Posted on 10/22/2023 8:43:45 AM PDT by Kaiser8408a
Biden’s Highway to Hell!
Bidenomics has been a massive windfall for the top 1% of households in terms of wealth due to the emphasis on green energy transformation. But for the 99%, Bidenomics has been a disaster (unless you consider low-paying job creation a victory).
The auto sector, considered a leading economic indicator, pinpoints the arrival of the crushing auto loan crisis and even the possibility of the onset of the next recession. In late January, we Fitch revealed tat consumers are falling behind on auto payments – the most since the peak of the Great Financial Crisis. Fast forward nine months later, to September, that rate just hit the highest level in nearly three decades.
And with interest rates rising the fastest in history,
And Discover projected charge off rate for 2023 would more than double from its current 1.82% to as much as 3.90%!
In what could be the early innings of the auto loan crisis, something we called a “perfect storm” earlier this year, Bloomberg cites new Fitch data:
The percent of subprime auto borrowers at least 60 days past due on their loans rose to 6.11% in September, the highest in data going back to 1994, according to Fitch Ratings.
Rowe said, “They can often be a first line of where we start to see the negative effects of macroeconomic headwinds.”
The perfect storm we described earlier this year is unfolding.
At least residential mortgage delinquency rates remain low. With elevated home prices, the incentive to default on a loan is limited.
So The Perfect Storm hasn’t hit residential real estate … yet.
Biden is like George Clooney in “The Perfect Storm” sending the US out into stormy, violent seas while obessing about Ukraine and protecting Iran/Hamas.
(Excerpt) Read more at confoundedinterest.net ...
High auto loans and 20% credit card rates for great credit and 8% home loans and at least 17% inflation and congress will not stop spending.
Average Car Loan Interest Rates by Credit Score
NerdWallet
https://www.nerdwallet.com › Auto Loans
Oct 10, 2023 — In the second quarter of 2023, the overall average auto loan interest rate was 6.63% for new cars and 11.38% for used cars.
#35 Watch this pro repossess a car and the guy who use to own it running after him and spraying his water hose towards the guy 😁
To prevent the repossession of a car
https://www.reddit.com/r/therewasanattempt/comments/1685ygj/to_prevent_the_repossession_of_a_car
Great joke on recent Dave Ramsey show:
“How do you tell when someone is a red-neck these days?
Their truck loan is higher than their mortgage.”
lol.
The economy is way out of whack—the stock market has been going crazy upward for decades—it is about time for the ride back down....
“And yet I see more brand new f one fifty’s and chevy silverado’s that I have ever seen before”
Many callers to Dave Ramsey are those folks—bought vehicles they cannot afford and get buyer’s remorse after they realize a few car payments are taking food out of their kid’s mouths.
Dave yells “stop being stupid and sell the truck”.
I suspect the 6.63% rate is for a 5 year loan for a person with a stellar credit rating. My CU is at 5.7% for a 5 year loan. They don't advertise rates by credit score, but cross referencing other sites it is likely someone with just OK credit is going to get a rate around 10% for a new car.
The 2007–2008 financial crisis...they say:
“Predatory lending targeting low-income homebuyers...
“Arguably the largest contributor to the conditions necessary for financial collapse was the rapid development in predatory financial products which targeted low-income, low-information homebuyers who largely belonged to racial minorities.”
My sense of it was meddling by fed gov forcing lenders to make loans they knew to be risky and to unqualified borrowers. The Community Reinvestment Act of the 90s, brought forward.
A good buddy of mine bought a truck around 2000. He asked the dealer if he could get one with leather seats. That wasn't even an option back then. LOL...
My memory is a bit fragmented after 15 years, but I don't recall the government forcing lenders to make NINJA loans..
33% of our loans are behind. 20% of them are over 45 days late. 20% currently have active repossession orders out on the cars.
other dealers are reporting 20% plus late right now.
The same people losing their 600+ dollar a month car to repossession refuse to drive anything older than 3 years and want me to tote the note on the replacement (with a fresh repo!) and no money down.. (ya, I am not a bank, and all the ones I work with will decline you too)
when I suggest what I call a “get by car” (it’ll get you by until you can afford better) for 3K or less they scaff at me. “oh I can’t be seen in that” or “it has some rust. I can’t” or “OMG! it has over 100K on it!! its JUNK!” (ya, ok, buick 3.8 cars tend to outlive their owners. but ya, you know best!)
ya, well, I guess the city bus is better looking to you then. Have a nice day!
Correct. One of the best pieces of advice I got early was: “Never borrow to buy a depreciating asset” (car, for example). Especially an asset that depreciates faster than your loan will pay it off.
~~~~~~~~~~~~~~~~~~~~~~~~~~
Financing available now, new car loans for 120 months.
Insane.
What part of the country are you?
Dave Ramsey would say to your “customers”—”New cars are for rich people. You are broke!”
;-)
Minnesota.
Aka commie central
It’s been a long time since I looked into this too. I do remember there was a requirement/ forced incentive for banks to make these loans.
It was a real mess back then. The option arm allowed paying negative interest rate on mortgages. Even people with a regular ARM got whacked when the interest rates rose. High gas prices also added fuel to the fire...
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