It's a vicious cycle and predictable 8-10 years' proven failures time and time again its boom and bust cycle is a key characteristic of capitalist economies and is sometimes synonymous with the business cycle."
Can't help but feel bad for those people (aside from the idiots who destroyed the cars). Sometimes life hits you hard when you least expect it. They might have been able to easily afford a nice car at first, but then their circumstances take a bad turn. Happened to me. Just glad my payments are going to finally end this year.
Covid caused a lot of this. Many people lost their jobs or got laid off and got behind on all their bills. and to top all of that off, the price of everything skyrocketed during the pandemic. Many people are living right on the edge including me. I was thriving before the pandemic but now I'm basically paycheck to paycheck while trying to pay off my debt. I'm essentially one big unexpected bill away from falling off the cliff and being one of these people who's cars are on a lot like this.
Not to be critical; I just paid off a seven year car loan myself; if you have to finance something, it means you can’t afford it. I went into a car loan knowing I was taking a risk. I’m going to drive my paid off car for 20 more years if that’s what it takes to never have another car payment.
Most of the cars in the video are performance and luxury vehicles clearly purchased to show off when they could have gone with more sensible options. Why feel bad for people who make foolish financial choices.
Life happened to me. I was making good money and then my wife got cancer right after having our twins. I couldn’t work for 8 months. Spend all of our savings and 401k trying to stay afloat. Then ran up the credit cards while trying to start over and next thing you know I’m totally screwed. Waiting for the bank to come get my car now. Hoping to be able to save up the cash for a bankruptcy attorney soon.
Value of all cars have dropped hard in the last year. More than 10%. If you pay dealer prices, PREMIUM prices from last year, I guarantee you are upside down until 2025. At least.
I sold my Subaru Outback last April. It was five years old, and I held the title. The dealer was stupid enough to give me $27,500. I rolled that into a new Hyundai Tucson, and paid cash for the 2022. Five year bumper to bumper warranty, and no car payments for a loooooong time.
I sold my ev I paid 10500 for and sold it 2 years later for 16k to carvana. They sold it 2 weeks later for 18k. This was when gas was 6 Or 7 in California
I avoided buying a car up until last year, at 28. I’m 40% down, 60% to go! - For the record I kept my rust bucket since HS and the entire muffler falling off was the last straw for me
What did dealerships and banks think was going to happen when they were financing vehicles at 3k, 5k, 10k, 15k, and 20k over MSRP? Several thousands in add-ons? They brought this problem on themselves.
I’m sure many are saving for a Tesla. I gave my 15 yo ‘06 250k mi Prius away when its cat got stolen. Then got a ‘22 M3P that I gave to my son as a (10 years) belated BD/XMAS gift when the MYLR arrived 7 mo later (both ordered w/ $8k FSD b4 the price hike). These things are dirt cheap to run & keep! Thx thieves, for forcing the change (& enjoy your time in hell)!
@@TheGuruStud I have owned GM's since 1976 only had 2 duds and they were still running 4 years later when I got rid of them. I traded a 2016 Cruze for the Buick and had no trouble at all with it...would still have it but wife has RA and had trouble getting in and out of it.
@@brutalbasspro wow. I can't imagine paying that for insurance. I pay under $200 a month for 5 cars, 2 motorcycles a boat and travel trailer. All 2017 and up. You should probably do some shopping around it you are paying anything like that.
Banks should sue car dealerships for their markups. It starts with dealerships. They are the ones who cause the price gouging. I know it’s the banks fault as well, but there needs to be some kind of regulation on these car dealership markups.
I'm so happy to see Wells Fargo getting some of their own medicine. I once did IT auditing for WFB and other large banks, and discovered how they stole money from people's accounts.
I also have a personal experience with Wells Forgo from several years ago that wasn't very good. They could care less what your situation is. So karma is a bitch.
@@beverlystephens6964 He's not even describing a client's situation, he's just describing the sh*tty illegal things WFB do to their clients. That's why you shouldn't expect a bigger bank to take care or listen to you. You should always consider credit unions first. They tend to be local and have a greater propensity of considering a client's needs.
Banks MADE these loans. They lent more than the asset was worth. Let them eat the losses. They got greedy, they took a chance. They gambled, and now they’re losing. Eff them.
@@thatv8life186 it's a slow dodge. An RT will be worth 1500 in 15 yrs. Who the hell wants a POS fiat? No one....except the poors that can't afford even a used one. Trailer park cars.
My rule of thumb (if you EVER have to finance a car) is to set a MAXIMUM budget that you KNOW you can afford, and not a cent more. If you can set a max budget AND make on-time payments 100% of the time, you should NEVER have to experience a repo. For instance, your max budget is $400 but your [new] ride only costs $360. Pay your max consistently. Boost your credit score, minimize the interest over time, principal balance improves a bit, and have the ability to skip a month's worth of payment if the going gets tough.
Many years ago, we had to declare medical bankruptcy. We had to give up our SUV. We cleaned it out and washed it. We dropped it off at the lenders business. No reason to be a jerk and destroy the car!!
I just want to remind you all Brandon is a good guy, but he’s also making UA-cam videos so he has to keep it interesting. Please remember he has no actual idea what happened to that car and is purely speculating. Let’s all just calm down and not get tooo sucked in ok?😅
You should research what caused the 2008 crash. Outside of maybe some small town banks, they're all crooks and predators. No one got hurt in that deal besides the bank. And honestly, the bank probably doesn't even care because I'm fairly certain they can write off the difference anyway.
Because you’re a decent human being that that was forced to hit the reset button. That bankruptcy did not define your character. As much as it hurt to go through the repo, it didn’t keep you from doing the right thing. 👍🏽
Bought my 2012 Accord back in august 2020 before the used car market became what it is today, 3 years of just under $300 payments and I’m finally done this month. I feel extremely lucky I got this car when I did, its still a dream to drive to this day
20 years ago you could get an F150 fully loaded with everything for less than 550 a month. If possible, I will avoid car payments like the plague and only buy cash or electronic check. I am okay with a mortgage on a house though.
No one should be buying a house or a car right now. Even if you have the money, the prices are completely inflated. You are never going to get your value out of it.
@joe woodchuck I think so. The city accessment for both of my houses is off way off base. And the houses around me are all at least 30 to 40 thousand higher than they were 3 years ago. It's definitely a sellers market
This is a prime example of people being convinced they need a new car every 2 years or so, when that 10-15 year old car probably just runs perfect and could be an excellent daily driver. These people sat in a dealership, thought they could afford the payments and immediately sank. Such a bad case of overbuying.
I have a 2015 Toyota Camry and that car will still be a solid daily driver year 2040 but, it could be worth peanuts around 2025 due to nobody wanting a gas burner anymore.
I bought a 2022 Tesla Model 3 LR so I will not need a new car for 20+ years. Payments are a bitch though. I do love seeing how much I do not pay in fuel every month!
Looks like their key was a crowbar! As a consumer, you absolutely cannot depend on the banks to tell you how much payment you can afford! When we were getting ready to purchase a new home back in early 2005, our loan officer casually mentioned that we qualified for a larger loan than we had applied for by saying, “you can afford way more house than this!”. I just looked at her and said nothing. We had run our numbers multiple times ourselves to insure we were not taking on too much, so we knew that we, indeed, could not afford “way more house” than we were buying. Don’t have to tell you what happened to the economy and mortgage backed securities a few years later! Give a bank the chance and they will gladly set you up to fail every time!
Because you're in the 5% of people who are intelligent. The average person is incredibly stupid and is more worried about what other people will think than if they can afford something. This is the sad reality.
More like goes to show how little people know about finance in this world. Most people and banks don't know what they can afford and dont account for risks like loss of job, market changes, etc.
my wife and i own a lucrative dog grooming shop and i work 40 hrs a week at a normal job. we were debating a 2nd car payment. After weighing the pros and cons we are opting to just buy an older car for cash. we don't want to live just to make our bills should the economy tank. anyway I'm always digging your content and just want to say thank you. you've helped us with our decision.
I've been listening to several economist on UTUBE and they're predicting a depression's looming on the horizon, inflation is not being tamed, so, the best plan is to not get into anymore debt, but actually getting out of debt is the best option.
@@taras4352 Dave Ramsey is a coward. He screwed up with credit cards and is now scared to death. Debt free is good for consumers but it is necessary for many businesses to operate. Don't be afraid of debt, be willing to understand it.
Bad idea. Used cars are "like a box of chocolates." You know the rest of that quote. Even if you have a good mechanic check it out for you, buying is a big risk. Making a used vehicle reliable costs a small fortune. I speak from experience.
@@crackedfingerz i am a mechanic with 45 years of experience. also i have the complete history of the single owner car that i will end up buying. its just a bit older and doesn't have technology found in cars made in the last 8 years. basically we have the need for a 3rd car as we live an hours drive from our shop and my job.
@@zzbudzz I don't do luck. I do have the skills necessary to make repairs when needed, including engine, trans, t-case, and axle overhaul. That old Jeep is as solid as the Rock of Gibraltar, and it'll be running long after that new crap has been recycled into soda cans.
I had to get let a car go back to the bank once years ago. What a lot of people don't realize is that when the car is auctioned, they're still on the hook for the difference between what they still owed on the car and what it sells for at auction. You owe 20k, it auctions for 5k, you still owe the bank 15k. When I let mine go back, I tried to work with the bank to get some kind of relief where I could some kind of a temporary reduced payments and keep the car. I was told that wasn't going to happen and ended up I told them to come get it. It sat in my yard for almost 6 months before anyone showed up to drive it off.
I drive a 13 yr old car. Haven’t had a car payment in 5 years. Last year, a buddy of mine bought a new BMW and he already had the latest 2022 jeep wrangler. When I told him I enjoyed not having a car payment, his girlfriend told me ‘yeah but your car is old’. I had to process the logic for a whole minute. I wonder what sort of financial situation they must be in now LOL 😂 people are really stupid man. Buying crap they can’t afford to impress people that don’t care.
I'm driving a 23 yr old Acura Integra. Its got me from point A to point B safely plus good gas mileage. My coworkers are driving luxury cars like Benz , Lexus , BMW , Tesla , 50k+ suv etc. They look at me funny when I told them what I drive but they look even more puzzled when I told them my house is paid off. My net worth is almost 700k , I have roth IRA , roth 401k , stocks , gold , and a year emergency cash. I paid off my son college tuition in cash so he didn't have to borrow student loan. But hey , everyone is different.
you’re very smart and I applaud you. I know what you mean by the getting funny looks. You just can’t fix stupid 😂 let them believe they’re doing something blowing thousands on a depreciating asset. I can’t believe ppl will dump all that money (thousands in interest, gas, random repairs, oil changes, insurance, yearly inspections, license plates, property taxes, etc.) on something that loses value ever year all to put on a fake image of appearing rich and cool lmfao 🤣 like I said, you can’t fix stupid.
I had to do a voluntary repo once. Still had to pay $6k eventually after it auctioned and it still dropped my credit score by 150 points. Took almost a decade to recover from it. Definitely learned not to buy a car I can't afford after that. I'm babying my current truck cause there's no way I'm paying what a new one costs any time soon lol.
23 now still recovering credit and financial-time loss wise, 18 straight out of highschool when I did it. I folded in the 1st year because of the insurance payment itself! Swore to myself I would never buy something I can’t afford with the money I JUST SIMPLY don’t have.
Sometimes we have to learn the hard way buddy. I'm the exact same way myself. Just spread the knowledge and hope you can rescue someone from doing the same in the future
Yeah I learned the hard way too. But with maturity comes growth. Now I own all my cars outright. If I can’t afford to buy it cash I’m not buying it. When I get tired of it. I put it up for barter. Title for title and rinse wash and repeat. I have a BMW 6, BMW X5, Hayabusa, and a Yamaha. Bought them all as mechanic specials. They all run great now. And I paid less than 10k for them all. Insurance is cheap because I only carry basic coverage. If one of them goes down. I’ll sell it or junk it and find another one. When I was younger I bragged about having the newest cars. Now that I’m older. I brag about buying the car that was once 100k for 5k. So I get to experience the same luxuries as everyone else. I just have wait a few years first. It’s sooooooo worth the wait! 😂 if we all started doing the same they would have drop them prices. Because it’s 2023 and a new Cadillac Escalade ESV is 180k? Really? I’ll wait for it to hit 8k 😂. Let somebody else deal with the depreciation and the the payments. I’ll wait to buy it cash on my budget 🫡🥃
Next time you see some guy rolling around in a 100k pickup or a brand new Type R, just know they're probably up to their eyeballs in debt they'll never be able to repay.
I worked for a repo business for about 3 weeks once upon a time. Snatch and go, many times late at night. Being threatened with bodily harm was common, being shot at was suspenseful, and this big naked lady threw all the shoes on her porch at me. I think what she did was worse than the Toyota Celica filled to the windows with wet sand and no air in the tires. Some people can be very creative and devious. The Celica thing was impressively evil and left where it sat for yard art.
All in 3 weeks ..it takes a special person to be a repo man. I worked with a guy who did it on the side and the stories he told me , i thought he was crazy for doing it.
@@Starrhuntjobs don't pay so good luck with that illogical thinking, let me know when McDonalds can afford a basic living like they did in 1950s, until jobs pay for the basics then let it all burn, I don't care anymore I've never been able to afford anything anyways
Two years ago, I saw a video on youtube, of a tow truck that had a couple cameras set up in his truck cab one facing out the back. There's a guy on his front porch unloading his clip of his handgun at the tow truck, and the tow truck driver ducking down, foot to the floor leaving that guy's place without the car he was sent to repossess! (LMAO) That needs to happen way more often in my opinion. 🤣
Hopefully. I'm looking to upgrade to an SUV or crossover (better clearance for winter driving) and don't want to feel like I'm bankrupting myself for it.
@@ChickenMcThiccken no, people are so upside down on there auto loans that when they sell them they won’t get anything for them, making them way cheaper to purchase.
It's only going to get worse. I saw the report that Harley Davidson can't repo their bikes back fast enough, they can't find enough repo men to get them all!! Credit is going to be super tight again here soon. I remember in 2012 when we bought the home they wanted a month's worth of bank statements showing we could afford the home! We had to rent a vacation condo until then. The market all around is going to begin getting so tight the lower class people will just be shut out from any loans.
The Vehicles these days are not worth the price they are! Most of them are junk and way over priced. Anyone that pay over $10000 for a small vehicle is getting ripped off and over $20000 for SUV or trucks are getting ripped off. They don't make vehicles to last long these days , they break down more quicker and the bodies deteriorate faster than the older vehicles did! No one can change my mind about the New vehicles these days. They are absolutely Over Priced. Why pay that much for Junk
There is absolutely nothing wrong with owning an 8 to 15-year-old economy car. You can still be happy with an economy car or if you're in a well-planned city you can be just as happy without a car if not happier since you do not have to deal with the operating expenses of a motor vehicle. A car with a naturally aspirated 4-cylinder engine and front-wheel drive is cheap on gas, cheap on maintenance, and cheap on insurance.
I don't feel bad for the banks, they knew those vehicles where under water when they loaned the money. Once those cars get sold if there is a big enough difference the loan will sold to debt collectors and they will sue folks for the difference. What a mess.
The banks are irresponsible for writing a loan on an overpriced vehicle. If they did that, the dealers would notice it quickly and not be so quick to overprice them.
If people only knew there cars where paid for when they signed that Consumer Credit Application. Get a Forensic Audit it will prove your car, houses are paid for. They are committing securities fraud, tax evasion, etc
Unfortunately too many people buy with their hearts desire instead of their head. Everyone seems to want to impress people they don't know and will never see again along with their buddies. Makes no sense to me but there are plenty of people with no sense at all.
So I take it that all these repos will be purchased by dealers instead of offering them directly to consumers and dealers will take them and mark up the price once on their lots and create a whole new batch of bankruptcies and repos. Great system they have going there.
Seeing that keyed car reminded me of the housing foreclosures around 2009. People here were pouring cement down the drains, tearing out the kitchens, and doing other things to just destroy something they should have known they could not afford.
They did afford it. They did so without issue for 20 plus years. They lost their jobs to no fault of their own, some owed less than 100k. People like you are simple beyond belief.
@@zzbudzzthat’s what happens when the economy is going to shit and it’s damn near impossible to find a good paying job that pays a liveable wage without a degree or years of experience 🤷🏽♂️🤷🏽♂️🤷🏽♂️
Only in America are people willing to pay nearly half or 1/3 of their rent money just to show off to people who don't give 2 cent about them or what they drive.
When you don't/can't pay your car loan, the car is repo-ed. Then the car is sold for usually less than you owe. Even though you don't have the car anymore, you still have the loan. Meaning, your credit will be destroyed for a decade.
Good point. Now they are relegated to paying cash for a hooptie, dealing with Slippery Sammy's high risk used cars, or get mom or dad to co-sign. And that's just for a car.
I don't think of you understand how easy it is for some people to put a car in someone else's name. Furthermore, a person can ABSOLUTELY get a vehicle loan after filing chapter 7. The interest rates will be horrible though.
You didn't mention that those auctions are usually only open to dealers only and not open to the general public. It turns into a win win situation for the dealers to direct customers to these banks with a high repo record. Those cars are usually sold around 20 - 25% of book value back to dealers who then put them back on their lot and sold for full book value.
To be fair, banks that are high in repos are because they're more willing to lend to people they probably shouldn't. So while its the banks own fault, it was either use them or the car sale isn't being made. So they're not directing them to these banks because it will be repo'd, it would likely be repo'd anyway, so most banks would not lend to them. Its a chicken and egg type deal.
Keep in mind that in the past, at least in the case of Wells Fargo, bank employees were under pressure and incentivized to approve loans, credit lines, open accounts, etc. Who knows if other instructions also lacked institutional controls on properly vetting loans versus book value of underlying asset aka “MV”. Not surprised a lot of folks got auto loans that didn’t work out or that are now underwater once the value of used cars and new cars diminished.
Same thing happened in 2008. Banks were forcing their employees to keep signing off on mortgages when they knew the buyer had no chance to make the payments. Here we go again.
Correct, good point. I believe Wells was also fined for making fake accounts to boost their new account numbers. If a company does that you can be sure they approved loans to people that could not handle the payments.
Sheesh. Here in central Florida I know someone who reposses cars for a living... he picks up about 10 a day (8-10hr shift) depending where he has to get it from
After we retired it became apparent that the ends would eventually no longer meet. Granted, we were in a very high COL and taxation state (Connecticut). We had to bite the bullet and take up residence in a much more affordable state (Tennessee). It's the best thing we ever did. Not everyone has that flexibility though.
Hopefully you didn't bring your blue-state politics with you. Taxes aren't magically high in blue states for no reason. They are high because people like handouts and government services and the taxpayer has to foot the bill. In red states you are more likely to hear "we can't afford that" from the government.
@@telcobilly This is the real answer. I make over $120k per year with some rental properties: I am not at all considering retiring in the U.S. This place is designed to nickel and dime you into poverty any way possible. The real killer is healthcare costs.
My buddy is a BMW mechanic inSouthern California and he told me that people are just dropping off their leased vehicles at the dealer despite not being even close to the end of the lease term. This is typical for most brands in an economic downturn but he said it is unusual for BMW’s.
In my area, challengers are owned by folks who seem to want to believe they have money when they don’t. The special spec ones like the Demon are around but seem to have a different clientele for ownership.
The banks do these loans that they know are going to default. Same with the housing market. Banks never lose. They give these loans get paid with interest until the loan defaults. Then the government bails them out in the end so they win win regardless
Government bail out. Covid PPP Loans that are completely forgiven. I'm sure the banks get to write off any losses, so they get the tax benefits of the write-offs. And of course "Too Big To Fail". Meanwhile, politicians are doing EVERYTHING they can to make sure that no student debt is forgiven, at all, ever.
I have wanted a Challenger ever since I saw Vanishing Point when I was a kid at the drive-in movie. As a now as a 63 year old, I may finally move on one.
I live in Delaware. In my apartment complex. Now and then. I see a repo take place. All of a sudden. I see the repo man come 5 times one night. Every night, I see and hear them chains. I'm glad I found your video it explains what I've been seeing.
Bling rides. Great for people who have more dollars than sense. This is what happens when people get so wrapped up in what they want, without stopping to consider what they can properly afford.
1) Poor impulse control 2) Poor long term planning skills 3) Inability to postpone immediate gratification for greater future reward 4) Inability to foresee future consequence to actions 5) Inability to weigh risk vs reward
Skip and save. If you have a reliable 4-cylinder sedan that works and it's paid off or paid in full, why buy another vehicle. Just save your money for the long term and you can afford a nice new car or a used car that is less than 5 years old when the time comes.
Truth. My car got totaled las month, but we're waiting for the implosion that is clearly coming. Right now, we're limping around in a 21y/o Honda Civic with 250,000 miles on it.
This is a clear sign the market is cleansing itself, I know it sounds terrible but I'm glad these cars were taken away from people that had no business in driving them in the first place, this is a good sign for the car market in general, we need to bring down prices AND change the attitude of these dealers that they can sit and wait months upon months for a stupid buyer to come and pay whatever.
Just saw the repo hunter crown Vic with license reading cameras in the neighborhood then about 45 minutes later repo company had one taking the ride of shame.
The answer is simple. I started noticing especially nice or newer cars in gas stations in areas where you don't normally see such high quality cars the beginning of 2022. It took a while, but I then realized it was the free money coming in giving the people the financial confidence to go and get the vehicle of their dreams! Having been there myself, I can certainly understand an opportunity to ride like a king if only for a little while and damned what happens after! But we all know - that cash cow was bound to dry up sooner or later and now you're seeing the consequences. We all lived large for a little while. Some people came out ok - and some didn't come out so well. 😥
What's interesting about seeing all the repos is that statistically, when money is tight. Many opt to prioritize paying for their car over paying their mortgage or rent.
Our country is ran on debt and imaginary money. Interest rates will keep going up and we will hit another huge recession like the one in 1920’s. On a high note glad to see fellow mustang owners keeping up with payments 😊
@@jackofall2305 I just had it happen to me, I ended up waiting for the repo to drop off, they sent me a charge off notice that was to be submitted to IRS as income, I filed it (the first name was incorrect but SS was right) because I didn't have actual income (SSDI) I got a letter back from IRS stating I owe or receive nothing back because of an amount was added to wrong block. According to either experian, the debt was erased. It took several years for it to come off, but it is off.
Since COVID ended and things picked up again I've had two main focuses - pay off cars and pay off credit cards. Fortunately both cars were paid off by early last year, the main car got a decent amount of maintenance done and one card is paid off with another nearly done. That'll leave one to finish up. I also picked up a used car for my daughter for $10K cash which was only possible recently with used car prices dropping. Not having to sweat all of that interest and constantly being upside down is a major relief. I now have a slightly older car that runs very well, has some critical components recently replaced on top of all recommended maintenance and will probably cost me under $1000 in repairs per year for the next four or five years as I'm committed to taking good care of it. $1500/year repairs and maintenance vs. a $500 monthly payment is a no brainer.
Sure it doesn’t look pretty but a grand or two will put that challenger back in pristine condition. An amount of money banks will absolutely spend especially so for a $60,000 car they easily sell. If you are going to intentionally get your car repossessed best thing to do is fill it up with diesel and start the car and redline the bitch until your engine seizes up. Congratulations you now have a car that will not only be totaled but sold as scrap since the engine is the most expensive component and banks wont bother to touch it.
There used to be a local bank that we used to drive by once a week or so, because there was occasionally a car or two for sale out front, that would be repos.
Sounds like Wells Fargo is making bad loans. Come to think of it, When I DID bank with them, I needed 500 bucks for an emergency. They told me to pound sand. I closed my account and went with a Credit union and now I have over 40k in the bank in savings. Screw Wells Fargo.
You're right, the Banks do not want them back. I have a 2019 Dodge Ram Promaster and it has 220K on it, and I was ready to turn it back in because I was having trouble making the high payments. The bank was like "NO NO NO! We don't want it back. Tell us what you can afford now, we'll work it out somehow" The van isn't worth nearly what I owe with those high miles, and so we did work it out, even had to miss a few payments until I got on my feet again to make regular payments.
Ugh I was in this situation in 2021, I was working at my job for 6 years and then coincidentally a year after getting the car, I fell behind on my payments after getting laid off. It’s was rough. I had to let it go. 😢
@drakkarc558 Ouch, that's rough. Sometimes life gets hard faster than we can keep up. Here's wishing you better times ahead. @@ChickenMcThicckenI agree, except that sometimes used isn't cheaper. I almost bought a 2.5 year old car until i found the same model new for only $400 more (with full 3 year OEM warranty.) The market can be weird.
99% of the time people who drive Chargers and Challengers Can’t afford the Finances payments. I’ve never seen anyone pay cash for anything 2018 dodge and up.
A lot can happen, finance a $45,000.00 car and the company you work for closes down 9 months later, always. My buddy bought a new Camaro, 2 days later his girlfriend ran into a building.
I drove for an auction years ago one summer in Dallas. They had us drive up to the auction block and the bidders would ask us how it drove before the bidding began. They didn't get a chance to drive the vehicles themselves. It was a pretty cool experience.
I’ve always been a fan of payments being no more than $$400-500 at max, personal threshold I won’t go over. Keep payments affordable period! Don’t bite off more than you can chew.
I got a new Rav4 at sticker, no markup, for $498 a month....6 year loan....and we will only have one car payment at a time....when my car is paid off my wife's will be 11 years old so we will bank the payment until she needs new
I had a feeling when these dealers were doing all this crazy crap and the banks were allowing it that it would bite not only the consumer in the ass but the banks too.
@@Starrhunt if you can afford the payment. you arent a slave. just keeping more money in my pocket. i make like 10-12x my monthly car payment. people are just financially stupid.
@@backs8189 Cars are do dads, they require you to continuously pour money into it. They make dad do this, and do that. Not really an investment, but, you need them. Slavery.
About time. I can't wait for the student loans payments to start back up. Let those kids feel the pain of what they voted for. Hey kids, democrats lie for votes. Time to grow up.
I let Wells Fargo take back my 19 Ram 4x4 back because of COVID-19, I worked campground maintenance in the spring, summers, early fall. I would get hired because they opened California or Utah up and I dragged my camper across the country and 4 weeks later they closed the state, I used the money I would earn to pay all expenses for the year. Well I got burnt again the following year, and I couldn't catch up, so I chapter 13.
THIS is the state of our economy. People could afford these cars just a year or two ago, and now they can't. And as heartless as banks may seem, they will extend loans and offer extensions just like this good man says. The banks don't want to lose this money, but they know when they're never going to get it.
I used to work at a sub-prime indirect auto lender. We'd add the balance of the loan and all the costs associated with repossession and auctioning the car and deduct from the auction price. If the auction price wasn't enough to cover it, we'd try to collect that difference from the borrower. If we couldn't work out a re-payment, then we'd file a lawsuit and win and sometime get a garnishment of wages to pay it back. So moral of the story, don't trash a car that is getting repossessed because you may get a judgment on you.
In North Carolina only the IRS can garnish wages. Meaning the dealership is sh*t out of luck if someone trashes a car and refuses to pay anything back in NC.
@@sarahlysobey2917If they cant afford a car payment. I’m not sure they can afford the court and lawyer fees to file bankruptcy. Also, bankruptcy is a good way for the poor to stay poor as they’ll find it very difficult to secure housing; if they take out a loan it will be with obscene interest rates; and they will be passed for high paying jobs as they will fail the credit check.
People destroy a car that the banks getting ready to repossess. Big mistake!!! Bank is going to sue them for the difference of what they owe and what the car sold for at auction.
I agree, but how can the bank prove that the former owner from whom it was repossessed was the one who actually inflicted the damage? Common sense says that said former owner did it, but I believe that the law would require some proof that links the damage to the former owner. I am not an attorney, so any attorneys out there that follow this great channel may wish to opine hereon.
@Don Wise The bank doesn't need to prove anything. When cars are repossessed and sold at auction, the bank subtracts their net profit on the sale from the outstanding balance on the loan. The owner is still on the hook for the remaining amount. If the debtor doesn't pay, it gets sent to collections like any other unsecured debt.
people that do things like that don't give a shit! they didn't pay for their car loan and they won't pay for any court judgements against them. rats-of-the-hood, wiggers, democrat nitwits, etc.
Bank doesn't care who damaged the car. If the owner of the car has a job they are going after his wages. 5th generation welfare deadbeats are the only ones who get away!
Brandon, I would really like to see a synopsis of prices on a few of these vehicles. Especially the Rams, Challengers and Chargers. There will definitely be be some surprises for us.
@@rharvey2124 I have spent a little bit more than the whole price of my dodge on its maintenance in 5 years. It still dies randomly while driving and no mechanic knows why. It can hurt me really badly any days in the middle of highway. Never buy dodge. They are the worst cars.
That's it I've got to meet Brandon man to man for my next vehicle purchase, and personal vehicle advice. I'm local in North Carolina and I'm sick of all these other greedy dealerships I've dealt and this guy is legit!!
I have a 99 Buick Lesabre, low miles in very good condition. I am going to spend 1400 bucks to repair the ac. Why? Because $1400 will not even be a down payment or the sales tax on a new car. Heck it won't even buy a car as nice as the one I have. Right now debt is like deadly cancer, avoid it.
Thank you everyone for watching! Please like this video and subscribe to the channel, it really helps us out. I forgot to ask in the video.
You do not ever need to ask again. We all know how this works.
If you abandon your car you still owe the car payment right and the underwater loan?
Bank repos ipen to public?
@ramblr5900 Dealer only, as usual
It's a vicious cycle and predictable 8-10 years' proven failures time and time again its boom and bust cycle is a key characteristic of capitalist economies and is sometimes synonymous with the business cycle."
I absolutely love not having a car payment.
Amen brother
Every time I look into getting a new car, I see how much its going to cut into my savings every month and then close the tab. lol
No Shit! I'm still driving my '99 Taurus! 😁😁😁😁😁😁
Me too
@@scottperson9487 Me too
Nothing says class like destroying a car that you weren't able to pay for
I'd almost guarantee it was some ghetto thug who spent all their Biden bucks on the down-payment.
You just know the lender marks that borrower’s file to “sue for the loan deficiency amount plus attorney’s fees.”
The Man tricked him into buying it just like the Man tricked him into an 80k loan for a marine biology degree!
Disgusting
The person who had the loan still has to pay the difference on what they owe vs. what they sell for at auction.
Can't help but feel bad for those people (aside from the idiots who destroyed the cars). Sometimes life hits you hard when you least expect it. They might have been able to easily afford a nice car at first, but then their circumstances take a bad turn. Happened to me. Just glad my payments are going to finally end this year.
Like me I was making Amazing money then after Covid I lost my job
Covid caused a lot of this. Many people lost their jobs or got laid off and got behind on all their bills. and to top all of that off, the price of everything skyrocketed during the pandemic. Many people are living right on the edge including me. I was thriving before the pandemic but now I'm basically paycheck to paycheck while trying to pay off my debt. I'm essentially one big unexpected bill away from falling off the cliff and being one of these people who's cars are on a lot like this.
Not to be critical; I just paid off a seven year car loan myself; if you have to finance something, it means you can’t afford it. I went into a car loan knowing I was taking a risk. I’m going to drive my paid off car for 20 more years if that’s what it takes to never have another car payment.
Most of the cars in the video are performance and luxury vehicles clearly purchased to show off when they could have gone with more sensible options. Why feel bad for people who make foolish financial choices.
Life happened to me. I was making good money and then my wife got cancer right after having our twins. I couldn’t work for 8 months. Spend all of our savings and 401k trying to stay afloat. Then ran up the credit cards while trying to start over and next thing you know I’m totally screwed. Waiting for the bank to come get my car now. Hoping to be able to save up the cash for a bankruptcy attorney soon.
Who would have ever thought an owner of a Challenger would turn out to be a complete a- hole. Just shocking.
Do you know what the difference is between a porcupine and a challenger owner...
Porcupines have the Pricks on the outside
😂
Hey! I’m a challenger owner and I resemble that remark.
Maybe someone scored
Chrysler in general
If you ask me I'm pretty sure all those people that had those cars just let them go because they weren't worth half of what they paid for them.
I agree 💯
Value of all cars have dropped hard in the last year. More than 10%. If you pay dealer prices, PREMIUM prices from last year, I guarantee you are upside down until 2025. At least.
I sold my Subaru Outback last April. It was five years old, and I held the title. The dealer was stupid enough to give me $27,500. I rolled that into a new Hyundai Tucson, and paid cash for the 2022. Five year bumper to bumper warranty, and no car payments for a loooooong time.
I sold my ev I paid 10500 for and sold it 2 years later for 16k to carvana. They sold it 2 weeks later for 18k. This was when gas was 6 Or 7 in California
A lot of the people who bought cars during the pandemic are feeling this.
I avoided buying a car up until last year, at 28. I’m 40% down, 60% to go!
- For the record I kept my rust bucket since HS and the entire muffler falling off was the last straw for me
Sometimes crap happens and if you have to, you have to
What did dealerships and banks think was going to happen when they were financing vehicles at 3k, 5k, 10k, 15k, and 20k over MSRP? Several thousands in add-ons? They brought this problem on themselves.
Some dealerships should know better but it’s dog eat dog they don’t care
I’m sure many are saving for a Tesla. I gave my 15 yo ‘06 250k mi Prius away when its cat got stolen. Then got a ‘22 M3P that I gave to my son as a (10 years) belated BD/XMAS gift when the MYLR arrived 7 mo later (both ordered w/ $8k FSD b4 the price hike). These things are dirt cheap to run & keep! Thx thieves, for forcing the change (& enjoy your time in hell)!
And the fact so many stupid assed people bought them anyway.
😂😂😂😂
@@Crunch_dGH model x owner here, previous model s owner as well the battery’s cost almost as much as the car to replace that’s the unfortunate thing!
The average car payment in the US is $730.00. That’s crazy. You fall behind, you ain’t catching up on payments that big.
Edit: new car payment. My bad
Mine's $258 for 60 months on a 2022 Buick encore gx. People would kill for that payment.
@@markscott5421 But it's a GM. It'll be in the junkyard right outside warranty. F in chat for you.
With 300-500 for full coverage insurance on top!
@@TheGuruStud I have owned GM's since 1976 only had 2 duds and they were still running 4 years later when I got rid of them. I traded a 2016 Cruze for the Buick and had no trouble at all with it...would still have it but wife has RA and had trouble getting in and out of it.
@@brutalbasspro wow. I can't imagine paying that for insurance. I pay under $200 a month for 5 cars, 2 motorcycles a boat and travel trailer. All 2017 and up. You should probably do some shopping around it you are paying anything like that.
Banks should sue car dealerships for their markups. It starts with dealerships. They are the ones who cause the price gouging. I know it’s the banks fault as well, but there needs to be some kind of regulation on these car dealership markups.
Price GoUgInG isn't a real thing
Regulation is by the people, can’t regulate stupidity
Exactly. The dealers mark up these cars at a price there not worth. Customers don't do there homework and find out what the car really cost.
They wont never do nothing when theres ppl financing car like crazy everyday 🤷🏽♂️
This is an absolutely terrible idea. What next? Going to sue McDonalds for getting too fat?
I'm so happy to see Wells Fargo getting some of their own medicine. I once did IT auditing for WFB and other large banks, and discovered how they stole money from people's accounts.
Nothing illegal about a bank stealing from people. It is only illegal to steal from banks.
More repos coming, lots more.
I also have a personal experience with Wells Forgo from several years ago that wasn't very good. They could care less what your situation is. So karma is a bitch.
@@beverlystephens6964 He's not even describing a client's situation, he's just describing the sh*tty illegal things WFB do to their clients. That's why you shouldn't expect a bigger bank to take care or listen to you. You should always consider credit unions first. They tend to be local and have a greater propensity of considering a client's needs.
What you see here is 0.000000001 in WF money. But hey at least they offer this info for free for us.
When ppl buy cars with $10-30k dealer markups, above the MSRP, people get trapped…they were upside down on their loans day one. Crazy!
@That V8 Life New cars are not investments. Your 75 year old friend would have been better off by buying well managed mutual funds.
Banks MADE these loans. They lent more than the asset was worth.
Let them eat the losses. They got greedy, they took a chance.
They gambled, and now they’re losing. Eff them.
@@thatv8life186 it's a slow dodge. An RT will be worth 1500 in 15 yrs. Who the hell wants a POS fiat? No one....except the poors that can't afford even a used one. Trailer park cars.
Dude is 75 yo who's worried about 15 years from now.
You are always upside down on a car note unless you put 30% down or more…
My rule of thumb (if you EVER have to finance a car) is to set a MAXIMUM budget that you KNOW you can afford, and not a cent more. If you can set a max budget AND make on-time payments 100% of the time, you should NEVER have to experience a repo.
For instance, your max budget is $400 but your [new] ride only costs $360. Pay your max consistently. Boost your credit score, minimize the interest over time, principal balance improves a bit, and have the ability to skip a month's worth of payment if the going gets tough.
The longer we deny we're already well into a recession the worse things are going to get. Like an untreated wound.
I agree
Except we are not. Sorry, you're hoping for one
@@tnickknightare you serious?
@@Andrew-hi9tw we actually have a thing called facts,. Please give the factual definition of Recession,
@@tnickknight my guy, it’s been proven we are in a recession
Many years ago, we had to declare medical bankruptcy. We had to give up our SUV. We cleaned it out and washed it. We dropped it off at the lenders business. No reason to be a jerk and destroy the car!!
I just want to remind you all Brandon is a good guy, but he’s also making UA-cam videos so he has to keep it interesting. Please remember he has no actual idea what happened to that car and is purely speculating. Let’s all just calm down and not get tooo sucked in ok?😅
@@LafemmebearMusic 😂lift your glass to the sober drinker....that makes sense
That's the right way to do life. EXCELLENT
You should research what caused the 2008 crash. Outside of maybe some small town banks, they're all crooks and predators. No one got hurt in that deal besides the bank. And honestly, the bank probably doesn't even care because I'm fairly certain they can write off the difference anyway.
Because you’re a decent human being that that was forced to hit the reset button. That bankruptcy did not define your character. As much as it hurt to go through the repo, it didn’t keep you from doing the right thing. 👍🏽
Bought my 2012 Accord back in august 2020 before the used car market became what it is today, 3 years of just under $300 payments and I’m finally done this month. I feel extremely lucky I got this car when I did, its still a dream to drive to this day
truck payments at low end are 700 to 1k a month 1500 ro 2k a month for higher end truck thats crazy
I’m paying $500 for my Ram 1500
And buying used doesn't even help.. its like 50 bucks a month cheaper for a truck with 90K miles.
There is no way people are paying $1000-1500 a month for a car is there? Are y’all fkn serious??
20 years ago you could get an F150 fully loaded with everything for less than 550 a month. If possible, I will avoid car payments like the plague and only buy cash or electronic check. I am okay with a mortgage on a house though.
@TexasKayjun yep either that or paying a lower monthly payment on a 72 or 84 month loan
No one should be buying a house or a car right now. Even if you have the money, the prices are completely inflated. You are never going to get your value out of it.
Has real estate really been overpriced recently? If so, I wonder why. It doesn't seem like it was in the 2008 crash.
@joe woodchuck I think so. The city accessment for both of my houses is off way off base. And the houses around me are all at least 30 to 40 thousand higher than they were 3 years ago. It's definitely a sellers market
@@Smoothoperator12 Geez. What part of the country?
@@joewoodchuck3824 VA
@@Smoothoperator12 Were neighbors. I'm Tennessee.
This is a prime example of people being convinced they need a new car every 2 years or so, when that 10-15 year old car probably just runs perfect and could be an excellent daily driver. These people sat in a dealership, thought they could afford the payments and immediately sank.
Such a bad case of overbuying.
I have a 2015 Toyota Camry and that car will still be a solid daily driver year 2040 but, it could be worth peanuts around 2025 due to nobody wanting a gas burner anymore.
that's ccp spin don't eat it. ev reliability is 🗑
I bought a 2022 Tesla Model 3 LR so I will not need a new car for 20+ years. Payments are a bitch though. I do love seeing how much I do not pay in fuel every month!
@@ipeteagles Disagree.
My car is 8 years old, paid with cash, runs like new.
Looks like their key was a crowbar!
As a consumer, you absolutely cannot depend on the banks to tell you how much payment you can afford! When we were getting ready to purchase a new home back in early 2005, our loan officer casually mentioned that we qualified for a larger loan than we had applied for by saying, “you can afford way more house than this!”. I just looked at her and said nothing. We had run our numbers multiple times ourselves to insure we were not taking on too much, so we knew that we, indeed, could not afford “way more house” than we were buying. Don’t have to tell you what happened to the economy and mortgage backed securities a few years later! Give a bank the chance and they will gladly set you up to fail every time!
Good on you for actually knowing what you could afford.
Bank’s profit from failed loans, they get your money then take back the product, and repeat.
They make tons of money off of you in interest. They’re not designed to be a tool that helps you buy stuff, they’re all for profit businesses.
Because you're in the 5% of people who are intelligent. The average person is incredibly stupid and is more worried about what other people will think than if they can afford something. This is the sad reality.
More like goes to show how little people know about finance in this world. Most people and banks don't know what they can afford and dont account for risks like loss of job, market changes, etc.
I understand hard times. But when the repo lot is full of nice late-model cars, some people aren't being very smart about borrowing.
my wife and i own a lucrative dog grooming shop and i work 40 hrs a week at a normal job. we were debating a 2nd car payment. After weighing the pros and cons we are opting to just buy an older car for cash. we don't want to live just to make our bills should the economy tank. anyway I'm always digging your content and just want to say thank you. you've helped us with our decision.
I've been listening to several economist on UTUBE and they're predicting a depression's looming on the horizon, inflation is not being tamed, so, the best plan is to not get into anymore debt, but actually getting out of debt is the best option.
Dave Ramsey. 👍🏼 My car and student loan now paid off.
@@taras4352 Dave Ramsey is a coward. He screwed up with credit cards and is now scared to death. Debt free is good for consumers but it is necessary for many businesses to operate. Don't be afraid of debt, be willing to understand it.
Bad idea. Used cars are "like a box of chocolates." You know the rest of that quote. Even if you have a good mechanic check it out for you, buying is a big risk. Making a used vehicle reliable costs a small fortune. I speak from experience.
@@crackedfingerz i am a mechanic with 45 years of experience. also i have the complete history of the single owner car that i will end up buying. its just a bit older and doesn't have technology found in cars made in the last 8 years. basically we have the need for a 3rd car as we live an hours drive from our shop and my job.
1. I definitely consider these episodes. 2. My cousin works In Florida with a tow company and he says the repo apocalypse is coming.
it probably will bro the home owner insurance prices are really high along with property tax people's pockets are tighter than fish pussy right now
I'm glad that my Grand Cherokee is paid for!
Their will be thousands upon thousands of those Dodge Challengers to repo ..just wait!
@@Bill-sp8kb Now , The trick is to keep it from falling apart ..good luck sir!
@@zzbudzz I don't do luck. I do have the skills necessary to make repairs when needed, including engine, trans, t-case, and axle overhaul. That old Jeep is as solid as the Rock of Gibraltar, and it'll be running long after that new crap has been recycled into soda cans.
I had to get let a car go back to the bank once years ago. What a lot of people don't realize is that when the car is auctioned, they're still on the hook for the difference between what they still owed on the car and what it sells for at auction. You owe 20k, it auctions for 5k, you still owe the bank 15k. When I let mine go back, I tried to work with the bank to get some kind of relief where I could some kind of a temporary reduced payments and keep the car. I was told that wasn't going to happen and ended up I told them to come get it. It sat in my yard for almost 6 months before anyone showed up to drive it off.
I drive a 13 yr old car. Haven’t had a car payment in 5 years. Last year, a buddy of mine bought a new BMW and he already had the latest 2022 jeep wrangler. When I told him I enjoyed not having a car payment, his girlfriend told me ‘yeah but your car is old’. I had to process the logic for a whole minute. I wonder what sort of financial situation they must be in now LOL 😂 people are really stupid man. Buying crap they can’t afford to impress people that don’t care.
someday the girlfriend will be old...and he'll trade her in for a newer model.
I'm driving a 23 yr old Acura Integra. Its got me from point A to point B safely plus good gas mileage. My coworkers are driving luxury cars like Benz , Lexus , BMW , Tesla , 50k+ suv etc. They look at me funny when I told them what I drive but they look even more puzzled when I told them my house is paid off. My net worth is almost 700k , I have roth IRA , roth 401k , stocks , gold , and a year emergency cash. I paid off my son college tuition in cash so he didn't have to borrow student loan. But hey , everyone is different.
you’re very smart and I applaud you. I know what you mean by the getting funny looks. You just can’t fix stupid 😂 let them believe they’re doing something blowing thousands on a depreciating asset. I can’t believe ppl will dump all that money (thousands in interest, gas, random repairs, oil changes, insurance, yearly inspections, license plates, property taxes, etc.) on something that loses value ever year all to put on a fake image of appearing rich and cool lmfao 🤣 like I said, you can’t fix stupid.
The dealerships are selling cars with mega interest rates to people who cant afford it. People making 60k a year driving 80k car they paid 100k for.
Seems like a lot of "toys" so far. I'll get concerned when we start to see more affordable and economical vehicles showing up at the auctions.
He had a 2017 Honda Accord in there, but that looked the only affordable/economical vehicle. Mostly toys for sure!
They're still prime borrowers.
You mean like that super clean Camry?
@@dennisgreiwe2078 yeap. Or @6:03 when he walks past a line of midpriced suvs and sedans, even a minivan and a subaru.
What a privileged life you must live to be Able to call vehicles a toy must be very nice wish I had that privilege. Pos rich ppl
I had to do a voluntary repo once. Still had to pay $6k eventually after it auctioned and it still dropped my credit score by 150 points. Took almost a decade to recover from it. Definitely learned not to buy a car I can't afford after that. I'm babying my current truck cause there's no way I'm paying what a new one costs any time soon lol.
150????, Jesus, that's a kick in the balls man. Shit
Same thing happened to my ex girlfriends mom dropped her credit 125 points
23 now still recovering credit and financial-time loss wise, 18 straight out of highschool when I did it. I folded in the 1st year because of the insurance payment itself! Swore to myself I would never buy something I can’t afford with the money I JUST SIMPLY don’t have.
Sometimes we have to learn the hard way buddy. I'm the exact same way myself. Just spread the knowledge and hope you can rescue someone from doing the same in the future
Yeah I learned the hard way too. But with maturity comes growth. Now I own all my cars outright. If I can’t afford to buy it cash I’m not buying it. When I get tired of it. I put it up for barter. Title for title and rinse wash and repeat. I have a BMW 6, BMW X5, Hayabusa, and a Yamaha. Bought them all as mechanic specials. They all run great now. And I paid less than 10k for them all. Insurance is cheap because I only carry basic coverage. If one of them goes down. I’ll sell it or junk it and find another one. When I was younger I bragged about having the newest cars. Now that I’m older. I brag about buying the car that was once 100k for 5k. So I get to experience the same luxuries as everyone else. I just have wait a few years first. It’s sooooooo worth the wait! 😂 if we all started doing the same they would have drop them prices. Because it’s 2023 and a new Cadillac Escalade ESV is 180k? Really? I’ll wait for it to hit 8k 😂. Let somebody else deal with the depreciation and the the payments. I’ll wait to buy it cash on my budget 🫡🥃
Next time you see some guy rolling around in a 100k pickup or a brand new Type R, just know they're probably up to their eyeballs in debt they'll never be able to repay.
I worked for a repo business for about 3 weeks once upon a time. Snatch and go, many times late at night.
Being threatened with bodily harm was common, being shot at was suspenseful, and this big naked lady threw all the shoes on her porch at me.
I think what she did was worse than the Toyota Celica filled to the windows with wet sand and no air in the tires.
Some people can be very creative and devious. The Celica thing was impressively evil and left where it sat for yard art.
All in 3 weeks ..it takes a special person to be a repo man. I worked with a guy who did it on the side and the stories he told me , i thought he was crazy for doing it.
😂😂😂 that's what happens when you stay at home all day, and not make money to pay..
@@Starrhuntjobs don't pay so good luck with that illogical thinking, let me know when McDonalds can afford a basic living like they did in 1950s, until jobs pay for the basics then let it all burn, I don't care anymore I've never been able to afford anything anyways
Cant wait to see the foreclosures of all these people that went out and paid outrageous amounts for these houses
Crash Bros keep dreaming 😂😂
and, both they and the banks they borrowed from voted for democrats. how sweet it is.
Mortgages are usually Cheaper than rent.
Thanks Joe Biden
@@KHugg1776 thanks capitalism
Two years ago, I saw a video on youtube, of a tow truck that had a couple cameras set up in his truck cab one facing out the back. There's a guy on his front porch unloading his clip of his handgun at the tow truck, and the tow truck driver ducking down, foot to the floor leaving that guy's place without the car he was sent to repossess! (LMAO) That needs to happen way more often in my opinion. 🤣
Absolutely crazy that people didn’t see this coming over a year ago. There will be so many heavily discounted good cars for sale soon 🤙🏼
Hopefully they serviced the vehicles. If they couldn’t afford basic payments, they weren’t paying for oil changes, etc.
I worry about them doing something to destroy the engine or the vehicle so it’s not good for the next person who buys it
Hopefully. I'm looking to upgrade to an SUV or crossover (better clearance for winter driving) and don't want to feel like I'm bankrupting myself for it.
doubt it. raising debt ceiling wont make cheaper cars. its going to raise inflation.
@@ChickenMcThiccken no, people are so upside down on there auto loans that when they sell them they won’t get anything for them, making them way cheaper to purchase.
It's only going to get worse. I saw the report that Harley Davidson can't repo their bikes back fast enough, they can't find enough repo men to get them all!! Credit is going to be super tight again here soon. I remember in 2012 when we bought the home they wanted a month's worth of bank statements showing we could afford the home! We had to rent a vacation condo until then. The market all around is going to begin getting so tight the lower class people will just be shut out from any loans.
A motor cycle is easier to hide therefore harder to repo.🤣🤣🤣
@@ricgunn1439 That's what I was thinking (Cat & Mouse)
That's a blessing in disguise. If poor people stop borrowing so much they can save on interest payments.
@@ricgunn1439 I know of at least one person that used to park their motorcyle in their living room. Not to hide it, but to display it.
I am sure a good repo man can make a heap of money.
The Vehicles these days are not worth the price they are! Most of them are junk and way over priced. Anyone that pay over $10000 for a small vehicle is getting ripped off and over $20000 for SUV or trucks are getting ripped off. They don't make vehicles to last long these days , they break down more quicker and the bodies deteriorate faster than the older vehicles did! No one can change my mind about the New vehicles these days. They are absolutely Over Priced. Why pay that much for Junk
There is absolutely nothing wrong with owning an 8 to 15-year-old economy car. You can still be happy with an economy car or if you're in a well-planned city you can be just as happy without a car if not happier since you do not have to deal with the operating expenses of a motor vehicle. A car with a naturally aspirated 4-cylinder engine and front-wheel drive is cheap on gas, cheap on maintenance, and cheap on insurance.
I have two of them bro. I wish we had well planned cities in America. That may have kept us out of the oil wars.
Social media has created "Look at me, look at me" Syndrome. I almost feel sorry for all the idiots that bought 75K Bronco's.
We have become a society of adult toddlers
@@woxyroxme You are so correct.
I don't feel bad for the banks, they knew those vehicles where under water when they loaned the money. Once those cars get sold if there is a big enough difference the loan will sold to debt collectors and they will sue folks for the difference. What a mess.
Thousands of folks too!
The banks are irresponsible for writing a loan on an overpriced vehicle. If they did that, the dealers would notice it quickly and not be so quick to overprice them.
Banks have been screwing people for decades. I'm sure they'll get a bailout like in the 08 housing crash
The banks should have known better.
Yup, a mess the banks caused for themselves.
If people only knew there cars where paid for when they signed that Consumer Credit Application. Get a Forensic Audit it will prove your car, houses are paid for. They are committing securities fraud, tax evasion, etc
I am old and grew up using credit carefully, and that a default was something to be avoided. I think that has changed.
Unfortunately too many people buy with their hearts desire instead of their head. Everyone seems to want to impress people they don't know and will never see again along with their buddies. Makes no sense to me but there are plenty of people with no sense at all.
Why the economy is tanking..
So I take it that all these repos will be purchased by dealers instead of offering them directly to consumers and dealers will take them and mark up the price once on their lots and create a whole new batch of bankruptcies and repos. Great system they have going there.
Seeing that keyed car reminded me of the housing foreclosures around 2009. People here were pouring cement down the drains, tearing out the kitchens, and doing other things to just destroy something they should have known they could not afford.
That is childish
They did afford it. They did so without issue for 20 plus years. They lost their jobs to no fault of their own, some owed less than 100k. People like you are simple beyond belief.
Their attitude shows why they couldn't afford the house in the first place.
@@zzbudzzthat’s what happens when the economy is going to shit and it’s damn near impossible to find a good paying job that pays a liveable wage without a degree or years of experience 🤷🏽♂️🤷🏽♂️🤷🏽♂️
Cement?? Lol damn son
Only in America are people willing to pay nearly half or 1/3 of their rent money just to show off to people who don't give 2 cent about them or what they drive.
The customer with the keyed challenger probably didn't understand that any loss of value at auction is added to the remainder of his balance due.
When people have nothing left to lose, they lose it. Gerald Celente
😂😂😂😂
Just knock off $6 grand for a new paint job and ya got yer self a deal
You think they really care. They will never pay any lawsuit either.
Who cares. They’re never going to pay for it. It’s the bank’s loss, which is exactly what the greedy capitalist banks get for stealing people’s cars.
When you don't/can't pay your car loan, the car is repo-ed. Then the car is sold for usually less than you owe. Even though you don't have the car anymore, you still have the loan. Meaning, your credit will be destroyed for a decade.
This is just 1 auction in America, just think of all the thousands of people whose credit will be destroyed for a decade.
Good point. Now they are relegated to paying cash for a hooptie, dealing with Slippery Sammy's high risk used cars, or get mom or dad to co-sign. And that's just for a car.
meh, just start a new identity, such as Juan Sanchez, and keep going.
Had a car repo-ed? Now you can't get a home. Might have a hard time even renting some places. 10 years is a long time.
I don't think of you understand how easy it is for some people to put a car in someone else's name. Furthermore, a person can ABSOLUTELY get a vehicle loan after filing chapter 7. The interest rates will be horrible though.
Narcissistic crime, they never intended to pay.
"I'll teach you to lend me money!" Proceeds to key car.
If you never take out a car loan, your car can never be repossessed 🙂
demonic possession?
What's up Greg! Absolutely right!
And if you make your payments on time and pay off the car, it can’t be repossessed either.
Or at least pay the ticket to Rumplestiltskin.. my dear
If you don't work , you never have to pay taxes!
I absolutely love it. F these banks!
You didn't mention that those auctions are usually only open to dealers only and not open to the general public. It turns into a win win situation for the dealers to direct customers to these banks with a high repo record. Those cars are usually sold around 20 - 25% of book value back to dealers who then put them back on their lot and sold for full book value.
To be fair, banks that are high in repos are because they're more willing to lend to people they probably shouldn't. So while its the banks own fault, it was either use them or the car sale isn't being made. So they're not directing them to these banks because it will be repo'd, it would likely be repo'd anyway, so most banks would not lend to them. Its a chicken and egg type deal.
In the long run only so much demand to soak up all that excess inventory though
@@karols432 The way their target market drives it won't be long till Copart will be the only ones bidding at the auctions.
Hence the rich get richer
Keep in mind that in the past, at least in the case of Wells Fargo, bank employees were under pressure and incentivized to approve loans, credit lines, open accounts, etc. Who knows if other instructions also lacked institutional controls on properly vetting loans versus book value of underlying asset aka “MV”. Not surprised a lot of folks got auto loans that didn’t work out or that are now underwater once the value of used cars and new cars diminished.
Same thing happened in 2008. Banks were forcing their employees to keep signing off on mortgages when they knew the buyer had no chance to make the payments.
Here we go again.
That's great insight that I didn't think about 8:30
Correct, good point. I believe Wells was also fined for making fake accounts to boost their new account numbers. If a company does that you can be sure they approved loans to people that could not handle the payments.
That was many years ago. Those processes are not allowed anymore.
I think it’s because they provide auto-loans for sub-prime borrowers. Which is high risk for non-payment.
Sheesh. Here in central Florida I know someone who reposses cars for a living... he picks up about 10 a day (8-10hr shift) depending where he has to get it from
After we retired it became apparent that the ends would eventually no longer meet. Granted, we were in a very high COL and taxation state (Connecticut). We had to bite the bullet and take up residence in a much more affordable state (Tennessee). It's the best thing we ever did. Not everyone has that flexibility though.
I went to a much lower cost place when I retired too... the Philippines...lol
Blue states love taxes too. Never enough for them.
@@taras4352 Got that one right. They're thieves.
Hopefully you didn't bring your blue-state politics with you. Taxes aren't magically high in blue states for no reason. They are high because people like handouts and government services and the taxpayer has to foot the bill. In red states you are more likely to hear "we can't afford that" from the government.
@@telcobilly This is the real answer. I make over $120k per year with some rental properties: I am not at all considering retiring in the U.S. This place is designed to nickel and dime you into poverty any way possible. The real killer is healthcare costs.
Judging the the clientele that buys chargers and challengers in north Carolina, I would expect to see a ton of repos coming
I was thinking the same thing
@@rockpadstudios and I am absolutely knowing without a doubt the same thing.
Guaranteed!
It’s a mess on the west coast as well!😂 we call Dodge chargers/challengers Hood corvettes🤣😂🤣
A lot in my small tiwn has 6
It feels great to not have any car notes and also to have all 4 of my vehicles less than 5 years old.
My buddy is a BMW mechanic inSouthern California and he told me that people are just dropping off their leased vehicles at the dealer despite not being even close to the end of the lease term. This is typical for most brands in an economic downturn but he said it is unusual for BMW’s.
In my area, challengers are owned by folks who seem to want to believe they have money when they don’t. The special spec ones like the Demon are around but seem to have a different clientele for ownership.
$50,000+ cars and trucks are a bad investment.
The banks do these loans that they know are going to default. Same with the housing market. Banks never lose. They give these loans get paid with interest until the loan defaults. Then the government bails them out in the end so they win win regardless
Government bail out. Covid PPP Loans that are completely forgiven. I'm sure the banks get to write off any losses, so they get the tax benefits of the write-offs. And of course "Too Big To Fail". Meanwhile, politicians are doing EVERYTHING they can to make sure that no student debt is forgiven, at all, ever.
exactly - the money doesn't even exist until the loan is originated - fractional reserve banking - they just create money out of thin air
And then they sell the car again, messed up
TAXPAYERS bail them out. Da g'ubbment produces nothing and can only confiscate (or print more money).
News for you, the days of the mortgage industry providing loans to people who cant afford them is LONG GONE since 2008.
I have wanted a Challenger ever since I saw Vanishing Point when I was a kid at the drive-in movie. As a now as a 63 year old, I may finally move on one.
Why not buy that Challenger at the auction? The one that got keyed so badly. You could get a vanity license plate that says : Vanishing Paint
I live in Delaware. In my apartment complex. Now and then. I see a repo take place. All of a sudden. I see the repo man come 5 times one night. Every night, I see and hear them chains. I'm glad I found your video it explains what I've been seeing.
Bling rides. Great for people who have more dollars than sense. This is what happens when people get so wrapped up in what they want, without stopping to consider what they can properly afford.
1) Poor impulse control
2) Poor long term planning skills
3) Inability to postpone immediate gratification for greater future reward
4) Inability to foresee future consequence to actions
5) Inability to weigh risk vs reward
obviously didn't have dollars
This is what happens when the federal reserve lowers interest rates to zero for 10 years and causes bubbles everywhere
Skip and save. If you have a reliable 4-cylinder sedan that works and it's paid off or paid in full, why buy another vehicle. Just save your money for the long term and you can afford a nice new car or a used car that is less than 5 years old when the time comes.
@@joselopez-he1mc you nailed it.
Nice cars that were purchased when prices peaked. I am still sitting on sidelines and following your advice!
Truth. My car got totaled las month, but we're waiting for the implosion that is clearly coming. Right now, we're limping around in a 21y/o Honda Civic with 250,000 miles on it.
@@beachbum1523 you are my hero. I am driving 2007 Accord with 180k miles. Always starts, very nostalgic attachment to my reliable car
Yeah, I'm buying a used 2023 this December.
This is a clear sign the market is cleansing itself, I know it sounds terrible but I'm glad these cars were taken away from people that had no business in driving them in the first place, this is a good sign for the car market in general, we need to bring down prices AND change the attitude of these dealers that they can sit and wait months upon months for a stupid buyer to come and pay whatever.
I think many are waiting .......
When I heard one main, that tells me they lost the car due to defaulting on a personal loan. Sad.
Lot of late model cars with high millage. people trying to Uber their way out?
Just saw the repo hunter crown Vic with license reading cameras in the neighborhood then about 45 minutes later repo company had one taking the ride of shame.
The answer is simple. I started noticing especially nice or newer cars in gas stations in areas where you don't normally see such high quality cars the beginning of 2022. It took a while, but I then realized it was the free money coming in giving the people the financial confidence to go and get the vehicle of their dreams! Having been there myself, I can certainly understand an opportunity to ride like a king if only for a little while and damned what happens after! But we all know - that cash cow was bound to dry up sooner or later and now you're seeing the consequences. We all lived large for a little while. Some people came out ok - and some didn't come out so well. 😥
Facts I used to ride a 19 Durango 🥲 now I’m inaa 07 Yukon not bad thoo
This definitely makes me thankful that I have 2 paid off low-mileage cars. I'd hate to be in that situation with debt.
@@GrayCrosby It was nice to hear about and inspired me to feel good about my life. Sorry you didn't get the same fuzzy feels from his comment.
Banks have been doing a crap job of vetting - both real estate and auto markets. They know the tax payer will take the hit.
I see vehicles that are 3-4 years old still going from 30-50k..and I'm thinking to myself..who the hell would pay that much for a 3-4 year old vehicle
What's interesting about seeing all the repos is that statistically, when money is tight. Many opt to prioritize paying for their car over paying their mortgage or rent.
They are doing the same as when we had during the ‘Housing Crisis’ ppl were destroying their homes and some were taking the whole kitchen.
Our country is ran on debt and imaginary money. Interest rates will keep going up and we will hit another huge recession like the one in 1920’s. On a high note glad to see fellow mustang owners keeping up with payments 😊
With a bank repo, you can really lowball them and the financing company chases after the leasee for the rest.
Most people who get their cars repoed usually don’t pay the deficiency. In most cases they’ll just file bankruptcy if the lender pursues them.
@@brianwaller7383 true, or you could just let it hang on your credit report until they decide to write it off.
@Timothy Weers if they get a judgement, it won't come off your credit
@@jackofall2305 I just had it happen to me, I ended up waiting for the repo to drop off, they sent me a charge off notice that was to be submitted to IRS as income, I filed it (the first name was incorrect but SS was right) because I didn't have actual income (SSDI) I got a letter back from IRS stating I owe or receive nothing back because of an amount was added to wrong block. According to either experian, the debt was erased. It took several years for it to come off, but it is off.
Good. And the owner induced damage. CB
Since COVID ended and things picked up again I've had two main focuses - pay off cars and pay off credit cards. Fortunately both cars were paid off by early last year, the main car got a decent amount of maintenance done and one card is paid off with another nearly done. That'll leave one to finish up. I also picked up a used car for my daughter for $10K cash which was only possible recently with used car prices dropping.
Not having to sweat all of that interest and constantly being upside down is a major relief. I now have a slightly older car that runs very well, has some critical components recently replaced on top of all recommended maintenance and will probably cost me under $1000 in repairs per year for the next four or five years as I'm committed to taking good care of it. $1500/year repairs and maintenance vs. a $500 monthly payment is a no brainer.
Sure it doesn’t look pretty but a grand or two will put that challenger back in pristine condition. An amount of money banks will absolutely spend especially so for a $60,000 car they easily sell.
If you are going to intentionally get your car repossessed best thing to do is fill it up with diesel and start the car and redline the bitch until your engine seizes up. Congratulations you now have a car that will not only be totaled but sold as scrap since the engine is the most expensive component and banks wont bother to touch it.
There used to be a local bank that we used to drive by once a week or so, because there was occasionally a car or two for sale out front, that would be repos.
I've never heard of that happening, but it could be better for them than paying others to recover losses.
Sounds like Wells Fargo is making bad loans. Come to think of it, When I DID bank with them, I needed 500 bucks for an emergency. They told me to pound sand. I closed my account and went with a Credit union and now I have over 40k in the bank in savings. Screw Wells Fargo.
Some people thought the can afford payments and didn’t think about insurance. Insurance prices are insane
You're right, the Banks do not want them back. I have a 2019 Dodge Ram Promaster and it has 220K on it, and I was ready to turn it back in because I was having trouble making the high payments. The bank was like "NO NO NO! We don't want it back. Tell us what you can afford now, we'll work it out somehow" The van isn't worth nearly what I owe with those high miles, and so we did work it out, even had to miss a few payments until I got on my feet again to make regular payments.
Ugh I was in this situation in 2021, I was working at my job for 6 years and then coincidentally a year after getting the car, I fell behind on my payments after getting laid off. It’s was rough. I had to let it go. 😢
that is why ill never buy brand new ever again. paid in full up front. no bullshit. buy used!
@drakkarc558 Ouch, that's rough. Sometimes life gets hard faster than we can keep up. Here's wishing you better times ahead.
@@ChickenMcThicckenI agree, except that sometimes used isn't cheaper. I almost bought a 2.5 year old car until i found the same model new for only $400 more (with full 3 year OEM warranty.) The market can be weird.
It was rough indeed rough for these American banks to have problems. Amen
This is why I haven’t bought a new car since 2001. I buy cars differently these days
Americans shouldn't have the financial pressure of a car payment we should all just pay insurance that's a big enough rip off already
99% of the time people who drive Chargers and Challengers Can’t afford the Finances payments. I’ve never seen anyone pay cash for anything 2018 dodge and up.
Facts
I only feel sorry for those who actually have a good reason to have their cars repo.
Lol… what would that be?
Sudden death in the family or cancer come to mind
A lot can happen, finance a $45,000.00 car and the company you work for closes down 9 months later, always. My buddy bought a new Camaro, 2 days later his girlfriend ran into a building.
I drove for an auction years ago one summer in Dallas. They had us drive up to the auction block and the bidders would ask us how it drove before the bidding began. They didn't get a chance to drive the vehicles themselves. It was a pretty cool experience.
I’ve always been a fan of payments being no more than $$400-500 at max, personal threshold I won’t go over. Keep payments affordable period! Don’t bite off more than you can chew.
I got a new Rav4 at sticker, no markup, for $498 a month....6 year loan....and we will only have one car payment at a time....when my car is paid off my wife's will be 11 years old so we will bank the payment until she needs new
I had a feeling when these dealers were doing all this crazy crap and the banks were allowing it that it would bite not only the consumer in the ass but the banks too.
Let's not bail them out.
@@joerapo🤣 it's our governments job to bail em out. Why do you think the banks got these people elected?
Got what they voted for 👏🏾👏🏾👏🏾👏🏾…
Anytime I pull up to a nice car in my 2006 Hyundai Sonata I always see how depressed the drivers are. Now I know why. 😂
They are slaves to their vehicles.. 😂😂😂😂. Modern day slavery.. 😊
@@Starrhunt if you can afford the payment. you arent a slave. just keeping more money in my pocket.
i make like 10-12x my monthly car payment. people are just financially stupid.
Are you a mind reader?
@@backs8189 Cars are do dads, they require you to continuously pour money into it. They make dad do this, and do that. Not really an investment, but, you need them. Slavery.
@@backs8189 If you are making a payment, you are a slave at the moment in paying.. 🤣🤣🤣
Just wait until people have to start paying their student loans again.
Can't understand why banks finance these loans? 😮 they end up losing $$$ big time! Its their own fault! Customers suffer when they can't pay
Them stimmy checks ran out.
About time. I can't wait for the student loans payments to start back up. Let those kids feel the pain of what they voted for. Hey kids, democrats lie for votes. Time to grow up.
…. Bruh those checks ran out the second they wire given out
Those checks were gone as soon as they deposited.
I let Wells Fargo take back my 19 Ram 4x4 back because of COVID-19, I worked campground maintenance in the spring, summers, early fall. I would get hired because they opened California or Utah up and I dragged my camper across the country and 4 weeks later they closed the state, I used the money I would earn to pay all expenses for the year. Well I got burnt again the following year, and I couldn't catch up, so I chapter 13.
Sorry man.
C19 certainly took it's toll on many people. I'm sorry you were one of them.
and you couldn't find or get another job? just let your credit and yourself take a shit
i didn’t see a single charger, but i sure did see a lot of challengers.
THIS is the state of our economy. People could afford these cars just a year or two ago, and now they can't. And as heartless as banks may seem, they will extend loans and offer extensions just like this good man says. The banks don't want to lose this money, but they know when they're never going to get it.
I used to work at a sub-prime indirect auto lender. We'd add the balance of the loan and all the costs associated with repossession and auctioning the car and deduct from the auction price. If the auction price wasn't enough to cover it, we'd try to collect that difference from the borrower. If we couldn't work out a re-payment, then we'd file a lawsuit and win and sometime get a garnishment of wages to pay it back. So moral of the story, don't trash a car that is getting repossessed because you may get a judgment on you.
And those poor people should just file bankruptcy and been done with you.
In North Carolina only the IRS can garnish wages. Meaning the dealership is sh*t out of luck if someone trashes a car and refuses to pay anything back in NC.
United States bankruptcy code discharges most debts except student loans and child support including this car judgement. It's not by state.
@@sarahlysobey2917If they cant afford a car payment. I’m not sure they can afford the court and lawyer fees to file bankruptcy.
Also, bankruptcy is a good way for the poor to stay poor as they’ll find it very difficult to secure housing; if they take out a loan it will be with obscene interest rates; and they will be passed for high paying jobs as they will fail the credit check.
Keep it in the garage, repo cant never get it 😂😂
I've had the title to my truck for five years.
People destroy a car that the banks getting ready to repossess. Big mistake!!! Bank is going to sue them for the difference of what they owe and what the car sold for at auction.
Possibly. More likely, they'll get a nice hefty tax bill on the difference.
I agree, but how can the bank prove that the former owner from whom it was repossessed was the one who actually inflicted the damage? Common sense says that said former owner did it, but I believe that the law would require some proof that links the damage to the former owner. I am not an attorney, so any attorneys out there that follow this great channel may wish to opine hereon.
@Don Wise The bank doesn't need to prove anything. When cars are repossessed and sold at auction, the bank subtracts their net profit on the sale from the outstanding balance on the loan. The owner is still on the hook for the remaining amount. If the debtor doesn't pay, it gets sent to collections like any other unsecured debt.
people that do things like that don't give a shit! they didn't pay for their car loan and they won't pay for any court judgements against them. rats-of-the-hood, wiggers, democrat nitwits, etc.
Bank doesn't care who damaged the car. If the owner of the car has a job they are going after his wages. 5th generation welfare deadbeats are the only ones who get away!
Brandon, I would really like to see a synopsis of prices on a few of these vehicles. Especially the Rams, Challengers and Chargers. There will definitely be be some surprises for us.
Dime a dozen Making the middle class in Mexico assembling dodges. They are the cheapest brand here in texas. Maintenance on them is stupid.
@@helenkessler6012 Dodge buying a Dodge.
@@rharvey2124 I have spent a little bit more than the whole price of my dodge on its maintenance in 5 years. It still dies randomly while driving and no mechanic knows why. It can hurt me really badly any days in the middle of highway. Never buy dodge. They are the worst cars.
I'll grab some of them next time I'm there
That's it I've got to meet Brandon man to man for my next vehicle purchase, and personal vehicle advice. I'm local in North Carolina and I'm sick of all these other greedy dealerships I've dealt and this guy is legit!!
I have a 99 Buick Lesabre, low miles in very good condition. I am going to spend 1400 bucks to repair the ac. Why? Because $1400 will not even be a down payment or the sales tax on a new car. Heck it won't even buy a car as nice as the one I have. Right now debt is like deadly cancer, avoid it.
3800 V6 - drive it into the ground.
how could an AC repair cost that much? it's just a $200 compressor and some tubing.
@@connor_flanigan compressor new not reman, new condenser, new hoses, R134 expansion valve, new valve cover gaskets and labor.
@@tombob671 buy the parts and fix it yourself. and what would valve cover gaskets have to do with the air conditioning?
@@connor_flanigan I did just that for 50:years but I disabled now