patrick.net

So we can expect high numbers of car loan defaults?

Does it mean the price of used Toyota trucks will be going down soon?

Eventually they will be giving cars away, the car lease market in the last 12 years, has put more cars on the road. Than there was before Cash for Clunkers.
Most all of the used car, inflated value, was based on the fact that there wasn't millions of $700 hoopties to be had from a little old lady from Pasadena.

Cars only worth what people can pay for them. Cars today don't have as much metal as the Clunker cars had, also the eWaste will be epic, with all of the electronics in cars.
Cars will be dumped for cheap. Right now we're seeing 10 year old cars, going for more than $10K, they will go back to under $5k to $3K.
Easing the floor for 5 to 7 year old models to fall well below the $15K that they currently go for. With such a big used car saturated market, new cars will start stripping off electronics and smart features, so they can sell them much cheaper than what a new Sedan or Coupe goes for today. Return of new cars selling at around $15K to $18K instead of mid 20's they start at now.

WineHorror1 says

So we can expect high numbers of car loan defaults?

And early lease terminations!

Putin!

Good. Used cars have been way too expensive

Tenpoundbass says

Eventually they will be giving cars away,

I certainly hope you are right. Right now it is impossible for the Cab Company to find the 1 to 2-year-old cars we like to buy.

I guess I replaced my car too early then. I just paid $12,000 for 2013 Camry with less than 50,000 miles on it. Oh well, still a good car.

Used car market implodes on bad loans…

ERECTION INTENSIFYING!!!

During the cower-in-place, production of new cars plummeted, which forced up used-car prices. People buying the used cars with 5-year (or longer) loans, might find out they are underwater on the car and decide to return the car and let the loan holder try to force them through bankruptcy (which probably won't yield much). Maybe it'll look a bit like 2008/2009 with home mortgage defaults.

With $5 gasoline, I also expect there will be a glut of used pickups and SUVs that won't look too appetizing for those that don't need that much capability. There are plenty of "capable enough" cars that get 30+ city and 40+ highway mileage. I had a VW rental on vacation with the 1.4L turbo and dual-clutch automatic and was amazed at how well that car drove while returning those mileage figures.

Are auto loans just like Mortgages? Walk away and turn the keys back over to the Loaner?

rocketjoe79 says

Are auto loans just like Mortgages? Walk away and turn the keys back over to the Loaner?

Depends...sometimes a repo man is needed. If your work has private security....don't worry about the repo man.

rocketjoe79 says

Are auto loans just like Mortgages? Walk away and turn the keys back over to the Loaner?

It's called a voluntary repossession. Happens all the time. Repossessions cost money, and if you even remotely think that you might try to get the car back, it's going to cost less if you turn it in.

HunterTits says

Her Toyota SUV got towed away and now she has a shitty 1990s Honda.

Voluntary repossessions usually aren't towed. They are dropped off at the bank, complete with keys. Sometimes they are picked up and driven back. Towing back is the least preferred method of retrieving a vehicle, but it does happen.

Ceffer says

auto loan collapse

A friend who had worked for years at UT/SW Medical School in Dallas moved back to San Antonio where his family lived. On a whim, he applied at a big family owned multi-brand dealership and was hired, never having sold a car in his life except one of his own. Within two months he was the highest settling salesman at the dealership. He said you would not believe the loan applications that would pass muster from the credit department. All many customers cared about was the monthly payment. They'd approve the wrapping of a $6,000 unpaid balance into the price of the new car as long as they could afford the payments. He said he was drawing the biggest pay checks he'd drawn in his life, but he had no free time, had to work most weekends and after 13 months left. He went back to work at UT/SW Medical in San Antone and worked until he could draw a retirement from both it and Parkland in Dallas along with a military pension, so he's in pretty good shape at 57. A lot of those chickens are going to come home to roost.

HunterTits says

Booger says

It's called a voluntary repossession. Happens all the time. Repossessions cost money, and if you even remotely think that you might try to get the car back, it's going to cost less if you turn it in.

I think that is what happened to a neighbor who parks next to me.

Her Toyota SUV got towed away and now she has a shitty 1990s Honda.

Oh, so now she is driving a car she can afford. Hmmm, imagine that.

Flood of used cars set to hit the repo market. Expect big price drops in the next month or so. Might actually make sense to even go to an auction, likely too much inventory for the normal guys to buy up.

NuttBoxer says

Flood of used cars set to hit the repo market. Expect big price drops in the next month or so. Might actually make sense to even go to an auction, likely too much inventory for the normal guys to buy up.

I thought only dealers could go to auctions.

NuttBoxer says

Flood of used cars set to hit the repo market.

Not seeing it here yet. Hopefully soon. Kinda scary to see the words "flood" and "cars" in the same sentence, though.

WineHorror1 says

I thought only dealers could go to auctions.

Definitely anyone can go in San Diego. The trouble is they're usually frequented by small time dealers and mechanics, who can spot the good ones better than you, since you're only allowed to start the car.

https://www.carscoops.com/2022/11/more-and-more-americans-are-struggling-to-pay-their-auto-loans/

More And More Americans Are Struggling To Pay Their Auto Loans

The percentage of automotive loans that are at least 60 days delinquent hit 1.65 percent in the third quarter of 2022. That’s the highest rate of delinquencies in more than a decade, which indicates that vehicle owners are increasingly struggling to make payments on their vehicles.

zzyzzx says

https://www.carscoops.com/2022/11/more-and-more-americans-are-struggling-to-pay-their-auto-loans/

More And More Americans Are Struggling To Pay Their Auto Loans

The percentage of automotive loans that are at least 60 days delinquent hit 1.65 percent in the third quarter of 2022. That’s the highest rate of delinquencies in more than a decade, which indicates that vehicle owners are increasingly struggling to make payments on their vehicles.

1.65 doesn't sound like alot.

GNL says

1.65 doesn't sound like alot.

It's the highest rate in more than a decade, and yes it's all relative. I suspect that it's going to go higher.

NuttBoxer says

Flood of used cars set to hit the repo market. Expect big price drops in the next month or so

Did it happen?

The only silver lining to the grossly inflated used car market is that if you have a vehicle with severe accident damage, they are less likely to total it.

Insurance ain't what it used to be . . .

Between toxxine-induced crashes and general degradation of driving skills because lockdowns, insurance companies are going to reap the whirlwind. Of course, they'll pass it on to us.

Eric Holder says

NuttBoxer says

Flood of used cars set to hit the repo market. Expect big price drops in the next month or so

Did it happen?

The car companies are cutting back on production to counter low car prices.

HeadSet says

Eric Holder says

NuttBoxer says

Flood of used cars set to hit the repo market. Expect big price drops in the next month or so

Did it happen?

The car companies are cutting back on production to counter low car prices.

How does it stop the predicted flood of repo'd used cars from hitting the market and lowering USED car prices?

Eric Holder says

How does it stop the predicted flood of repo'd used cars from hitting the market and lowering USED car prices?

When there is a shortage of new cars, used car prices go up. Around here, the dealers have little new inventory and very high prices for the used cars they do have. The local Nissan dealer sends me emails asking me to sell them my Pathfinder.

My wife's car was just totalled when she was rear ended sitting at a light. Waiting for check, I want to hold out a bit longer but we only have the rental free for a month.

RC2006 says

My wife's car was just totalled when she was rear ended sitting at a light. Waiting for check, I want to hold out a bit longer but we only have the rental free for a month.

Wow, must have been a hard hit? Just about 2 weeks ago, I witnesses an accident at a stop light. I was first to open the door. The guy, about 65ish, said he simply passed out. He hit the other car pretty hard.

GNL says

RC2006 says

My wife's car was just totalled when she was rear ended sitting at a light. Waiting for check, I want to hold out a bit longer but we only have the rental free for a month.

Wow, must have been a hard hit? Just about 2 weeks ago, I witnesses an accident at a stop light. I was first to open the door. The guy, about 65ish, said he simply passed out. He hit the other car pretty hard.

Clot shot?

F250 hit a BMW and the BMW hit my wife's odyssey, bent frame enough that she couldn't open her door. She also has minor whiplash.

RC2006 says

F250 hit a BMW and the BMW hit my wife's odyssey, bent frame enough that she couldn't open her door. She also has minor whiplash.

Get a lawyer and this book is pretty good...
https://www.amazon.com/gp/product/B07933D6M6/
I'm working on building out a product just for rearend collusions.

Booger says

GNL says

RC2006 says

My wife's car was just totalled when she was rear ended sitting at a light. Waiting for check, I want to hold out a bit longer but we only have the rental free for a month.

Wow, must have been a hard hit? Just about 2 weeks ago, I witnesses an accident at a stop light. I was first to open the door. The guy, about 65ish, said he simply passed out. He hit the other car pretty hard.

Clot shot?

That was my first thought.

HeadSet says

Eric Holder says

How does it stop the predicted flood of repo'd used cars from hitting the market and lowering USED car prices?

When there is a shortage of new cars, used car prices go up. Around here, the dealers have little new inventory and very high prices for the used cars they do have. The local Nissan dealer sends me emails asking me to sell them my Pathfinder.

That is how it works in absense of the huge flood of repo'd cars, but the said flood should've at least compensated for the new car shortage, no? If it happened, that is.

RC2006 says

F250 hit a BMW and the BMW hit my wife's odyssey, bent frame enough that she couldn't open her door. She also has minor whiplash.

Speaking of which, why the hell do the idiots driving those big trucks insist on driving way too fast for conditions. Morons don’t realize that heavy large trucks take longer to stop than smaller cars? The new compensation? No longer a sports car, now compensation is a large truck?

What's not to love about $20,000 10 year old cars?

Tenpoundbass says

What's not to love about $20,000 10 year old cars?

Fixed:
What's not to love about $20,000 10 year old cars that have > 100,000 miles on them?

This is because decent used cars get EXPORTED, leaving only the junkers and the "60k miles in 2 year Uber" Vehicles.

zzyzzx says

Tenpoundbass says

What's not to love about $20,000 10 year old cars?

Fixed:
What's not to love about $20,000 10 year old cars that have > 100,000 miles on them?

This is what TPTB want, just like the push to EVs. It’s getting a large part of the population out of private transportation. Prices increased by dollar devaluation on these vehicles will buoy the price retreat from the scarcity peak somewhat.