Posted on 07/27/2022 11:07:32 AM PDT by RomanSoldier19
From dealers to lenders to tow truck operators, reports have poured in this month about a disturbing trend of rising car and truck repossessions. Lisa Beilfuss Popeo, who covers the economy for Barron's, recently reported that vehicle repossessions have doubled among “prime” borrowers, which includes consumers with good credit scores.
"One red flag is the rate of repossession for prime borrowers is starting to rise. It's not just subprime borrowers that are having problems," Popeo told CBS News.
The reason for the sharp increase in repossessions is not exactly clear. Some point to a bubble in the car market that was caused by rapidly rising prices due to a shortage of new cars and trucks.
The average price paid for a used vehicle in June was around $32,000 – an all-time high. Popeo thinks the rise in repossessions will result in a lot more used cars on the market, which could temper rapidly rising prices, especially if it’s accompanied by softening demand.
(Excerpt) Read more at consumeraffairs.com ...
The economy is fine. There are no repo men resurging in
the hinterland. There is not recession. Everything is
fine.
And besides it’s Trumps fault.
We have the best economy in the nation’s history...
I’ve noticed that the used car lots are filling up with big trucks, SUVs and high performance autos...........................
It's not rocket surgery.
For many, Covid Bucks created the illusion of solvency. Then the gooberment turned off the spigot and devalued through inflation what little the consumers had left.
The party's over.
Only idiots buy vehicles beyond their financial means.
Same here. I guess all that stimulus money didn’t all go to tattoos and weed after all.
Yeah, something like that.
It’s not a rocket prostate...
Hey they were great times when gas was $2 a gallon!.....................
Hate to say but this is good. The used car market was grossly overinflated and people were spending stupid money on used cars.
I bought a decent enough SUV in June 2021 for $7,000 just to have a second car. The first time I had it inspected at a dealership they offered me $10,000 cash for it on the spot.
A few weeks later a dealer from Wisconsin contacted me and offered $13,000 for it.
A few months ago I was back to the dealer for OEM parts and the sales manager offered me a shocking $21,000. I’m flattered but the car isn’t worth that kind of money.
And now a lot of people are driving around in grossly overpriced used cars and owing money on them and prices are falling. I imagine a lot of people will walk away from their loans when they’re stuck paying $21,000 on a $7,000 vehicle.
I find it hard to believe Americans would give up a vehicle.
In the Model T era, a government survey found it was common for people to own a car, but not have a bathtub.
“Only idiots buy vehicles beyond their financial means.”
Agreed. It’s an appliance with wheels and not an investment.
Then you have those cars that can be shutdown by the bank for non-payment.
OMG it’s the best time to buy a new EV , D’oh
“Only idiots buy vehicles beyond their financial means.”
I can understand financing a car loan when one is just getting started. But after a while one should be able to self-finance most things. I have paid cash for autos since the 1980s.
The alternative to a personal vehicle is the bus/subway/light rail.
Margaret Thatcher probably didn’t say the bus statement attributed to her:
https://en.wikiquote.org/wiki/Talk:Margaret_Thatcher
“after a while one should be able to self-finance most things”
I take it you are not a member of the Democratic Party.
He had this black guy named Bill who worked the night the clubs looking for cars in the parking lots. When he found one he would call me on the pay phone, and then go in to keep the brotha busy in the bar until I was able to take the car.
Bobby sides would sell the same car 5 times in a year. Bobby saw mixed race couples coming a mile away. He would give them sweet deals, knowing that 85% of them would miss their payments within 2 Months.
That's when Bill and I got together. We got paid $200 between us for every car we were able to find. He did the dangerous work, and got $125, I got $75. All I had to do was roll up behind the vehicle, hook it on and take off. A few blocks later I would pull over to secure everything and then take the car back to Sides car lot.
Bill kept a 22 rifle in the trunk of his car in case there was trouble.I didn't own a gun back, so Bill welded a steel plate onto tire jack handle, and I kept it in the back of the wrecker next to the chains for easy access. Never had to use it, but Bill did pull out his 22 a few times.
One time I was backing up to a car and the guy came running out of his apartment with some friends. Bill stood by his car pointing his rifle, and they stopped cold. I got away, and later met him back at the dealership. All was well. Heck, he even knew one of the guys. They knew he was just doing his job.
Today they would probably shoot him, but back most of the brothers in the hood had a good sense of decency. Oh the druggies shot each other, but Bobby Sides wasn't ever selling cars to them.
A lot of cars which were financed as used cars are probably worth more than their original purchase price. There is every incentive to recover them as the economics for the repossesor have become much more advantageous.
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