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Re: 7 Million Americans Not Paying On Car Loans

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Centristsin2010:  

Love my Subaru's.....Haven't own another make since the mid 80's.  Have three in the driveway/garage now owned by family members

 

 

They just seem to keep on keeping on. I hate that the older one is getting rust, but I suppose at 27 years, it's inevitable.

 
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Re: 7 Million Americans Not Paying On Car Loans

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@Panjandrum wrote:

gruffstuff:   My truck is 21 years old, GM workhorse, I run them until wheels fall off, then put the wheels back on.

 

 

Sounds familiar. I have a '92 Subaru wagon that I bought new. It now has 87,000+ miles and running pretty good. I have another Subaru wagon with over 222,000 mi. and it runs very nicely. As you said, I'm going to drive them until the wheels fall off.


Love my Subaru's.....Haven't own another make since the mid 80's.  Have three in the driveway/garage now owned by family members


"FAKE 45 #illegitimate" read a sign at the Woman's March in Washington DC, January 21, 2017.
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Re: 7 Million Americans Not Paying On Car Loans

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gruffstuff:   My truck is 21 years old, GM workhorse, I run them until wheels fall off, then put the wheels back on.

 

 

Sounds familiar. I have a '92 Subaru wagon that I bought new. It now has 87,000+ miles and running pretty good. I have another Subaru wagon with over 222,000 mi. and it runs very nicely. As you said, I'm going to drive them until the wheels fall off.

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Re: 7 Million Americans Not Paying On Car Loans

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@GailL1 wrote:

@Richva wrote:

It should remind you of the housing situation during the Bush recession.  In this case, cars were being sold using loans to people who did not have the means to pay them.  Then, the loans are bundled together and sold as collateralized investments with the auto backing up the loan.  Even worse collateral than the houses turned out to be. 


Where did you get that ?????

Subprime loans have always been around with car loans - that's why those with a lower credit score pay more interest rate on car loans.

Edmunds - Subprime car loans and interest rates for these loans based on credit score

 

Car loans are NOT bundled and sold.

UNLIKE a home which is normally an appreciable asset,  CARS DEPRECIATE.


Car loans ARE being bundled and sold are predicted to collapse.

Because they are selling them, this means the lenders can lend even more money on sub-prime loans.

https://www.bloomberg.com/news/articles/2018-02-02/never-mind-defaults-debt-backed-by-subprime-auto-...

https://www.nytimes.com/2015/03/16/business/dealbook/many-buyers-for-santanders-subprime-loan-bundle...

https://dealbook.nytimes.com/2015/01/26/investment-riches-built-on-auto-loans-to-poor/

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Re: 7 Million Americans Not Paying On Car Loans

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@Richva wrote:

It should remind you of the housing situation during the Bush recession.  In this case, cars were being sold using loans to people who did not have the means to pay them.  Then, the loans are bundled together and sold as collateralized investments with the auto backing up the loan.  Even worse collateral than the houses turned out to be. 


Where did you get that ?????

Subprime loans have always been around with car loans - that's why those with a lower credit score pay more interest rate on car loans.

Edmunds - Subprime car loans and interest rates for these loans based on credit score

 

Car loans are NOT bundled and sold.

UNLIKE a home which is normally an appreciable asset,  CARS DEPRECIATE.

* * * * It's Always Something . . . Roseanne Roseannadanna
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Re: 7 Million Americans Not Paying On Car Loans

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When push comes to shove, people are going to pay their mortgages before their car loans.

 

Half the people in the country are at or near poverty, and what;s left of the middle class is struggling to get by paycheck to paycheck. 

 

Husband and Wife both working one job or more.

 

With the next recession around the corner, retail sales are dropping , worse month since 2009.

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Re: 7 Million Americans Not Paying On Car Loans

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It should remind you of the housing situation during the Bush recession.  In this case, cars were being sold using loans to people who did not have the means to pay them.  Then, the loans are bundled together and sold as collateralized investments with the auto backing up the loan.  Even worse collateral than the houses turned out to be. 

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Re: 7 Million Americans Not Paying On Car Loans

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I have had 3 trucks in 30 years.

 

My truck is 21 years old, GM workhorse, I run them until wheels fall off, then put the wheels back on.

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Re: 7 Million Americans Not Paying On Car Loans

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When push comes to shove, people are going to pay their mortgages before their car loans.  Maybe people are "driving newer and more expensive cars than me" because they are considering that vehicle as a possible home in their future.

American's student debt is much higher than car debt and this burden has to stop crippling their lives.

 

“Higher education in this country has turned into a giant pyramid scheme. With tuition prices exploding, students are graduating with $50,000, $100,000 and $200,000+ in student loan debt and can't find jobs that could possibly support their loan payments, let alone their living expenses.....

 

In fact, he characterizes the student loan industry as predatory....What these schools do is go after anybody and everybody they can get their hands on, securing them federally guaranteed student loans to fund their tuition prices. It's like a free money gold rush for these dubious schools. "....

 

With this mega-mess, where does the blame belong? “Unfettered capitalism is to blame, in my opinion. What we're seeing with the pending student loan crisis is simply Act 2 of the sub-prime home lending crisis. It's big, it'll be very messy and, like it or not, it's going to require another bailout. The bad actors are primarily the predatory for-profit colleges but I also blame the fairy tale that's been crafted about higher learning in this country.

https://www.forbes.com/sites/sherylnancenash/2012/05/17/is-higher-education-a-giant-pyramid-scheme/#...

 

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Re: 7 Million Americans Not Paying On Car Loans

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@jfpinlvn wrote:

According to a new report from the Federal Reserve Bank of New York, more than 7 million Americans have reached serious delinquency status on their auto loans, meaning they're at least 90 days behind on payments.

 

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

 

This explains why everyone seems to be driving newer and more expensive cars than me Smiley Sad

 

I'm not sure that explains why, but I see it as well.

 

So what's the root cause?  Lack of wage growth?  Financial immaturity?  The shut-down ceratinly didn't help.  It's only going to get worse....


 


"FAKE 45 #illegitimate" read a sign at the Woman's March in Washington DC, January 21, 2017.
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