Posted on 07/14/2022 10:44:15 AM PDT by Red Badger
The jobs report and minutes from the Federal Reserve’s June meeting were the economic highlights of the week, but they are, respectively, a lagging indicator and old news. This column instead digs into the auto market, where there is an underappreciated ticking time bomb. Lucky Lopez is a car dealer who has been in the business for about 20 years.
In recent meetings with bankers, where he bids on repossessed vehicles before they go to auction, he has noticed some common characteristics of the defaulted loans. Most of the loans on recently repossessed cars originated during 2020 and 2021, whereas origination dates are normally scattered because people fall on hard times at different times; loan-to-value ratios, or the amount financed relative to the value of the vehicle, are around 140%, versus a more normal 80%; and many of the loans were extended to buyers who had temporary pops in income during the pandemic.
Those monthly incomes fell—sometimes by half—as pandemic stimulus programs stopped, and now they look even worse on an inflation-adjusted basis and as the prices of basics in particular are climbing.
(Excerpt) Read more at barrons.com ...
Car Repos are exploding because used car prices are exploding. Miss your payment by one day, and in the past the finance company would probably let it slide or penalize you a few bucks.
Now they'll snatch your ride and flip it for more than the outstanding loan value, and pocket the difference.
Not for Emilio.
Be sure to take the Vroom cars buy backs out of the numbers.
most leased cars and trucks now have a HIDDEN GPS system in them so that the lender can find and REPO the vehicle.
Very easy and efficient.
Repo man?..................
Lots of losers defrauded Covid stim and u.e.covid cash and bought new cars
Stim money gone , cars gone.
.ymo.
And still charge you for the interest........
Meanwhile, the largest used car auction that traded hundreds of vehicles every Thursday closed in recent weeks.
It was a very large operation and was in business a very long time
Some dealers have very few used cars on their lots
This is GOOD news. Not bad.
Dead wood can be removed from the forest floor.
No bailouts. For anyone.
Now they’ll snatch your ride and flip it for more than the outstanding loan value, and pocket the difference.
Not here in MN we won’t.
If I sell a repo for more than owed I have to give the difference back to the idiot I repo’d it from.
I get a call every other week from the dealer in Ft Worth wanting to buy back my car.
“Car Repos are exploding because used car prices are exploding. Miss your payment by one day, and in the past the finance company would probably let it slide or penalize you a few bucks.”
You have it backwards. I suggest you to read the article.
How do I go about looking for cars that have been repossessed?
I need a car and this seems to be a good time to buy one.
Banks and credit unions usually have them on their websites.
My credit union accepts sealed bids on repos.
If you are high bidder, you get it......................
It was a bad omen the first time it was posted, too.
https://freerepublic.com/focus/f-news/4077477/posts
But realize that every used car dealer in a hundred miles is bidding against you, so bid accordingly..................
Mine has a chart, so there....................
Yes, we had on near here that’s now gone...................
hidden?
we still have to have a signed discloser stating its in the car.
however, I have the one they find.
and the one that works ;)
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