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re: The used car market is on the brink of an auto loan collapse
Posted on 7/2/22 at 10:33 am to WPBTiger
Posted on 7/2/22 at 10:33 am to WPBTiger
quote:
Just like how the housing market collapsed from the loan crisis in 2008, the same thing is said to be starting to happen in the Auto Loan market.
Maybe they should learn from last time and let some of these banks that made bad loans fail. Then the next time this comes up that pain will be in the back of the banks mind and might make them think twice.
But we all know what's going to happen. The banks will get bailed out and the tax payer will foot the bill.
0
Posted on 7/2/22 at 10:35 am to WPBTiger
Have been following this closely. Watched a vid just yesterday with a guy out of LV showing the repo'd inventory and how it's exploding. Auctions are stalling, too, because lots that bought at over-priced amounts can't get their reserves. The supply is filling up and will explode when these subprimes start going.
They're holding off on lowering prices as much as they can but it's going to pop soon and just be a downpour.
They're holding off on lowering prices as much as they can but it's going to pop soon and just be a downpour.
Posted on 7/2/22 at 10:36 am to Gaggle
quote:
Look at all these tears.
You'll be laughing right up until you write the tax check that bails them out.
Posted on 7/2/22 at 10:42 am to Gaggle
quote:
Oh, my sympathy. Look at all these tears.
Sir, we'd be willing to reduce your interest rate from 35.5% down to 35.1%. Would that work for you?
Posted on 7/2/22 at 10:47 am to olgoi khorkhoi
quote:
You'll be laughing right up until you write the tax check that bails them out.
That is exactly what will happen and it should be completely illegal for it to happen.
Posted on 7/2/22 at 11:05 am to SlowFlowPro
quote:
They're holding off on lowering prices as much as they can but it's going to pop soon and just be a downpour.
I’ve been patient and will continue to be. When it’s hard to find a midsize truck with less than 100k miles for less than $30k, I’ll wait.
Posted on 7/2/22 at 11:13 am to High C
quote:
I’ve been patient and will continue to be. When it’s hard to find a midsize truck with less than 100k miles for less than $30k, I’ll wait.
Took me 2 months to find a bridge vehicle (Tacoma) while new one was on order. Order has taken 7 months. Will test the used market in next few weeks when I sell the bridge vehicle.
Posted on 7/2/22 at 11:18 am to WPBTiger
I bought cargo van for 24k and sold it two years later for 30k.
It's crazy.
It's crazy.
Posted on 7/2/22 at 11:19 am to WPBTiger
When will I be able to get a F150 for 8-10K off MSRP like pre-covid?
Posted on 7/2/22 at 11:29 am to lsu xman
Just traded my 2018 Jeep Rubicon. They gave me 43K for it..LOLOL! It was paid off. Bought the wife a 2022 Cherokee L. Financed it for two years. Not to mention, they put my Rubicon back on the lot the next day for 49K. LOLOL!
This post was edited on 7/2/22 at 11:40 am
Posted on 7/2/22 at 11:35 am to WPBTiger
quote:
This is a nightmare for the banks that have lent money on these cars, whose value is rapidly beginning to fall.
Well then the banks were stupid to think a sudden 30% increase in used car values wouldn't also suddenly drop.
Posted on 7/2/22 at 11:37 am to WPBTiger
We hear this every year…yawn
Posted on 7/2/22 at 11:39 am to Potchafa
quote:
Just traded my 2018 Jeep Rubicon. They gave me 43K for it..LOLOL! It was paid off.
I got downvoted to hell for my post, but my flips weren't intentional to screw with the market. I just got lucky. I've never seen anything like it.
Posted on 7/2/22 at 11:41 am to WPBTiger
quote:
used car prices have dropped for 4 consecutive months
I’m calling BS!
Posted on 7/2/22 at 11:54 am to notiger1997
They are basing a lot of this on subprime borrowers. Subprime is typically credit scores below 620, so yes in a market like this, they are going to start defaulting. This is no surprise...
Posted on 7/2/22 at 11:59 am to WPBTiger
When people are paying 20% more than a vehicle is worth it is not surprising. When they go to trade those vehicles in they are going to be upside down because the trade values are going to be so much less than people paid.
The housing market is not going to get pummeled the same way we did in 2008, but the car market is going to be obliterated. Car dealerships are doing it to themselves and don’t even realize it or are too ignorant of the fact to care. They are going to be in a world of hurt in 6-18 months.
The housing market is not going to get pummeled the same way we did in 2008, but the car market is going to be obliterated. Car dealerships are doing it to themselves and don’t even realize it or are too ignorant of the fact to care. They are going to be in a world of hurt in 6-18 months.
This post was edited on 7/2/22 at 10:27 pm
Posted on 7/2/22 at 12:04 pm to go ta hell ole miss
I don’t see shite happening until new car supplies catch up.
Posted on 7/2/22 at 12:12 pm to Eat Your Crow
quote:
When will be a good time to buy a new car then?
Have you been to a dealership recently? There are few new cars on the lots. In my most recent experience Honda had 14 on the lot being mostly Civic and Ridgeline's. Toyota had perhaps ten on a lot that used to hold a hundred. And the Ford dealer looks like it is out of business.
Posted on 7/2/22 at 12:17 pm to WPBTiger
The whole global economy is a Vegas house of cards right now. The collapse is imminent.
Posted on 7/2/22 at 4:39 pm to High C
quote:
I’ve been patient and will continue to be.
Me too, brother.
This NPR article is applicable to this thread:
Monthly car payments have crossed a record $700. What that means
quote:
The average monthly car payment crossed $700 a month earlier this year, the highest on record, according to Cox Automotive/Moody's Analytics.
quote:
The average cost of a new car is hovering at the highest level on record, topping $47,000 a pop.
quote:
Drury says get used to these prices: "We're not going to see a sudden drop-off in price anytime soon, because there doesn't seem to be any resolution for the chip crisis."
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