economic trouble

[iamwhatiseem]

People are missing their car payments.

The delinquency rate spiked from 2% to 5%.

Even prime borrowers are falling behind.

This is trouble. Most people will lose everything else first before they lose their car.

They’re Skipping Car Payments; That’s The Final Warning Sign

Auto loan delinquencies just hit a 15-year high. Consumers are skipping car payments, signaling deeper financial stress. Markets haven’t priced it in yet.

www.forbes.com

And yet - wow... you said nothing as car delinquency rates skyrocketed under Biden the entire 4 years.
Didn't notice?

 

[citygator]

The government collects delinquency rates quarterly so these interim surveys are hard to analyze. We are seeing a cut back in spending which usually correlates to economic trouble so it is possible. Just too early to tell in my opinion.

 

[citygator]

And yet - wow... you said nothing as car delinquency rates skyrocketed under Biden the entire 4 years.
Didn't notice?

Rates didnt sky rocket. They went to abnormal lows when lenders pushed off foreclosures during the pandemic and they rose afterwards to rates that are normal. We are just now hitting the levels that are considered risky.

We are at 2013 levels right now. That was still a recovering economy.

Delinquency Rate on Other Consumer Loans, All Commercial Banks

Graph and download economic data for Delinquency Rate on Other Consumer Loans, All Commercial Banks (DROCLACBS) from Q1 1991 to Q1 2025 about delinquencies, commercial, loans, consumer, banks, depository institutions, rate, and USA.

fred.stlouisfed.org

 

[ThisIsMe]

I wish I would have you could borrow money basically for free around that time. Wish I would have picked up an extra house or two

Yeah, and now that we are years later and people who bought cars back then when they had "extra" money, are in a bind now.

 

[Slade3200]

Yeah, and now that we are years later and people who bought cars back then when they had "extra" money, are in a bind now.

Used car market is strong. They can sell if they can’t make the payments. Right?

 

[Slade3200]

Funny how democrats can turn on a dime as long as it benefits them.

Partisan hacks on both sides do that dont you agree?

 

[ThisIsMe]

Used car market is strong. They can sell if they can’t make the payments. Right?

Sure, but they are already in trouble. The question is, will they sell them? People tend to look for other things to cut before they get rid of their car.

the point is, a lot of people looked at those stimulus checks as ways to buy new vehicles.

But its not just that, people tend to buy stuff they can't afford, because....credit, and they over leverage themselves and then when troubled times happen, they are are in trouble.

 

[Slade3200]

Sure, but they are already in trouble. The question is, will they sell them? People tend to look for other things to cut before they get rid of their car.

the point is, a lot of people looked at those stimulus checks as ways to buy new vehicles.

But its not just that, people tend to buy stuff they can't afford, because....credit, and they over leverage themselves and then when troubled times happen, they are are in trouble.

True. I’m not seeing your point though. Can you explain?

 

[eagle1462010]

/----/ This has been going on for years, ever since manufacturers started charging $100,000 for a pickup truck at high interest rates. Cars and trucks are over-engineered with too many bells and whistles when consumers need basic transportation. Then, to make matters worse, dealers were adding price adjustments for nonsense add-ons like air rides and nitrogen-filled tires. Of course this drives the sales tax up and insurance rates are going through the roof.
Ford just started building a $23,000 Maverick truck, but they don't make enough of them.
View attachment 1137423

On my cutrent job these Maverucks are getting rented like crazy.

They are cheaper to rent than the 4 wheelers. They get through the mud pretty good.

 

[ThisIsMe]

True. I’m not seeing your point though. Can you explain?

Sure. Im saying that maybe people are struggling with their vehicle payment now because they bought new cars with that "extra money" which is no longer there

 

[Slade3200]

Sure. Im saying that maybe people are struggling with their vehicle payment now because they bought new cars with that "extra money" which is no longer there

I’m sure that’s the case for some. Some people aren’t good with money. I’m sure that’s college kid who sold the car was happy to get the commission check so he could take his girlfriend out to dinner. And I’m sure their server appreciates the tip which she used to get baby food for her daughter. Etc etc etc

 

[ThisIsMe]

I’m sure that’s the case for some. Some people aren’t good with money. I’m sure that’s college kid who sold the car was happy to get the commission check so he could take his girlfriend out to dinner. And I’m sure their server appreciates the tip which she used to get baby food for her daughter. Etc etc etc

So we're justifying people buying a car they can't afford and about to cause a major strain on the economy because it allowed a salesman to get a commission check which allowed him to tip a waiter ?

Covid stimulus and PPP boosted car sale by about 12%, or almost 2 million new cars.


I get it, people want nice things, nobody is begrudging them of that, but I can't help but wonder if covid car sale are contributing to this.

 

[Slade3200]

So we're justifying people buying a car they can't afford and about to cause a major strain on the economy because it allowed a salesman to get a commission check which allowed him to tip a waiter ?

Covid stimulus and PPP boosted car sale by about 12%, or almost 2 million new cars.


I get it, people want nice things, nobody is begrudging them of that, but I can't help but wonder if covid car sale are contributing to this.

It’s not a justification but simply a reflection of the flow of money. In the end we live in a free society where people make their own financial choices.

I would agree with anybody who would propose stricter guidelines on how public money is spent and more accountability measures. There are many things that could use improvement

 

[ThisIsMe]

In the end we live in a free society where people make their own financial choices.

Exactly. Each of us are responsible for our own actions.