It’s astounding that the worst car manufacturers for quality are the ones charging the most. Are they just trying to gouge as many people as possible before the impending crash and tax money is required to bail them out again? Or is this a deeper scheme to wipe out some lenders and make more people destitute in preparation for basic income adoption and all that will come with it, e.g. digital ID, Central Bank Digital Currency, Vaccine passports, social credit system, climate lock down 15 minute cities…. When I see Ford trucks and Jeeps being the better part of $100,000 if not over, the whole automotive industry has just become silly (not to mention how much money they’ve lost and are losing on electric vehicles no one wants). Consequently, if you’re wise and can pay cash and need a vehicle in the near future, there should be some great deals on vehicles coming as no one will be able to afford anything, and the requirements to get a loan will be pretty strict as is already starting with some lenders. Also, pay attention to the person that figured out the true cost for a vehicle with extended loan below, as it is just ludicrous.
https://www.zerohedge.com/markets/garbage-deals-dealership-puts-customers-cars-3000-monthly-payments
By Tyler Durden
A New York Fed survey published earlier this week indicated that, in the fourth quarter of 2023, auto loan delinquencies reached levels not seen since right after the Great Recession more than a decade ago.
As a refresher, the data from Tuesday by the Federal Reserve Bank of New York showed (read: ZH report here) the rate at which car owners are behind on their payments hit an annualized rate of 7.7%, the highest level since 2010.
“Delinquency transition rates have pushed past pre-pandemic levels, and the worsening appears to be broad-based,” researchers at the NY Fed wrote in a blog post.
Given that we already covered this in a report titled Credit-Card & Auto Delinquencies Soar, Especially Age Group 18-39, as well as other eye-opener credit reports in recent weeks:
- Banks Report Tighter Standards, Weaker Loan Demand But Some Improvement As Financial Conditions Ease
- Stunning Collapse In Credit Card Debt Change As Average APR Hits New All-Time High
… perhaps there is reason to believe an increasing number of households have hit the proverbial brick wall despite the Biden administration cheering ‘Bidenomics’ on legacy corporate media outlets.
The households who piled on insurmountable auto and credit card debt through the Covid era and the current high-interest rate environment are likely the folks running into financial turmoil.
An Edmunds report from last year showed the percentage of drivers with plus $1,000 monthly payments jumped to an all-time high of 17.1% in the second quarter of 2023 compared to 16.8% in the first quarter. The reason is that the average amount financed for a new vehicle is around $40,000, plus auto loan rates are at a generational high.
“The double whammy of relentlessly high vehicle pricing and daunting borrowing costs is presenting significant challenges for shoppers in today’s car market,” Edmunds’ director of insights Ivan Drury said last year.
This leads us to two posts made by X user Clown World. They shared what appears to be an auto dealer sharing several images online of new customers financing vehicles with payments that are as much as monthly mortgage payments.
One person purchased a 2023 Tahoe with $2,550 monthly payments on an 84-month term!
Another person bought a 2023 Sierra 2500 Denali with $3,000 monthly payments, locked in a 96-month term!
What a deal 😅😳 pic.twitter.com/r0Sjhma5gC — Clown World ™ 🤡 (@ClownWorld_) February 9, 2024
Here’s what folks on X said in response to the two posts:
$288,000 for a truck that will depreciate to 1/5 of that long before it’s paid off. — Caballero 🏹 (@HughAkston0) February 9, 2024
Dude could be almost 1/3 of the way through a 30 year mortgage on an expensive house when he pays off his truck. — Branos (@thesonofbran) February 9, 2024
What’s with this trend of people posting their garbage “deals” at dealerships.
Nice flex 😂 — T M (@T_morgan61) February 9, 2024
The repo industry silently cheers.