@@allegorx58 id say we are at bottom now if you factor in inflation. Next year by Q3 the market would likely be stabilized IMO. New cars not being sold lowers the price before depreciation even sets in. Trickle down effect to used cars. Just based off market trends
This was always going to be the case after banks were lending to sub prime borrowers at elevated LTVs due to markups. There's a reason why people with low credit scores have them, and now that they are significantly upside down on their auto loan on a vehicle they can barely afford they probably think it makes more sense to let the vehicle get repo'd. I actually think that the data points to a more positive future with an increased share of prime borrowers accounting for auto loan originations.
Unfortunately, the Federal Reserve slashing interest rates will lead to cheaper car loans which will lead to increased demand for cars which will lead to higher car prices. Higher car prices is bad news for us buyers. If we truly want to crash the car market, we need to increase interest rates even more to decrease demand for cars and in addition, have the govt incentivize carmakers (especially Toyota & other high demand carmakers) to produce more affordable new cars
But why would a decrease in demand force automakers to make more of them? Also, increases in the cost of capital will not only make production more expensive leading to further increases in MSRPs, it'll slow the overall economy to a crawl.
@@enmass90 A decrease in demand won't force automakers to make more of them, the government would have to put out incentives to make carmakers pump out more affordable small new cars
@@johnkonde1975 the government is already subsidizing them. You can get lightly used small EVs like the Chevy bolt for under 20k with the tax credit. If you mean having automakers pump out sub 20k brand new shitboxes it won’t work because Americans don’t buy those cars. That’s why Hyundai recently discontinued the Rio. Hell, the Chevy Trax at 20k-25k msrp is selling well enough because it’s decently equipped and doesn’t need any subsidies.
@@enmass90 I don't mean govt subsidizing expensive impractical EVs (many millions of Americans like myself live in apartments and can't charge EVs overnight), I meant govts subsidizing sub 20k fuel efficient small gasoline vehicles so people can buy them new for under 15k, then people will buy them guaranteed!
@@johnkonde1975 why would the government do that? The only reason why it subsidizes EV’s is because it’s attempting to boost adoption of zero emissions vehicles in order to achieve climate goals. Also, by increasing interest rates it doesn’t do anything for affordability. If you boost rates and provide a subsidy the monthly payments are a wash. So what’s the point of doing anything?
car loans are a major problem if you have crap credit, are broke and are trying to spend more than you can afford. plenty of good used cars available between 5K and 10K dollars. its called save money and use it wisely, be responsible. car loans are a major problem for irresponsible people
Thanks for a great video. To be honest, I am surprised that it took this long to show up on the statistics. It is insane for a person to purchase an auto above low to mid $20 thousands. Forty Thousand dollars for a replacement vehicle is a horrible decision to purchase. Time to pay the piper banks.
My initial thought (and I'm open to being way off base on this) is that opportunities are ripe for prime and super-prime borrowers and cash buyers for good deals from dealerships taking in more repos than planned. Doesn't higher inventory favor the buyer?
Question. I just bought a car for turo and the odometer reads 60750. It's a 1 owner car from a older lady who can longer drive I pulled the car fax and the last oil change statment via car fax was 62300. Am I going to have a issue with the milage inconsistency when adding this to turo even though it's an obvious non roll back just probably a typo error at a oil change service?
I think Turo has been infiltrated by big business, why are the rates so low? Are we unknowingly competing with Hertz, Enterprise and Avis on this platform?
Turo hosts many of them are illegal imigrants without documents somehow got 20-30 car loans per person to use it for Turo car sharing. Case closed. Talk more about Turo moneymakers will bring more hosts to kill your business.
Lol what are you saying?? How are they getting 20-30 loans? It would be extremely difficult to get approved for a singular loan, let alone multiple. Banks consider credit score, income, dti, employment history, and down payment when considering offering you a loan. Illegal immigrants will most likely have none of those, especially considering lenders having tightened lending standards over the past year. What are your sources?
Car prices was crashing 3 years ago still Waiting
If you haven't noticed a dramatic change in vehicle prices in the last 3 years. You haven't been paying attention lol
@@greatnesspros5689i’d assume he’s pointing to the idea that we haven’t come near a bottom yet
@@allegorx58 id say we are at bottom now if you factor in inflation. Next year by Q3 the market would likely be stabilized IMO. New cars not being sold lowers the price before depreciation even sets in. Trickle down effect to used cars. Just based off market trends
Bro stop timing it, if you need a car just get one. If you want a car then wait it out.
@@greatnesspros5689demand matters too. if people can’t afford to eat they sure as hell can’t afford to buy a car
Excellent content Aubrey, always giving us good insights ! Keep it up 🎉
More pickup trucks are getting repossessed due to paying too much.
This was always going to be the case after banks were lending to sub prime borrowers at elevated LTVs due to markups. There's a reason why people with low credit scores have them, and now that they are significantly upside down on their auto loan on a vehicle they can barely afford they probably think it makes more sense to let the vehicle get repo'd.
I actually think that the data points to a more positive future with an increased share of prime borrowers accounting for auto loan originations.
I tried to use a credit union recently with a new car purchase and dealership matched the rate.
A $1 increase year over year is a lower payment once you factor in inflation
Unfortunately, the Federal Reserve slashing interest rates will lead to cheaper car loans which will lead to increased demand for cars which will lead to higher car prices. Higher car prices is bad news for us buyers. If we truly want to crash the car market, we need to increase interest rates even more to decrease demand for cars and in addition, have the govt incentivize carmakers (especially Toyota & other high demand carmakers) to produce more affordable new cars
But why would a decrease in demand force automakers to make more of them? Also, increases in the cost of capital will not only make production more expensive leading to further increases in MSRPs, it'll slow the overall economy to a crawl.
@@enmass90 A decrease in demand won't force automakers to make more of them, the government would have to put out incentives to make carmakers pump out more affordable small new cars
@@johnkonde1975 the government is already subsidizing them. You can get lightly used small EVs like the Chevy bolt for under 20k with the tax credit.
If you mean having automakers pump out sub 20k brand new shitboxes it won’t work because Americans don’t buy those cars. That’s why Hyundai recently discontinued the Rio.
Hell, the Chevy Trax at 20k-25k msrp is selling well enough because it’s decently equipped and doesn’t need any subsidies.
@@enmass90 I don't mean govt subsidizing expensive impractical EVs (many millions of Americans like myself live in apartments and can't charge EVs overnight), I meant govts subsidizing sub 20k fuel efficient small gasoline vehicles so people can buy them new for under 15k, then people will buy them guaranteed!
@@johnkonde1975 why would the government do that? The only reason why it subsidizes EV’s is because it’s attempting to boost adoption of zero emissions vehicles in order to achieve climate goals.
Also, by increasing interest rates it doesn’t do anything for affordability. If you boost rates and provide a subsidy the monthly payments are a wash. So what’s the point of doing anything?
car loans are a major problem if you have crap credit, are broke and are trying to spend more than you can afford. plenty of good used cars available between 5K and 10K dollars. its called save money and use it wisely, be responsible. car loans are a major problem for irresponsible people
Thanks for a great video. To be honest, I am surprised that it took this long to show up on the statistics. It is insane for a person to purchase an auto above low to mid $20 thousands. Forty Thousand dollars for a replacement vehicle is a horrible decision to purchase. Time to pay the piper banks.
My initial thought (and I'm open to being way off base on this) is that opportunities are ripe for prime and super-prime borrowers and cash buyers for good deals from dealerships taking in more repos than planned. Doesn't higher inventory favor the buyer?
somebody got a new T shirt 😘
Question. I just bought a car for turo and the odometer reads 60750. It's a 1 owner car from a older lady who can longer drive I pulled the car fax and the last oil change statment via car fax was 62300. Am I going to have a issue with the milage inconsistency when adding this to turo even though it's an obvious non roll back just probably a typo error at a oil change service?
whats turo
I think Turo has been infiltrated by big business, why are the rates so low? Are we unknowingly competing with Hertz, Enterprise and Avis on this platform?
People who financed 10 cars for Turo and they’re not renting…
wtf is turo
Counterpoint, yes the fuck it is good. Average car price is what, like 50k? Foh.
oh well ka ka happens
Turo hosts many of them are illegal imigrants without documents somehow got 20-30 car loans per person to use it for Turo car sharing. Case closed. Talk more about Turo moneymakers will bring more hosts to kill your business.
Lol what are you saying?? How are they getting 20-30 loans? It would be extremely difficult to get approved for a singular loan, let alone multiple. Banks consider credit score, income, dti, employment history, and down payment when considering offering you a loan. Illegal immigrants will most likely have none of those, especially considering lenders having tightened lending standards over the past year.
What are your sources?
8:37 why do you care? content? I understand then lol