Auto Loan Crisis Gets Worse
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- เผยแพร่เมื่อ 1 มิ.ย. 2024
- Auto Loan Crisis Gets Worse
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The banks are the ones that made this mess some of then even created rainyday funds for when this would happen (ally, +) now they are worried acting line is peoples fault they got approved for over price cars with huge roll over financing from their previous car loan. They did this and plan for it. It wasnt the consumer it was the banks
you better charge those stupid gambling scams 100k per schill ad and video ad cause it surely aint helping your image.
Lucky is opportunistic, willing to compromise integrity for profit. It's a common trend among TH-camrs to amass an audience and then prioritize profit over authenticity. It's disappointing, Lucky. Stick to your expertise in car sales; trying to be both a content creator and a car salesperson leads to inconsistent information and undermines credibility.
@@johndonovan7018 The irony of promoting a gambling ad on a video about a loan crisis... Pretty sure those ads are illegal in many jurisdictions for obvious reasons.
@@johndonovan7018op ok hu 6am
The crappy thing about actually having money to pick up some of these cars for deals is that the insurance is so ridiculous it makes me not even want to pick up another car.
And you know whats worse , when I pay almost $600 per month for my G83 M4 and then someone steals wheels off my car and then the insurance declines my claim…screw insurance 😭
Spot on. I need a truck. Just bought a farm. Have plenty of money. My car insurance for a minimum coverage, 300k mile car is still 90 bucks a month. I have owned it outright for over 25 years. I have no collision and the car is “worth” maybe 1000 bucks. But I use it around the farm and have to have insurance when I have to go on the road.
Buying a used truck and paying who knows how much in insurance is not very enticing.
Ps. My car insurance is 408 a month for 3 cars with no claims or tickets.
Boat insurance is 40 a month and then my ATV / tractor insurance is 28 a month.
Home owners is 120 a month.
I’m an insurers dream I’m paying $600 a month for decades and never had a claim.
And high
property taxes!
And high
property taxes!
And high
property taxes!
People cant live like Big Man on Campus anymore.
facts!!!!
@@LuckyLopez777idk, I just got my insurance renewal, 10k for the year up from 5k for the year. No tickets, no wrecks.
That right there is about to make me say screw it and let the bank take my 750i back. Ain’t no way they should be charging me this much for 2 people over the age of 28, married.
Sorry do not get why people say they have these high insurance rates- splain it to me? Mine is $1600 a year brand new X1 M35i and a 2018 Crosstrek- for me and my wife!!
@@deancapinegro4575 im making phone calls Monday to find out why. Ain’t no way insurance should be this much, unless it’s the area we live in.
I think it’s borderline Illegal the price gouging we’re experiencing
@JamesCook76131 where do you live?
My mom was paying $300 a month for toyota sienna when she was living in CA.
I have her on my insurance at one point I had her sienna and my jeep grand cherokee L, 2 durango hellcats, and a S550 GT500 and was paying $400 a month!
I just got a loan from my local credit union(not an auto loan) I talked with the loan officer and was shocked when she stated that they are still loaning on autos at over 130 percent of book value. I asked her why… and she didn’t really know. I then asked if it is still frequently being maxed, and she said, more than I would think. Remember, play stupid games and win stupid prizes…
Because the only way a bank makes money is to issue loans....and the whisper talk is that the Fed is going to bail out auto loans at the end of the year....which....is right AFTER the election.....so no political repercussions for such tragically damaging policy if the Fed buys out the bank loans again to our tax pain in future years...because we will be the ones paying for them putting the debt on the governments tab if that does happen.
And now you understand that this is all planned and it is working perfectly. If you let them, they will own you very soon. God bless from Norway.....
If they're doing over probably for well qualified customers. I can't see them still doing it for subprime. If they are id be shocked. A lot of banks won't lend over 130%, some set their guidelines even lower at 110%
I know why. They sell money and wanted to sell more of it, risk be damned. Usually credit unions are more conservative but I guess not. 80% LTV should be the max.
That CU is playing a very dangerous game. Not going to end well. Check your CU max insurance coverage on your account.
I have never loved my paid off car so much. I feel so fortunate.
lucky you 😁
@@LuckyLopez777 Luck has nothing to do with it. Financial discipline and planning has everything to do with it.
@@nothingtoseaheardammitit is lucky. Meaning he has that skill set which is rare for the rest of the morons in this country that want the latest, shiny thing
I paid my 2019 Toyota Corolla hatchback off last month and am so grateful was able to purchase it before COVID and all the crazy markups ..
nice $$$$
2017 Honda Fit. I'll drive it for 10 more years.
2016 subaru outback. Paid off too. My insurance has gone up from 85/mo to 108/mo. How does that make sense?@@lot2196
Early covid was a great time to buy cars since no one wanted to buy.
I'm out here like Braveheart waiting to make a move. Hold. HOOOOOLD! 😎
Layoffs will continue in 2024 so people will have to choose to pay that mortgage/ rent or auto loan. Repos will get worst and so will foreclosures.
1000%
Bidenomics. It's working. Give it time.
Bay Area is completely dead
House forclosure will happen around 2025 imo.
Postponed til after Joes coronation
MSRP.......LOL, that used to be the starting point for negotiations downward. Also, with all the hype on TH-cam about crashing used car prices, I'm not seeing diddly squat in the way of deals. Vehicle prices shot up 30% over 3-4 years. Now they're trying to tell you that MSRP is a deal.........yeah, BS.
I know dodge is selling trucks 5-8k under MSRP
Dodge gave 10 percent of new msrp.
Great, now RAMs are only 20% overpriced!
CDJR been selling for under MSRP. They are in big trouble, they can't move the inventory!
@g18886 my point exactly 💯
Dealers selling over msrp and banks 🏦 loaning over msrp-what could possibly go wrong??😎
i know right lol $$$$$
Exactly
The reason for delinquency is more than just the car payment and loan balance, IT IS THE OUTRAGEOUS HIKE OF INSURANCE COST.
All the immature, impatient, instant gratification customers that willing paid ridiculous ADMs of
$ 5k, 10k up to 50k on in demand models that were still going to depreciate 30% as soon as they drove off the dealer lot deserve to loose their shirts on their bad loans
100%
*lose
@@geocam2 no one is talking about those cases. he clearly is referring to immature, impatient, instant gratification customers that willing paid ridiculous ADMs
It is interesting that you bring up the term ADM since ADM (Archer Daniels Midland) just suspended their CFO, delayed release of their latest quarterly results, reduced earnings guidance, and are cooperating with an SEC investigation.
@@ceusolution1524lol more like Adjusted Dealer Markup
Paying off my cars,and having zero auto debt was the smartest thing I ever did.
2023 was a hell of a year, I have made $271,000 before taxes as the sole breadwinner and head of household. This is a great starting point and I’m very aware how blessed we are to be in this position, but I’m always looking ahead on how to improve. I currently have $88K left in student loans (originally close to $150K) and very little credit card debt (less than $2K with more than $25K available). I have two auto loans totaling $100K for two electric vehicles at 5% interest. I will appreciate suggestions from anyone who has been in same shoes on how to go about them.
You may want to start somewhere different, like the snowball method, where you focus on one loan, usually the smallest one, and direct all of your resources to pay off that loan while maintaining payments on the others.
You may want to work with a money coach or investment advisor, although an investment adviser will concentrate on long term a money coach will help you with paying off all of your debts, maximize your cash flow and help you create systems and processes to direct your money proactively.
A financial adviser could help too to create a more holistic plan for your money. They can assist you in the creation of both short and long-term goals and then help you by giving guidance on the financial decisions and opportunities you are presented with.
Yeah get you an invaluable adviser, everyone has blind spots when it comes to their finances. I began consulting with an advisor in WA from NY. I have a plan in place now and began to love spreadsheets making 662k in the past 8 months from barely 400k makes me have high hopes for 2023.
Who is this advisor you work with? I have tried getting around me and it is practically impossible to get one that doesn’t charge exorbitantly. Can you also share what the fee structure is like?
One of my co-workers over paid for a Kia SUV during the pandemic they stopped making the $600 dollars a month payment in July 2023 the bank still hasn't repossessed it. In December it blew the head gasket I told them to park it in front of the house and call the Bank and tell them to come get it. That was in December and its still sitting there.
I know a guy that got tired of having two of them sitting in front of his house. They refused to pick them up so he towed both over and dropped them in their lot on a Sunday.
I feel sympathy for our country, low income people are now suffering to survive yet inflation and recession keep increasing daily, many families can't even enhance the good cost of living anymore. You've helped me a lot Expert Yetta Cox! Imagine I invested $2,000 and received $10,500.
Getting Yetta Cox to help me really helped me clear all my debts. I started with what I have left and it's been the best decision I ever made.
I am grateful to her. though I started with as low as $1,500 actually because it was my first time and it was successful she's a great personality in the state..
*SHE'S MOSTLY ON TELEGRAMS APPS WITH THE BELOW NAME*
*EXPERT YETTA*
I'm also one of the beneficiaries of Yetta Cox. Relying upon this administration is nothing but a total waste of time. So happy I gave it a trial after being skeptical of the process.
The banks made it possible for the dealerships to overcharge as much as they did. If they didn't give out loans above retail value, the dealerships couldn't sell the cars in the first place and would have to lower their prices. The banks can suck it now.
Technically the banks were just acting upon orders from the Fed and the Government. The massive amount of "free money" being dumped from helicopters into the economy made this possible. When banks could essentially borrow money at 0% that they could then loan out to anyone - it's literally an almost no-risk situation for the banks. These market conditions were created - ultimately - by our federal government inflating our currency in an effort to drive economic activity during the pandemic - all for shameless vote-buying.
Maybe people should've been adults when it comes to car buying instead of little immature children saying they want thir car In This color with these features and willing to pay more that what they're actually worth. I don't feel bad/ sorry who are paying for it now or get repo'd especially if it's a car they bought just because they WANT and not NEED!
It's also loan terms too... the 84 month loan never should have been a thing.. but it's the only way they can sell these expensive cars.. 1/84 at a time.
Very good point.
@@TheIronChainMaster None of that was the reason most overpaid for a car. They NEEDED a car. All cars were overpriced, not just special orders.
Car prices need to go down at least 40% before I'm interested in buying another one.
$$$$$
That ain't happening. Ever. Inflation alone will cause the same car to be 33% more than it was in 2019.
They need to go down 50% from the current MSRP.
@@nothingtoseaheardammitthe used EV marking is seeing those depreciation numbers 🤷
We were going to purchase a car about 3 years ago but prices have been so ridiculous, no way. We just keep putting $ into savings every month for a car, but now we get over $200/month in interest on our savings - it’s going to be hard to ever part with our savings to purchase a car.
Bond yields are cool. Or HY savings accounts.. finally people who save money aren't getting entirely screwed.
If you put that money in S&P etf you probably get more than you ask for your money in span of 3yrs nit in the bank saving but only gets you interest low and tax you more by the bank with low returns. Saving in bank were obsolete and for no money literacy only.If you also buy it with gold then you prbably sitting now double your money in that span of time. You don’t sit your money for nothing but you needed to ket them work for you. Its not too late..
this is me. I’ve been waiting it out for years. I originally took my car money and put it into stocks and now there’s no way I’m selling them cause they’re way up. Now I almost have enough again but I don’t wanna part with it from a HYS and I hate loans but I also don’t like driving my Lexus anymore with 186k 😭😭😭
@@JB-dv7ewbook some profits on your stocks and put them in FD or bonds before the stocks collapse soon.
I bought my 2019 Charger Scat Pack in early 2021...used. Had 8300 miles on it, and was CPO. I bought the car from Desert 215 Superstore right there in Vegas for a listing price of $40,500 (got a smokin' interest rate too). Literally the most expensive car I've ever purchased in my entire life. I make decent money too (right about $90K/yr) and I was still sick that I signed a loan that large. I've dumped a ton of money on the principal and only owe $5,400 as of today. The people out there making half what I make that bought cars for $50K, $60K, $70K+....I couldn't imagine that amount of auto loan debt.
40k is borderline for a 90k salary, but you've obviously shown you could handle it and do the responsible thing!
Bro, to buy a used car for half of your yearly income, you YOLO it
You still love the car? That's honestly what matters
@@danihan1321 I'd argue that buying a car like that just means you're combining your transportation and entertainment budgets - you can bend the rules a little bit since that just became your entertainment as well. As long as you can afford your other necessary obligations first, of course!
@@mikeydude750I make 80k and can barely get myself to get a 10k loan. I literally just hate debt. I can’t do it lol
The unemployment numbers are a falsehood. What they never tell you is the Labor Force Participation Rate is the lowest it's been since the 1970s (minus the 2020 covid lockdown blip). Basically, if there's 100 people, and only one of them has a job, but only one of them actually wants a job, you're at 0% unemployment, according to the current way of calculation.
That’s not as big of an alarm bell as you might think. All that means is that the Boomers are finally retiring en masse. So you have a lot more people, from our biggest cohort ever, not looking for work anymore.
@@akitadog01 The numbers (US Bureau of Labor Statistics) disagree. In 2002, 61.9% of those age 55-64 were working. In 2022, that increased to 65.2%. By contrast, since 2002, all age groups, 16-54, decreased their participation in the workforce, by anywhere from .5%(25-34yo) to a huge 10.6%(16-19yo). In summary, all ages 55+ have increased their participation, and all ages 54 and younger have decreased their participation in the workforce.
Plus, it is not just about employment status -- it's actually more about disposable income.
Correct. They changed unemployment rate in 2011 under Obama. Unemployment is much more worse than what the data tells you.
I guess I'm the fool. All my fully paid for Toyotas are working perfectly.
Great video Lucky, thanks. Your enthusiasm shows us just how into the car space you are, and that is a good thing. Great work!
Power in numbers. Let everyone default.
I see what you see in NV here in NC. Used car prices are still too high based on mileage and age. It doesn’t help that it costs upwards of 35k out the door for basic transportation new.
the old saying remains true." A FOOL & HIS MONEY ARE SOON PARTED".
100% !!!!
That's ⅔ of the country now.
No one in this neighborhood has changed cars, they’re keeping what they have. One person did buy new pickup yet they sold 3 vehicles and put the money towards that one truck.
$$$$
My neighbor just brought home a new F-150 STX with the V8, four days ago.
A huge thank you from Canada, I love your channel (and so do my friends who I recommended this to). I am just flabbergasted that Canada is not following the same trend given our auto loan debts and economy! Can't figure it out! Anyhow, thanks always.
The repo man creepin' up like freddy kruger😮😂
😂😂😂
lol. very true lol
Lucky, I always enjoy your updates. Just the Facts. Best regards from the California Coast!
It doesn't make sense that their "books would look better" if they're not taking in monthly payments from the customers and they're also not repossessing the car. The books are not solely based on buying and/or selling cars. The monthly income from the loan payments gets recorded and goes on the books, and can be seen quarterly with quarterly reports. Surely these banks can see that things aren't going to get better, so waving payments for a few months HOPING they'll start paying again is laughable. Repossessing a non-performing asset and selling it to get it off the books is way better than letting it sit there, depreciating and NOT receiving payments either.
Idk why but youtube stopped recommending your videos to me. Glad you're still making them Lucky.
It doesn’t make sense. How are people returning cars and benefiting from the process? When you return a car your credit is shot and the interest and terms on any new car will drown you.
They buy a new car before letting their current one go into repo. So even if they take the credit hit, it's after the fact.
Banks might have just 'eaten' the deficiency balances before, but many auto lenders (especially Buy Here Pay Heres) are now looking to sue to collect on some of that deficiency balance . . . . as a way of trying to remain in business. Generally, auto lenders have four years from the date of default to file suit. You can check on your state's version of UCC 2-725 to verify your state's statute of limitations.
So, just because your auto lender has repo'd your car, please don't think that you're out of the woods on having to pay on that loan.
I have a very clean affordable ($5000) car listed for sale for almost 2 months now. No real buyers, not even single realistic offer. But had bunch of people messaging if we can setup payments...
Yeah, but is it actually worth $5K? I see so many people advertising cars for sale at WAY over what they are worth.
Interesting. I often look at Facebook marketplace looking for used cars for friends. Most cars I see seem to be priced reasonably. Most of the best cheap deals I see are mechanic specials where the owner can't afford the repairs and just wants to get rid of the problem. That's where buyers that are mechanically inclined have the advantage.
Was watching Barrett Jackson today seemed like money was no object still.
well thats rich people, they only got richer during covid now its time to shop lol
Yeah. The prices for classic cars have gone through the roof. But like everything else, money is no object for those who have it.
Because lots of people received PPP loans during Covid and start pretending they were rich. It is very simple.
All they did was cause everything to go up, I believe when you drive by a lot that has wrecked cars and being sold as is you know it’s a repo.
Correct. Printing money. Increasing M2 just causes massive inflation. Inflation is always caused by Government.
If they can convince you that it’s normal. They are robbing us with our permission
The financial immaturity of most consumers is baffling. They received COVID funds, PPP, etc, and instead of INVESTING that money everyone became a baller buying Rolexes, Mercedes Benz’s, giant TV’s, etc at inflated prices that they really couldn’t afford, and now the music has stopped. Guests on CNBC would constantly talk over the last few years about the big savings rate by folks coming from government pandemic money, but just like a redneck lottery winner, it all be spent now!
Banks and lenders are responsible for this too. They ignited this problem by overlending. Consumers were acting irresponsibly and this is what you have. Everybody gets burned.
Consumers are stupid and immature and the banks just helped enable that behavior
Always educational and fun, thanks Lucky!
Back in December I got into a really bad car accident which was a no-fault situation and my insurance paid me way more ACV than I anticipated. I was able to immediately get my car note paid in full and the loan off my back were now almost in February and I still have, a good portion of the payout from the insurance sitting in my bank account and I am completely indecisive on what I should do to replace the car. After being in a $600 plus $250 a month auto payment and insurance I really feel that financing another car is simply just not a feasible option. While I do need to find another car, I’m being really stingy about it but also trying to weigh the pros and cons of trying to find a really cheap car and pay it full in cash.
Easy decision, buy a quality used car cash. Auto loans are wealth killers.
I work in the auto industry. 2 paid off cars w/ 2 more. 1 leased and 1 financed with a 2% rate. I’m trying my hardest to figure out how to get rid of the leased car. Didn’t pay over, just had a moment of clarity realizing I have 2 cars paid off and don’t need to be financing 2 more
Yes, I know someone that got repo'd yesterday.
Here were the terms :
You're 3 payments behind , make one payment , and they'll add the other 2 back on to the loan. Sounded pretty fair to me, to be honest, even generous. They could not do it, they lost the vehicle.
This was a Toyota pickup, brand new.
Hi Lucky, I love this video you posted! Not enough people or news outlets are covering this topic. This crisis is what will break the camel’s back in the economy. I would only buy until I’m absolutely forced to. I’m taking your advice and holding off on a new car purchase.
Finally someone that accurately summarizes the current car market crisis and how is directly correlated to the car repossession’s rate impacted by the pandemic
Great content.Thank you
Thanks I appreciate it
No car payments is a flex.
Bought 26 December. 844 credit score got a better than the promotional rate, got well below sticker, got over book for my trade and they ate the labor on dealer installed options.
Good credit never goes out of style. Traded a 2021 Subaru Outback XT Onyx (70k miles) for a 2024 of the same. Subarus hold value well and this was dealer maintained by the book.
Never in my life did I think I would be forming some of my financial strategies based on used car dealers. Thank you for all of the information and explanations you provide!
very good info and true! Glad all my newer cars are paid off.
Thanks for all the info lucky. Im in phoenix but always go to vegas for work, it would be awesome to check out that little beast smart car.
Im have a big video coming for the smart car
You’ve taught me more about life than cars. And I appreciate you. We got a generation of kids without role models to make them financially literate.
I don't know anyone with a car payment. I see tons of new expensive stuff on the road and it makes me wonder how and why. With insurance the way it is I just want to drive old worthless stuff. I'm up in Reno and all I see at the stores is people spending like you wouldn't believe. Costco, Target, TJ Maxx, the airport all jam packed with people. I think the people spending are those that bought houses or refinanced before 2021.
I did a video explaining this back in 2022, laying this entire scenario out and it went on deaf ears due to the algorithm. Now look at us lol😂 Good stuff Luckie
We can also expect the $15k and below cars to go into short supply and over priced as well.
I should have gone into banking. I'm pretty sure throughout my life all bubbles were ultimately cause by them. I could have screwed up things just as good as they did and gotten paid.
I work in insurance settlements, we get people call after the total loss of their car asking why we have valued their pre accident value for less than what they paid for it a year ago. It's almost like they think their car is an appreciating asset.
The flip side to focusing on the lower end, is that some in the upper middle class are actually better off because of the anomaly trends. I flipped a couple of trucks for profit early last year. That helped me pay cash for my new truck I bought in 2023. I moved my liquid emergency money to a money market to get more interest, while my investments are at record highs. Not everyone is doom and gloom. I for one am just waiting out the car market, because I don’t want to buy into a falling knife. Some people took advantage of rising car values and high interest rates. It actually forced us to be more disciplined with our money. It is easier to have surplus money when you don’t have car payments.
Here in Minneapolis, I haven't seem much in regards to repos except for dodge chargers.
I thought u could only buy those with weed reward points?
@@tuscanyjc😂😂😂
thanks for sharing
I’m pretty sure banks can come after the car owner for that $10K deficiency from what they sold it at the auction. I don’t believe people can just walk away from their car loan, turn over the keys to their bank, take a hit to their credit and not get stuck with a bill for all the negative equity. At that point, the only way to get out of the negative equity bill, would be to file bankruptcy. Correct me if I’m wrong.
Big picture problem : Banks not cracking down on people who made bad decisions, punishes people who have made good decisions.
I couldn’t understand the folks who were paying over MSRP for something. I sort of put car buying on hold for a bit then realized some dealers weren’t playing that game. I bought a new Lexus GX460 during all that and got $2,000 off MSRP. I was happy, and I went in with $25,000 down. When I was looking for the GX I had a dealer want to charge me $10,000 markup, NO WAY! I always have other transportation, so I’m not desperate.
I agree that banks are hiding delinquency rates and such. I know that over the holiday season I missed 4 different credit card payments by accident (I normally pay my balance). Not one reported anything on my credit about a late or missed payment.
I just paid all the balances later on (1-3 weeks late) and 3 / 4 even waived the interest.
Patiently waiting for the right time for a new / gently used corvette, but all of this and the interest rates make me very thankful for my paid off car and the ~3% interest rate I had 😅
You and me both!
Samehere 😊
10:00 I swear people have tried to crash into me for insurance fraud to get out of their loan
Dashcam, gotta have one at this point.
That could explain why people seem to drive like maniacs. I thought it was just a bunch of really stupid people.
In 2020 I bought a brand new Subaru Outback for 28k with 0 miles. A year later when the market went nuts it was worth 34k used and it had 10,000 miles on it. So I sold it and got out of my payment and used the left over 6k to buy a 2006 Outback. People break my balls about driving an old beater but I saved $600/mo for three years while they got locked into car loans that they are 10k upside down on. I’ve been patiently waiting for the market to correct itself. I think it will bottom out after tax return season and couple that with the lowering of interest rates will make late spring/summer a good time to buy.
That's smart!!! The people breaking your balls are just jealous because they're not as smart as you. Nothing better than buying a brand new car and getting paid to drive it for a year and then over the course of three years save yourself $22,000 worth of car payments. That's a boss move.
@Lucky Lopez, the Government is the right the unemployment is very low but that is because in this economy, people are having 2 to 3 jobs to survive, so when they loose 1 job or get their hours reduced, they are not unemployed and cannot file for unemployment. The way people are working has changed and we are still using the same old methods and stats to measure unemployment...
Same scheme as 08. Fire people. Turn 1 full time job into 2 part time jobs. Boost job numbers
Thank you Lozpez. Clever words "nobody will force you or put a gun to your head to sign this" Most people are greedy idiots. They don't have enough money for a new vacuum cleaner but want to drive a new car.
The crisis is bitting dealers, a big one in Washington state (Northwest motors) suddenly closed all of their locations!!
I am seeing on FB price have fallen on STOLEN Dodge chargers
I can't believe the dealers didn't see this coming. Eventually, with all these used repos being dumped on the market. The used auto market will crash. Used car prices are dropping. Give it six months, used car prices will be much lower. Why didn't the banks see this coming?
This is what happens when supply side gets too greedy and price out consumers. One of the basic things you learn in grade school economics is called equilibrium. This is selling products and services at prices that you can make a healthy margin on while the consumers can comfortably pay for said products or services.
Greedy sectors of the economy always take advantage of crisis like the pandemic and inflation. This ends up hurting consumers and other supply side sectors.
The "Supply side" didn't get greedy. The "Demand side" got dumb and were incentivized to be so by massive financial stimulus - "priming the pump" as the Keynsians like to say.... and this is what we got. The "Supply side" as you like to put it, wouldn't be charging these huge markups if they couldn't get paid. For every consumer on here demanding that prices are too high, there's another person who is going out and getting a loan (with still historicly low interest rates) and buying cars.
I think you nailed it. Sellers will only be able to get the prices they want if there are willing buyers. It seems that, finally, buyers are no longer willing to pay these high prices . . . whether the buyer are the dealers looking to buy at auctions or consumers.@@nothingtoseaheardammit
@@nothingtoseaheardammit Did you seriously just say supply side didn't get greedy? That is the whole reason why channels like Lucky Lopez exist within the auto industry.
Another example is the housing industry, particularly in the sunbelt area of the country. There are people who work, but literally can't afford a place to leave. That is what supply side pricing out consumers mean. There's another bubble in the housing market.
Banks will also go after the debtor to recover the deficiency. I've seen that happen quite a few times. I've seen videos of people trashing a car that they knew were going to be repopped. Never do that.
Sounds like car prices are coming down BIG time in the near term...
I was looking at a 2019 Honda Accord since the prices crashed, about 30% or 8k discount, but the interest rate is 11%. That's 180 a month on interest alone. Guess I'm not buying anytime soon
Save up and buy with cash.
One problem major banks have is the cost of doing repossessions. I started my career in car business in the late 60's as a repo man; those days were easier. A lot of guys in Florida simply cant get licensed, look at the price of a good recovery truck, insurance for the truck and the big killer LIABILITY INSURANCE. We do buy here - pay here. I am amazed at how many repo's show up at our local auction. We bought a little heavy in December, waiting on tax season.
Still rocking my '06 Audi A4 2.0T. 455000 kms, original engine, second turbo. Still humming away. Hope you guys are in vehicles you like, would not recommend buying a new one for a couple months.
If you can't comfortably pay at least 20% down on a car and afford the monthly payments with a margin for increase - do not buy a car. As a society, we need to move away from credit. If you can't afford it, don't buy it. Houses being the only caveat.
all my trade in values have taken a nosedive but dealers arent coming down to match
Manufacturer's lost their DAMN mind🤯
Banks can't take losses on their balance sheets, as they won't pass government's capital requirements.
Facts!!!!
Back in 2008 people weren’t paying over MSRP 20% or 30%,whereas in 2021/22 banks are in negative equity.
In New Hampshire I never see 20 day plates anymore. On the rare occasion that I do see one, I think what a fool.
Re: The Government : lies , damn lies and statistics. Recent example = SAFE AND EFFECTIVE!!!!🤣🤣🤣🤣🤣🤣🤡🌎
Lucky I posted on your first video about my neighbor who bought a jaguar $95k with like $2k down. People thought I was joking. Now his house is in foreclosure.
Yeah, I fit the less ideal demographic unfortunately,
I sold my almost paid off, 2017 tacoma, spent the equity on living expenses, got into a nice 2021 Ram 1500 at 5% interest, drove it for a year and sold it for what I bought it for thinking the next Ram would be an upgrade for a minimum expense. I special ordered from a dealership at 14% off MSRP. MSRP increased $5,500 by the time the vehicle arrived AND now my interest rate is 8.19%. Effectively increasing my auto loan payments by $300 a month, and with everything going up, it’s been VERY tight affording it. My insurance went up almost $100 a month as well.
I could sell it for about what I owe on it now, minus a few thousand, but I know I won’t get approved for anything like it in the near future, as my other debts went up massively the last couple years. I guess I’m holding on but I know it be smarter to let it go……
I called the bank and they were willing to refinance the truck to lower the payments $200, but extend the loan 18 months, but in doing that I’ll definitely not keep pace with in depreciation.
But hey I plan on keeping this vehicle for ever.
Thanks lucky!
As an insurance person people are wrecking and claiming cars are stolen at an extremely high number. This is a reason rates for insurance are skyrocketing. Amount other reasons of course but this is definitely a reason.
Managed to get the car I wanted at MSRP and sold my previous car for more than I was expecting last month… but I had to put the work in for it. It can be done, it’s just not easy, and I bet you’ll have to be willing to travel pretty far to make it happen
I still boggle when I hear that Americans buy a new car "every 2 to 3 years". No wonder people bitch about not being able to get ahead. When you go into stupid debt on depreciating assets then no kidding you can't get ahead.
Really wanted to buy a new car in 2022, but couldn’t justify the prices. Looking at fall/winter of this year but willing to wait if prices continue to be elevated
This is real. My tenant fell behind on her rent and was given an option: pay your car note and live in it or pay your rent and find a ride to work. She bought a cheap car on a tote the note lot and let her 2018 Jaguar sedan with a balance of $32000 get repoed.
From Salem Oregon local Kia is selling the crap out of used cars and pickups hardly any new stuff
Lol some of the blame... no...... ALL the blame.
2:05 You don't get a free lunch by simply "letting the car go"
Hey Lucky, thank you for sharing your expertise. I'm curious to know how your business is doing? How do you get the qualified buyers?
not offen lol
The larger banks have to report to the shareholders. Since they're a publicly traded company most likely why they want to keep the books looking well.
How about only buying cars with cash, no loans ? Since when we treat cars like homes … if you got only 5k , buy a 5k car. Only got 1k, buy a 1k car. Simple
Imagine on the other hand that 96% of the loans your bank made to customers are paid on time every month. I could be wrong but I'm pretty sure a bank will be okay with 4% auto loan defaults on the books. I know the restaurants prefer to keep their shrinkage or inventory loss due to theft or spoilage at right around 3%. I believe that banks would consider a 4% default rate as low and acceptable.
Yes the auto industry is in a quandary. Let's see how it all plays out instead of raising an alarm prematurely.
Havent had a car payment in over 10 yrs, I have all Toyotas and just keep up with maintenance and do repairs when needed myself. We are called consumers for a reason and the times of the pandemic didnt change people's spending habits.
Might take on this is hold on to what you have and invest in repairs as needed setting aside a payment and buying cars with cash going forward.
Great video.
I really have a hard time feeling sorry for banks. Lending money over MSRP is just foolish. Hopefully this would be a learning curve for banks. Trusting people is sketchy in today's world. Banks need to start telling car sales people to go screw themselves putting together such bad deals for customers. We sold a 2019 Hyundai with one of those terrible 2.4 engines. We owned it two years. We bought it right and sold it at practically retail.
It's interesting to see even larger banks like BMO leaving the auto loan industry entirely. I don't really understand what is going on anymore in both auto loans and the insurance side. Strange times, but will enjoy watching from the sideline.