Author Topic: America's Auto Loan Debt Is Truly Out Of Control  (Read 3049 times)

ergophobe

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Re: America's Auto Loan Debt Is Truly Out Of Control
« Reply #15 on: October 04, 2019, 03:49:19 AM »
>>if it gets a scratch you could just shrug it off... liberating

So true!

My car was recently hit in the parking lot and a good Samaritan left a note with the license plate of the perpetrator. I looked around and realized I couldn't possibly pick out any new scratches from the old dents and scratches and threw the paper away. I had another car I bought for $750. It was hit in a hit and run, a neighbor got the license plate and called it into the police and I got $1500 to repair it. I went to the junk yard, spent $25 on  tail light, hammered out the dent with a 2x4 and a sledge hammer. Actually doubled my money on that car and gave it to a friend in need when I moved to Switzerland.

rcjordan

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Re: America's Auto Loan Debt Is Truly Out Of Control
« Reply #16 on: October 04, 2019, 02:16:34 PM »
3yrs ago, my 2010 Dodge van was hit pretty hard in the right rear quarter panel.  I let the appraiser take pix, then I took it to the house, parked it in the summer sun, then popped the plastic shroud back into place with a couple of crowbars.  It's barely noticeable and I pocketed $1600.

DrCool

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Re: America's Auto Loan Debt Is Truly Out Of Control
« Reply #17 on: October 04, 2019, 04:34:30 PM »
>>EVERY SINGLE VEHICLE in that section is nicer than mine

My 2003 Honda Odyssey and 76 Ford pickup agree with this. I wouldn't care at all if one of those got a ding in it. No reason to get a nice car when it will just be filled with goldfish crumbs and spilled apple juice from the kids.

I live in a pretty standard suburban neighborhood that seems to have a fairly high number of older people and retirees. Most of their vehicles are pretty sensible (5-10 year old hyundais, 15 year old pickups, etc.). But drive 5 minutes to a newer neighborhood with younger families and you see a bunch of $50K+ trucks, SUVs, crossovers, etc.

littleman

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Re: America's Auto Loan Debt Is Truly Out Of Control
« Reply #18 on: October 04, 2019, 07:49:27 PM »
Seems a lot of us think the same on this issue.   8)

Our household car inventory:
2008 Scion XD -- only car we ever bought new, but paid cash
2002 Honda Civic, bought it for $2k
1974 260z with a 350 small block Chevy

Drastic

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Re: America's Auto Loan Debt Is Truly Out Of Control
« Reply #19 on: October 05, 2019, 01:00:53 PM »
>1974 260z with a 350 small block Chevy

Well, hello there.

rcjordan

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Re: America's Auto Loan Debt Is Truly Out Of Control
« Reply #20 on: October 05, 2019, 05:48:14 PM »
>talk to my kids

Send your older ones to lurk on this /r/ but advise them that they should be looking for common issues posted by younger redditors.  It can be an eye-opener.

https://www.reddit.com/r/Frugal/new/

littleman

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Re: America's Auto Loan Debt Is Truly Out Of Control
« Reply #21 on: October 05, 2019, 10:29:02 PM »
>Well, hello there

Little cars with big engines are fun.

That sub is pretty good RC.

rcjordan

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Re: America's Auto Loan Debt Is Truly Out Of Control
« Reply #22 on: October 05, 2019, 10:44:31 PM »
> sub

I check it 3 or 4 times a week.  The big topics are what you'd expect; rents, food, transportation, utilities, appliances, furnishings.  As a parent, the best part it is that your kid can't accuse you of making stuff up to scare them about finances.

> Z

I was going to buy a 240 Z but they were selling at a premium --just too many being sold for my liking.  I bought a Saab Sonett instead.
« Last Edit: October 05, 2019, 10:46:53 PM by rcjordan »

littleman

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Re: America's Auto Loan Debt Is Truly Out Of Control
« Reply #23 on: October 06, 2019, 04:40:59 AM »
The Sonett is an interesting car.  I don't think I know of any other car that is front wheel drive, has a V4 and looks like a sports car.


rcjordan

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Re: America's Auto Loan Debt Is Truly Out Of Control
« Reply #24 on: October 06, 2019, 01:55:00 PM »
>Sonett

All fiberglass body, too.  *Very* peppy, but top end was only 110 mph (which cost me a ticket that took my license because I couldn' t outrun the highway patrol in it. But that's another story.)

It was one of my favorite cars. Somewhat trouble-free (for the era, especially compared to English sports cars). Alternators & starters were expensive, though --about 4 x the price of domestic (Bosch). 

The Sonett saved my bacon during the OPEC gas shortage.  IIRC, it had a 15 gallon tank and got over 30 mpg ...unheard of mileage for the 70s.

rcjordan

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Re: America's Auto Loan Debt Is Truly Out Of Control
« Reply #25 on: November 13, 2019, 10:34:46 PM »
Feds: Americans increased their borrowing for the 21st straight quarter as more households took out loans to buy homes or refinance existing mortgages
https://www.newbernsj.com/news/20191113/us-household-debt-rises-for-21st-quarter-lifted-by-mortgages

ergophobe

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Re: America's Auto Loan Debt Is Truly Out Of Control
« Reply #26 on: November 16, 2019, 03:20:20 AM »
Americans are taking on more automotive debt for longer terms than ever before.

https://theoutline.com/post/8031/car-loans-longer-economy-recession-bad-idea?zd=1&zi=ptr2yxit

ergophobe

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Re: America's Auto Loan Debt Is Truly Out Of Control
« Reply #27 on: November 25, 2019, 06:36:56 PM »
This is old news (Feb 2019), but I just listened to a Planet Money on car loans and they cited this

Record 7 Million Americans are Behind on Car Loans
https://www.washingtonpost.com/business/2019/02/12/record-million-americans-are-months-behind-their-car-payments-red-flag-economy/

This is not necessarily a sign of recession, so much as the fact that interest rates are low and the subprime car loan industry has exploded, as subprime car loans are typically at high teens to low 20s (a person on the Planet Money episode had a 23% car loan).
https://www.npr.org/2019/11/20/781364732/episode-953-three-sides-of-a-car-loan

rcjordan

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Re: America's Auto Loan Debt Is Truly Out Of Control
« Reply #28 on: November 25, 2019, 06:54:34 PM »
Louise and I were just talking about this. Add to the above that the insane prices for new vehicles have also ramped up the prices for used vehicles and the used car dealers are really socking it to them on the loans.