Some interesting stats in the article quoted from Moody’s. Between inflation and interest rates, I’ve seen reports that 61% of the country is living paycheck to paycheck, and that means we’re going to see a lot of delinquencies coming as people can’t afford to pay all their bills. I’ll include a video report of recent repos and what they’re going for at auction, and of interest just look at the condition of some of these vehicles (gross). Moreover, banks with stricter lending standards are seeing more repos and paying a premium to get their vehicles to auction. With the crazy prices of automobiles these days, this should be a leading indicator for how bad of a depression we’ll be in. Consequently, in the auction some vehicles don’t fetch enough and are denied or go to a phone call for further negotiation, meaning the seller isn’t getting what they desire (or need) to recover expenses.
A recent Moody’s report showed new credit card delinquencies hit 7.2% in the second quarter, up from 6.5% in the first quarter. As for new auto loan delinquencies, the rate topped 7.3%, compared with 6.9% in the first quarter.
Moody’s expects new credit card and auto loan delinquencies to continue “rising materially” through the rest of the year and top sometime in 2024 at 9% and 10%, compared with 7% pre-Covid.
“The increase in delinquencies and defaults is symptomatic of the tough decisions that these households are having to make right now — whether to pay their credit card bills, their rent or buy groceries,” Mark Zandi, chief economist at Moody’s Analytics, told The Washington Post.
https://www.zerohedge.com/markets/next-auto-repossession-wave-could-involve-robots-doing-work-banks