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Carmageddon: The makings of the next credit crisis could be in your driveway

odessa.filez

Autocross Newbie
Location
Roswell, GA
Car(s)
2016 GSW 1.8tsi auto
no opinion on the broader topic but I did research 2017 Jettas on Autotrader 3 weeks ago....24k new Jettas for sale nationwide, with year end upon us.

A beltway Jetta S could be had for 50pct off.

Could be a sedan vs SUV trend thing?
 

EXEA189

Ready to race!
Location
Rocky Mountains

EXEA189

Ready to race!
Location
Rocky Mountains
23 Million Americans hold sub-prime auto loans

- Credit Score below 620
- ~20% of new car loan originations are sub-prime
- Mainly auto finance companies, 70% share, $200 Billion
- $435B in auto loans outstanding made to consumers with credit scores <660
- A third of the market is sub-prime

The US Auto industry is about to implode - Michael Alkin

https://youtu.be/b-9hX3H_9qI
 

EXEA189

Ready to race!
Location
Rocky Mountains

Bullet Bob

Passed Driver's Ed
Location
NC
"...insane discounts on new sedans"

I think part of that is their own darn fault. I love the exterior of the Chevrolet Impala, but won't buy a car with automatic engine stop/start that can't be turned off. CVT? No thanks, Nissan Maxima. And somehow Toyota manages to make the front end of the Avalon uglier each year.
 

adam1991

Banned
Location
USA
I have a 60 month loan. It's costing me $1100 to do that as opposed to simply paying cash for the car.

And at that price for the money I'd rather have the cash in MY hands over that 60 months than give it to the dealer all at once.

I guess I could have done a longer loan. The point is, I have the cash to pay it off. I really don't care if I have a loan or not, as long as the math works out.
 

Hoon

Autocross Champion
Location
Rhode Island
I have a 60 month loan. It's costing me $1100 to do that as opposed to simply paying cash for the car.

And at that price for the money I'd rather have the cash in MY hands over that 60 months than give it to the dealer all at once.

I guess I could have done a longer loan. The point is, I have the cash to pay it off. I really don't care if I have a loan or not, as long as the math works out.

Did the same, total interest expense is less than $1k on 60 month loan.

Could have bought it cash, but at 1.9% it's absolutely stupid to buy a car outright.

That said, the types of people taking 84+ month loans are typically credit disasters signing up for absurd interest rates...they aren't doing it so they can keep their cash in their portfolio for greater dividends / share value.
 

Bäsemödel

Go Kart Champion
Location
Lancaster PA
in an interesting tie in, the birth rate is the lowest its been since the 80s... drops in birth rate have be known to be precursors to economic slow downs... this might get interesting
 
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