>> Delinquencies as a recession signal: Rising default rates among lower-income borrowers often show stress before it hits the broader market.
I’ll bet a significant number of these are “No puedo ir a trabajar por la inmigración.” ;-)
Well in spite of many claims People and I mean US Citizens are hurting economically. Not from inflation now so much as the buying power going in the crapper...The US Dollar is collapsing and doesn’t have the buying power it did even a year ago.
You’re obsessed with statistics and graphs. You’re Karl Rove aren’t you mister Bushite
To get to the root of the problem you only have to look back a few years. A simple search of these three words will show who caused this looming disaster. Search: Cash For Clunkers
Is a new car really worth $45,000 + gas + insurance? Not for me, but enough people are willing to go broke for a car that the price stays there.
I’m 72 and. Going bankrupt. The stress is killing me. I’m in the hospital tonight ,No. family. No friends to stand bedside. Pray for me.
THE AVERAGE PRICE OF NEW CAR IN USA HAS HIT $50,000.
THEN-—YOU FIND OUT THE “BATTERY” IS UNDER A SEAT (OR IN FRONT OF THE FRONT TIRE)-—CANNOT ACCESS FOR A JUMP START FROM ANOTHER VEHICLE. ALSO-—HOW DO YOU CHECK THE BATTERY FLUIDS????
THE HEADLIGHT BULB—THE SIZE OF YOUR INDEX FINGER-—AND COSTING $50 & MORE IS PLACED SUCH THAT THE CAR HAS TO GO TO THE DEALER: WHY???
BECAUSE TO CHANGE THAT BULB-—YOU MUST REMOVE & REPLACE THE FENDER : AT LABOR PRICES HOVERING AROUND $150 +++ AN HOUR.
I AM NOT KIDDING—KIA & HYUNDAI....
YOUR TIRES HAVE ‘PRESSURE SENSORS” IN THEM——AND OTHER SUCH ITEMS THAT CAN HALT THE CAR ANYWHERE AT ANY TIME & LEAVE YOU STRANDED.
THANK YOU-—BUT NO THANKS:
I CAN SEE VISUALLY IF I HAVE A TIRE ISSUE. I ALSO HAVE A PRESSURE GAUGE—PROBABLY COST AROUND $20—A READABLE CIRCULAR GAUGE TYPE-—NOT A “STICK TYPE”-—WORKS FINE.
I CAN CHECK & REFILL MY BATTERY AS NEEDED
I CAN CHECK OTHER FLUIDS JUST AS EASILY
I DO NOT NEED HEATED SEATS OR STEERING WHEEL
I DO NOT NEED BACK UP CAMERAS—AND I CAN BACK UP TO HITCH UP MY 4 HORSE TRAILER JUST FINE., THANK YOU.
MOST OF ALL, I DO NOT NEED TO SPEND $50,000 OR MORE FOR A CAR THAT SEEMS TO REQUIRE THE SKILLS OF A JET FIGHTER PILOT TO OPERATE.
HAVE OWNED MY OWN CARS SINCE AGE 18-—AND INCLUDING ALL THOSE CARS PLUS A 2 HORSE TRAILER & A 4 HORSE TRAILER-—I DO NOT THINK I HAVE SPENT A TOTAL OF $50,000....4 HORSE TRAILER WAS CUSTOM BUILT & BRAND NEW & WAS ABOUT $10,000. MOST EXPENSIVE VEHICLE WAS USED 1 TON TRUCK FOR $4000. NEXT== BRAND NEW 1965 PONTIAC WAGON WAS $3434 OUT THE DOOR AT SCOTT ROBINSON PONTIAC IN TORRANCE, CALIF. STILL DRIVING 1979 BUICK I BOUGHT USED IN 1981 FOR $3500.
DON’T EVEN GET ME STARTED ON REGISTRATION COSTS & INSURANCE-—ESPECIALLY WITH SO MANY UNINSURED DRIVER’S EVERYWHERE WHO CANNOT READ OR SPEAK ENGLISH WHO ARE DRIVING.
NO WONDER CAR LOANS ARE FALLING BEHIND...
MY LAST CAR PAYMENT WAS AUGUST 1984...AND I DO NOT MISS THEM.
MY HOUSE PAYMENTS PITI—WERE AROUND $165 ON FIRST HOUSE & AROUND $640 PITI ON 5 ACRES WITH LOG HOUSE ON 2ND PROPERTY. BOUGHT 3RD PROPERTY FOR CASH......
Thank you for posting this.
I see some people driving Mercedes, BMW’s, Lexus etc that I know for a fact can’t afford them. It’s easy to get a new car
Sounds like the smart move is to buy a 3/4 ton truck with a wheel lift stealthily mounted to the back and go into the Repo business.
Duh - that's why they have lower credit scores. They are the people who should be buying a 20K 4-door sedan, not an 80K monster pick-up truck.
It’s the Illegals… they are driving back to their home countries and stop paying their car loans. Tricolor Holdings went into Chapter Seven bankruptcy because it was lending to illegals.
Maybe not so much a warning sign for the economy.
More like a warning sign that people buying cars now have been supported by Mommy and Daddy forever. Now the parents are gone, and the adult children have no clue about responsibility, financial or otherwise.
My ‘98 beater died a few weeks ago and we’ve been looking. Buy the wife a new car and take her paid off for mine? Buy a late model used ? An older used? Drop a crate engine in the heater? Didn’t matter much when I ran into the sales guys. The customer is not in charge. The customer has long since handed power to the dealers by caring about nothing but the MONTHLY nut since, probably, the last twenty years. I was amazed to find that everywhere I went the quoted price jumped by 2000.00 Ididnt finance thru them or if I paid cash. Since that looked to me like a middle finger in my face it’s gonna be crate engine or a 3000.00 ‘dollar ‘09 beater my mechanic put me on to. Here’s where the car sales industry is, putting a fully rebuilt engine into my ‘98 Fbird AND a fully rebuilt engine into my ‘02 work truck simultaneously would cost far less in the short and long term than buying a reasonable used car.
Here’s the thing, I don’t have to run out and replace my beater any time soon. So I don’t have that gun to my head. They’d have me by the nuts at a dealership if that were the case. Thats the position a lot of people are in when a car dies. I don’t want to play and I’m not gonna.
Refusals to pay are not the same as the inability to pay. Obviously, a refusal to pay would not be in “good faith” while being truly unable to pay could be.
I’d like to know what percentage of chronically delinquent accounts are approved for borrowers who eventually refuse to pay when they really can. That percentage should include student loan accounts where the borrower fits the same general profile.
One of my favorite cable shows was Airplane Repo, where a financial institution hires a team to legally “steal” airplanes, business jets, choppers and boats from rich deadbeats who refused to pay their bills. I think there might’ve been one deadbeat who agreed to the terms of repossession without objection, but it was he who decided to let it go to that extreme in the first place.
Student loan deadbeats have nothing to repossess, do they? Collateral is not required to qualify for student loans or is it? In some cases, garnishment of wages to repay student loans is possible. For private student loans, a lender must sue the responsible party and receive a court judgment before garnishing wages.
Whether it’s a home (or home improvement), aircraft, automobile, motorcycle, boat or a student loan, there should be additional consequences for borrowers who exhibit a pattern of outright refusal to pay. Let them have their day in court, but if they can afford to hire an attorney, then the defendant should be heavily scrutinized.
These deadbeats fit the same profile as bail jumpers to a certain extent, and if it ever came to a vote, I would be saying YES to Federal debtor prison(s).
Millions of Americans Are Falling Behind on Car Payments.
Not a economy issue more of bad decision making and not knowing you ability to pay for things.
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This is what happens when you sell $75,000 vehicles to people who can’t afford them.
Stand by for Cash for Clunkers II