Americans aren't paying their car loans

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Starts with the cars and then it's the houses. Heads up to you people that bought a house in this state. :mamoru:
 

Flyn

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I saw that. Not a good thing. It's one of the signs of problems with an economy. Mortgage companies are loosening their lending policies, too.

At least, we'll see a lot of used cars hitting the market which may cause a dip in prices.
 

Mook

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The next depression is gonna be a wild ride.
 

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I have ZERO interest in politics, economy, news, etc. But just living life and being around what we're around, this state is going to be FUCKED in 5yrs. People are going to leave, people are going to get tired of being taxed to death, it's only a matter of time. I'm liquidating all of my shit so I can get out of here ASAP, hopefully in a year or two. Fuck this state, fuck their taxes, and mostly, fuck this weather.

10sec™out.
 

Marko

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Dummies “buying”these cars they can’t afford in the first place
 

IDAFC21

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Wait, you can get a loan and not pay it? Damnit! I've been doing it all wrong.
 

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ZERO liability. Bad credit cause you didn't pay your mortgage? Here's a loan that works for you anyways, buy this $50k car.
 

b00sted

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Too many people taking out mega car loans... basically mortgages.
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.


The funny part with this graph is that it peaked in 2009...The exact same time I was Repo'ing cars for a living. On good weeks we'd grab 25-30 cars, and that was without a tow truck.
 

blakbearddelite

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Is it a sign of a bad economy or just a new generation of idiots with no concept of money?
 

Pressure Ratio

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Is it a sign of a bad economy or just a new generation of idiots with no concept of money?
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.

Highest number delinquent ----------------> lowest number delinquent

18-29 >>> 30-39 >>> 40-49 >>> 70+ >>> 50-59 >>> 60-69
 

b00sted

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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".

The buy here-pay here places have been using that business model for decades. Buy a shitbox at auction and sell it. The buyer's down payment usually covers most of what they have into the car...any payments the buyer makes after that is profit. Once they default, which they will, they take the car back and start over...except now it's 100% profit. They sell the car a handful of times before it's too beat up to put back on the lot, and then they go and run in through the auction to get rid of it. lol
 

shockerracing.com

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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.
 

Outlaw

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Cost of vehicles/ ease of loan acquisition. Lots of "young money" ballers with 84mo loans on new F250 Platinums with 24x14 American Forces spread across two credit cards.
 

Ron Vogel

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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.
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?
 

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