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An Auto Loan Debt Crisis Looks Imminent
automoblog.net ^

Posted on 11/04/2023 10:56:23 AM PDT by RomanSoldier19

With auto loan rates at historic highs, rising payments, and mounting consumer debt, the auto lending industry is facing an inflection point.

With lenders continuing to tighten restrictions and some even deciding to leave the consumer auto loans market, the stage is set for what could become a full-blown auto loan debt crisis.

But how impactful such a crisis would be and how the industry can navigate its way out remains to be seen.

(Excerpt) Read more at automoblog.net ...


TOPICS:
KEYWORDS: auto; automotive; credit; debt; financing; loan
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To: glorgau

“Hopefully a “crisis” will put some downward pressure on the ridiculous prices of new and used cars.”

Supply has to come up or demand has to go down. Everything else is paperhanging. Car people calculate the risks, they are ready for what’s coming, they know the cycle. I had a good friend who was a GM at a dealership, which led to a bunch of real estate sales for me and I hung out there a lot. They made big money when sales were hot and spent it just as fast as it came in. When they drank they would tell the truth. I asked one his best (bad) story. He said “I sold car that had a rod knocking to a deaf guy.” Now that’s cold. They are big boys, they can take some poor business times.


21 posted on 11/04/2023 11:53:07 AM PDT by SaxxonWoods (Successful People Have a Sense of Gratitude. Unsuccessful People Have a Sense of Entitlement)
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To: ChuckHam

“The more people that go on the dole ...”

You may have hit on a point that the leftist central planners in WDC have missed ... the more poor people that Bidenomics creates the fewer people there are that can afford EVs.

Since the virtue signallers have already bought their EVs (those that afford to), the number of potential EV customers is dropping fast. Making more poor people is not going to help with that.


22 posted on 11/04/2023 11:53:39 AM PDT by ByteMercenary (Cho Bi Dung and KamalHo are not my leaders.)
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To: citizen; All

Heard on the radio the other day that retailers are expecting a booming Christmas season since the economy is doing SO WELL!

I just shook my head at the blatant propaganda.


23 posted on 11/04/2023 12:02:12 PM PDT by Reddy (BO stinks)
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To: Reddy

there is a crisis in the auto industry as lots are filled with so many hyper-priced unsold cars and trucks that dealers won’t even let you go for a test ride if it requires moving 10 or 12 cars out of the way (they have cars parked in the driveways, aisles at many lots).
Almost nobody can afford cars that are priced three or four times more than where the buyer’s end of the market is.


24 posted on 11/04/2023 12:04:36 PM PDT by faithhopecharity (“Politicians are not born. They're excreted.” Marcus Tillius Cicero (106 to 43 BCE))
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To: RomanSoldier19

I guess it’s a good thing that the UAW just declared victory with their strike so cars will cost even more as the companies pass the increased costs onto customers. I’m sure it will only help the situation.


25 posted on 11/04/2023 12:07:46 PM PDT by qaz123
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To: SaxxonWoods

https://gmauthority.com/blog/2022/02/mary-barra-says-gm-inventory-wont-return-to-pre-pandemic-levels/

No more inventory sitting on lots, waiting to be discounted and moved.

Then again, GM is owned by the CCP and no one cares.


26 posted on 11/04/2023 12:13:02 PM PDT by qaz123
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To: Reddy

As long as folks don’t reach their credit card limits the economy is booming...lol.


27 posted on 11/04/2023 12:15:17 PM PDT by cgbg ("Creative minds have always been known to survive any kind of bad training." Anna Freud.)
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To: Reddy
Christmas sales could be good, here's why. More money than ever (total) is washing around out there. It's just distributed differently than in the past.

The larger than ever wealthy and upper middle classes are doing well, and they do the bulk of discretionary spending. The shrunken middle-middle class is suffering from inflation, but it's smaller than before, some of its members have moved upward, others downward. The working class is not doing well, and as for goof-off class, I don't care how they are doing, they are net receivers of govt largess.

28 posted on 11/04/2023 12:20:57 PM PDT by SaxxonWoods (Successful People Have a Sense of Gratitude. Unsuccessful People Have a Sense of Entitlement)
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To: ClearCase_guy

29 posted on 11/04/2023 12:30:25 PM PDT by RomanSoldier19 (Res ad Triarios venit;“We are your ghosts, in this game played by monkeys, organized by lunatics” )
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To: ConservativeInPA

30 posted on 11/04/2023 12:33:44 PM PDT by RomanSoldier19 (Res ad Triarios venit;“We are your ghosts, in this game played by monkeys, organized by lunatics” )
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To: qaz123

The UAW has been around a long time. Its members have never learned how it really ‘works,’ if you want to call it that. It takes advantage short-term thinkers who have weak math skills and no finance knowledge.


31 posted on 11/04/2023 12:35:44 PM PDT by SaxxonWoods (Successful People Have a Sense of Gratitude. Unsuccessful People Have a Sense of Entitlement)
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To: SaxxonWoods

It takes advantage short-term thinkers who have weak math skills and no finance knowledge.

Bingo


32 posted on 11/04/2023 12:36:32 PM PDT by qaz123
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To: RomanSoldier19

There are a couple of places in my area that are in the business of offering “Car Title Loans.” Coincidently, they also sell used cars. (Gee, I wonder where they get their inventory?)


33 posted on 11/04/2023 12:44:49 PM PDT by GreenHornet
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To: RomanSoldier19

Car payments are no problem for professional politicians, like Congress who voted themselves a $35,000 raise on top of their $175,000 salary.


34 posted on 11/04/2023 1:01:09 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: qaz123

The UAW is putting their jobs in the no longer needed zone.


35 posted on 11/04/2023 1:05:23 PM PDT by ChuckHam
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To: RomanSoldier19

108 month auto loans available.

I paid off a home mortgage quicker than that.


36 posted on 11/04/2023 2:53:39 PM PDT by Graybeard58 (There are only two sexes but there are 57 different types of queers.)
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To: RomanSoldier19
At the end of Q2 2023, auto loan debt reached $1.58 trillion compared to $1.57 trillion in student loan debt.

Government car loan bailouts!

37 posted on 11/04/2023 3:28:09 PM PDT by NautiNurse (🇺🇸)
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To: RomanSoldier19

If you owe the bank ten thousand and you can’t pay, you have a problem.
If you owe the bank ten million and you can’t pay, the bank has a problem.

We “owe the bank” >100 trillion. The bank has a BIG problem.

Hope the bankers have their bags packed.


38 posted on 11/04/2023 3:32:07 PM PDT by Jim Noble (They have taken untold millions that they never toiled to earn)
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