build credit history but I didn't want to deal with making payments when the economy seems to be collapsing and I might lose my income.
It’s the same with rentals. They are way overpriced but you can just lie and, even w/ my terrible credit score, they believed my inflated income estimate and never verified it.
The image used in the article OP posted is for SALES ACTIVITY, NOT DELINQUENCY.. THE AUTHOR IS A FUCKING MORON.
There have been slight increases in delinquency this year particularly in the subprime market but that has always been the case which is why the interest rates are so high, to accommodate much higher delinquency in subprime borrower default rates.
First, a real application means they run a hard credit check, which drops your FICO score a bit for up to 18-24 months. Unless you have a real identity and a credit history, you generally won't get approved for jack. That thing online runs a soft check and "pre-approval", but is not an actual approval, let alone a contract. Read the fine print.
Second, you don't have income verification on a pre-approval, because auto loans often don't have them there.
Third, unless your FICO is north of 800, you're not just paying the loan, they roll in loan insurance which is part of your payment. It works like mortgage insurance.This means if your car gets repoed, the dealership gets paid anyway.
The only car loans you can get with shit credit are subprime loans, which have a massive front-loaded interest rate and a very high loan insurance payment rolled in. Both minimize the damage of a repo.
I’m not sure what to tell you bro but I’m picking the rover up in Dallas Tuesday afternoon hit me up and have a beer? I know a really good place near love field that is where I will be working.
The image used in the article OP posted is for SALES ACTIVITY, NOT DELINQUENCY.. THE AUTHOR IS A FUCKING MORON.
There have been slight increases in delinquency this year particularly in the subprime market but that has always been the case which is why the interest rates are so high, to accommodate much higher delinquency in subprime borrower default rates.
Notice something? You chart cuts off in Q2/2021. That's a whole year ago, back when ol' Biden was bragging about saving you 16 cents on your 4th of July cookout.
Newsflash, this year's saving is -10 dollars. A lot could have changed since then and the line might be going up like Joe's attention span when he sees a five year old whose hair is in sniffing distance.
That chart is only relevant to the latter half of the discourse, the projection for future prices. You know what a projection is, right? It's an estimate of future development, so yeah it's made up. That's the point. It's a prediction, not fact.
It’s not even legal to finance a car to someone that isn’t at least a foreign national. And anyone working with an actual lender (not a buy here pay here lot), has zero chance of getting approved with no job or credit.
Demorats say, "You can live in your car, but you can't drive your house"
Riddle me this: Why are your power windows always broken?
What's the strange attraction to Nissans?
I'm a state inspector. I see as many as 300 cars per week. Nissans are by far the biggest pieces of shit on the market today. The only decent ones I see are the GTRs. That's probably because they haven't updated it since it came out like 15 years ago. Next gen will probably have a fuckin CVT.
Yes total POS...try to explain how their precious Altima failed inspection because it popped a code for.... motor mounts.
@Willogic - yes, infinity is a Datsun brand.
@Anyone/everyone - how do their power windows break? Make/model independent. They open entire door to pay tolls.
Avoid crushing debt. Pay off debt as fast as you can. Pay in full up front. Live a little below your means. Save for big spends, Don’t borrow to leverage. The Man then owns you.
I am paying off the last of my credit card debt this coming week. NO other loans aside from my mortgage that is low and fixed rate when it was very low. Though I want that mortgage paid, I am working on it to reduce the term by aggressively paying on principal only in addition to loan service payments.
Millions of car loans were given to Pandemic Ballers who were being paid in some cases over 2k a week for doing nothing at all, during the scamiest months of COVID.
Everyone knows about the supply chain problems, far fewer people realize what a minor problem supply chain was in the automotive market.
The lack of inventory was almost entirely demand driven. The government created millions of new buyers who otherwise wouldn't have been car shopping. These Pandemic Ballers moved through the market like locusts, consuming everything from luxury marques to bargain basement jalopies.
The average dwell time on a dealership lot for high line luxury cars dropped like a stone during the pandemic, to levels never seen before. That's not supply chain, that's idiots with money they didn't earn.
Now that all the COVID welfare has been over for awhile, these fools are starting to fall behind. The eviction moratoriums, a few of which are still technically in effect, mostly ended in late 21/early 22. That was the big one.
There's going to be a glut of repossessions in late 22 and 23, the likes of which this country has never seen.
Been to a dealership just a handful of times, but then again I am pretty specific about what i'm looking for in a vehicle and refuse to own an automatic
I was only asked how much I made. Never had to provide proof or anything, although I did bring paystubs, proof of employment, etc and they didn’t want nor need any of it.
I used to do collections and repo for a buy here pay here place and they sold these people piece of shit cars with a 28% annual interest loans!! That means that whatever you owe for your car for that year you will pay 28% of that each year!! That's why when you go to a place like that you don't see your true pay off go down until you're almost into your 3rd year!! .... It's just another way to keep poor people poor while rich people get 0% interest and shit!! It's a way the system keeps the status quo! ... Most these people were good hard working people that just didn't have any credit, nobody to co-sign for them and had to have a car! ... Plenty of them were just dipshits too but I got so tired of that business because it hurt to go take some families car from their work place and tow it with a baby seat in the back and a family just trying to do their best! Those kind of interest loans shouldn't be legal!! Am annual 28% interest which is the legal limit where I live is just preposterous especially considering their selling them cars that are worth 2k and will eventually make 25k on it and the vehicle will be broke down all the time cuz it has 150k miles on it ... The best way is to pay cash for what your buy!! If you don't make a lot of money or don't have a high credit score just save whatever you can and pay outright for a car!! NEVER go to a buy here pay here "we will finance anyone" place!! People are defaulting on these loans probably because the car is broke down and they can't afford the fix and the payment especially with how much shit has gone up!! It's a fucking way the system keeps people in their place!!
Well that's prime loans ... The buy here pay here will usually only be 4 or 6 but you'll be paying the same amount monthly that a person with good credit would be paying on a brand new Tahoe ... It's all fucked up!! I sold cars for a long time, worked in the finance department and did collections and there's really not a part of that business that's not a rip off!! They have what's called hold back on every car that goes in there new or used ... For new it's usually 500 and the used it just depends on how much they have in it ... That hold back is part of the profit that the salesman doesn't get a part of and the customer doesn't even know about!! I sold cars at one place that the hold back on used cars was 2k ... You as a salesman make most your money on used cars so that high of a hold back is totally screwing your employees! ... It's all fucked up!
I'm underwater on my auto loan, but I'm digging myself out. I still owe $7k and my minivan in worth $2k at most. But I'm current on it and it sucks paying $500 a month to those thieving bastards at Santander, but I'm not bitching. My ex-wife killed my credit before we divorced and I'm building it back up.
Man, I hate to sound like a bitch, but circumstances are kicking me in the ass lately.
I'm already looking for a house in history's worse housing market. But I also ordered a car that will be arriving in late Sept or early Oct. My plan was to sell my car when it arrives, and a month ago it was showing I'd make at least 20k profit. In 5 weeks, the value has dropped over 5k. And I'm losing money in the stock market, same as everyone else who was too stupid to sell everything 4 months ago.
Quit kicking me in the balls universe. I voted for Trump
Both my vehicles are owned by me. Neither is fancy or expensive, but are reliable. I have constant upkeep to do, but that is still vastly cheaper than a payment.
I am one of the people with a subprime car loan. Thankfully I had the foresight to get a cheaper car so I could afford the high interest. Happy to say I'll be paying it off early in a few months.
This scares me though because while my credit is better today I do need to get a newer car soon and I expect this to make it harder and higher interest than it would have been 2.5 years ago
There is a market for defaulted loans in medical and all kind of loans. Generally an attorney office or a collection clearing house. They pay a fraction per dollar for the actual ticket value and it is an easy way to make it pay off.
For example. Say a medical bill is outstanding and in collections. A group of 100 in the example paid for at 10 cents per dollar. Say the total of all is 500k but 50k was paid for them. It does not take many to pay off to make money. The rest go to a persons credit ultimately as a fail and lowering of rating.
That is why, if one has anything outstanding, they can negotiate with the collection agency as some recovery for them is better than none.
Funny thing is that most of the popular cars on the market now cost 20% of what I bought my house for. Sure, I bought at a good time, but the fact stands.
Usually, but the demand for used cars has had people find a car they've been driving for an extended period is worth more than what they paid. And there are still parts for older cars that cost the same that are still being used to repair instead of replace. Once there is inventory of new cars, this will change.
Name one thing that hasn't blown up in the Biden era. I'll wait.
groomers, faggots, alphabet agencies…
Depends on your definition of blown up I guess.
Yep, they've blown up in the worst possible way.
All the faggots in the alphabet agencies are probably blowing each other . . .
This article looks like a very early warning of what might happen in the used car market. 5% are behind? okay. 50% underwater? okay. Where is the news?
I would have guessed 50% behind on payments and 99% were underwater for this to be news.
They're reporting it because those numbers are bad for the banks. Even 5% takes a huge chunk outta the banks ass.
I'm genuinely asking because I want to understand it if people think that it is actually like the 2008 housing crisis and how?.
the housing market imploded because they were giving out bad loans and then paying off regulators to classify them as good loans so that other people would buy them. and the reason it closed a recession was because people weren't buying houses to live in them but they were buying houses under the assumption that the price would go up and they would use the price of selling the house to pay off the loan but they took out to buy the house..
so obviously when the housing bubble collapsed the price of the house didn't go up which means they couldn't sell it for more than they bought it for which meant that all the loans defaulted and the housing prices collapsed and it hurt the economy because so much of the economy was based around real estate prices..
I don't see much of the economy based around car prices or the idea that your car will be worth more a year after you buy it then what you paid for it..
so I can certainly see a lot of repossessions and then as a result they probably the cost of used cars would go down but the economy doesn't seem to be hinged on the price of usedd cars
5 percent is just the start, it will be more like 20 percent by the time the depression hits.
Scissoring
“Kamala has entered the chat
Blown UP, not just blown.
America's unwavering support for the Chinese Communist Party.
democrats unwavering support for the Chinese Communist Party.
Hunter Biden laptop investigation. What do I win?
Durham investigation lmao
Yea, something virtually useless. Oh boy.
I don't consider sworn testimony that Hillary was behind the entire Trump/Russia collusion hoax to be useless.
They aren't using it for anything so.... Maybe in two weeks.
I've been using it to hammer home some red-pill efforts.
Well, unsurprisingly Hamster, you are by far more useful than the entirety of the federal government.
Trust the plan, the Patriots are winning. 🤣
Free trip to the reeducation gulag, and a useless congressional "investigation"?
Kamala. She blows but hasn't blown up yet. Too bad, because she is in the way of the 25th.
Israel
I went looking for a used car, this was right before covid and the collapse of shit, but I found THREE nearby places online and went to them and all experienced the same thing.
None of them were willing to sell me a car.
I walked in from their online ads (they had good prices) and was looking to buy a car outright for cash, paid in full (12-15k range standard sedans). They refused to sell me the car, their entire business was based on financing loans for people with shit credit and like 25% interest.
THIS ENTIRE BPOST IS BULLSHIT HERE ARE THE CORRECT DELINQUENCY RATES OVER 20 YEARS
The image used in the article OP posted is for SALES ACTIVITY, NOT DELINQUENCY.. THE AUTHOR IS A FUCKING MORON.
There have been slight increases in delinquency this year particularly in the subprime market but that has always been the case which is why the interest rates are so high, to accommodate much higher delinquency in subprime borrower default rates.
That article is fear mongering gayness.
Edit....op article
Well, that's no fun. I was hoping for a bunch of banks to get fucked and prices to finally go down
Banks don’t get fucked. You, me and everyone else that has enough money to not be poor, but not enough money to be part of the elite, are the ones that get fucked.
OP has a YouTube channel. Did this as a video for clickbait. Article is transcript of video. OP is the size of a fifth grader and has terrible “Little Man Syndrome”.
I mean if the economy completely crashes like end of the world type shit it will fuck the banks, but with the supply side being so fucked up, it would take a ridiculous amount of subprime loans defaulting to move the wholesale market any noticeable amount. I remember having discussions with retards that thought when avis was shitting the bed it would flood the market. I did math and it would have added 5 or 6 cars to dealer inventories and they were already on a lower day supply than recent years.
I agree. I just bought a car and it was a pain in the ass. They went over ALL my finances with a fine tooth comb.
you should go to a credit union.
4%er
So - random but I've been trying to figure out the play here, any advice would help:
I am a 2 car home looking to move to 1 car (selling one on like, caravana). I'm not sure how all this plays out nor what the play should be - but I have 2 loans on 2 different cars and want to get rid of one
What do
The used market is wacky right now. It's very regional, but here I'm seeing a lot of luxury cars come on the market at steep discounts, and economy cars like Ford Escapes and CR-Vs are going for a premium - 2012 models for 19k, which is probably the MSRP when then sold new. (Asking prices, not what they're selling for.) You can get a fairly new high end Audi for half of what others are asking for Escapes.
My rider friends say motorcycles are gold right now, too, old beaters going for a lot more than they should.
Joe did that!
People are dumping status symbols because they can't afford to feed a V8. Pretty simple. Insurance on that kind of ride is pretty steep, too.
This is just getting started. Watch the boat/rv market. You should see that get glutted soon.
I’m sitting on a boatload of cash just waiting to finally pick up a new bass boat. Or maybe a wakeboard/runabout.
I think I can sell my wife's Corolla for more than I paid for it new three years ago.
You might. Asking price = actual selling price, but used car prices on economy cars are through the fricking roof, especially here, because $6 gas is insanity.
I was considering getting rid of my slow ass 4 banger embarrassment, because god damn I miss my V8 Mustang. But not now.
The wife's corolla is a super sporty little thing and fun as SHIT to drive. Yeah, a corolla.
Sell to caravana, or private, a dealership will rape you.
Untrue, dealerships, like everybody else want your car for as cheap as you will sell it for, just like you want asuch as someone will pay for it. Carvana, autonation, vroom might pay more for your car or they might not. A local dealer or camax might pay more. My advice is to get multiple quotes. Carvana wanted to pay me 59.5k for my tahoe, my local che vy store gave me 63k
Well you of course go with the highest bidder, just so I have more info, did you have a loan on your Tahoe or did you own it outright, because it matters at a dealership.
Well my 25 years in the car business would say it doesn't matter to a dealership if you have a lien. The only thing you have to be concerned about is a captive leasing company not releasing the lien to an off brand dealership.
Most people who sell to dealerships wind up walking out with another car and a new loan, I’m familiar with the industry, it’s suppose to work that way.
Ford dealership offered me 30% more than carvana and carmax for a 2017 F150. They were the only ones to look at it too, the others just wanted to do it online based on miles, vin number and years. Dealership wanted to see it and offered more.
Get bids from "professional" car buyers and make them compete.
I figured it would be a better idea to sell now - thanks fren
I got a fantastic deal with carmax. I’d recommend using them instead of caravana if you can, and going to the actual location rather than selling online.
Got an offer and sold it within a day for only about 20% less than what I bought it for new 6 years ago.
You will do better than that if you take the time for private sales if you have a desirable car.
That chart only covers up to Q2 2021.
OP has a YouTube channel and did a video for clickbait. This article is the video transcript.
Why not just jump through the hoops and pay the whole lump off in the first month? It's rare to find car loans with an early penalty fee.
They refused to sell for the first part, but I also assumed that they probably had a bunch of early payment clauses in them where you got to pay at least like 30% of the interest or something.
Two of the places were actually like "dude trust me don't buy your car here, we aren't here for people like you."
Spez: They also seemed to be "selling" the cars at like 10-15% below others, which is why they were the first places I went to.
They did you a favor. Buy here pay here lots sell junk. Not just junk, but auction junk. CEL and airbag bulbs removed, wrecked and "repaired", and flood cars. Their whole business model is to get that down payment and a monthly payment or two, then repo it and sell to the next sucker.
source: am L1 Master Tech 30 years in the business
Was it an actual 'used car lot' place? I pretty much only buy my used cars from either close contacts, or major institutions like dealerships. If you were trying to grab a car at Big Bill Hell's Used Cars that'd make sense.
For sale by owner is usually a good way to go if you're looking to pay in a lump sum.
A lot of those loans are securitized. Some are likely sold within days of closing on your loan.
Whey does that matter? It lowers the underwriting standards if the lender knows they won't have to hold the loan. They are just there for the initiation fees, not the interest.
The investment vehicles that purchase these loans are usually only available to accredited investors, and I've seen several implode. It's very similar to what they were doing with subprime loans leading up to the Financial Crisis of 2008-9, only far less collateralized.
“They refused to sell” what, dude? You claiming they wouldn’t sell to you is an absolute lie.
Not if their business model is selling to customers with bad credit who won't be able to keep up with their payments, repoing the car after a few months, then repeating. Selling outright and taking a car out of that cycle isn't as profitable as continuing to churn it.
If.
You assumed wrong. It’s a simple interest loan. You could literally “agree to finance”, sign the documents to get the rebate/discounted prices & send the entirety of the balance in on a check the next day. The finance manager may lie to you and claim “you have to make X payments or...” but that is a lie & you can sue them. No one “refused to sell” you anything, you refused to educate yourself on the process & are now lying about what happened.
From my experience the vast majority of car loans you can’t pay down the principal like with a mortgage. If you wanna pay it off early you still have to pay the interest. I forget the details but my wife worked at a bank and explained how it worked.
Did you go to a buy here pay here lot? I work in the business and we would never turn away a deal, finance or cash
I dunno, it was the first time I experienced that. I went there cause they were advertised as the cheapest online.
Drug front?
I’m so glad I don’t have to buy a car right now. Although, I did just sign a lease on a place that I know is way overpriced and will likely plummet soon with the impending recession.
Hell I've experienced this even at places that cater to high credit score customers 750-800+ only.
Got refused for trying to pay cash. I even offered to pay a few thousand over sticker!
I don't fuck around with credit so I have no credit score. I hate that shit even though I definitely lose out on significant savings by not participating.
Tbh with the interest rate being 2.9% ...
I'm too lazy to do the math rn...
... but I'm basically certain you'd actually SAVE FUCKING MONEY paying sticker AND interest over 3 years on 2.9% loan, vs just paying it all in cash immediately thanks to the magic of our high inflation rate.
You could probably increase those savings if you factor in the opportunity cost advantage of maintaining control of a large portion of your payment funds in the immediate term depending on how you hold them until payment.
Jesus we really are Weimar Germany 2.0. Usury runs rampant and our govt officials delight in their torture of us. There are going to be a lot of very, and I mean VERY upset millennials and Gen Z'ers.
Hard to get a vibe on Gen Z, but so far it seems like their top two concerns are internet points and avoiding work at all costs. It'll be interesting to see how Chads respond in the post Roe era. When they get hit with a kid or two and start getting 30% of their wages garnished. Do they lie flat or assume responsibility for their get?
I suspect they're simply just not going to do anything.
I'm an extremely upset Millennial/Gen Z and it doesn't help that they steal 30% of my paycheck
Lol I’m taking 30% of your paycheck? Isn’t it more like you old farts are stealing from us? You all accrued massive debts, we have to pay it off.
Reading comprehension is not your strongest quality I see
They didn’t teach it me good in the escuela lol. My bad.
I appreciate you taking ownership for your mistake. Hope everything good comes your way
You know what will never come my way? Social security. Haha. Cheers and happy Independence Day.
Same. Paying for shit I'm never gonna see. Happy Independence Day to you as well!
Debts to whom? Ourselves. In the form of treasury notes?
If you don’t know what I’m talking about then shut the fuck up.
reeee
The Terrible Truth About Ireland 2040(33:35 to41:15
Laziness, Greed, Entitlement - Baby Boomers Defined
YOU WILL NEVER BE ABLE TO RETIRE
Thought Bites: Women, Open Borders and Warfare
I have two millennial and two gen Z kids (I am genX). My younger two spent very little time in state schools while the older two were K-12. The difference between the pairs is shocking. My younger two have a different mother as well and we are still happily married.
The two Gen Z will be able to choose their career and employer because they know how to work hard, be respectful and personable - and appreciate what they have. The older two - one is entitled and butt hurt by everything and the other simply never to blame - it is always someone else's fault.
Weird how children raised in an intact household had better outcomes.
You really could do a case study on my family. I even had full custody of older two. Public school and their insane mother w/ visitation rights trumps solid, moral home life apparently.
Yea those having both parents thing is the big one.
Don't conflate "having both parents" with only married parents parents. Not having a father (single parent) is by far the bigger issue in most cases. My kids had both of their parents in their life. That was the problem. There is a reason I won custody.
I mean both parents performing their duties right. When I said "have both parents" I meant acting functional also. One parent not doing shit but still being there isn't the same.
I’ll say this loud for the people in the back:
One generation does not beget the next.
If you’re Gen X, your offspring are gen Z, unless you had a kid at 7 years old.
My kids were born in 94, 96, 00 & 01. I was born 1970. I am correct. Go ahead and check yourself. I know more about the subject if my family than you do, lol.
Still shouting stupid shit?
"Age Range by Generation - Beresford Research" https://www.beresfordresearch.com/age-range-by-generation/
You’re not helping your case. One pair of kids got the shaft and the other pair didn’t.
You would be correct. Godly woman. Met my first wife in a tit club. Train wreck.
Older kids had every advantage. They were loved and well provided for, attended church regularly and went camping, vacations together all the time, blah blah blah.
I went broke after they left home and younger kids thrived under adversity. Their mother who got them twice a month and state schools is the difference. That is why I said you could do a case study on us.
Kids involved in a divorce get fucked up. It doesn’t matter how well you think everything was before the divorce. Like, for the kids it obviously was not as good for them as you make it out to be. No matter the age.
And I’m sure they’d be thrilled with you as a dad if they knew you were shit talking them on the internet after the fact by blaming them for not adjusting well to it all.
Not saying divorce isn't tramatic. However, having a toxic, mentally ill drug addict parent in their presence 24/7 is worse. I would have no problem having this conversation with them, either - and have had it after they became adults. They were 2 & 4 yrs old during divorce and I sheltered them as best I could, but the court required their mother get time with them and they would come back with eldest asking why I took mommy's house and money from her. I took them to therapists and psychiatrists and church and youth group. She took them to bars and crashed at various friends houses where no telling what happened. All told, I spent over a quarter million dollars on legal fees as a guy in his 20s and literally couldn't protect them from her.
They might end up aimless and just drifting in life if you let them choose their own careers. you need to have all that sorted out from an early age to get them prepared for the work environment they will be going into.
You say "avoid work at all costs", but you ignore their entire generation being raised in an era where minimum wage won't even purchase 2 gallons of gas.
Why the fuck would you work if you literally can't afford housing and food?
That's why so much of their generation are degenerate gamblers I think.
Because if you don’t you starve?
Well I guess they were raised on food purchased from EBT cards.
To be fair, I'm a millennial (30s), and I make a damn good living. It's held us down throughout this inflation crisis. It bought us a hyperinflated house. We have a kid coming soon. It's bought all the nursery items. I know I'm not the norm. BUT what bugs me is that it still feels like I'm living paycheck to paycheck for all these expenses that I had little options over. I wish the dollar had the purchasing power that it did in the 80s. I'd be a king. Lol. My wife is a teacher. Her coworkers are screwed. There's no way they'll ever have a house of their own in this market on a 45k a year salary.
Teachers still do way better than most. they get decent benefits and higher pay than an unskilled industrial worker who has to risk injury and heatstroke every day.
I don't know what an industrial worker makes. Trades tend to do pretty well. My FIL works on trains. He does well. Teachers in my state don't do well. Teachers back in Texas do way better.
I'm in pretty much the same boat. I was able to double my salary and all it did was keep up from feeling like we were drowning.
Wonder what the American version of lying flat will be. It's a lose lose for them too since being stuck with a Liberal Democrat for a wife is worse than death.
I have an old truck that is currently worth more than I paid in 2016. This is an 04 (!) F150. Planning to sell it for a minivan. Wondering if I should sell it now and then wait for auto prices to collapse and buy the van.
Yes
If you can hold off without both vehicles for 6-9 months, then YES. When the bottom falls out there will be a period before repos hit the market. Start finding out about auctions and when you are ready, pay for a title background check service (to make sure it wasn't wrecked, flooded, stolen, etc) and then go shopping!
Speaking as a global cad admin for a large company, this is a fact. "We can hire 3 India engineers for the price of one here in America" Turns out these India engineers are hacks with paid off degrees. It takes twice the man hours for legit engineers to fix the garbage they produce.
Yeah I'm the same. I'm looking at an Odyssey, but I'm probably not getting anything newer than 2012.
We bought a new 2022 Odyssey last year when we had another kid and it was an insane experience. We had to take whatever the dealership could find. My friend from church sold their 2016 odyssey for more than they paid and traded it in for loaded 2020 odyssey
Yeah cars suck these days. I bought mine 2012 bone stock manual everything and no useless garbage in my dashboard. Now I'm on the hunt for a reliable truck but It's literally impossible to find a new one without all the extra crap that I will never use and just inflates the price. Who the fuck needs a rear facing camera? In dash gps/computer? Auto braking? Thousands of dollars right there that is 100% unnecessary garbage.
Thank the government for the rear-facing camera: they mandated those.
They grow on you. Never wanted one, but it's great for parallel parking with my 9ld neck not having to turn as much.
In weimar Germany, people were elated to find that the furniture they bought 15 years ago was being sold for 3x what they paid. Houses, everything.
So all these people sold every possession and temporarily enjoyed their windfall of cash. Only to learn that to get new furniture the next week, that it was 5x what they had paid for the original set.
I would hold on to a pre electronic car for multiple reasons. Namely being that inflation doesn't cause isolated price increases.
Agreed, except my family is growing and we need a minivan. I'd hold onto the truck as a 3rd vehicle, but I need the funds to buy the van outright, since I want to avoid financing it.
You might be better off financing it. You can always sell the truck later to retrieve the cash value and pay it off. In theory, as inflation skyrockets, the value of that money you financed decreases, in essence paying you back somewhat. Now, insurance would be a constant extra drain. And, if that minivan breaks down with a high repair cost, you can buy time driving the truck while you save up for those repairs. Financing isn’t always evil if you can get a really low interest rate and do something with the money you didn’t spend up front. Plus, can that minivan tow much? I REALLY miss my truck…
If you can do without it, it's not a bad idea. But sell it private party.. dealerships don't like paying too much for 18 year old vehicles because they are a pain in the ass to find lending on.
Yeah I'm looking at local listings and believe it or not the same exact truck is being listed for like 12 grand. Seems unreal to me.
Remember cash for clunkers? That was really "environmentally sound." They've been targeting American autos for awhile now.
We bought a car a few years ago for $10,000. Sold it a couple months ago for $10,500.
Same thing with my 2003 Dodge Dakota. Granted, it's a garaged mint condition truck with only 65k but here in TX, people love pickups and will grab them up.
bad loan = loan to a democrat
Just imagine if insurance companies were legally allowed to discriminate based upon political affiliation... actually, sounds like a good business model!
That's legal.
political choice is only protected in like 3 places. (and clearly even they ignore the law)
Also family members.
This is what happens when the price of used cars is no longer affordable and when loans are approved without credit history.
Ironically the easy loans made the prices increase by creating more demand for the same cars at higher prices than they are worth, just like mortgages, student loans, health insurance etc
Fun fact that is often overlooked
EBT cards cause the price of steaks and seafood to rise...
Handing the entire country a check for 2 or 3 grand didn't help either.
Another national market crash courtesy of redistributing wealth to black people. First it was the subprime lending standards for achieving racial equity in home ownership. This time it’s “enhanced unemployment” which was a free windfall for anyone who lacked a sense of dignity
There is a lot more to this. The used car market went insane due to large companies buying up all the used cars to corner the market. Collusion was rampant on auction sites to drive up prices. Selling similar cars not even for sale to straw buyers at inflated prices. Used trucks were going for more than a new one, if you could even find one. The whole thing needs to collapse. Lending needs to collapse. Pay cash. Save until you can afford something. Drive people using leverage out of our communities
Personally think it's another left scheme to make cars unaffordable for average people.
Oh vey it’s about to become 110
Government probably forced them to give loans to people that obviously wouldn’t, couldn’t or simply didn’t want to pay them back.
Housing market crash 2.0
When I bought a new Mercedes last year, I was going to pay cash but the salesman mentioned 2% financing.
I would have had to be a Biden level retard to pass that up.
And on top of that, the car is worth more than MSRP last year.
This is good for used car prices, right? Means they’ll plummet?
They will plummet when the manufacturers finally ramp up production. Our new inventory is still operating at like 17% of what it should be, and we're actually one of the fortunate dealerships. We're probably still about a year out from that by my estimates.. even then you still will have a hard time finding a fuel efficient car/EV. Civics, corollas, sentras ect are virtually snapped up as soon as they come off the transport.
I have a civic I love dearly.
The irony of fools buying hybrids and EVs and such though is that their demand has caused prices to explode — and the whole reason they were buying them is to save money (on gas).
“I’m gonna spend $10,000 extra dollars to buy this hybrid and save $6 a gallon every week on gas!”
Lol retards
Got me a 2006 turbo diesel jetta with manual transmission for 3k last year. Nice tool
Good buy.
Ya, great driver.
The interiors kinda fall apart though
I love my gay Chevy Volt that’s paid off. It’s half hybrid and half electric. So, when the power grid goes down I exclusively am able to use gas. When gas prices go up, or there’s shortages, I’m able to default to electric.
I do like the sound of that
But in 5 years when you need to spend $10,000 replacing the battery that will wipe out all of your savings
Very true! I’ll be sending it to the dump at the point (it was part of an inheritance).
Fantastic at least you're enjoying gasoline savings at no cost. Maybe the cost of replacing battery for a Chevy Volt is lower than for a Tesla and perhaps the prices will come down by the time you need a new one so maybe you won't have to junk it
The funniest part is when their fancy new hybrid doesn't even get better gas mileage than some 30 year old economy cars.
There are so many cars waiting to find a place on a ship. Once the log jam at ports goes you will be surprised how fast the inventory level increases. Chips supply is slowly going away. We just need the war to end.. now that can go on for years lmao
Get ready. Market's about to be flooded with repo'd Chargers, Challengers and Mustangs.
Oh and Altimas.
I keep getting message wanting to buy my F150. No mention of what there is to replace it with.
Same, I bought a pretty standard Sedan with like 20K miles for $12k in 2019. I put on a lot of miles, it is now like 60k miles, and they want to buy it for $12k....
You have to remember $12k now is worth significantly less than the $12k you paid in 2019.
They’ll profit by ripping you off on the replacement.
Hopefully this means cheap as fuck mid 90's cars, where they have enough tech to be fuel efficient, but not enough fucking garbage to where they are fucking traceable.
No, the prices of those are going up as well, a base model economy car with 300,000 miles on it will cost you about $5000.
This guy knows what’s important
Rental car sons of bitches want neigh on $500 a day for a rental now. Tough luck champ. You're going under like the rest of us.
Good, now do the housing market next. Sick of seeing $200K houses selling for $500K, in fucking Ohio, no less.
Exactly. but is any of these people lose their jobs and have to Move, they wont be able to sell their house at those prices. it will go to foreclosure or have to do a Short sale on it. the discounts will be coming
The housing crash 2.0 has to be coming. This level of ridiculousness just isn't sustainable.
watch for 2023. i AActually thought it would be this year.
A housing crash during record inflation levels? You guys 'tarded?
Only three things need to happen...prices Exceed the the worth of the property and the second thing is The Mortgages have to be more than the people can afford. and the Third thing is the bubble needs to Burst. First two things have already happened. the third thing is already starting to happen. When 2023 hits there will be TONS of Foreclosures
Paid off my car in Jan. Only 30k miles. Hopefully I’m not in the market for a car for quite a while.
My Plymouth 1989 minivan lasted 30 yrs, 200,000+ miles and it was a lemon. In the 1990s we started buying used cars instead of brand new. They all lasted over 200,000 miles. Be sure to do the oil changes.
Uh...never take a loan for a car unless its for your business, like a work truck
That's true only if you intend to sell. If you never plan to sell, depreciating value means nothing.
It's like a house. If the price skyrockets, but you never intend to sell, then it doesn't matter.
A car gets you to work.
Till you paying me to fix it
A house you get to live in. You retarded Boomer.
So pay rent that costs as much as a mortgage for a tiny apartment or pod so that in 40 years you can buy a house and pay in full then die five years later and your kids have to sell it because they can't pay the inheritance taxes?
With housing you'll have to pay for somewhere to live while you're saving.
If you're buying a used car correct. However if you can get a car financed at under 3% interest without dealer contribution on the rate, something like a credit union pre-approval, you're better off with $30,000 investing. You can wait 6 months for the real estate market to drop and leverage some real estate and rent it out or put $30,000 in the stock market in growth stocks or you can short stocks and still make money. Way better than putting so much cash down on what will go back to being a tremendously bad investment which is a car unless it is a used car at a heavily discounted price
Buy a manufacturer backed warranty (price several dealerships). Most manufacturers only warranty their electronics for 3 years/36,000 miles. These things are VERY expensive to replace right now because of the chip shortage.
I heard a car dealer advertise NO SOCIAL NECESSARY... what the fuck? You get a 20, 30, 40 thousand dollar loan with no social security number?
It’s insanely easy to get a car loan
Try it yourself — download CarMax app - select a $75k Range Rover and fill out the app (very basic like 2 minutes)
You Will be guaranteed to get a loan no matter if you have citizenship or no credit or no job.
This is a factually incorrect since I know the inner working of Carmax.
I reject your facts!
"We prefer truth over facts!"
Its because we choose truth over facts. ;)
You choose your truth, I will choose mine.
Yeah I don't know that doesn't make sense. Nobody profits from a bad loan. The 2008 crash was enormous amounts of fraud being carried out by the banks because they were intentionally hiding bad loans because they know nobody would've wanted them if they knew.
The 2008 situation was fairly unique and that's not the situation here.
CarMax probably will give you a loan application and tell you all this stuff about being preselected and your low interest rate, but I bet you once it gets to underwriting they clamp down on that shit hard.
I just did it lol
Bought a $75,000 Range Rover with $8000 down
And a $25,000 jeep Cherokee for my daughter with $2000 down.
I am a shadowy aviation security contractor (580 credit score - I am not good at accounting) and can’t even tell you who I work for much less showproof of income and there you go.
I just put like nonsense in the credit app. I guess they don’t care. It used to be really hard to get a car loan. 🤷🏻♂️
No you're not good at paying bills, that's how you end up with a 580 credit score.
This story is BS. And even if it were true, why would you admit to fraud?
yeah.. FBI open up
10% is the key. Now try it with no down. They know if you don't pay, they have 10k of your money, and they get the cars back.
But again - try that with no down. Any dealership will talk with money on the table. No down? Hey, look at the time - hey, c'mon back sometime.
My credit score is similarly in the toilet and I also got approved for a loan for a Jeep for only about 3k down. I have decent income but it's mostly cash, and pretty much zero credit history except one credit card I screwed up with in my early 20s. I ended up not going through with the loan and just buying an older Jeep with cash outright. Probably should have done the loan just to build credit history but I didn't want to deal with making payments when the economy seems to be collapsing and I might lose my income.
It’s the same with rentals. They are way overpriced but you can just lie and, even w/ my terrible credit score, they believed my inflated income estimate and never verified it.
CORRECT. AND THIS POST IS BULLSHIT HERE ARE THE CORRECT DELINQUENCY RATES OVER 20 YEARS
The image used in the article OP posted is for SALES ACTIVITY, NOT DELINQUENCY.. THE AUTHOR IS A FUCKING MORON.
There have been slight increases in delinquency this year particularly in the subprime market but that has always been the case which is why the interest rates are so high, to accommodate much higher delinquency in subprime borrower default rates.
Bullshit- I work in the auto industry.
First, a real application means they run a hard credit check, which drops your FICO score a bit for up to 18-24 months. Unless you have a real identity and a credit history, you generally won't get approved for jack. That thing online runs a soft check and "pre-approval", but is not an actual approval, let alone a contract. Read the fine print.
Second, you don't have income verification on a pre-approval, because auto loans often don't have them there.
Third, unless your FICO is north of 800, you're not just paying the loan, they roll in loan insurance which is part of your payment. It works like mortgage insurance.This means if your car gets repoed, the dealership gets paid anyway.
The only car loans you can get with shit credit are subprime loans, which have a massive front-loaded interest rate and a very high loan insurance payment rolled in. Both minimize the damage of a repo.
I’m not sure what to tell you bro but I’m picking the rover up in Dallas Tuesday afternoon hit me up and have a beer? I know a really good place near love field that is where I will be working.
Ayo ya'll hiring? Lol
CORRECT
THIS POST IS BULLSHIT HERE ARE THE CORRECT DELINQUENCY RATES OVER 20 YEARS
The image used in the article OP posted is for SALES ACTIVITY, NOT DELINQUENCY.. THE AUTHOR IS A FUCKING MORON.
There have been slight increases in delinquency this year particularly in the subprime market but that has always been the case which is why the interest rates are so high, to accommodate much higher delinquency in subprime borrower default rates.
Notice something? You chart cuts off in Q2/2021. That's a whole year ago, back when ol' Biden was bragging about saving you 16 cents on your 4th of July cookout.
Newsflash, this year's saving is -10 dollars. A lot could have changed since then and the line might be going up like Joe's attention span when he sees a five year old whose hair is in sniffing distance.
Dumbass, his numbers are made up. His chart in the article is SALES FIGURES.. NOT DELINQUENCY
That chart is only relevant to the latter half of the discourse, the projection for future prices. You know what a projection is, right? It's an estimate of future development, so yeah it's made up. That's the point. It's a prediction, not fact.
That's because cars = jobs = paying taxes
You might get past the first round but you won’t get to the signing part.
It’s not even legal to finance a car to someone that isn’t at least a foreign national. And anyone working with an actual lender (not a buy here pay here lot), has zero chance of getting approved with no job or credit.
Demorats say, "You can live in your car, but you can't drive your house" Riddle me this: Why are your power windows always broken? What's the strange attraction to Nissans?
I'm a state inspector. I see as many as 300 cars per week. Nissans are by far the biggest pieces of shit on the market today. The only decent ones I see are the GTRs. That's probably because they haven't updated it since it came out like 15 years ago. Next gen will probably have a fuckin CVT.
Are infiniti's or whatever brand as well?
Yes total POS...try to explain how their precious Altima failed inspection because it popped a code for.... motor mounts. @Willogic - yes, infinity is a Datsun brand. @Anyone/everyone - how do their power windows break? Make/model independent. They open entire door to pay tolls.
Repo men are the same group as LE. 😂
Usury-Theft-Violence. 😂
Theft is when you borrow money that you don't pay back and keep the collateral
Any info on the demographic breakdown?
Avoid crushing debt. Pay off debt as fast as you can. Pay in full up front. Live a little below your means. Save for big spends, Don’t borrow to leverage. The Man then owns you.
I am paying off the last of my credit card debt this coming week. NO other loans aside from my mortgage that is low and fixed rate when it was very low. Though I want that mortgage paid, I am working on it to reduce the term by aggressively paying on principal only in addition to loan service payments.
Millions of car loans were given to Pandemic Ballers who were being paid in some cases over 2k a week for doing nothing at all, during the scamiest months of COVID.
Everyone knows about the supply chain problems, far fewer people realize what a minor problem supply chain was in the automotive market.
The lack of inventory was almost entirely demand driven. The government created millions of new buyers who otherwise wouldn't have been car shopping. These Pandemic Ballers moved through the market like locusts, consuming everything from luxury marques to bargain basement jalopies.
The average dwell time on a dealership lot for high line luxury cars dropped like a stone during the pandemic, to levels never seen before. That's not supply chain, that's idiots with money they didn't earn.
Now that all the COVID welfare has been over for awhile, these fools are starting to fall behind. The eviction moratoriums, a few of which are still technically in effect, mostly ended in late 21/early 22. That was the big one.
There's going to be a glut of repossessions in late 22 and 23, the likes of which this country has never seen.
Been to a dealership just a handful of times, but then again I am pretty specific about what i'm looking for in a vehicle and refuse to own an automatic
I almost always buy 3rd party
Stimulus check cards. Fucking idiots.
That's like 10 billion of debt, not 1 trillion.
I was only asked how much I made. Never had to provide proof or anything, although I did bring paystubs, proof of employment, etc and they didn’t want nor need any of it.
I was kinda shocked
I used to do collections and repo for a buy here pay here place and they sold these people piece of shit cars with a 28% annual interest loans!! That means that whatever you owe for your car for that year you will pay 28% of that each year!! That's why when you go to a place like that you don't see your true pay off go down until you're almost into your 3rd year!! .... It's just another way to keep poor people poor while rich people get 0% interest and shit!! It's a way the system keeps the status quo! ... Most these people were good hard working people that just didn't have any credit, nobody to co-sign for them and had to have a car! ... Plenty of them were just dipshits too but I got so tired of that business because it hurt to go take some families car from their work place and tow it with a baby seat in the back and a family just trying to do their best! Those kind of interest loans shouldn't be legal!! Am annual 28% interest which is the legal limit where I live is just preposterous especially considering their selling them cars that are worth 2k and will eventually make 25k on it and the vehicle will be broke down all the time cuz it has 150k miles on it ... The best way is to pay cash for what your buy!! If you don't make a lot of money or don't have a high credit score just save whatever you can and pay outright for a car!! NEVER go to a buy here pay here "we will finance anyone" place!! People are defaulting on these loans probably because the car is broke down and they can't afford the fix and the payment especially with how much shit has gone up!! It's a fucking way the system keeps people in their place!!
Car loans now go out to 96 months (8 years) and there's a good chance the car you buy will blow up before you pay it off depending on what you buy
Well that's prime loans ... The buy here pay here will usually only be 4 or 6 but you'll be paying the same amount monthly that a person with good credit would be paying on a brand new Tahoe ... It's all fucked up!! I sold cars for a long time, worked in the finance department and did collections and there's really not a part of that business that's not a rip off!! They have what's called hold back on every car that goes in there new or used ... For new it's usually 500 and the used it just depends on how much they have in it ... That hold back is part of the profit that the salesman doesn't get a part of and the customer doesn't even know about!! I sold cars at one place that the hold back on used cars was 2k ... You as a salesman make most your money on used cars so that high of a hold back is totally screwing your employees! ... It's all fucked up!
Sign at a used car dealer:
BAD CREDIT
REPO
NO PROBLEM
Did the "RT" fall off the end of REPO? Either way, Expect loan shark rates.
If your a shitty risk your going to have to pay more it's not rocket science
I'm underwater on my auto loan, but I'm digging myself out. I still owe $7k and my minivan in worth $2k at most. But I'm current on it and it sucks paying $500 a month to those thieving bastards at Santander, but I'm not bitching. My ex-wife killed my credit before we divorced and I'm building it back up.
Man, I hate to sound like a bitch, but circumstances are kicking me in the ass lately.
I'm already looking for a house in history's worse housing market. But I also ordered a car that will be arriving in late Sept or early Oct. My plan was to sell my car when it arrives, and a month ago it was showing I'd make at least 20k profit. In 5 weeks, the value has dropped over 5k. And I'm losing money in the stock market, same as everyone else who was too stupid to sell everything 4 months ago.
Quit kicking me in the balls universe. I voted for Trump
Imagine destroying your credit to be able to feel like you’ve made it to people who dgaf
Both my vehicles are owned by me. Neither is fancy or expensive, but are reliable. I have constant upkeep to do, but that is still vastly cheaper than a payment.
Get out of debt now!
I am one of the people with a subprime car loan. Thankfully I had the foresight to get a cheaper car so I could afford the high interest. Happy to say I'll be paying it off early in a few months.
This scares me though because while my credit is better today I do need to get a newer car soon and I expect this to make it harder and higher interest than it would have been 2.5 years ago
If I can get a Tacoma for a reasonable price, I'm ok with this
Funny, I'd consider a 2013 to be a new car.
While I absolutely believe this, repoing a car isn’t like evicting someone. The question is if these auto loans are made into financial products…
[x] doubt.
You can finance cars for like 84 months. Stuff like this isn't happening until jobs start crashing. It's that simple.
I member when Obama destroyed the used car market with cash for clunkers.
Next will be news of bundled car loans in the commercial paper market gone bad. 2008 sub-prime style.
Who would have thought ppl living beyond their means..
The SECOND you drive a new car off a lot you can see the pile of cash come flying out of the trunk as they depreciate INSTANTLY!
Didn't Trump invest in the auto industry, I swear the Demonrats just want to destroy anything Trump helped. They are babies.
Well, I'm in the market for a good used car.
Me too. Which makes me believe this crash won't happen with my luck.
GOOD, overpriced dogshit anyway
As someone very familiar with the industry, this is going to be devastating for many people.
Are those loans insured and then dumped on another collector to be insured and dumped on another collector.....ect ect...
We aren't even close to the housing bubble, and unlike a house this asset can be collected and refinanced again..
There is a market for defaulted loans in medical and all kind of loans. Generally an attorney office or a collection clearing house. They pay a fraction per dollar for the actual ticket value and it is an easy way to make it pay off.
For example. Say a medical bill is outstanding and in collections. A group of 100 in the example paid for at 10 cents per dollar. Say the total of all is 500k but 50k was paid for them. It does not take many to pay off to make money. The rest go to a persons credit ultimately as a fail and lowering of rating.
That is why, if one has anything outstanding, they can negotiate with the collection agency as some recovery for them is better than none.
I wonder how many were willing to buy an overpriced electric car because climate change and now they could lose the car and their credit rating
Funny thing is that most of the popular cars on the market now cost 20% of what I bought my house for. Sure, I bought at a good time, but the fact stands.
Aren’t virtually all auto loans under water? Your car is never worth what you paid for it.
Usually, but the demand for used cars has had people find a car they've been driving for an extended period is worth more than what they paid. And there are still parts for older cars that cost the same that are still being used to repair instead of replace. Once there is inventory of new cars, this will change.