Posted on 09/17/2016 4:41:20 PM PDT by Perseverando
In the history of data from The Fed, this has never happened before...
Aggregate Auto Loan volume actually fell last week... And less loans means one simple thing... less sales (because prices have never been higher and no one is paying cash)...
Which is a major problem since motor vehicle production continues to rise as management is blindly belieiving the Hillbama narrative that everything is (and will be) awesome.
The problem is... inventories are already at near record highs relative to sales (which are anything but plateauing)...
In fact, the last time inventories were this high relative to sales, GM went bankrupt and was bailed out by Obama.
The big picture here is simple... US Automakers face a plunge in auto loans for the first time in this 'recovery', and with sales plunging and inventories near record highs, production (i.e. labor) will have to take a hit... and that plays right into Trump's wheelhouse and crushes Hillbama's narrative just weeks before the election.
(Excerpt) Read more at zerohedge.com ...
If it wasn't for the Obama administration buying all those new black SUVs and vans for all the "3 letter" government agencies auto sales would really be in the tank.
I’ve been holding out for that $99/mo no money down, lease again. Looks like it might be on the horizon.
Yeah, from what I’ve been reading around here, I’m surprised that any of us can still afford an internet connection.
I had a Jeep Wrangler that I bought in 1999, and paid off in 2004. It lasted me until 2014 before rusting out. That’s 10 years without a car payment. As soon as I pay off my current vehicle, I plan on driving it until I can’t anymore. Who wants to be making car payments forever?
I’m sure a surge in electric vehicle sales will save them.
Not really surprising. We are steeped in a never ending recession. Cars, insurance, and taxes on cars are at all time highs. Cars last much longer and are much more expensive. Naturally, people are holding on to them longer. I’m a little nervous about replacing my 2005 focus. After 175,000 miles, the only problem I have is that sensors are starting to fail and will make it expensive to keep the car inspected. Regardless, I have been expecting this bubble to burst and will be buying a new car. Hopefully gas prices will spike so I can get a tricked out F150. Good times!
Sensors approx. $400. Ain’t cheap. Ask me how I know! But, depending on where you live and how strict environmental laws, you just have to have them replaced....Also, cats very high. Sometimes $3500 to replace both. Outrageous. But they will start stinking and can actually pose health issues.
Payments are the adult equivalent of being punked out of your milk and lunch money in middle school.
Cars last a VERY long time now — far longer than they lasted in years past. Our “new” car is a 2007 Honda Pilot and is still going strong after 10 years. It has about 170,000 miles on it and not a speck of rust. I’m not in a rush to replace it.
Nice business model.
That sounds about right.
The cops have to buy SUV’s now. No one makes a car big and powerful enough to be a cop car now, and the Crown Vic’s are wearing out.
Cut my internet connection cost in half this year and haven’t bought a new car since 07.
Can live w/out the new car but got to have the FR daily fix.
A new car can’t make me laugh, FR usually can
I could buy a couple of new cars for what my Obamacare costs me every month.
I knew car sales were down base on the television commercials running with huge rebates and low interest offers. Not a good sign for the economy.
I’m on my last new one and it will be paid off next year.
In the meantime I will have a couple of Jeeps, a motorcycle, and maybe a vintage Blazer as spares that are all paid for by then.
The fall market for a new 2017 truck will be ripe for the picking.
Yeah the Gov cars are always new ..... though us less important people can buy them at auctions.
Love seeing those X Highway Patrol cars with something funny painted on the side of the door, with an official looking side mount spot light.
They drive around scaring people and when you’ve slowed down and they pass the person looks over and you see what looks like some smiling meth head who then throws a beer can out the window.
Ok ....just kidding
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