Cars exploding? Repo men exploding? Cars possessed and then repossessed. That sounds like the first exorcism didn’t take. This is definitely a bad omen.
One more sign of “Happy Days Are Here Again” under Biden and his Masters.
I remember that movie with Darren McGavin in it over 40 years ago.
Soon to be followed by House repo’s.
Does this mean the rest of might finally get some decent proving on good used cars?
[There is a silver lining in that the weaker economy the auto trouble both reflects and portends should cool inflation. But it might not be that simple, at least not right away. “A lot of the banks—they’re smart. They control the market, like diamonds,” Lopez says. “As repos pour in, they only release them so often,” he says, meaning auto prices will probably remain stubborn even as economic growth wanes and more repos mean more used-car inventory.]
Another issue for banks that wasn’t such a big deal before? Crime. Now that progressive DA’s have all but decriminalized theft, storing repos has likely become an expensive proposition. That means big time security measures that require more staff as repo inventory piles up. That’s inventory that, if held on to, will have to be offset by continued high used car pricing. Every single day it sits in storage is another chunk of cost they’re counting on being able to defray. That’s a huge gamble, and not sustainable in a market that is tottering, to say the least.
An article i read earlier said the average new car payment was $666
And many were well over 1k
That is some crazy s#it.
“Prosperity is just around the corner”
Lucky Lopez? Classic!
Our lease is expiring on our 2019 Jeep Cherokee. Only 25,000 miles on it due to Covid and working from home. We can buy it outright for $17,000, which we are doing. That price was in the terms of the lease at inception.
Right now the same vehicle with a lot more miles is selling for $35,000.
No repo for us.
Could be deflationary.
More repos = more supply of used cars
More supply of used cars lowers prices from covid levels
Banks might have ti take a little hit if they over booked the collateral, buy what the hey, the gummit was pumping trillions out the door to the banks to make loans
The bankers knew the risk profile before they made the loans
Lucky Lopez is a car dealer who has been in the business for about 20 years.
—
The is just a spot on perfect name for a car dealer!
Knew a couple like this - both worked, both bought new cars. Suddenly both were laid off. Declared Bankruptcy and the new cars were repo'd. Eventually they found jobs, and both had new cars again! It's a lifestyle, I guess.
Americans Pawning Items to Buy Gas, Survive Inflation: Pawn Shop Owners
https://www.newsweek.com/pawn-shop-owner-says-drivers-selling-personal-items-buy-gas-1717156
The used car market was thrown out of balance, by cash for clunkers. I hated the whole program, because I knew it was going to hurt poor people the worst. Just like inflation does.
I shall not cause harm to any vehicle, nor the personal contents thereof, nor through inaction let that vehicle or the personal contents thereof come to harm.
The Repo Code
Friend of a friend is a wheel in a small bank chain. He said their overdraft fees crashed during covid (people not going out and spending). It has slowly been rising, and in June, their bank got their most revenue ever in overdraft fees.
More evidence of a built back better economy. /s