Record 7 million are 3 months behind on their car payments

[destriero]

Seems hinky since driving age in many states is 16. And 18 is considered an adult in many states. Adults >= 18 get auto loans, students get auto loans, and co-signers don't matter until it's too late.

But really, I don't care... With a total population of 328 million, with about 75%, or 246 million => 21, the 3% is just over 7 million. Unbelievably, and what's most important anyway, is that the article is in agreement with Dest!!!

https://www.census.gov/popclock/

I don’t know too many 16yo with car loans.

 

[ironchef]

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.

Are we making mountains out of molehills?

 

[schweiz]

Are we making mountains out of molehills?

7 million molehills together are probably a (small) mountain...

 

[southall]

7 million molehills together are probably a (small) mountain...

7million people say roughly $1000 behind in payments is just $7Billion.

$7B out $1300B in total US auto loans.

Lenders charge around $50B a year in auto loan interest.

 

[Windlesham1]

"on the day that Barack Obama was sworn in—January 20, 2009—the debt was $10.626 trillion. When he left the White House on January 20, 2017, it was $19.947 trillion."

https://www.debtconsolidation.com/us-debt-presidents/ The orange one is adding $1trillion a year while Obama's tenure saw QE hand over $4trillion to the scumbags responsible for the meltdown. I'd say Obama's record,annualised, is looking better than the bloated orange buffoon, but hey you can ignore the numbers if you like

Obama been the king of adding to the debt in terms in money, he didn't care about paying any of it back. Eventually when interest rates go up much more our economy and the world will collapse, we should have let it collapse in 2008, going to be far worse in the future. It won't be a recession, it be far worse and gold will be what one wants to stock pile.

Today's economy I see many people working multitude of part time jobs as USA has become more of a service orientated instead of once being producing goods country.

The Repo man does well in times of distress.

 

[schweiz]

7million people say roughly $1000 behind in payments is just $7Billion.

$7B out $1300B in total US auto loans.

Lenders charge around $50B a year in auto loan interest.

The question is: how big is the profit on these $50B? Because if 7B is not paid it means 7B losses. Losses that have to be recovered somewhere from PROFITS. So from that POV it can be a huge problem. You should not compare a loss with the turnover, you should take the net profit margin.

Amazon had for 2018 a net profit that was 4% of the revenues they had. 7B on 50B revenues represents 14%! So 3.5 times the net profit margin of Amazon in losses! Or 3.5 years of profits that would be lost.
https://finance.yahoo.com/quote/AMZN/financials?p=AMZN

And each year there can, or rather will be certainly, new problematic loans.

 

[forexpreneur]

I was reading that yesterday and thought how could that possibly be. This entire nation is just full of debt debt debt debt and everyone is playing it off as if there are no worries...that's a ton of people behind on car payments. I can just imagine how far they must be behind in other monthly payments.... Today the United States passed $22 trillion in debt.

Fiat Currency (even the Swiss Franc is now a Fiat Currency) only stays alive when debt is added, which is why virtually all Developed Nations have a huge debt load. At some point, it will come to a nasty end . . . and then start all over again. It's been happening for the last 3,000 + years.

 

[tiddlywinks]

The question is: how big is the profit on these $50B? Because if 7B is not paid it means 7B losses. Losses that have to be recovered somewhere from PROFITS. So from that POV it can be a huge problem. You should not compare a loss with the turnover, you should take the net profit margin.

Amazon had for 2018 a net profit that was 4% of the revenues they had. 7B on 50B revenues represents 14%! So 3.5 times the net profit margin of Amazon in losses! Or 3.5 years of profits that would be lost.
https://finance.yahoo.com/quote/AMZN/financials?p=AMZN

And each year there can, or rather will be certainly, new problematic loans.

That is a straw-man.

AMZN is one company.

The 7million delinquent people are spread among many (auto and/or financial) companies. The distribution of losses may not be equal, but it is also possible that no one company holds a significant majority. The article does not differentiate the aggregate.

 

[schweiz]

AMZN is one company.

Indeed, I started from a 1 company point of view and that was wrong in this case.

 

[murray t turtle]

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

%%
Most all car loans are LOL. NOT charged off; but underwater/depreciation.Plenty of money has been made buying that ''charge off paper/cheap paper''I see your points, speedo; but i pay cash for cars.........