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Historic Record: 7 Million Auto Loans In Default...

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Historic Record: 7 Million Auto Loans In Default...

 
Old 02-13-2019, 04:26 PM
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Tennis & Golf Nut
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Default Historic Record: 7 Million Auto Loans In Default...

https://www.cnbc.com/2019/02/13/expl...roup-says.html


An explosion in Auto debt threatens consumer finances, advocacy group warns.



  1. Data from the Federal Reserve Bank of New York show that 7 million Americans were at least three months behind on their car payments at the end of 2018, which is 1 million more than in 2010.
  2. Among subprime borrowers those with credit scores below 620 the overall delinquency rate stood at 16.3 percent in mid-2018, other data shows. In 2015, that figure was 12.4 percent.
  3. The average amount financed for a car is $31,707 and the average loan length is 69.1 months, up from 61 in 2010.


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Old 02-13-2019, 04:57 PM
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Not shocking, I read the MYFICO forums a lot as I like to stay up with all the credit card bonuses and such. Some of the forums focus on improving credit scores and loans and people put in their bills and it's common to see someone that makes 40K a year with an 600+ car payment.

My rule I follow once I became a responsible adult was my payments should be no more than 15% of my monthly take home pay.
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Old 02-13-2019, 05:01 PM
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Damn vehicles need to go on sale. Maybe this will drive the price down
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Old 02-13-2019, 05:07 PM
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If losers who do not pay back their student loan go without consequence, did anyone think it would end there?

Cars. Homes. Loans.

Financial Institutes need to stop handing out money to the stupid and irresponsible. Default on your loan? Garnish it from their wages or taxes.

I have zero.sympathy for losers who take out loans or credit and fail to repay their debt. I think these people are even lower than those on welfare (exluding elderly and the truly incapacitated).
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Old 02-13-2019, 05:09 PM
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People are buying cars they cant afford. Just like they did houses.

If you have to finance it for 72 months to get the note down to (still more than) what you can afford.......YOU DONT NEED IT.

But people are generally stupid as hell when it comes to finances so.
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Old 02-13-2019, 05:10 PM
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Originally Posted by wave_3 View Post
Not shocking, I read the MYFICO forums a lot as I like to stay up with all the credit card bonuses and such. Some of the forums focus on improving credit scores and loans and people put in their bills and it's common to see someone that makes 40K a year with an 600+ car payment.

My rule I follow once I became a responsible adult was my payments should be no more than 15% of my monthly take home pay.
I bet 600 is on the low end these days. I bet theres tons of people with 800+ car payments.

ITS INSANE.
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Old 02-13-2019, 05:22 PM
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Put 50% down on my new '19 Grand Sport, financed the rest for 5 years and will pay it off in 2..
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Old 02-13-2019, 05:22 PM
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Stupidity abounds in this country.
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Old 02-13-2019, 05:43 PM
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No need to worry, these debtors will get square when their $8K tax refund checks show up, a great haul because most only paid in about $2K during the year.
And many of them will lower their housing expense, as once they get the $50K Down Payment Assistant, their mortgage will be less than their rental lease payment.
Another great benefits for these homeowners is that HUD can give them an interest free second mortgage up to $30K to help if they have a financial hardship, no payments or interest on the loan, they will have to pay it back if the home gets sold, but many will be foreclosed on in ten years, so they do not have to worry about repayment.
Keep working hard and paying in, and we will solve their financial issues.
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Old 02-13-2019, 05:49 PM
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I have been saying for years that I am always amazed at how many people are always out and about spending money,shopping, dining out etc. I dunno where people get all this money...its gotta be credit card debt
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Old 02-13-2019, 05:51 PM
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Originally Posted by maybelooking View Post
I bet 600 is on the low end these days. I bet theres tons of people with 800+ car payments.

ITS INSANE.
My new truck payment is $1,830 (2019 Silverado 3500HD Dully Duramax High Country). That's more than my mortgage payment, HA
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Old 02-13-2019, 05:55 PM
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Originally Posted by maybelooking View Post
People are buying cars they cant afford. Just like they did houses.

If you have to finance it for 72 months to get the note down to (still more than) what you can afford.......YOU DONT NEED IT.

But people are generally stupid as hell when it comes to finances so.
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Old 02-13-2019, 05:57 PM
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Put about 60% down on my new GS and financed the rest for 72 mos, but I'll pay it off in about 3 years.
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Old 02-13-2019, 06:02 PM
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So how many are your son is curbing now OP
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Old 02-13-2019, 06:04 PM
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I see a lot of young people at work with BMW, Land Rover ETC and wonder how many of those are lease cars. Than you have the group that will always have a car payment because they trade in every 2-3 years.

I drove my 2003 Silverado D"Max for 15 years as a daily driver before I upgraded into my new truck which is the 3rd new vehicle I have owned through out my whole life.
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Old 02-13-2019, 06:06 PM
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Originally Posted by vader86 View Post
Put about 60% down on my new GS and financed the rest for 72 mos, but I'll pay it off in about 3 years.
GMTA

Last edited by KenHorse; 02-13-2019 at 06:06 PM.
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Old 02-13-2019, 06:06 PM
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Mortgages next ?

Regardless, this is not good.
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Old 02-13-2019, 06:15 PM
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Bought a used 08 LS3 3LT Coupe & paid cash. Bought a 17 Dodge 392 Scat Pack and traded a 14 Cadillac ATS & 10 Dodge Challenger (both paid for) and wrote a check for out the door money.
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Old 02-13-2019, 06:20 PM
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Originally Posted by PatternDayTrader View Post
Mortgages next ?

Regardless, this is not good.
The mortgage market appears to be in much better shape than subprime auto loans at least.

Add in the increased vehicle purchase prices, higher rates for riskier borrowers, and the longer term loan duration (now averaging 72 months and trending towards 84 months) and it's a recipe for personal financial disaster.
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Old 02-13-2019, 06:34 PM
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Originally Posted by maybelooking View Post
People are buying cars they cant afford. Just like they did houses.

If you have to finance it for 72 months to get the note down to (still more than) what you can afford.......YOU DONT NEED IT.

But people are generally stupid as hell when it comes to finances so.
Purchased 18 Tahoe when Chevy was offering 0% interest for 72mos. And that was STILL with 8k in discounts. Cannot beat free money.
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