Stolen from PB

MuchosPollos said:

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https://www.zerohedge.com/personal-finance/flood-repossessed-vehicles-poised-hit-used-car-market

The auto industry collapse has just begun and this would be one of the worst times for you to buy a vehicle.

In a normal market (pre-2020), Auto Loan delinquencies hovered at 2 to 3%.

Today that number is exploding with nearly 1 in every 4 loans in default in Washington DC👇

— Graham Stephan (@GrahamStephan) July 23, 2022

The key issue that caused this is how Auto Loans are issued.

Currently, Americans owe more than $1.2 Trillion on auto loans (the highest in US history and a 75% increase from 2009).

Given the fact that more than 85% of cars are financed, we are looking at a massive problem. pic.twitter.com/54E03b7omX

— Graham Stephan (@GrahamStephan) July 23, 2022

An investigation in late 2021 found that up to 50% of the loans were given to customers who might not be able to afford them.

The income and employment verification only happened 4 percent of the time.

All of this means that more and more customers are starting to default.

— Graham Stephan (@GrahamStephan) July 23, 2022

The best-performing state is Utah with 4.5% of loans in default whereas other areas are much worse

California - 8.7%
Texas - 10%
Washington, DC - 23%

Once payment is more than 90 days late, the lender can repossess your car.

— Graham Stephan (@GrahamStephan) July 23, 2022

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You get a Brodozer! You get a Brodozer! EVERYONE GETS A BRODOZER!!!!!!!!!!

We eventually need to replace a 2008 rogue… can't wait for the souped up mini van for the wife at a decent price!

Anyone know if they make a CDO based on vehicle loans? I'd like to but some credit default swaps if so…

For everyone who keeps tagging me in those ‘auto loan crisis’ engagement bait posts:

All I’m saying is Twitter needs to fact check these threadbros.

I can also make heavy, unsubstantiated claims to gain followers, but believe it or not… I actually care about my reputation.

— CarDealershipGuy (@GuyDealership) July 24, 2022

What he doesn't get is that making unsubstantiated claims IS zero hedge's reputation

Maybe his data is made up but there has to be a hint of truth to it. The car market and the amount of money people have been throwing at cars has been insane. People are definitely dropping 50k+ on cars that shouldn't be.

Also I hope there is a large price drop in the next year to replace my 2009. Interest rates, chip manufacturing, and defaults will hopefully all drive it down a bit.

Madmarttigan said:

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Maybe his data is made up but there has to be a hint of truth to it. The car market and the amount of money people have been throwing at cars has been insane. People are definitely dropping 50k+ on cars that shouldn't be.

Also I hope there is a large price drop in the next year to replace my 2009. Interest rates, chip manufacturing, and defaults will hopefully all drive it down a bit.

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Why do you think chip manufacturing is catching up? Makers are still removing features on 2023 model year vehicles to use less chips.

htxag09 said:

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Madmarttigan said:

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Maybe his data is made up but there has to be a hint of truth to it. The car market and the amount of money people have been throwing at cars has been insane. People are definitely dropping 50k+ on cars that shouldn't be.

Also I hope there is a large price drop in the next year to replace my 2009. Interest rates, chip manufacturing, and defaults will hopefully all drive it down a bit.

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Why do you think chip manufacturing is catching up? Makers are still removing features on 2023 model year vehicles to use less chips.

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Just waiting for one company in Detroit to wise up and require someone to plug-in a smartphone into the vehicle and run all the computations/processesing through the smartphone.

That is the next step, methinks. Then you tie mileage, taxation, etc etc etc to the smartphone....and you remove the "texting while driving" problem.

He didn't really offer anything that debunks the default rates, he's just saying "WE FOLLOW THE RULES"...which we all know isn't really going to prevent a financial crisis...

He has rebutted it several times in other posts of his. I tend to lean towards thinking he is more correct that the op's guy

I don't understand how so many people are driving $50k + cars. I don't think that I am a complete lolpoor, but I just don't get it.

htxag09 said:

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Madmarttigan said:

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Maybe his data is made up but there has to be a hint of truth to it. The car market and the amount of money people have been throwing at cars has been insane. People are definitely dropping 50k+ on cars that shouldn't be.

Also I hope there is a large price drop in the next year to replace my 2009. Interest rates, chip manufacturing, and defaults will hopefully all drive it down a bit.

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Why do you think chip manufacturing is catching up? Makers are still removing features on 2023 model year vehicles to use less chips.

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It will in 6mo.

The Collective said:

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I don't understand how so many people are driving $50k + cars. I don't think that I am a complete lolpoor, but I just don't get it.

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why do you think the repossession rate for vehicles in Washington DC just reached 23%?

https://www.autoblog.com/2022/07/11/car-repossessions-on-the-rise/

The Collective said:

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I don't understand how so many people are driving $50k + cars. I don't think that I am a complete lolpoor, but I just don't get it.

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They are leasing them based on a payment, not value.

Cool. When should i buy a truck? Been wanting an entire year.

Stolen from the auto board. Really informative.

Welcome to the 95k f150 world. Clown prices.

https://www.fivestarforddallas.com/new-Dallas+-2022-Ford-F+150-Tuscany+FTX-1FTFW1E53NFA21013

I'm ashamed to say I spent about ten minutes trying to figure out what that truck has to justify a $30K premium over MSRP.

TWO TONE LEATHER DUH

This is the real prize on their website. Totally affordable spread out over 80 months…

https://www.fivestarforddallas.com/new-Dallas+-2022-Ford-F+150-Hennessey+VelociRaptor+6x6-1FTFW1RG9NFB65998

Lol. I'd rather have a lambo than that piece.

The Debt said:

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htxag09 said:

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Madmarttigan said:

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Maybe his data is made up but there has to be a hint of truth to it. The car market and the amount of money people have been throwing at cars has been insane. People are definitely dropping 50k+ on cars that shouldn't be.

Also I hope there is a large price drop in the next year to replace my 2009. Interest rates, chip manufacturing, and defaults will hopefully all drive it down a bit.

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Why do you think chip manufacturing is catching up? Makers are still removing features on 2023 model year vehicles to use less chips.

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Just waiting for one company in Detroit to wise up and require someone to plug-in a smartphone into the vehicle and run all the computations/processesing through the smartphone.

That is the next step, methinks. Then you tie mileage, taxation, etc etc etc to the smartphone....and you remove the "texting while driving" problem.

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**** that commie bull*****

Very informative. Thanks for posting.

My new car payment is lower than the average used car payment, surprising. The other statistic, number of vehicles bought above MSRP was also shocking.

I don't think the prices will fall however until new car inventory catches up.

Sea Speed said:

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Welcome to the 95k f150 world. Clown prices.

https://www.fivestarforddallas.com/new-Dallas+-2022-Ford-F+150-Tuscany+FTX-1FTFW1E53NFA21013

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Five star ford in dallas. Lol. That place is a den of thieves.

Car dealerships are literally applying whatever inflation sales pitch they want nowadays. Yes there is inflation and then there is scumbag car dealership inflation. Good riddance to that entire middle layer if you ask me.

cbr said:

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The Debt said:

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htxag09 said:

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Madmarttigan said:

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Maybe his data is made up but there has to be a hint of truth to it. The car market and the amount of money people have been throwing at cars has been insane. People are definitely dropping 50k+ on cars that shouldn't be.

Also I hope there is a large price drop in the next year to replace my 2009. Interest rates, chip manufacturing, and defaults will hopefully all drive it down a bit.

---

Why do you think chip manufacturing is catching up? Makers are still removing features on 2023 model year vehicles to use less chips.

---

Just waiting for one company in Detroit to wise up and require someone to plug-in a smartphone into the vehicle and run all the computations/processesing through the smartphone.

That is the next step, methinks. Then you tie mileage, taxation, etc etc etc to the smartphone....and you remove the "texting while driving" problem.

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**** that commie bull*****

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Indeed. Its hard to find a car that isnt putting out signal to the NSA. Gotta be into classic cars I think....what happens when the grid goes down, will we still be able to drive our new high-tech cars?

jh0400 said:

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I'm ashamed to say I spent about ten minutes trying to figure out what that truck has to justify a $30K premium over MSRP.

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Too be fair, Tuscany is a huger aftermarket package upgrade. still probably overpriced by quite a bit but it's not listed on that link.

https://www.tuscanymotorco.com/ford-f-150-ftx

The Debt said:

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cbr said:

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The Debt said:

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htxag09 said:

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Madmarttigan said:

---

Maybe his data is made up but there has to be a hint of truth to it. The car market and the amount of money people have been throwing at cars has been insane. People are definitely dropping 50k+ on cars that shouldn't be.

Also I hope there is a large price drop in the next year to replace my 2009. Interest rates, chip manufacturing, and defaults will hopefully all drive it down a bit.

---

Why do you think chip manufacturing is catching up? Makers are still removing features on 2023 model year vehicles to use less chips.

---

Just waiting for one company in Detroit to wise up and require someone to plug-in a smartphone into the vehicle and run all the computations/processesing through the smartphone.

That is the next step, methinks. Then you tie mileage, taxation, etc etc etc to the smartphone....and you remove the "texting while driving" problem.

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**** that commie bull*****

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Indeed. Its hard to find a car that isnt putting out signal to the NSA. Gotta be into classic cars I think....what happens when the grid goes down, will we still be able to drive our new high-tech cars?

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Clearly not. I have a number of older trucks for that reason

I'm in this boat as well. Just added an 88 F-250, 7.3 idi and an 89 F150 (with 95k original miles) within the last month. Can't track those trucks because they aren't digital.

If these damn car prices keep going up I might could finally talk the wife into one of those fully upgraded and restored '66 Broncos actually being "a good deal"

Crap, Im going to have to get my next teen driver a car in the coming months. May have to go to Washington and put out a 'take over payments' deal.

aggiebq03+ said:

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Anyone know if they make a CDO based on vehicle loans? I'd like to but some credit default swaps if so…

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I'm sure they do but you arent gonna get them at Michael Burry discounts like you are thinking...

So what's the consensus on these inflated prices? Will they come back down once more inventory hits the market, or is this the future of vehicle costs? I've heard some manufacturers are move toward order only sales so they only build what has been order from the buyer. I mean who the heck would pay $10k + over the current MSRP? Or maybe all of our salaries will quickly be inflated next year to much those price increases so we can actually purchase a new car…