A record 7 million Americans are 3 months behind on their car payments

[DarrinS]

I may just get an old Tundra and give my 04 4Runner to my son.

[AaronY]

Just buy a good used car instead. Car value depreciates like drastically right when you drive off the lot. Stupid buying a new car unless you're financially secure

[Chris]

People are making bad financial decisions? Americans who are taught to consume with profligacy, victims of a public education system with an overbearing Federal Government and Department of Education. Useful idiot repeaters making bad financial decisions? Once they turn off the welfare spigot for the nation's net drain freeloaders we will see some really bad financial decisions. The Trump administration may have saved the Millenial from certain doom and indentured servitude to what Hillary had planned for our great nation. Thank God for that.

[midnightpulp]

People are making bad financial decisions? Americans who are taught to consume with profligacy, victims of a public education system with an overbearing Federal Government and Department of Education. Useful idiot repeaters making bad financial decisions? Once they turn off the welfare spigot for the nation's net drain freeloaders we will see some really bad financial decisions. The Trump administration may have saved the Millenial from certain doom and indentured servitude to what Hillary had planned for our great nation. Thank God for that.

Doubt they'll ever cut military spending.

[Xevious]

Had to buy the wife a new car here recently. Unfourtanetly the transmission crapped out on her car, luckily we are pretty good with our money and just bought her new car in cash. I remember the dealership kept trying to get us to finance

Of course. Dealerships make their money from financing and extended warranties, not the vehicles themselves.

So many millennials today are drowning in student loan debt. Add a $600 car payment on top of that and you're one job loss or one medical event away from being completely ed.

[DMC]

A record 7 million people shouldn't have qualified for an auto loan.

[DMC]

People are making bad financial decisions? Americans who are taught to consume with profligacy, victims of a public education system with an overbearing Federal Government and Department of Education. Useful idiot repeaters making bad financial decisions? Once they turn off the welfare spigot for the nation's net drain freeloaders we will see some really bad financial decisions. The Trump administration may have saved the Millenial from certain doom and indentured servitude to what Hillary had planned for our great nation. Thank God for that.

YOLO es! Where's my iPhone 12?

[boutons_deux]

Of course. Dealerships make their money from financing and extended warranties, not the vehicles themselves.

https://www.edmunds.com/car-buying/w...ake-money.html

[hater]

A record 7 million people shouldn't have qualified for an auto loan.

Its an american dream to be able to make 35% of your income into a car payment. it its an american right!

[Will Hunting]

What happened to the mortgage industry 10 years ago is going to happen to the consumer lending/auto lending industry in the next 10. Securitization has made it easy for lenders like GM Financial to make a dog subprime auto loan that’s off the books less than a week later.

The part that still doesn’t make sense to me is why there’s a securitization market for these loans at all. Who the wants to buy the risk that someone who makes $40k a year and has a sub-600 FICO score will keep making the payments on his BMW?

[BD24]

what car you driving? jap cars like toyotas/hondas should get you to 200k unless you just ignore maintenance.

i'd consider it a failure if i ever own a car that doesn't reach 200k miles tbh. just ride that puppy and when you begin to have legit concerns that reliability has been compromised, just dump it off to a charity, get a small write-off, and get another.

Chevy Malibu, so American made unfortunately. Next car is most likely going to be a Camry or corrola. I have had far to many issues with this car for the amount of miles tbh. American made cars are pretty garbage, bought it right when I got out of college because it was cheaper than a Camry. Wish I could go back and redo that tbh

[Brazil]

I don't own a car.. fortunate enough my company is paying one for me and change it every three year tbh...

[SpursforSix]

Of course. Dealerships make their money from financing and extended warranties, not the vehicles themselves.

So many millennials today are drowning in student loan debt. Add a $600 car payment on top of that and you're one job loss or one medical event away from being completely ed.

Don't forget the service on the car. And now, with the automatic notifications, it seems like there's always something telling you to go in to do something. And every time you go in, they'll suggest a couple of other things you need to do.
And charge 50% more than a local repair shop.

[spurraider21]

Don't forget the service on the car. And now, with the automatic notifications, it seems like there's always something telling you to go in to do something. And every time you go in, they'll suggest a couple of other things you need to do.
And charge 50% more than a local repair shop.

i would never go to a dealership unless my car was under warranty

[Xevious]

https://www.edmunds.com/car-buying/w...ake-money.html

Aw yes, the service department also.

[Xevious]

What happened to the mortgage industry 10 years ago is going to happen to the consumer lending/auto lending industry in the next 10. Securitization has made it easy for lenders like GM Financial to make a dog subprime auto loan that’s off the books less than a week later.

The part that still doesn’t make sense to me is why there’s a securitization market for these loans at all. Who the wants to buy the risk that someone who makes $40k a year and has a sub-600 FICO score will keep making the payments on his BMW?

I've wondered that myself. When you give somebody an auto loan for ~15% interest with negative equity rolled in... you must be counting on the fact that the car is going to get repossessed at some point and the borrower is going to get sued.

[ducks]

My 2 cars paid off
And motorcycle

[Will Hunting]

I've wondered that myself. When you give somebody an auto loan for ~15% interest with negative equity rolled in... you must be counting on the fact that the car is going to get repossessed at some point and the borrower is going to get sued.

I don’t think that’s the angle because there’s billions in trash consumer debt that gets bought in the securitization market when that debt has no collateral and is junior to almost everything else in terms of who gets paid should the borrower declare bankruptcy.

I think it’s very similar to the early 2000s where we have too much money chasing speculative investments and the result is a failure to accurately price risk.

[DMC]

I don’t think that’s the angle because there’s billions in trash consumer debt that gets bought in the securitization market when that debt has no collateral and is junior to almost everything else in terms of who gets paid should the borrower declare bankruptcy.

I think it’s very similar to the early 2000s where we have too much money chasing speculative investments and the result is a failure to accurately price risk.

I was going to say that.

[florige]

That's smart. I don't buy personal vehicles new, but do certified used and pay cash. I do buy new vehicles for work and finance for 4 years for tax reasons.

It's like a tax write off or something like that right? My former boss used to do the same thing.

[Pavlov]

A lot of these people will ditch their cars when the Uber/Lyft driverless fleets roll out.

[resistanze]

It's been almost 4 years without a car. May switch jobs and trying everything possible still not to buy one (there are carpool apps). The cost of even a used beater with a parking spot would be barely worth it tbh

[DMC]

Its an american dream to be able to make 35% of your income into a car payment. it its an american right!

Every American deserves a new home and a new car, free healthcare and funds even if they can't work or don't even want to work. This is 'Murica goddamn it.

[DarrinS]

A lot of these people will ditch their cars when the Uber/Lyft driverless fleets roll out.

that

[rmt]

I don’t think that’s the angle because there’s billions in trash consumer debt that gets bought in the securitization market when that debt has no collateral and is junior to almost everything else in terms of who gets paid should the borrower declare bankruptcy.

I think it’s very similar to the early 2000s where we have too much money chasing speculative investments and the result is a failure to accurately price risk.

The whole credit/loan business is upside down. Dd has a good job, no car loan, no student loan, no mortgage and has a room mate - yet they turned her down for a credit card (was only authorized user on my cc previously). She had to get a secured cc - unlike STUDENTS (not yet working fulltime) with car payment and student loans who have no problem getting cc.