Record 7 million are 3 months behind on their car payments

[schweiz]

If you do that in Dubai they put you in prison.

 

[tiddlywinks]

I can just imagine how far they must be behind in other monthly payments.... Today the United States passed $22 trillion in debt.

You do know National debt and Consumer debt are not the same thing, right?

 

[vanzandt]

Maga!

 

[Buy1Sell2]

Record 7 million are 3 months behind on their car payments

https://www.businessinsider.com/auto-loan-delinquency-number-record-new-york-fed-2019-2

Unemployment Rate is at 4.0 Percent and people aren't making their car payments. The repo man is hard at work. Sign of a hollow economy.

My guess is that we also have a record number of car loans now due to the strong economy. I'll not look at this silly thread again.

 

[schweiz]

My guess is that we also have a record number of car loans now due to the strong economy. I'll not look at this silly thread again.

Where I live the stronger the economy the more people pay cash and reduce loans. But we don't live in a creditcard economy...
These 7 million buyers bought something they could not afford.
The crash in housing prices in the US had the same cause: buyers bought something they could not afford, or made it unaffordable because they took extra loans.

 

[speedo]

It always cycles like this. Good economy, underwriting loosens, paper performance drops. Meanwhile the paper is securitized and sold into pension funds etc., ratings drop, economy weakens, underwriting tightens and so on.

 

[wrbtrader]

Record 7 million are 3 months behind on their car payments

https://www.businessinsider.com/auto-loan-delinquency-number-record-new-york-fed-2019-2

Unemployment Rate is at 4.0 Percent and people aren't making their car payments. The repo man is hard at work. Sign of a hollow economy.

With low unemployment and record people behind on their car payments (on the verge of reposession)...

Its just a sign that people still living "beyond" their pay check and record number of people living from pay chech to pay check.

wrbtrader

 

[murray t turtle]

Just to point out...

• a 20k to 50k+ car loan (or lease) is not a "basic" cost of living.
  
  
• Article states..."Most of the Americans who have recently fallen behind on their car payments have low credit scores or are younger than 30 years old."

This is a problem with the lenders, not the economy overall. Lenders have forgotten lessons of the past. The borrowers cited are high credit risks. Why is anyone surprised?

%%
NOT a big problem for lenders; they will sell repo cheap/fast + sue borrower for balance.

 

[tiddlywinks]

Its just a sign that people still living "beyond" their pay check and record number of people living from pay chech to pay check.

Good economy lifts all boats even though some captains may not know how to swim.

 

[speedo]

%%
NOT a big problem for lenders; they will sell repo cheap/fast + sue borrower for balance.

Repo's are typically "under water" and a worthless judgement doesn't help. Most end up in a chargeoff.