Auto Loan Delinquencies Are Soaring!

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Offline Letsbereal

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Auto Loan Delinquencies Are Soaring!
« on: May 21, 2016, 05:51:38 PM »
America's "Advanced Stupid" In 2 Stunning Charts
21 May 2016
, by Jim Quinn - The Burning Platform (Zero Hedge)
http://www.zerohedge.com/news/2016-05-21/americas-advanced-stupid-2-stunning-charts


As above so below. Big take away: auto loan delinquencies are soaring!
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Offline decemberfellow

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Re: Auto Loan Delinquencies Are Soaring!
« Reply #1 on: May 21, 2016, 07:13:22 PM »
why  people need those 20,000 to 30000 dollar automobiles.   I just don't understand

as in the article: 
Quote
The idiocy of people taking on this level of debt once again, so they can pretend to live the good life, is mind boggling to behold by rational thinking individuals
Rev21:4
And God shall wipe away all tears from their eyes; and there shall be no more death, neither sorrow, nor crying, neither shall there be any more pain: for the former things are passed away.


Who am I
 https://www.youtube.com/watch?v=v7Fk6dt_uHo

Offline Letsbereal

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Re: Auto Loan Delinquencies Are Soaring!
« Reply #2 on: May 21, 2016, 07:46:08 PM »
why  people need those 20,000 to 30000 dollar automobiles.   I just don't understand

as in the article:

Beats me or it's kinda like these fellows are saying:

messystateofaffairs http://www.zerohedge.com/news/2016-05-21/americas-advanced-stupid-2-stunning-charts#comment-7588990

Get 10 credit cards, max them all out and buy 1oz. Gold bars with the money, then default on the cards. Think of the gold as your retirement plan.


gwar5: http://www.zerohedge.com/news/2016-05-21/americas-advanced-stupid-2-stunning-charts#comment-7588867

I'm seriously tempted to get a new car on 100% credit and max out 10 new credit cards and then just walk away.

I don't give a shit anymore. 30 millions Venezuelans regret not doing same thing before SHTF.

Ah! Smart :D https://youtu.be/nVlVTY-Pn9Q?t=2m50s


Kagemusho http://www.zerohedge.com/news/2016-05-21/americas-advanced-stupid-2-stunning-charts#comment-7588773

I have a low credit score, not because I am in debt, but because I am not. No shit.

I use cash for small purchases and a debit card for any major purchases, and don't live beyond my means.

And yet I am penalized by some powerful faceless entity who claims I am a bad risk due to my being frugal. How messed up is that?

Addendum: I don't have any credit cards. I haven't used one in almost 30 years, used one once, paid it off right away, and cut the f-ker into little pieces and trashed it so I wouldn't get tempted as I saw lots of people in the late 1970's and 1980's who were got really messed up.

(Especially during the 1980's; some reading this are old enough to remember those damn commercials on the TeeVee with glamorous actors unctuously telling you how you can 'have it all' courtesy of your Visa or MasterCard.)

Like I said, I live within my means, and I get the shaft.

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Offline windyacres

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Re: Auto Loan Delinquencies Are Soaring!
« Reply #3 on: May 24, 2016, 04:28:12 AM »
Letsbereal, in the USA the banks punish people like me
and send me snotty letters saying "Use it or lose it"  regarding
my credit cards.   If one does not fire up the plastic now and then,
the banks close your account out for "Inactivity" on that card LOL!!

There used to be a saying before the persuit of materialistic crap
and it went -

Quote
Live beneath your means so you can save money   

And I guess that's just not popular these days, here people will spend
upwards of $60,000 USD on a fully loaded pick up truck and never put
a bag of groceries in the back of it so the new bed liner doesn't get scuffed!
Then there's a saying my husband has said for years is that  -

-people see you in your cars and not where you live. -


 and many people in the USA
put on airs and buy all kinds of high priced vehicles, Mercedes also
to pretend to complete strangers "they are better financially" when LMAO
all they have is mega-debt and if they needed to pay cash for a new car
battery they couldn't!

Wait until gasoline goes up again to average $3.50 a gallon USD
there will be a lot more repo tow trucks prowling the streets of the USA
in hopes the owners parked them in the driveway and it'll be a fast
hitch and go for the repo tow truck. 

This is always a harbinger of worse economic things to come to people
living large, there's trouble in the housing market and has been for a few
months, auto repo's is a harbinger of bad times coming....  and in the USA
you can not charge a car on credit cards, the banks put a halt to that in the
late 90's here specifically to stop people from buying a new car or truck and
owning the title, etc. then burning the credit card banks (not paying the credit cards).

When the repo tow truck comes to my area, I know plenty of people who
will lose their SUV's, trucks and mini-vans, but hey... for now they think
their shit doesn't stink as they blow past you in their Cadillac Escalade SUV
all the while working part time, literally at McDonalds...   

Stupid is as stupid does and there's plenty of stupid people who think
their expensive vehicle validates who they are in life and they'll end up
in their parent's basement at the age of 55 plus LOL when it all crashes again.
Be Prepared

Offline windyacres

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Uh Oh: The One Trillion Dollar Consumer Auto Loan Bubble Is Beginning to Burst
« Reply #4 on: September 09, 2016, 03:39:52 AM »
Uh Oh: The One Trillion Dollar Consumer Auto Loan Bubble Is Beginning to Burst 


September 7, 2016
 Michael Snyder
 The Economic Collapse


Do you remember the subprime mortgage meltdown from the last financial crisis?

Well, this time around we are facing a subprime auto loan meltdown.  In recent years, auto lenders have become more and more aggressive, and they have been increasingly willing to lend money to people that should not be borrowing money to buy a new vehicle under any circumstances.  Just like with subprime mortgages, this strategy seemed to pay off at first, but now economic reality is beginning to be felt in a major way.  Delinquency rates are up by double digit percentages, and major auto lenders are bracing for hundreds of millions of dollars of losses.  We are a nation that is absolutely drowning in debt, and we are most definitely going to reap what we have sown.

The size of this market is larger than you may imagine.  Earlier this year, the auto loan bubble surpassed the one trillion dollar mark for the first time ever…

    Americans are borrowing more than ever for new and used vehicles, and 30- and 60-day delinquency rates rose in the second quarter, according to the automotive arm of one of the nation’s largest credit bureaus.

    The total balance of all outstanding auto loans reached $1.027 trillion between April 1 and June 30, the second consecutive quarter that it surpassed the $1-trillion mark, reports Experian Automotive.

The average size of an auto loan is also at a record high.  At $29,880, it is now just a shade under $30,000.

In order to try to help people afford the payments, auto lenders are now stretching loans out for six or even seven years.  At this point it is almost like getting a mortgage.

But even with those stretched out loans, the average monthly auto loan payment is now up to a record 499 dollars.

That is the average loan size.  To me, this is absolutely infuriating, because only a very small percentage of wealthy Americans are able to afford a $499 monthly payment on a single vehicle.

Many middle class American families are only bringing in three or four thousand dollars a month (before taxes).  How in the world do they think that they can afford a five hundred dollar monthly auto loan payment on just one vehicle?

Just like with subprime mortgages, people are being taken advantage of severely, and the end result is going to be catastrophic for the U.S. financial system.

Already, auto loan delinquencies are rising to very frightening levels.  In July, 60 day subprime loan delinquencies were up 13 percent on a month-over-month basis and were up 17 percent compared to the same month last year.

Prime delinquencies were up 12 percent on a month-over-month basis and were up 21 percent compared to the same month last year.

We have a huge crisis on our hands, and major auto lenders are setting aside massive amounts of cash in order to try to cover these losses.  The following comes from USA Today…

    In a quarterly filing with the Securities and Exchange Commission, Ford reported in the first half of this year it allowed $449 million for credit losses, a 34% increase from the first half of 2015.

    General Motors reported in a similar filing that it set aside $864 million for credit losses in that same period of 2016, up 14% from a year earlier.

Meanwhile, other big corporations are also alarmed about the economic health of average U.S. consumers.  Just check out what Dollar General CEO Todd Vasos had to say about this just the other day…

    I know that when we look at globally the overall U.S. population, it seems like things are getting better. But when you really start breaking it down and you look at that core consumer that we serve on the lower economic scale that’s out there, that demographic, things have not gotten any better for her, and arguably, they’re worse. And they’re worse, because rents are accelerating, healthcare is accelerating on her at a very, very rapid clip.

The stock market may seem to be saying that everything is fine (for the moment), but the hard economic numbers are telling a completely different story.  What we are experiencing right now looks so similar to 2008, and this includes big institutions just dropping dead seemingly out of the blue.  On Tuesday, we learned that ITT Technical Institute is immediately shutting down and permanently closing all locations.  This is from a Los Angeles Times report…

    The company that operates the for-profit chain, one of the country’s largest, announced that it was permanently closing all its campuses nationwide. It blamed the shutdown on the recent move by the U.S. Education Department to ban ITT from enrolling new students who use federal financial aid.

    “Two quarters ago there were rumors about the school having problems, but they told us that anyone who was already a student would be allowed to finish,” said Wiggins, who works as the assistant manager for a family-run auto parts business and went to ITT to open new opportunities.

    “Am I angry?” he said. “I’m like angry times 10 million.”

As a result of this shutdown, 35,000 students are suddenly left out in the cold and approximately 8,000 employees have lost their jobs.

This is what happens during a major economic downturn.  Large institutions that may have been struggling under the surface for quite a while suddenly give up and drop a bomb on those that were depending on them.  In the months ahead, there will be a lot more examples of this.

Already, some of the biggest corporate names in America have been laying off thousands of workers in 2016.  Mass layoffs are usually an early warning sign that big trouble is ahead, so keep a close eye on those companies.

The pace of the economic decline has been a bit slower than many (including myself) originally anticipated, but without a doubt it has continued.

And it is undeniable that the stage is set for a crisis that will absolutely dwarf 2008.  Our national debt has nearly doubled since the beginning of the last crisis, corporate debt has doubled, student loan debt has crossed the trillion dollar mark, auto loan debt has crossed the trillion dollar mark, and total household debt has crossed the 12 trillion dollar mark.

We are living in the greatest debt bubble in world history, and there are signs that this giant bubble is now starting to burst.  And when it does, the pain is going to be greater than most people would dare to imagine.


http://www.thedailysheeple.com/uh-oh-the-one-trillion-dollar-consumer-auto-loan-bubble-is-beginning-to-burst_092016


Be Prepared

Offline Letsbereal

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"Well, That's Never Happened Before" - Auto Loans
« Reply #5 on: September 17, 2016, 05:31:06 PM »
"Well, That's Never Happened Before" http://www.zerohedge.com/news/2016-09-17/well-thats-never-happened

In the history of data from The Fed, this has never happened before...



Ford sees 'substantial headwinds' from 2017 commodity costs http://www.reuters.com/article/us-ford-motor-costs-idUSKCN11K2I6

Ford says 2017 performance will fall from 2016 levels as costs rise http://www.reuters.com/article/us-ford-investors-idUSKCN11K1D0

Factbox: Ford invests less than rivals in future mobility http://www.reuters.com/article/us-ford-motor-mobility-factbox-idUSKCN11K1A8

Ford to move all small-car production to Mexico from U.S.: CEO http://www.reuters.com/article/us-ford-mexico-idUSKCN11K1W0

Indonesia to look into Ford's sales after report on tax avoidance http://www.reuters.com/article/us-ford-indonesia-tax-idUSKCN11L0UU

South Korea's global auto sales in August lowest since 2009 https://www.youtube.com/watch?v=8g835DxlbY0

August U.S. auto sales fall; carmakers say industry has peaked http://www.reuters.com/article/us-usa-autos-idUSKCN1174UZ

Fiat Chrysler's Canadian auto sales down 20% in August http://www.reuters.com/article/us-canada-autos-idUSKCN1175DS

Ford Motor says U.S. auto sales to weaken further in 2017 http://www.reuters.com/article/us-ford-usa-idUSKCN1175A7
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Offline windyacres

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Re: "Well, That's Never Happened Before" - Auto Loans
« Reply #6 on: September 19, 2016, 01:41:56 AM »
Good graph.  We'll be seeing global "ski jump" graphs real soon
in all financial sectors pointing straight down...northward. 
Be Prepared

Offline Letsbereal

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Re: Auto Loan Delinquencies Are Soaring!
« Reply #7 on: October 02, 2016, 04:20:24 AM »
Automakers Must Hate This Chart
1 October 2016
, by Eric Bush - Gavekal Capital (Zero Hedge)
http://www.zerohedge.com/news/2016-10-01/automakers-must-hate-chart
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Offline Letsbereal

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Kelley Blue Book sees September U.S. auto sales down 2%
« Reply #8 on: October 02, 2016, 08:07:18 AM »
Kelley Blue Book sees September U.S. auto sales down 2 percent
28 September 2016
, by Bernie Woodall - Detroit (Reuters)
http://www.reuters.com/article/us-usa-autos-idUSKCN11Y2U8

September U.S. auto sales seen down 0.8 percent: JD Power-LMC
26 September 2016
, (Reuters)
http://www.reuters.com/article/us-usa-autos-idUSKCN11W1QP

BMW says China sales have improved while U.S. sales more muted
29 September 2016
, (Reuters)
http://www.reuters.com/article/us-autoshow-paris-bmw-idUSKCN11Z0Z2
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Offline windyacres

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Re: Auto Loan Delinquencies Are Soaring!
« Reply #9 on: October 03, 2016, 01:40:36 AM »
Auto sales are down lower then are being reported. 
Be Prepared

Offline Letsbereal

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A Record 25% Of Used Car Trade-Ins Are Underwater
« Reply #10 on: November 15, 2016, 07:59:09 AM »
A Record 25% Of Used Car Trade-Ins Are Underwater http://www.zerohedge.com/news/2016-11-14/edmunds-q3-used-car-report-reveals-ominous-signs-auto-industry

U.S. auto sales drop 6% despite discounts, GM off 1.7% http://www.reuters.com/article/us-usa-autos-idUSKBN12W47R

Ford’s U.S. vehicle sales dip 11.7% in October http://www.reuters.com/article/us-ford-motor-salesfigures-idUSKBN12X1PA

Ford Canada posts decline in October sales in delayed results http://www.reuters.com/article/us-canada-autos-sales-ford-idUSKBN12Y058

Mitsubishi Motors lowers sales outlook http://www.marketwatch.com/story/mitsubishi-motors-lowers-sales-outlook-2016-10-19


GM Slashes 2000 Jobs, Suspends 3rd Shift On Bloated Inventories, Slowing Sales http://www.zerohedge.com/news/2016-11-09/gm-slashes-2000-jobs-suspends-3rd-shift-bloated-inventories

Peak Autos: Toyota And Nissan Execs Admit U.S. Auto Sales Have Peaked On “Rapidly Growing Incentives” http://www.zerohedge.com/news/2016-11-08/peak-autos-toyota-and-nissan-execs-admit-us-auto-sales-have-peaked-rapidly-growing-i

Hertz Implodes After “Earnings Debacle”: Shares To Open At 7 Year Low After Abysmal Results, Guidance http://www.zerohedge.com/news/2016-11-08/hertz-implodes-after-earnings-debacle-shares-open-7-year-low-after-abysmal-results-g

Student, Auto Loans Hit New All Time High Of $2.5 Trillion As Consumer Credit Jumps By $19 Billion http://www.zerohedge.com/news/2016-11-07/student-auto-loans-hit-new-all-time-high-25-trillion-consumer-credit-jumpes

Class 8 Truck Orders Continue To Plummet Posting 20th Consecutive Monthly YoY Decline http://www.zerohedge.com/news/2016-11-05/class-8-truck-orders-continue-plummet-posting-20th-consecutive-monthly-yoy-decline
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