Car Repos on the Rise

[Mspider]

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

I feel like people always have this attitude during extreme events. Which is why I disagree with it. We went through a major world wide pandemic which no one alive has seen before. The last time something like this happen was in 1918. We are still feeling the effects of this right now. People also forget the worlds factory (china) is still locking people down.

But to think this kind of environment is here to stay for the rest of your life is foolish. I won`t bet on it. Things will eventually get better but it will take more time.

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[Mspider]

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.

I wasn`t around in the 1980s, but how did people manage with interest rates of 18%?

I feel like people forget this past decade of low interest rates was not normal when you study a graph.

 

[KingKona]

I wasn`t around in the 1980s, but how did people manage with interest rates of 18%?

I feel like people forget this past decade of low interest rates was not normal when you study a graph.

In general high rates wreck the market. Housing sales collapse.

It's cyclical.

 

[Mspider]

In general high rates wreck the market. Housing sales collapse.

It's cyclical.

I get that, but how did people manage? Rates are still under 10% and people are going crazy. Still no where near how bad it was back in those days.

 

[KingKona]

I get that, but how did people manage? Rates are still under 10% and people are going crazy. Still no where near how bad it was back in those days.

Yes. You've answered your own question.

 

[coz0502]

I get that, but how did people manage? Rates are still under 10% and people are going crazy. Still no where near how bad it was back in those days.

A lot stayed in their current situation and stuck it out. Those that couldn't, most stayed within their budget and got less house / car for the same money. Some bought what they couldn't afford and saved money in other areas to offset.

When interest rates rise, it hurts the bottom income earners the most. Probably an obvious statement, but more an more things that I think are obvious, aren't anymore. This is not directed at you BTW.

 

[Dave2013M3]

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?

From the latest I read there won't be a balanced used/new car market for at least another 2 yrs. I do believe it will happen though.

 

[sirben711]

I am hoping to see some used car deals next year
Maybe a GT? Or MX5?

 

[AvalancheSVT]

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?

i think i called it a couple months ago

seeing a LOT more new inventory on lots.

remember guys, dealers have been trying to screw you for years... give them no quarter.

 

[Dave2013M3]

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...

Big difference with the housing market is that people actually have to qualify for their mortgage. I am in R.Estate lending. Also, each market will be different. There is still a massive shortage of housing here in S. Cali. I do believe there will be a correction, just not near as drastic as 2008 which I lived through. In 2006 R. Estate was still booming, it was in the summer of 07 when New Century (huge subprime lender) went belly up we knew the winds have switched massively.

We actually kind of need this, as the supply chain won't be fixed until there is some sort of demand destruction to cool demand and this will act as a reset. I do believe we are in the beginning of this and it won't come to full fruition probably until mid/late 2023. A lot of the problem we have now is not demand but supply chain issues.

 

[ay1820]

I wasn`t around in the 1980s, but how did people manage with interest rates of 18%?

I feel like people forget this past decade of low interest rates was not normal when you study a graph.

So I never paid anywhere near 18% interest. I bought my first house in 1986 with a 9.5% fixed rate mortgage. We built a relative small starter house which was by far the most affordable choice. Right from day one, we tried to pay at least one extra month's worth of principle every year and we refinanced a couple of times and kept getting the interest rate down. Property values climbed pretty steadily (at least n the Northeast) through the 90's so we built equity pretty quickly and were eventually able to trade up to larger house (for our larger family) at 3.75%.

Basically, you make your choices, and pay your dues. In most cases, buying a house, even at a relatively high interest rate will work out in the end, but you need to be smart about it (don't buy too much house). And yes, we bought cars and had car loans throughout all this too, but we tended to keep our cars for at least 8 years so we minimized the amount of time we were paying interest.

 

[RagmopInKona]

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.

Nah, some of it is the old, I want it but can't really afford it. but most of it is. the fact that rent for many folks jumped 600-800 bucks a month. with that, fuel , food prices, heating cost and electric bills going to the moon, the car payment might have to weight, only many banks are not waiting 2-3 months anymore 50 days in the rears and the repo man starts sniff'n around.
A family members renew of their lease for the apartment went up 874 bucks a month. All the two bed units did. that is nuts. So they now pay 2259 a month rent. ouch.

 

[Strokerswild]

Nah, some of it is the old, I want it but can't really afford it. but most of it is. the fact that rent for many folks jumped 600-800 bucks a month. with that, fuel , food prices, heating cost and electric bills going to the moon, the car payment might have to weight, only many banks are not waiting 2-3 months anymore 50 days in the rears and the repo man starts sniff'n around.
A family members renew of their lease for the apartment went up 874 bucks a month. All the two bed units did. that is nuts. So they now pay 2259 a month rent. ouch.

Hence the "can't swing it" part.

Ouch on that rent situation.

 

[RagmopInKona]

You're painting with very broad strokes. Yes there are those who should be smarter than to intentionally get them into a position to get over their heads in debt. But there have been some very tough times for a lot of folks these past couple of years. If you are one of those people and "need" not want, a car you may find yourself doing something you normally wouldn't do. This could be leading to a number of these repo's. Calling people stupid and morons make for good internet forum reading but certainly doesn't reflect the real world for many good folks out there.

Only take one medical issue, to make even those with spotless credit to fall behind.

 

[Brokestang]

I wasn`t around in the 1980s, but how did people manage with interest rates of 18%?

I feel like people forget this past decade of low interest rates was not normal when you study a graph.

We made it by living within our means, & we did it with only one paycheck. My mother never had a job other than housewife. Dad drove a truck. We lived in a small mobile home & my dad had a 1965 chevrolet truck & mom had a 1961 chevrolet impala. But I had a great childhood & many wonderful memories & would do it all over again!

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