DOOM! Used Car Market Set to Collapse in Next 12-18 Months... | |
Zalinsky
User ID: 83633107 United States 07/02/2022 06:41 PM Report Abusive Post Report Copyright Violation | The used car market is on the brink of an auto loan collapse that can shake the entire industry. Quoting: Ultra MAGA Dan I am shocked that more people are not talking about this! We are facing a 2008-ish scenario in the used car market and honestly, it's a disaster waiting to happen. When buyers purchase a car, a vast majority (~85%) are financed. The problem is that, unlike real estate, auto loans are not subject to strict underwriting requirements allowing almost anyone to get one. Buyers with lower credit scores were funnelled into loans with 2x interest! You can see how crazy this is in the latest auto loan consumer reports. - 25 to 50% of the loans were given to customers who might not be able to repay it - Lenders only verified the source of income and employment only 4% of the time If that's not crazy enough, as of now, 5% of Auto Loans are behind payments and nearly half of them are underwater! Just like how the housing market collapsed from the loan crisis in 2008, the same thing is said to be starting to happen in the Auto Loan market. As the supply chain and chip crisis has improved from COVID times, used car prices have dropped for 4 consecutive months & are now down 6.4% since January. This is a nightmare for the banks that have lent money on these cars, whose value is rapidly beginning to fall. Just recently, Equifax reported that 8.5% of subprime borrowers defaulted on their car loans - the second-highest on record! WSJ also found that more subprime borrowers have started missing out on payments as rising inflation made them choose between essentials & auto loans. The reality is that lenders have given buyers unaffordable loans without verifying their financials on car values that cannot be sustained without a chip shortage. It's only a matter of time - eventually, things have to come back to normal. KPMG predicts that used car prices can drop 30% as more supplies hit the market and Ally Financial predicts a 20% drop. The timing is a bit uncertain but it looks like it's going to unravel in the next 12-18 months. https://imgur.com/X06Ej5t From everything that I have researched, my biggest concern is that too many people have locked themselves into auto loans that are more expensive than they can afford. If you liked this analysis, do join my newly launched newsletter to get a recap on my videos and in-depth deep dives like this direct to your inbox! Oh, and its completely free :) [link to threadreaderapp.com (secure)] Yes total shitshow coming in both auto and home loans. Two bubbles unraveling together |
Zalinsky
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Robotanimal
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sandyman
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WiscoSteve
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goliesave
User ID: 78406809 United States 07/03/2022 05:46 PM Report Abusive Post Report Copyright Violation | used car lots in souther NH are pathetic. they have to be in real trouble. 25% full compared to 3 years ago places that were selling 2018 models a few years ago now 2009 models all waxed up snapped this pic of a place selling 70's camper vans. this place was a mid tier place. models 3-4 years old. not vans from the 70's https://imgur.com/a/SPs7UYC goliesave |
goliesave
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Anonymous Coward User ID: 81366458 France 07/03/2022 06:19 PM Report Abusive Post Report Copyright Violation | New cars are so damn expensive these days, regardless of the shortage, it's hard to imagine used cars crashing to a large degree because folks will still need vehicles. You are right. People will still need vehicles, and with lower income that means used cars. Also new car are shit, EVs suck, and it's too expensive for what it is. In fact used cars are just better. |
A_T_L
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Anonymous Coward User ID: 83766991 Italy 07/03/2022 06:40 PM Report Abusive Post Report Copyright Violation | Already collapsed in Russia Thread: REPORT: Russia’s Car Manufacturing Collapses by 97% in May Auto production in Russia has slowed to a crawl after major automakers exited and Western governments imposed debilitating sanctions on Moscow in response to its invasion of Ukraine. Russia manufactured 3,700 cars in May, 97% fewer than the same month last year, the country’s statistics agency Rosstat said late Wednesday. Output fluctuated at the start of the year, with 95,000 cars in January and 108,000 in February, before plummeting to 40,800 in March — the first full month after President Vladimir Putin ordered troops to attack Ukraine. Russia manufactured a total of 268,000 vehicles between January and May this year, less half of the amount over the same time last year. Truck and bus production in May fell by nearly 40% and 6.5%, respectively, compared with May 2021. Russia’s automotive industry employs 300,000 people and 3 million more work in related industries. Only two out of 20 car plants remain in Russia after major automakers halted production and stopped sales over the country’s invasion of Ukraine. Sales of the country's most popular and affordable brand, Lada, sank by nearly 84% in May, the Association of European Businesses has said. Trade and Industry Minister Denis Manturov has attributed a 30% price hike for vehicles to inflation, rising costs of parts and the strengthening ruble. [link to www.themoscowtimes.com (secure)] Sad |
Anonymous Coward User ID: 81456562 United States 07/03/2022 06:43 PM Report Abusive Post Report Copyright Violation | used car lots in souther NH are pathetic. they have to be in real trouble. 25% full compared to 3 years ago Quoting: goliesave places that were selling 2018 models a few years ago now 2009 models all waxed up snapped this pic of a place selling 70's camper vans. this place was a mid tier place. models 3-4 years old. not vans from the 70's [imgur] [link to imgur.com (secure)] You numbnuts. Do you know anything about vehicles? Especially the ones you took photos of? That's a 4x4 used car lot. There's a landcrusier there, those vans are either toyota hiace or mitsu delicas. Those vehicles are in demand and are selling fairly well on the regular. You took a photo of someone adapting to the market. Importing 25+ yr old Japanese vehicles and making 75% roi. |
Anonymous Coward User ID: 82099498 United States 07/03/2022 06:44 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 83766991 Italy 07/03/2022 06:46 PM Report Abusive Post Report Copyright Violation | Already collapsed in Russia Quoting: Anonymous Coward 83766991 Thread: REPORT: Russia’s Car Manufacturing Collapses by 97% in May Auto production in Russia has slowed to a crawl after major automakers exited and Western governments imposed debilitating sanctions on Moscow in response to its invasion of Ukraine. Russia manufactured 3,700 cars in May, 97% fewer than the same month last year, the country’s statistics agency Rosstat said late Wednesday. Output fluctuated at the start of the year, with 95,000 cars in January and 108,000 in February, before plummeting to 40,800 in March — the first full month after President Vladimir Putin ordered troops to attack Ukraine. Russia manufactured a total of 268,000 vehicles between January and May this year, less half of the amount over the same time last year. Truck and bus production in May fell by nearly 40% and 6.5%, respectively, compared with May 2021. Russia’s automotive industry employs 300,000 people and 3 million more work in related industries. Only two out of 20 car plants remain in Russia after major automakers halted production and stopped sales over the country’s invasion of Ukraine. Sales of the country's most popular and affordable brand, Lada, sank by nearly 84% in May, the Association of European Businesses has said. Trade and Industry Minister Denis Manturov has attributed a 30% price hike for vehicles to inflation, rising costs of parts and the strengthening ruble. [link to www.themoscowtimes.com (secure)] Sad So I guess the price of windshield wipers is up in Russia as well. https://twitter.com/_/status/1519798146423042050 |
Anonymous Coward User ID: 81909901 Canada 07/03/2022 06:50 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 80530061 United States 07/03/2022 06:53 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 80530061 United States 07/03/2022 06:54 PM Report Abusive Post Report Copyright Violation | Already collapsed in Russia Quoting: Anonymous Coward 83766991 Thread: REPORT: Russia’s Car Manufacturing Collapses by 97% in May Auto production in Russia has slowed to a crawl after major automakers exited and Western governments imposed debilitating sanctions on Moscow in response to its invasion of Ukraine. Russia manufactured 3,700 cars in May, 97% fewer than the same month last year, the country’s statistics agency Rosstat said late Wednesday. Output fluctuated at the start of the year, with 95,000 cars in January and 108,000 in February, before plummeting to 40,800 in March — the first full month after President Vladimir Putin ordered troops to attack Ukraine. Russia manufactured a total of 268,000 vehicles between January and May this year, less half of the amount over the same time last year. Truck and bus production in May fell by nearly 40% and 6.5%, respectively, compared with May 2021. Russia’s automotive industry employs 300,000 people and 3 million more work in related industries. Only two out of 20 car plants remain in Russia after major automakers halted production and stopped sales over the country’s invasion of Ukraine. Sales of the country's most popular and affordable brand, Lada, sank by nearly 84% in May, the Association of European Businesses has said. Trade and Industry Minister Denis Manturov has attributed a 30% price hike for vehicles to inflation, rising costs of parts and the strengthening ruble. [link to www.themoscowtimes.com (secure)] Sad So I guess the price of windshield wipers is up in Russia as well. https://twitter.com/_/status/1519798146423042050 Those hypersonic missles are just pathetic, huh? |
Anonymous Coward User ID: 83790240 United States 07/03/2022 06:57 PM Report Abusive Post Report Copyright Violation | I own a dealership, I can tell you, prices have gone up again. We were starting to see a downtrend in March, but now? FIRE! Shit had gone plaid again, all but luxury, and I think this may be where the article is looking. Quoting: WiscoSteve those lines gonna collide, all right but at the top right area, not the bottom right. |
1-2-Follow
User ID: 82462544 United States 07/03/2022 07:01 PM Report Abusive Post Report Copyright Violation | Low mileage, 6 years old, got $19k for it and it was 21k new, so i basically drove it for 6 years for $2000 Articles and "news" from liberal media shall now be known as catnip for libtards. Truth is schilling in the empire of retards. "Yep but for now we dub you toast guy." - AC520845 *PROCLAIMED PROPHET OF THE DOW* ® Let me know when the climate STOPS changing, then i'll be worried. |
1-2-Follow
User ID: 82462544 United States 07/03/2022 07:02 PM Report Abusive Post Report Copyright Violation | By the way, that chart is wrong. The used car index will below 2020 prices as places like Carvana go tits up. Quoting: Zalinsky Thats fine I would never buy for their ridiculous prices but ill damn sure sell to them when they paid me thousands over bluebook value Articles and "news" from liberal media shall now be known as catnip for libtards. Truth is schilling in the empire of retards. "Yep but for now we dub you toast guy." - AC520845 *PROCLAIMED PROPHET OF THE DOW* ® Let me know when the climate STOPS changing, then i'll be worried. |
Anonymous Coward User ID: 51845395 United States 07/03/2022 07:02 PM Report Abusive Post Report Copyright Violation | I've got a 1997 T-Bird with 50K miles on it sitting in my garage. Quoting: Anonymous Coward 81909901 how much can i get for it? 5 grand [link to www.carsforsale.com (secure)] [link to www.cargurus.com (secure)] |
1-2-Follow
User ID: 82462544 United States 07/03/2022 07:03 PM Report Abusive Post Report Copyright Violation | used car lots in souther NH are pathetic. they have to be in real trouble. 25% full compared to 3 years ago Quoting: goliesave places that were selling 2018 models a few years ago now 2009 models all waxed up snapped this pic of a place selling 70's camper vans. this place was a mid tier place. models 3-4 years old. not vans from the 70's https://imgur.com/a/SPs7UYC One new/used ford dealer here in town is so empty they actually bought someones old raggedy ass RV to put in the lot Articles and "news" from liberal media shall now be known as catnip for libtards. Truth is schilling in the empire of retards. "Yep but for now we dub you toast guy." - AC520845 *PROCLAIMED PROPHET OF THE DOW* ® Let me know when the climate STOPS changing, then i'll be worried. |
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1-2-Follow
User ID: 82462544 United States 07/03/2022 07:04 PM Report Abusive Post Report Copyright Violation | New cars are so damn expensive these days, regardless of the shortage, it's hard to imagine used cars crashing to a large degree because folks will still need vehicles. You are right. People will still need vehicles, and with lower income that means used cars. Also new car are shit, EVs suck, and it's too expensive for what it is. In fact used cars are just better. My new car i bought fucking rules Sorry to burst your bubble Articles and "news" from liberal media shall now be known as catnip for libtards. Truth is schilling in the empire of retards. "Yep but for now we dub you toast guy." - AC520845 *PROCLAIMED PROPHET OF THE DOW* ® Let me know when the climate STOPS changing, then i'll be worried. |
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