and the recession is getting worse.
Over the past 2 years, many people took out exorbitant loans on cars???
Ya mean tens of thousands lost their jobs, businesses, livelihood and careers thanks to BS government lockdowns..
Sounds like the used car market will be coming back to earth with a crash.
I worked for a residential home builder in the 1970’s. In 1978 and 1979 we were spending 80K for sticks and bricks on a 4-bedroom SFD and another 18-20K to buy down the interest rate so the buyer could qualify for a mortgage. It was that or keep paying interest on the construction loan for the dirt, undergrounds, sticks and bricks. This all sounds very similar.
Pretty much any new car that is financed is underwater when it's driven off the lot unless the buyer put at least 30% down.
Was this written for a first grade class assignment?
The buyer won’t have a clear title to the first car (allowing it to be sold) until it is paid for.
I don’t see how this works unless the buyer just walks away from the first car. In which case, they still have to come up with a down payment on the second car.
Sounds like it will be a buyer’s market for used vehicles soon.
If they need a car and can’t afford to trade in their underwater car for something they
d prefer, then they just keep paying out the loan. They had already figured out they could swing the payments and they get whatever years of car use until they get their loan paid off.
Now, if they get laid off and end up not being able to afford the car, then they more likely just let it get repossessed. I don’t see any scenario in which taking out a second loan for a second car makes any sense at all.
Unless, of course, I am missing something.
More to it than that. We are facing a banking remake. The “Great Reset”? Possibly.
But they failed to convince people to accept that subjection over the past 2+ years of Covid Scam. So they will make a run to collapse the dollar and with it the global economy. We are all sick and tired of constant lies and deception from DC in every breath.
What would that do? Make a lot of hungry desperate people. Some of them Cold, Hungry, Desperate, and without any cushion.
I visited with 2 bankers this week. Doing my end of the year think through for next year. About a week before I questioned a loan officer in the bank I currently use. So that means 3 recently. I shared my opinion and observations of our current situation with each of them. Only one had a clue about the effect of ESG on the financial and insurance world. Only one knew about the Great Reset and the WEF and who is behind it.
I also talked to my insurance agent and he knew what ESG was and about the WEF, the Great Reset, and the Chinese scoring system. Although he did not tell me how he personally felt about it.
I’m currently trying to move away from any company or institution touting ESG. (and the ChiCom scoring system, i.e. command system of slavery.)
Much of DC is bought, O’Biden is pouring Dollars down multiple rat holes as if he intends to totally collapse the Dollar and our economic system.
Yes, this is much bigger than selling cars.
I don’t get it. Are they saying the dealer takes the older car as a trade in even though the owner is still making payments on it? I don’t think so.
So why is it so unusual that someone may have more than one car loan? Spouses only share one car at a time?
Missing something.
He is only figuring this out now? LOL.
this is why I am waiting until summer 2023 to buy a used car...
SHTF has already started in the car market and many of us have been watching it ramp up.
“Makes me curious about the demographics of those purchases. I bet most are not made by ordinary people with their own money (i.e., fleet purchases from woke corporations and the like).”
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My understanding is that the new cars are not correcting. Used cars are.
I’m not saying that people aren’t going to start defaulting their loans, but I’m not so sure it will be a tidal wave
Of course, like everyone else, I need transportation.
BUT.
I worked in the car biz until I retired 15 years ago. I understand how it works. People do not buy cars based on need. They buy based on emotion and can be easily manipulated into spending way too much money.
That’s why I drive a 1996 F150 and spend my money on things I really need instead of going into debt to serve my ego. (Although the beat up old 4X4 is pretty cool to drive d;^)
Not mine. We own both of our cars free and clear, about to do the same with our house.
“But many people simply had no choice and bought an overpriced a car.”
Stop. They had a choice. They could have bought a car they could afford. But they *deserved* a nice car.
Just like the real estate market in 2008, people will quit paying the loan on the car because it is upside down. Financially, too many people are basically stupid
So I should be in market to get used car this spring?
I was browsing cars last night on craigslist. The prices were higher than my first house. Trucks, vans, Jeeps 10 years old were still going for $50k
I don’t do repossession but I work with many companies that do (towing/junk cars)
It’s already here. One has leased my self loading wrecker to try and keep up with incoming repos. I get a % of what they bill. That truck is making alot of money.
One said it’s a name your own price game.
Lenders love it when a borrower is upside down on a loan. The just roll the payoff amount into the new/next car loan and make even more money.