Seen on the street in Kyiv.

Words of Advice:

"If Something Seems To Be Too Good To Be True, It's Best To Shoot It, Just In Case." -- Fiona Glenanne

“The Mob takes the Fifth. If you’re innocent, why are you taking the Fifth Amendment?” -- The TOFF *

"Foreign Relations Boil Down to Two Things: Talking With People or Killing Them." -- Unknown

“Speed is a poor substitute for accuracy.” -- Real, no-shit, fortune from a fortune cookie

"If you believe that you are talking to G-d, you can justify anything.” — my Dad

"Colt .45s; putting bad guys in the ground since 1873." -- Unknown

"Stay Strapped or Get Clapped." -- probably not Mr. Rogers

"The Dildo of Karma rarely comes lubed." -- Unknown

"Eck!" -- George the Cat

* "TOFF" = Treasonous Orange Fat Fuck, A/K/A Dolt-45,
A/K/A Commandante (or Cadet) Bone Spurs,
A/K/A El Caudillo de Mar-a-Lago, A/K/A the Asset., A/K/A P01135809

Saturday, December 10, 2016

Here We Go Again

Figures show that six million Americans are behind on their auto loan payments by at least 90 days. This delinquency is causing concerns for lenders. Researchers from the Federal Reserve Bank say that late payment levels are now at their highest since 2010, and pressure may increase for borrowers to prove their financial circumstances.

The car loan market is robust but recent years have seen an increasing level of delinquency in subprime loans. As a result, there is a mounting worry, because similar trends in behavior occurred in the lead-up to the financial crisis in 2008.
Except that car loans are easier to resolve if they're not paying (repo man). But still, the sign aren't terribly good:
Nearly 1 out of 3 car shoppers have negative equity on their trade-ins when they’re purchasing their next vehicle, according to Edmunds.com.

Edmunds’ data shows that an estimated 32 percent of all trade-ins toward the purchase of a new car through the first three quarters of 2016 were underwater.

It’s the highest rate on record, and it’s up from 30 percent of all trade-ins toward new car purchases from January to September last year.

These “upside down” shoppers had an average of $4,832 of negative equity at the time of trade-in — also a record.
Which means that if they want to trade in, they have to come up with five grand, cash, to pay off the loan.

The better choice is to not go the consumerist route and keep the car/truck/SUV until the wheels are about to fall off. A paid-off car costs you gas, insurance and, if you're smart, preventive maintenance.

Well, no worries. Trump's such a good negotiator, he'll Twitterize this problem in nothing flat.

6 comments:

3383 said...

Don't see what Trump has to do with this :)

If banks are stupid enough to make loans to stupid people who are trying to get more behind, let them suck up the losses.

With evil banksters soon to be in charge (oh, there's Trump!) the burden will probably be back on the taxpayers.

B said...

"Which means that if they want to trade in, they have to come up with five grand, cash, to pay off the loan."

That $5K is just to make their equity in the car be zero.....

DTWND said...

I have always owned my vehicles, never leased. I drive them until they don't drive anymore then scrap them. Gas, oil, tires, insurance, and routine tune ups are my usual expenses. Occasionally I'll have a major expense (head gasket, shocks/struts, etc.) that I don't have the tools for.

I don't feel the need to have the 'latest and greatest'. My hunks go just as fast at 70 as a new Jag does. Just not in the same style but I'm not out to impress anyone. I kept my last car for 14 years. The savings in monthly payment alone let us buy our 2016 vehicle in cash. My 2003 pickup has 166,000 miles and is still going strong. Another 5 years and I'll have enough saved for a new one. Now, if only I can find a '73 Dodge Charger SE.

deadstick said...

The messed-up part is that there are still people who keep a car less than ten years...

Mike R said...

People are strange about cars, I have friends who try to convince me that buying a new car every two years is a money making proposition. I agree but they aren't the ones making money. As with other commentators we drive our cars until we can no longer maintain them economically. There is one in the garage that has been mine for 48 years but that is another story.

Anonymous said...



The most expense scent is the smell of a new car.

AC2usn