It's insane. Everything I've looked at(Mustang GT, F150) is a $550+ payment. I make pretty good money and I still just can't stomach the idea of taking on a payment like that for 60 months, not counting insurance.Too many people taking out mega car loans... basically mortgages.
It is an interesting point. As from what I can see by that graph, hard to kind of see the colors on my laptop, the highest groups in default are the youngest and go down as the age group increases with age.Is it a sign of a bad economy or just a new generation of idiots with no concept of money?
Moreso the latter. Most people hear "auto loan" and think of someone buying a new car at a Ford dealership. They don't think of the countless buy here-pay here lots out there that are financing $2500 shitboxes. When I was repo'ing cars, it was just a way of life for a lot of people...Business as usual. We'd knock on the door and ask for the keys, they'd hand them over because they didn't give a fuck, and we'd be on our way. More than once, someone said "You can have it, I'll just go get another one next week".Is it a sign of a bad economy or just a new generation of idiots with no concept of money?
I never understood the long terms past 60 months. Most people need someone else to work on their cars for them...most cars are trashed at the 5 year mark. Why put that kind of money into an old car?My family is in the buy here pay here business and I want to say my dad was telling me that something like 1/3rd of all the loans end up going bad at some point and that’s with weekly payments and GPS trackers on the vehicles that allow us to shut the vehicles off if they don’t make their payments.
Besides the subprime market we deal with, I think another big part of the problem is that they are extending auto loans for super long terms. It used to be that 5 years was the max and a long auto loan but now I’m seeing 8 year auto loans. A lot can happen to a person in 8 years to change their situations.