America's Auto Loan Debt Is Truly Out Of Control

ergophobe · September 23, 2020, 04:56:16 PM

What happened to the projections a while back that the bottom was about to fall out of the used car market? Something to do with huge numbers of cars coming off lease and the lease market declining.

Wouldn't that put even more people underwater on their car loans?

rcjordan · September 23, 2020, 05:01:01 PM

IIRC, used car prices shot up this past 6 months because new car production was so reduced due to pandemic shutdowns, which -in turn- killed the supply of used trade-ins.

ergophobe · September 23, 2020, 05:40:21 PM

Of course...

The wealthy are buying houses instead of new cars and the not-so-wealthy are buying used cars instead of new cars

rcjordan · September 23, 2020, 06:22:06 PM

related

Father, Son Used-Car Sellers Get $5 Billion Richer in a Day - Bloomberg
https://www.bloomberg.com/news/articles/2020-09-22/father-and-son-used-car-sellers-get-5-billion-richer-in-one-day

Brad · September 23, 2020, 06:55:33 PM

> used cars

This jives with a sales letter I got from my dealer. I'd just had my 2016 car in for service so they know it's low mileage. They said that they were having trouble getting new cars due to the pandemic supply chain but used cars were selling and they needed more. So they wanted to know if I would trade up. When I was in for service the car lot was looking kinda empty and frankly all the dealers lots are looking thin on the new car side. That's my field report.

littleman · October 14, 2020, 01:12:24 AM

RC: Classic SAAB Sonett III - $5,300

rcjordan · October 14, 2020, 01:15:56 AM

Thanks! Luckily, it is 3000 miles away.

littleman · October 14, 2020, 01:22:39 AM

Short hop from me.

If there was no pandemic I'd offer to drive it to NC for you.