Subprime auto loans, which are issued to people with lower credit scores, are falling into past-due status at an alarming rate, reaching the highest rates of borrowers behind on loans in almost 30 years.
Subprime borrowers at least 60 days past due on their car loans grew to 6.11 percent last month, the highest rate since 1994. A combination of rising interest rates and higher purchase prices have made monthly payments more expensive than before, and an unstable job market isn’t helping the situation.
Repossessions are expected to show an increase this year of up to 300,000 actions as bills pile up for unfortunate buyers. As Automotive News pointed out, interest rates for subprime borrowers can be as much as three times more than those for everyone else, pushing payments up by hundreds a month in some cases.
Whaddya mean there are no jobs out there? There seems to be an acute shortage of repomen. No problems getting a job there.
Bonus! You are provided with a company truck. High car payments won’t affect you. You’ve got wheels!
“the life of a repo man is always intense”
“I blame society. Society made me what I am …”
https://youtu.be/MKIaS0lh-uo?si=p78dWcpvfc6WVD3D
There’s a Cleveland Repo man currently on YouTube with 670K subscribers and who always seems busy.
Pretty good gig…don’t even have to get out of your truck.
Maybe some used car prices will finally come back in line when the market gets flooded with repo’s.
Supposedly the used car market has been flooded for the last couple years.
The auctions and institutional sellers have been holding back the greater mass of vehicles they have, to keep the prices propped up; releasing them at a trickle.
Hopefully they will be drowned in them and forced to let them out.
I think I’ll keep a eye out for a nice, slightly used sports car. I have always fancied one of those, but not dumb enough to pay the high price for a toy. I expect there will be a few good deals coming around soon.
I never had a nice car until in my 40s when I could afford one. Previously had a series of beaters that did the job and didn’t take half my monthly income to pay for. That’s just dumb.
And whats with all these bright shiny $80K trucks that nothing-will-ever-be-found in the not-big-enough bed.
Trucks for local domestic use are nothing but ‘big dick’ products that don’t fetch much beyond groceries.
Many problems here ….
Usury laws are not strict enough. Credit card rates are even too high.
Math is perceived to be hard and not taught. Economics should be a required course in early high school.
Woke greenies made sure that older second-hand functional beater cars were taken off market and cheap, available gas was heavily taxed and made unaffordable.
Leasing cars means that most drivers on the road really can not afford the car they are driving, but auto sales people are paid to move new cars.
New cars have too many unnecessary, seldom-used bells and whistles; key fobs are not an improvement on a key that works without having to be re-programmed. EVs are a disaster.
Usury laws always lead to “unforeseen consequences”.
Question #1: Why are all the Usurious credit cards headquartered in Delaware?
Question #2: Why did Biden serve 50 years as Senator from Delaware?
Pssst … hey poor Democrat voters. You may want to answer those questions before you ever vote (D) ever again.
Most big companies are incorporated in Delaware. Delaware makes everything easy for corporations, has advantageous business law, and provides tax advantages.
And allows usury
“Usury laws always lead to “unforeseen consequences”.”
Beg to differ, they know full well what the consequences will be, that’s why they sell cheap poisoned crap for people to eat, drink and smoke. Then sell them medications on the back-end.
Debit slave, credit slave, virtual slave, who cares what you call it, they like their zombie slaves just as they are. Controlled.
Oh well, at least the used car market will soften and I can get something cheap.
I hope so, I’ve been looking for a used SUV and the prices have doubled in the past three years. A used one with high milage goes for around 25,000 in Nova Scotia.
Automobile prices are literally “unsustainable” … to co-opt a leftist slogan. Which I believe is all part of the grand scheme to “transition” to unaffordable e-cars. Poor people can take the bus … or “high speed train” if you live in Modesto.
I have a couple clients who spent over 100 grand for business pickups which, in both cases, is likely 2 years salary for them. They are assholes.
Same here. I just bought a 13 year old Lexus with “low miles.” Low miles being 120,000. The car market is insane.
The recession is coming … It will be a long one. Both Canada and the US are insolvent.
All the signs are there:
1.everyone going on strike for higher wages;
2.serious inflation that has been ongoing for years (Stats Canada can not hide the inflation between 2008 and now any more by manipulating their “basket”);
3.private companies are cutting back, even housing development businesses (too many expensive regs and taxes);
4.broken supply chains, and increasing food insecurity;
5.many people with too much personal debt, with banks allowing this;
6.too many weird user/enviro fees and taxes upon taxes;
7.increasing homelessness (and no, I am not paying for their roof, as my kids need one);
8.no viable mental health facilities nor effective drug rehab (those funded NGOS are mostly useless (recent legislation on safe supply of hard drugs is abominable);
9.too many governments at ALL levels spending money (increasing supply) well beyond their means during good times;
10.possible collusion among western central banks to report low inflation for many years past; we consumers know better!
11.federal unabated refugee/immigration and pathetic border policies that foist off costs to municipalities (immigrants/refugees used to do well; less so now), and look at the mess Sweden has become;
12.lack of investment in infrastructure – more people need more sewers, housing with outdoor space, repaired roads and protein, not rarely-used bike lanes;
etc.
Yah, cheap cars on the horizon , ‘cept if they can’t afford the monthly payment, they ain’t going to pay for maintenance and oil changes, bc they know they are going to lose the sucker. I used to have a repro outfit as a client.
The repo sector is a tiny percentage of auto sales. 13.7 miilion vehicles are sold annually, “it’s difficult to determine exactly how many repossessions occur each year, but Cox Automotive estimates that there were 1.2 million in 2022, up about 5.3% from 2021 but still down from 1.68 million in 2019. The Repossessors Summit made its debut in 2009, when there were a record 1.77 million repossessions.”
The price of used cars in ridiculous, my ’09 Rav 4 is now worth a couple of thousand more than I paid for it.