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The Holy-Cow Moment for Subprime Auto Loans; Serious Delinquencies Blow Out
Wolf Street ^ | Nov 13, 2019 | Wolf Richter

Posted on 11/14/2019 2:09:46 PM PST by LesbianThespianGymnasticMidget

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To: NorseViking

I’m so in the market for a midsize truck. I’ve owned several Rangers, an S10, and 2 Frontiers.

I almost pulled the trigger on a 2019 Frontier this year. Even though it is 98% the same as the 2006 Frontier I had.

Would I buy a new Ford Ranger? Hell no. A new Jeep Gladiator? DOUBLE HELL NO.

Maybe a Tacoma. But the good old Frontier - unchanged for 15 years is the best bargain today.

Unless of course the less expensive and far better trucks sold in Europe, China, South America and Asia were available here in the States. But they’re not.

We are so screwed.


61 posted on 11/14/2019 3:36:54 PM PST by Responsibility2nd
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To: LesbianThespianGymnasticMidget

Thanks to over regulation, cars are becoming unaffordable, as planned.


62 posted on 11/14/2019 3:39:21 PM PST by fruser1
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To: LesbianThespianGymnasticMidget

I refer you to my tagline...


63 posted on 11/14/2019 3:43:19 PM PST by HombreSecreto (The life of a repo man is always intense)
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To: Responsibility2nd; NorseViking

I’m reading about the current crop of Great Wall trucks.

https://en.wikipedia.org/wiki/Great_Wall_Wingle

The Wingle 7 was introduced in September 2018. The Wingle 7 is available with the 4D20 diesel engine paired to a 6 speed manual gearbox. Pricing is between 95,800 and 117,800 yuan (13,930 to 17,120 USD) with 8 trim levels. [11]

As they say... Shut up and Take My Money!


64 posted on 11/14/2019 3:43:47 PM PST by Responsibility2nd
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To: Responsibility2nd

As much as we hate all things Chinese I think the best deal for a durable work truck anywhere on Earth is Foton Tunland. That’s essentially a one-ton Toyota Hilux clone but it has heavy-duty everything installed for every sensitive part. The engine in Cummins 2.8 commercial turbodiesel, transmission is Getrag and BorgWarner, axle is Dana 44. It would outlive anything you metioned and cost half that much.


65 posted on 11/14/2019 3:46:17 PM PST by NorseViking
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To: NorseViking

https://en.wikipedia.org/wiki/Foton_Tunland

Yeppers. I’ll buy one of those too!


66 posted on 11/14/2019 3:49:28 PM PST by Responsibility2nd
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To: PGR88

Yup. I don’t understand people who spend big money on new cars. My wife and I make well north of $200k a year. I drive a 18 year old Tacoma, she drives a 5 year old Camry. Both bought used. But to each their own I guess.


67 posted on 11/14/2019 3:50:50 PM PST by strider44
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To: LesbianThespianGymnasticMidget

Financial institutions might not make a lot of money in subprime, but I would think a used car dealer would make a ton of money on subprime. Lease out a car, and when they don’t pay, repossess it and sell it to someone else the next day.


68 posted on 11/14/2019 3:59:03 PM PST by Vince Ferrer
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To: Responsibility2nd

Drove 2008 “fishface” wingle for a couple of months. Not as fancy as WV Amarok but does the job. There are a lot of them with 200k+ miles on sale so I think they are somehow durable too.


69 posted on 11/14/2019 3:59:34 PM PST by NorseViking
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To: goldstategop

I am curious what interest rates these people are paying. Because they are subprime the lenders are probably charging a lot more than the advertised APR for cars. I just wonder whether if these people had smaller payments to make more in line with the advertised APRs if they would make or be able to make the payments.


70 posted on 11/14/2019 4:18:37 PM PST by monkeyshine (live and let live is dead)
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To: LesbianThespianGymnasticMidget

Sure, greed. But what about common sense, impulse control, ans a basic knowledge of finance?


71 posted on 11/14/2019 4:20:57 PM PST by BillyBonebrake
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To: momincombatboots

ROFL!

BEST sarcasm in a while on here!


72 posted on 11/14/2019 4:28:54 PM PST by dp0622 (Radicals, racists Don't point fingers at me I'm a small town white boy Just tryin' to make ends meet)
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To: LesbianThespianGymnasticMidget

Good grief! How many cars make up $62 billion in worth?


73 posted on 11/14/2019 4:32:24 PM PST by raybbr (The left is a poison on society. There is no antidote. Running its course will be painful. You)
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To: Dilbert San Diego

They’re the same ones who sacrifice health care. They look like fat cats but are a paycheck away from crapping in the streets and living in tents.


74 posted on 11/14/2019 4:35:06 PM PST by sanjuanbob
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To: fhayek

After working overseas for the US military and others for 20 years, my credit score was reset to zero. You know what that means.

Only place that took me was a sub-prime lender with 39.96% interest. No choice. With no bus service it was either walk 10 miles each way in the Seattle winter or stay unemployed after I was replaced at Microsoft by an H1B Indian. (I was in walking distance to where I worked while at Microsoft)

Yeah most idiotic choice I made in my life, but no honest dealer would take me.


75 posted on 11/14/2019 5:12:17 PM PST by Starcitizen (American. No hypenation necessary. Send the H1B and H4EAD slime home. American jobs for Americans)
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To: NorseViking

A fishface.

Yeah I can see why they call it that. That is one ugly truck.


76 posted on 11/14/2019 5:24:09 PM PST by Responsibility2nd
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To: goldstategop
Bad debts are written off.


77 posted on 11/14/2019 5:30:51 PM PST by Fightin Whitey
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To: LesbianThespianGymnasticMidget
Because the $100,000 pickup truck was such a great idea...…………


78 posted on 11/14/2019 5:34:00 PM PST by SkyPilot ("I am the way and the truth and the life. No one comes to the Father except through me." John 14:6)
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To: Mariner
All you have to do is observe what’s parked at Walmart to know how bad this problem is. How the lenders are making money is baffling to me.

Agreed. I've seen them too.

Maybe the strategy isn't to make money, but to actually crash something.

79 posted on 11/14/2019 5:36:24 PM PST by SkyPilot ("I am the way and the truth and the life. No one comes to the Father except through me." John 14:6)
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To: goldstategop

So, you are saying that lending someone $3,000 and them not paying it back is “neutral” to the company?

Because if you think that, you are incorrect.


80 posted on 11/14/2019 5:38:28 PM PST by Vermont Lt
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