Car Repos Are Exploding. That’s a Bad Omen.

[1srelluc]

I've never heard of people like you before. You bastards pretend to know everything about every topic on here. That's amazing. Or more likely your just all liars.

He's not wrong in this particular instance.

 

[Fort Fun Indiana]

He's not wrong in this particular instance.

He could go check...

 

[miketx]

He's not wrong in this particular instance.

So, miracles then?

 

[pknopp]

Then they don't know what they are talking about. So you should listen up to someone who does:

I repeat:

The banks and credit unions are competing against each other in a market. They have to write auto loans, or they will fail. I can go into the most basic ideas of how banking and lending works. Because, frankly, I don't think you understand them.

Starting with credit unions, as they do not have to pay shareholder dividends and present a simpler case:

You promise depositors a certain return on their savings. You pay this return by lending out their money to other people.

If you don't lend out the money, you cannot pay the returns that a competitor pays. So the depositors pull their money and deposit it elsewhere. Then, the credit union fails.

Now, add in shareholders whose sell-off panic is as bad as any bank run, and you can see it is even more difficult for banks.

Rinse repeat. As I said compete and write all the loans you want.

 

[Fort Fun Indiana]

Rinse repeat. As I said compete and write all the loans you want.

Who gives a s*** that you said that? That's what's going to happen regardless.

 

[pknopp]

Who gives a s*** that you said that? That's what's going to happen regardless.

Birds fly south for the winter.

 

[Fort Fun Indiana]

Birds fly south for the winter.

And closeted anarchists who claim to be Libertarians have another big, healthy meal of failure.

 

[pknopp]

And closeted anarchists who claim to be Libertarians have another big, healthy meal of failure.

I never denied having anarchistic leanings.

 

[Fort Fun Indiana]

I never denied having anarchistic leanings.

And I never denied enjoying riding unicorns. These fantasies have equal substance.

 

[1srelluc]

So, miracles then?

Perhaps you just don't understand competitive financing as it regards automotive loans.

If you are the type that pays cash for your vehicle then I can understand.

 

[Natural Citizen]

If I can't afford to buy it outright, I don't buy it at all.

It's a good model to live by.

Did mortgage my house, though, but I paid that thing off years ago.

 

[miketx]

Perhaps you just don't understand competitive financing as it regards automotive loans.

If you are the type that pays cash for your vehicle then I can understand.

No, I mean miracles that pos was right.

 

[1srelluc]

No, I mean miracles that pos was right.

LOL.....Blind squirrel and all.

 

[gipper]

I was pretty much banking on it. The idea was to sell high and buy like a madman when the shit hit the fan. Now my money has sat not earning much and no property bought. I did buy a lake front condo that could have been rented out for big profit but decided to just enjoy my summer and be able to walk to work. I can see my charter boat from my bedroom window. If things remain the same I will rent this out next season and stay in my camper. Really wanna get to buying and fixing though.

Sounds nice, other than your money not earning anything.

I did much the same, though I’m retired. I sold off my income properties and my home in 2018, and we moved into a diesel motorhome to travel the country. Our thought was when real estate crashed again, we’d buy a nice home. We’re hoping that time comes next spring.

 

[evenflow1969]

Sounds nice, other than your money not earning anything.

I did much the same, though I’m retired. I sold off my income properties and my home in 2018, and we moved into a diesel motorhome to travel the country. Our thought was when real estate crashed again, we’d buy a nice home. We’re hoping that time comes next spring.

Well motor that home to lake erie. Get some walleye.

 

[ninja007]

the great reset.

 

[Likkmee]

Not enough money on 20 planets to cover the debt default, energy crisis, food crisis, wars that are coming.

When they say "Great Reset"...they fuckin mean it.

You better start preparing.

By winter shit is gonna start to get horrible.

Hopefully they'll get the GA demand stones fixed right quick and insert some dates

 

[Canon Shooter]

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.

Car Repos Are Exploding. That’s a Bad Omen.

Weird, I was getting my 2019 KIA Soul serviced Friday morning and of course one of the salesmen tried to get me to sell it to the dealership.....The offer was 2K under what I paid for it new.

I noticed that there wasn't hardly any KIAs on the lot (no Souls) and asked why and he said they are sold when the truck arrives and that most of the used vehicles were bank repos.

LOL.....They had more used Jeeps on the lot than KIAs. I noticed that their sales staff had been pared way back too.

Tough times for stimulus/unemployment ballers and child tax credit playas that paid 140% above MSRP I guess.

My Mom has a 2006 Mercury Grand Marquis. The thing is a land yacht:

She maintains it meticulously, and it currently only has about 80K on the clock. Every time she takes it into the local Ford dealer for service they offer to buy it from her. Because of the relatively low mileage, the current retail value of the car is about $9,500. In years past, the dealer would offer four or five grand, tops, for it. These days, though, it's quite a bit higher. The last offer from the Ford dealer was $9,100.

She loves that car, though, and won't get rid of it...

 

[Canon Shooter]

I haven't had a car payment since 1999, when I paid off my 1993 GMC Sonoma. It just doesn't make a lot of sense to me.

Case in point: Some friends have a 2018 Dodge Charger. It's a really sweet ride; one of the Scat-Pack jobs. About five months ago they were in an accident and the car still hasn't been properly repaired. Even still, they've been making that $365 car payment every month, as well as paying the insurance on it. They got a great deal on the car, but that's not doing them much good now.

If I want a car I'll pay cash for it...

 

[Polishprince]

Good time to bring Operation Repo back to Cable TV, and remind the people to pay their car notes and it ain't no joke.