Posted on 02/24/2016 5:36:40 PM PST by SkyPilot
The lenders made their bed, let them lay in it.
These cars a way too high. People are way to broke. I don’t care what happens but I dont want one damned dime of tax payer money bailing anybody .
Hopefully this means I can buy a used car for less. I’m amazed that i don’t see depreciation fully reflected in a used car price. Is ‘easy money’ inflating the prices?
These are secured loans. Most of these cars will be repossessed and have decent resale value. Hardly the end of the world.
It's scary how car prices mirrored the Fed's QE money printing program.
bookmark
No business is too large to fail.
Are you kidding? They aren’t going to repo these cars because those deadbeats are entitled to them.
Guess who is supposed to pay?
The easy money is raising the price of vehicles for people with good credit.
Has anyone looked at the price of vehicles lately?
$50,000 for a pickup?
Seven year loans?
The price of fuel went down and men decided that they were going to replace their pickups.
Look at the used pickups that have been traded in.
200,000 miles?
Keeping up with the Jones is killing people.
I have a friend who bought a new pick up truck last year.........the price with options was $70,000 and he told me he got “a deal.” And yes, a 7 year loan. Can we try for 30 years?
4 points - cash for clunkers skyrocketed used car prices, auto bail outs meant HAD to sell lots of new cars, $200b is not that big a number, 50% of US adults are below 680 FICO - ‘non-prime’. Lenders to lenders knew all that and now they have losses they’ll have to eat. It’s just another market, there are no government guarantees or backstops.
the problem is that the gov’t will step in to protect the lenders. Just like it did with the banks.
For the most part, if you can’t pay cash for a car, you need to finda cheaper car.
My wife and I are getting ready to buy what may be our last car, a fully loaded 2014 Ford Taurus with 18,000 miles for under $20,000. We considered paying cash, but will make a 1/3 down payment and pay the balance at 2.7% At that rate we are better off keeping the money in a balanced mutual fund portfolio.
Buying a new car in today’s American is like getting robbed.
Way better to keep the old one and maintain it. It’s a win win.
Agree with your comment.
Car repo is fast, inexpensive and relatively easy for lenders to execute procedurally.
Much different than houses.
We saw this in 2009.
All the lenders have to do is wait a while and if Cruz is elected president, they’ll get another $700 billion dollar TARP. They’ve already bought and paid for it with the Cruzs.
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