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re: The used car market is on the brink of an auto loan collapse
Posted on 7/2/22 at 10:39 am to Lsuhoohoo
Posted on 7/2/22 at 10:39 am to Lsuhoohoo
quote:
What does this mean for those of us who bought a 2018 Kia Optima with 98,000 miles for $46,000?
The good news is, with the easy in-house financing of Honest Hakim’s Automotive Emporium, the monthly payment of this world class auto worked out to a measly $199.00 a month for the rest of your natural born existence on this spinning orb!
0
Posted on 7/2/22 at 10:41 am to WPBTiger
Exorbitant loans + recession w/ layoffs = what could go wrong?
Posted on 7/2/22 at 10:49 am to WPBTiger
Isn't this sort of like what happened in the Great Depression? Nobody had any money so demand dropped and the price of everything just kept dropping and dropping until pennies were real money.
Posted on 7/2/22 at 10:56 am to SlowFlowPro
quote:
Car defaults are usually a signal of real estate defaults and recession. There about a 6-month preview of what's to come
Interesting point. Often wondered which avalanche comes first - car loan defaults or mortgage defaults. You aren’t defaulting on a mortgage any faster than a car note I would think. No money is no money regardless of what you’re supposed to be paying.
Posted on 7/2/22 at 11:00 am to WPBTiger
From someone who was 30 years in the business, if you want to get rich in the automobile business, start setting up a "buy here-pay here" operation BEFORE it hits the fan!
This post was edited on 7/2/22 at 11:55 am
Posted on 7/2/22 at 11:00 am to WPBTiger
Predicted this 4 years ago.
Posted on 7/2/22 at 11:08 am to sawtooth
The collateral on used car loans is irrelevant. Banks are lending on credit and expect those loans on their books for half the actual term. Value is zero to them.
Posted on 7/2/22 at 11:14 am to WPBTiger
so true, wokism is leftist madness to transform America to O'Bamas vision, another 3rd world South American country.
Posted on 7/2/22 at 11:16 am to WPBTiger
Used cars are priced way to high right now.
In 2020 I bought a 2 year old Nissan Sentra with 30,000 miles for 12,000$.
I’m looking for my next child and A 4 year old Nissan Sentras with 50,000 miles are selling for 18,000$.
In 2020 I bought a 2 year old Nissan Sentra with 30,000 miles for 12,000$.
I’m looking for my next child and A 4 year old Nissan Sentras with 50,000 miles are selling for 18,000$.
This post was edited on 7/2/22 at 11:29 am
Posted on 7/2/22 at 11:25 am to WPBTiger
This is all part of the cycle to get inflation under control.
The people can’t bear the brunt of it all. Corporations and banks will have to eat their share of shite too. Banks and corporations should never have been bailed out in 2008
The people can’t bear the brunt of it all. Corporations and banks will have to eat their share of shite too. Banks and corporations should never have been bailed out in 2008
Posted on 7/2/22 at 11:40 am to WPBTiger
“Equity” = subprime lending. They will never learn.
Posted on 7/2/22 at 11:41 am to WPBTiger
Thanks, Graham.
Posted on 7/2/22 at 11:50 am to WPBTiger
In normal times, vehicles are a rapidly depreciating asset.
Subprime vehicle loans are based on a business model where you repo and resell the same vehicle multiple times.
Subprime vehicle loans are based on a business model where you repo and resell the same vehicle multiple times.
Posted on 7/2/22 at 12:01 pm to WPBTiger
quote:
The reality is that lenders have given buyers unaffordable loans without verifying their financials on car values that cannot be sustained without a chip shortage.
Sounds like a personal problem to me.
Posted on 7/2/22 at 12:09 pm to Bestbank Tiger
quote:You're talking about buy here-pay here operations. They're extremely profitable IF run properly.
In normal times, vehicles are a rapidly depreciating asset.
Subprime vehicle loans are based on a business model where you repo and resell the same vehicle multiple times.
When folks start trying to trade their current vehicles and find themselves with a TON of negative equity (known as being upside down in the car business), they'll start turning them in to the lending institutions, or having them repoed left and right!
That's when a well run and inventoried operation starts making bank! The down payment required is at least what you're got in the car, and payments are usually set up weekly.
Posted on 7/2/22 at 12:15 pm to WPBTiger
Good!
Posted on 7/2/22 at 1:23 pm to loogaroo
quote:
In 12-18 months, who’s going to buy an expensive electric car when they will be giving away used cars?
This gonna be about the time I will be looking to get another vehicle.
Posted on 7/2/22 at 1:35 pm to WPBTiger
I was going to buy a used car, but then I decided to wait. This is why.
Posted on 7/2/22 at 1:40 pm to sawtooth
quote:
Maybe the banks should more selective as to who they give loans too
Racist
Posted on 7/2/22 at 1:45 pm to SlowFlowPro
Pretty sure my neighbor who has a used car lot deals coke. If his already exorbitant lifestyle doesn’t change, it will be final confirmation.
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