Delinquency rate for subprime auto loans SOARS UP

[Zacha341]

^^^ I hear that! I've never had a car note. I buy cash cars, which means I drive old cars but it works for me. Especially considering the high insurance rates.

[Honky Tonk]

Preach on , verily I say on to you...
I am quite happy with no mortgage, no car note, and no credit card debt
Amen

Dan, That's very un-American and we've got our eye on you. We'd like you to go out today and purchase all the pointless crap you've been thinking about, and put it on your credit card, or better yet, on two, until you're so far in hock, you won't be able to get a good night's sleep anymore. THAT'S being a good citizen.

[Dan Wesson]

Say whaaaaaaaaat!!!!!!

[Scottathew]

Let's watch our debt levels. No, not biggest problem. That would be global warming which will eliminate all debt.

If you just believe hard enough that it's not real it should all go away. If that doesn't work, just defund all the scientists, then at least you won't have to hear about it anymore.

[Bigdd]

If you just believe hard enough that it's not real it should all go away. If that doesn't work, just defund all the scientists, then at least you won't have to hear about it anymore.

The problem with it is,.. there's no evidence of man made GW.

In 1996 the Earth was 56.8 F,... in 2016 it was way up to ...... wait for it..... 56.8 F.

Wow,.. it's an emergency. Call Al Gore.

Besides so much of the data having been fabricated [[Including the data from Al Gore's hockey stick graph),... there is no consensus among scientists that there is man mad global warming. There truly isn't.

The 97% of scientists in agreement stat is a total lie. It was based on one false study where only like 3 or 5 climate scientists thought that.

What they do agree on is that the Earth has been warming for the last few hundred years [[starting WAY before the industrial revolution,... so no reason to think it's man made). 2. that this has happened before [[ice ages run in cycles). 3. That man is "likely" a factor.

But there is no agreement on how much man is a factor. 1% 5% ? 20% ?

There's also no agreement on whether it's a bad thing.

This is where the big lie comes in [[so they can crush the US economy and get super rich in the process),... they try to make you believe that global warming is mostly man made somehow,.. that scientists agree on it, that's it's bad, and that we should do a bunch of stuff to try to "fix" the Earth..

[Ray1936]

I am quite happy with no mortgage, no car note, and no credit card debt

Amen

That was me until last July; bought a new car. But with a fico score in the 800s, scored with Ford Credit at no interest. [[Ford Escape....don't need a big $$$ car at all.)

[bust]

The problem with it is,.. there's no evidence of man made GW.

In 1996 the Earth was 56.8 F,... in 2016 it was way up to ...... wait for it..... 56.8 F.

Wow,.. it's an emergency. Call Al Gore.

Besides so much of the data having been fabricated [[Including the data from Al Gore's hockey stick graph),... there is no consensus among scientists that there is man mad global warming. There truly isn't.

The 97% of scientists in agreement stat is a total lie. It was based on one false study where only like 3 or 5 climate scientists thought that.

What they do agree on is that the Earth has been warming for the last few hundred years [[starting WAY before the industrial revolution,... so no reason to think it's man made). 2. that this has happened before [[ice ages run in cycles). 3. That man is "likely" a factor.

But there is no agreement on how much man is a factor. 1% 5% ? 20% ?

There's also no agreement on whether it's a bad thing.

This is where the big lie comes in [[so they can crush the US economy and get super rich in the process),... they try to make you believe that global warming is mostly man made somehow,.. that scientists agree on it, that's it's bad, and that we should do a bunch of stuff to try to "fix" the Earth..

You present a lot of numbers for someone who doesn't believe in facts.

The stat that says 97% of climate scientists agree our climate is warming due to human activity comes from NASA:

Scientific consensus: Earth's climate is warming
https://climate.nasa.gov/scientific-consensus/

You may want to double check the scientific evidence:

Climate change: How do we know?
https://climate.nasa.gov/evidence/

Trump hasn't taken those sites down yet, and AFAIK he hasn't yet altered the data, but in case he does, here are archived versions of those pages from January 2017:

https://web-beta.archive.org/web/201...fic-consensus/
https://web-beta.archive.org/web/201...a.gov/evidence

Then again you may be one of those people who think NASA staged the moon landing.

Do you still believe Michelle Obama is a transsexual?

http://www.detroityes.com/mb/showthr...594#post510594
http://www.detroityes.com/mb/showthr...609#post510609

I don't mean to be rude, but hairbrained ideas like yours can't be taken seriously.

But it's a serious matter to consider why some people are so willing to believe these lies.

[Richard]

I guess it depends on ones situation,if you know nothing about car repairs then just buy a new one and figure on haveing a permanent monthly payment,kinda like leasing but without the mileage pentality.

Trade it in every three years and roll over the balence,never have to worry about repairs or maintenance,just paying interest anyways.

This has been going on for years,my x wife bought a new Yugo and had a balence carried over from a Chevrolet cavalier that was more then the cost of the new Yugo.

New car dealers are there to sell cars and financial companies are there to make interest monies,at the end of they day they would not be able to if people did not sign on the dotted line.

But we already know the outcome if it crashes,it will be the fault of the bad dealers and financial companies taking advantage and little to do with personal responsibility.

[O3H]

I thought being a solid citizen meant PAYING OFF your loans,
on time, in full, to support a solid financial economy.

A lot about living in a country revolves around
Personal Responsibility on a day-to-day basis.

People signed the loan papers - it IS their fault, as soon as ink is dry

[Zacha341]

^^^ Nope. It's about buying beyond your ability and hoping things work out!

[archfan]

I guess it depends on ones situation,if you know nothing about car repairs then just buy a new one and figure on haveing a permanent monthly payment,kinda like leasing but without the mileage pentality.

Trade it in every three years and roll over the balence,never have to worry about repairs or maintenance,just paying interest anyways.

This has been going on for years,my x wife bought a new Yugo and had a balence carried over from a Chevrolet cavalier that was more then the cost of the new Yugo.
...

Wait, you've been paying just the interest and rolling the balance since the Yugo was for sale? What's your rollover up to - how many zeroes?

[JoeGeds]

Here's a good video from John Oliver that explains the issue with sub-prime auto loans. The part of the video that follows the life of a 2003 Kia optima is particularly troubling as it is sold and repossessed, then sold again 8 times to 8 different people in 3 years.
http://www.autoblog.com/2016/08/15/j...lenders-video/

[Shai_Hulud]

Wait, you've been paying just the interest and rolling the balance since the Yugo was for sale? What's your rollover up to - how many zeroes?

I believe he is saying that when buys a new car he puts enough down, and or pays aggressively enough that in three years there will be substantial equity in it, which is then used to purchase the next car.

That's a decent strategy, although if you start with a beater car and continually save the car note, you can continually trade up to a nicer car, and never have a note.

[Richard]

Wait, you've been paying just the interest and rolling the balance since the Yugo was for sale? What's your rollover up to - how many zeroes?

Lol,no I said my X wife did that back in the days of the Yugo,before they were coming out with a 4 door version called a Wego,until their war kicked in.

The point was that these type of loans have been around sense the eighties,so nothing new.

I am 56 and never bought a new car,I know how to fix them and just drive used Jags and stuff built before 1959 most of my household appliances pre-date 1950 so I guess I suck as a costumer unless it is eBay,swap meet or flea market.

[Shai_Hulud]

Lol,no I said my X wife did that back in the days of the Yugo,before they were coming out with a 4 door version called a Wego,until their war kicked in.

The point was that these type of loans have been around sense the eighties,so nothing new.

So you're saying the negative equity in the trade in car was greater than the cost of the new car? Wow. I wonder if you could get a deal like that today. Probably...

[Richard]

So you're saying the negative equity in the trade in car was greater than the cost of the new car? Wow. I wonder if you could get a deal like that today. Probably...

Yes,new car dealership is floorplan,which means that they receive the new cars on consignment and pay for them when sold.

Part two is the Finiance company which is made up of groups of investors,they will finance because of high interest,up to 24% depending on the individual risk,the high interest collected offsets the losses.

The New car dealerships have to move cars and the Finiance companies have to buy paper to make money.

If one is in the lower pay scale it does not matter how much the car costs or how much interest is payed the only thing they care about is how much the monthly payments are going to be and that is all that matters.

Why buy a used car when you can buy a low end New car with $200 a month payments,and when the warranty period is almost over trade it in and roll over the balence,as long as the payments stay at $200 a month it does not matter that they owe $30,000 on a 20,000 car the day it is driven off of the lot,it never gets paid off so it does not matter.The Finiance company has that $30k number on the books which makes them look strong.

Look now where trucks are $50,000 for a basic model,no way one can pay that off 15 years down the road with positive equity,the system is set up for rollover and never paid off to lock the client in on lifelong monthly payments.

Even more so now because from the investor side where else is one going to get 25% interest returns,it is like printing money.

[O3H]

Well we have a President who loves loans, debt, wheeling & dealing
-- it'll just be a matter of time till it all comes crashing down, again.

Don't see much much about the timing of the automotive loan bubble bursting and re-setting itself to reasonable once again

[O3H]

Several data points to consider:

Losses for subprime auto loans, annualized, were 9.1% in January,
up from from 8.5% in December and 7.9% in the first month of 2016,
according to S&P.

The rate is the worst since January 2010
and is being fueled by worsening recoveries after borrowers default,
notes S&P.

More than six million U.S. consumers are at least 90 days late
on their car loan repayments, according to the Federal Reserve Bank of New York.

The U.S. finished last year with about $1.2 trillion
in outstanding auto loan debt,
up 9% from the previous year.