Car repossessions are on the rise

[Laconian]

https://www.nbcnews.com/politics/economics/car-repossessions-are-rise-warning-sign-economy-rcna61916

[dazzleman]

Not surprising at all.  Americans have long been overleveraged.  My own opinion is that if a person is buying more than a basic car and needs financing to do it, then he can't afford the car.  It's idiotic to have huge debt and payments on a rapidly depreciating asset.  Once again, Americans have been snookered into having permanent car payments, rather than payments for the first 3 years or so, followed by a period of ownership without payments.

[Morris Minor]

I assume car loan debt: prime, near-prime & sub-prime, is packaged and resold like everything else.
The value of the collateral, new & used cars, was inflated by low supply and free COVID-bucks. So the finance companies and the debt holders have a big problem: borrowers have walked away and all that repossessed inventory is not worth what they're owed.
Apart from the large volume of repossessions that needs to be unloaded, the value of that excess supply is *also* lowered by its relative undesirability vs soon-to-be heavily subsidized EVs.
See also: https://www.carspin.club/index.php?topic=34841.msg2553385#msg2553385

This (evidently from the president of some group of dealerships) has had lots of retweets.
https://twitter.com/GuyDealership/status/1603794722140688384

[AutobahnSHO]

Used car prices shot up so much it was easier to justify a new car loan.

But really, easy debt is a cancer in our country. Too many people over-extend themselves for too many things. When "everyone" is doing it, it's easy to believe that a car payment for life and second mortgage are "normal" and they'll eventually pay it all off.

[CaminoRacer]

I think the numbers are still lower than pre-pandemic, so nothing to worry about (yet)

[GoCougs]

Who remembers this awesome flex? Should come at no surprise.

https://twitter.com/jessicaray0/status/1563329075153760256

[Laconian]

I just showed that to Cedric yesterday So many 25 year olds up to their eyeballs in debt.

[Morris Minor]

My sister's significant other drives an elderly Euro version Honda Accord - no payments haha. He could be a model for the Millionaire Next Door books.

[AutobahnSHO]

I just showed that to Cedric yesterday So many 25 year olds up to their eyeballs in debt.

That's just when it starts. If they're smart they dig out by 35-40 but many never do.

A dude making what I make just dropped pictures on FB of his new house they're building- 3 stories 6 bedrooms, at least 3 living areas. Sure he has a bunch of kids but I'm thinking he'll be comfortable with his salary and payments but not if something unexpected happens....