Posted on 06/02/2016 12:05:27 PM PDT by detective
Jamie Dimon is sounding the alarm on auto loans.
"Auto is clearly a little stretched, in my opinion," the JPMorgan Chase (JPM) CEO said Thursday morning, speaking at the Alliance Bernstein Strategic Decisions Conference in New York. "Someone is going to get hurt... we don't do much of that."
But other lenders have.
The average size of new auto loans is rising, as is the average payment size, according to research from Experian released Thursday morning.
In May, the total amount of auto loans cracked the $1 trillion mark for the first time, marking a 10 percent increase. It comes as auto sales have hovered around record highs.
(Excerpt) Read more at msn.com ...
You can find good deals on craigslist.
You cant be stupid but you can find them.
I drive a serviceable but pretty ratty car because I don’t buy anything I can’t pay for with one single payment at the time I buy it. I don’t owe anyone anything and these bubbles don’t crash directly onto my own head.
Good post sir! I need a new pickup. I could buy one with cash for about 20000 and a couple of years old. I can also qualify for anything I want on credit. I will buy the one I can write a check for.
Just got the first new clutch yesterday in my older Nissan Hardbody. Not ratty at all in fact looks much the same as the day I bought it for cash ($5200) in December, 1985.
Yes, but when the Feds bail out all of those burst bubble deadheads we all pay for it.
How many miles on that truck?
Definitely.
Pouring silica into a running engine to destroy a valuable resource? WTF?
I work in OE and Aftermarket automotive and nobody could believe it.
102,500 mostly in-town miles. Clutch would have lasted even longer with more highway miles.
“nobody could believe it”
This was right about the time things went upside down in society. Good is bad, values are inverted, evil is exalted, perversion is placed high on a pedestal, etc.
I’m done with buying new wheels.
The 2016 Tacoma I’d it. In the meantime, I am rehabilitating a couple of CJs, a K5 blazer, and a CB750. They’re all paid for and in different states of readiness.
The reason federally-backed student loans can’t be discharged in bankruptcy was prior abuse. Lawyers and doctors were finishing school, then declaring bankruptcy to wipe the slate clean. Taxpayers got to pick up the tab, until Congress put a stop to it.
The only student reform we need is to limit the total loan to a balance that can be paid in 10-15 years, at the prevailing wage/salary earned by a new graduate. If there is no market for a particular degree, then no student loan at all.
Do leases count as auto loans? I had a car for 14 years, then had to give it to someone in the family in need of a safe (and free) car. Wasn’t mentally or financially prepared to buy, so I leased a car. It comes off lease in Oct. While I like it, I’m glad I didn’t buy it.
Many companies offer 0%, but you have to have stellar credit. Luckily, I do.
If something happens to the car in that time, you will be underwater. The insurance pays the wholesale value, and you have to come up with the rest.
*************************************************************
New car dealers require gap insurance for under water car loans.
Some will sink with the ship of recirculating debt in style and good appearances, just after they drive their neighbors off of their own properties.
Others will drive the cars that they built.
so we bought brand new...2nd time in my life I've had a "new" car...
we have an interest free loan for 5 yrs and its afterall a Toyota...it'll last us for many years, and we rack up the miles quickly....
but after 5 yrs, I just don't see us every buying new again, maybe not even lightly used....
It’s funny.
When my father was struggling to start a new business back in the mid 70s, he always laughed at new car buyers, mocking the instant depreciation the moment the car left the lot.
Now that he’s successful, sold his business, retired, and buys new Lexus’ with CASH, he questions why I buy cheap used cars. “The best part of the car has already been driven.” he claims.
I’m still confused. But putting oodles of money in an asset that almost always depreciates seems foolish.
“different states of readiness”
LOL.
What are you getting at?
Read the article. Dimon said they aren’t making these loans, because they’re too risky.
In 2008 and 2009, JP Morgan Chase made a profit in every quarter. They did not ‘need’ a bailout. In fact, they were financially strong enough to take over both Bear, Sterns and Washington Mutual.
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