Car Repos on the Rise

[07S281E]

Car repossessions are on the rise in 2022. With an already inflated used car market, the influx of used vehicles may caused a sudden drop in used car prices. What do y'all think?

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[PonyLance]

I think you're right.

 

[Strokerswild]

The repos make me wonder if a lot of it is folks who bought new with a markup and can't swing it. Which could be interesting for the market.

 

[2021 Mach 1]

My dad told me that a neighbor is a sheriff and owns a C8 Vette. The same guy then ordered THREE more C8's with the intention of flipping them for a profit. It just never seemed like a sustainable market with that type of behavior.

 

[Cobra Jet]

The car market and the housing market is a repeat of the 2006 debacles....

Wait for it to come crashing down...

Who will we bail out next is the next question...

 

[DougS550]

Car repossessions are on the rise in 2022. With an already inflated used car market, the influx of used vehicles may caused a sudden drop in used car prices. What do y'all think?

Light Bulb, Give the Kid a Popsicle. 100% Correct. I have put off buying a new car until next year for I refuse to buy a new car which is 30% higher than 2 years ago. Used car market even worse.

 

[07S281E]

Light Bulb, Give the Kid a Popsicle. 100% Correct. I have put off buying a new car until next year for I refuse to buy a new car which is 30% higher than 2 years ago. Used car market even worse.

Thank you but I am not a kid and don't eat popsicles, unless I am sick. That being said. I do not think RWD V8 Manual cars will drop in value. If you wait to long to buy one you may not get one, especially a low mileage used one.

 

[Zelek]

With the interest rates at 4%+ for people with 800+ credit scores right now, I can only imagine the kinds of financially terrible deals people are making to get into Mustangs right now that will end up in repo situations.

Now is an awful time to buy a house or car, period. Wait if you can.

 

[Jimmy Dean]

think the increase in other prices is playing a big part too. I know my home expenses are up over 600/mo right now as compared to a year ago. electricity makes up almost half of that alone. food, insurance, gas, trash, all up considerably.

 

[Cobra Jet]

With the interest rates at 4%+ for people with 800+ credit scores right now, I can only imagine the kinds of financially terrible deals people are making to get into Mustangs right now that will end up in repo situations.

Now is an awful time to buy a house or car, period. Wait if you can.

The thing is - "wait" until when? What is going on right now seems to be the new normal unfortunately....

People are getting in over their heads for sure - if they're complaining about insurance and gas rates on a car they paid in excess of $50k+++, then maybe they shouldn't have gone over their means....

It's like buying a $500k+ home and only putting 30k down.... that's an upside down situation for quite a while before there's any equity especially with the loan rates ... same is true with the car loan to value ratios.

As I've said many times on here -
It's totally stupid for ANYONE to be paying ADM or well above the MSRP on a vehicle.

Why people are agreeing to drop $$$ over the MSRP or going with ridiculous ADM fees - is beyond me. Ask yourself, would you take that same bundle of $ and literally burn it or flush it down the toilet?

If people would stop paying the ridiculous overstated new car values - those cars would sit and the dealer WILL be forced to reduce prices because it's costing them $$$ every day that car sits as well as being a liability on their lot insurance.

 

[luc]

The car market and the housing market is a repeat of the 2006 debacles....

Wait for it to come crashing down...

Who will we bail out next is the next question...

You can’t compare the real estate market of mid/late 2000 to what it is now
Couple of examples:
Was a lot of no income verification loans, that doesn’t exist anymore
We now have a significant housing shortage
Subprime mortgages are only a fraction of what they were
Agree that the market is cooling down and we could even see a decrease in pricing but it will be very modest, nothing compared to 2008

 

[Jimmy Dean]

The thing is - "wait" until when? What is going on right now seems to be the new normal unfortunately....

People are getting in over their heads for sure - if they're complaining about insurance and gas rates on a car they paid in excess of $50k+++, then maybe they shouldn't have gone over their means....

It's like buying a $500k+ home and only putting 30k down.... that's an upside down situation for quite a while before there's any equity especially with the loan rates ... same is true with the car loan to value ratios.

As I've said many times on here -
It's totally stupid for ANYONE to be paying ADM or well above the MSRP on a vehicle.

Why people are agreeing to drop $$$ over the MSRP or going with ridiculous ADM fees - is beyond me. Ask yourself, would you take that same bundle of $ and literally burn it or flush it down the toilet?

If people would stop paying the ridiculous overstated new car values - those cars would sit and the dealer WILL be forced to reduce prices because it's costing them $$$ every day that car sits as well as being a liability on their lot insurance.

I bought my Mach for almost 8k under MSRP this year. Cannot understand paying over MSRP for fairly standard cars.

I am in the bad spot now of having to sell my house and move this year due to job in a diff state. will be losing that sweet sweet <4% interest for sure

 

[Jimmy Dean]

You can’t compare the real estate market of mid/late 2000 to what it is now
Couple of examples:
Was a lot of no income verification loans, that doesn’t exist anymore
We now have a significant housing shortage
Agree that the market is cooling down and we could even see a decrease in pricing but it will be very modest, nothing compared to 2008

I Agree. the problem in 2008 was many people overleveraged on their loans. The problem right now is seemingly very much prices being driven up by cash purchases by investment companies and foreign investors. Those companies/people are not subject to inflation rate increases when having to consider a monthly payment. So while prices may drop some, it will only be advantageous to the cash buyers already buying up large portions of many housing markets.

 

[KingKona]

Yep. Markets are totally cyclical.

And stupid people, that know nothing about history, are doomed to repeat the mistakes of the past again, and again, and again.......ad infinitum.

And those of us that do partake of history, are doomed to watch the morons repeat the mistakes of the past again, and again, and again.......ad infinitum.

 

[wynand32]

The car market and the housing market is a repeat of the 2006 debacles....

Wait for it to come crashing down...

Who will we bail out next is the next question...

In terms of artificially low interest rates, yes, the car market might be a repeat of the past. What we don't have is the government guaranteeing loans for people who flat-out can't afford it. But yes, that won't stop everything from crashing, which is a frightening proposition.

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