DOOM! Used Car Market Set to Collapse in Next 12-18 Months...

What's the name of that place? Just curious.

Good too many vultures have made a killing off a bad situation for most. I hope the greedy folks that have stockpiles of overpriced garbage take it up the shorts…

Selling my one owner 2000 Jeep Grand Cherokee Limited.
33k original miles in absolute pristine condition. Brand spanking new. Never parked outside, not one scratch or anything.
$12000 and that would be cash

Its worth checking to see what they will give you

I told my story earlier in this thread

Dont tell me what they will or wont do. I literally just sold a car to them last week

Carvana gave me above blue book value at $18,900 (i bought it brand new 6 years ago for $21,000)

The dealer wanted me to trade it in for $14000

What is the problem ? Not enough used cars ?

Or nobody wants to buy a car anymore because green woke millenial sodomites who must be exterminated ASAP will make cars illegal soon ?

Will you take rubles?

My new car i bought fucking rules

Sorry to burst your bubble

The used car market is on the brink of an auto loan collapse that can shake the entire industry.

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.

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its in Hudson NH

across the street from Dairy Queen. google map it



anyways. ppl come from MA to this county to buy used cars cause of no sales tax. been like this for 40 years


but if you drive down the strip their arent that many cars on these lots. some lots 25% full. some 75%.


lot of 2009 stickers where it used to be 2016

Oh yeah, trust the report of a car dealer? LMFAO

Didnt know this, but i could feel it coming and sold my old car to carvana last week

Low mileage, 6 years old, got $19k for it and it was 21k new, so i basically drove it for 6 years for $2000

Oh yeah, trust the report of a car dealer? LMFAO