There’s a notion that if you want to gauge the future of the economy, just look at default rates for auto loans. When times are good, autos are one item that people typically load up on. As the video points out, the pandemic “stimulus” packages had a whole lot to do with stoking unusually brisk demand for autos that people happily overpaid for. Now they are handing those autos back to the creditors in alarming numbers.
Hey Diaper Boys! You, Joe! And you, Joostaihn! Quick!
Break out the collapsing stimulus stimulation package!
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Yeah… I’m thinking, come the crash… you might wanna
start accumulating canned goods & ammunition.
There’ll be plenty of cars just laying around after it all
shakes out.
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I see what you did there. Although to quote a statesman(stateswomyn?)
“At this point what difference does it make”
I sleep comfortably on a giant pile of ammo.
Perhaps it’s just pining for the Fords?
The Norwegian Yellow canary.
I like it!
How to buy a car:
Save up a few grand, buy a good used car.
How to buy a new car:
Save up 20+ grand, buy a car.
Don’t wanna do that? Have fun owning nothing.
A friend of mine has been in the car business for 45 years. In conversations during the last couple of years he has said the getting used cars has become very expensive. He has been paying way over what he would consider a wholesale market value for vehicles at auction. His prices have to reflect those costs.
Pay 43 grand and use cash, not credit. Used mid engined vett with 6.2 liter engine, a little steep, plus puffer another 25 K USD, and a not go. I rather keep the little guy:-))))
Dropped into a pawn shop that I shop at occasionally yesterday.
Shelves are full and the aisle are filling up.
Time to go guitar shopping. I’ve been looking for a nice 1970’s D-35 … and a Guild D-55 … but I’ve also grown fond of the sound of small guitars … like an 0-18. Seen some videos of Dylan and Donovan playing the small “studio” guitars. And Ian Anderson plays a real tiny … like 0-16 custom built Martin …
https://www.youtube.com/watch?v=HlE2DjOX2FE
There’s more to acoustic guitars than just the big ‘ol dreadnoughts
I read that 1 in 8 car buyers were defaulting on their loans (US). Also read there is no Federal oversite on car loans (in the USA). But why so many cars during the pandemic? I thought we couldn’t go anywhere?
Self-gratification.
0% loans
No payments for 3 months.
The automakers were giving away their product with nice teasers, and the suckers took the bait.
I’ve always bought used, and when possible, bought them at 3 years old, just off lease.
Current ride is a 2018 Infiniti q50s, 3.0 twin turbo. Goes like a bat out of hell, with 35 MPG on the open Hwy, thank you very much. New car loans are for SUCKERS!
Infinitis are nice. My sister drives a G30. Goes like stink but the brakes don’t last. Maybe her driving habits?
Leasing cars through a business is a good strategy. You get a brand new vehicle, no repair costs and you don’t pay HST. You’re paying with before tax dollars (you save about 30%) plus you save 13% in tax (Ontario). Return it to the dealer and they sell it to people like you just off lease. Lot’s of winners.
The short term issue is the people who can’t make their loan payment AND now they can’t get to work. I’m still confused why people were buying during the pandemic when you couldn’t drive anywhere.
Watch out for the taxable benefit by having personal use of a company car.
When’s Cash For ICE cars start?
Gotta keep that Ponzi Pyramid growing!
This should be required viewing. Everything we see around us, all the babble about the great reset ,boils down to this
https://www.youtube.com/watch?v=1T_98uT1IZs
Good article. Two comments, 1) Washington DC is not a state, and 2) Congress passed the stimulus, not the Federal Reserve. The Fed only accommodated the profligate spending.