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GM Sales Soar In May On Easy Credit As 74 More Deaths Revealed Due To Faulty GM Switches

Tyler Durden's picture




 

It seems that if the monthly payment is right, then no matter how "Sarcophagus-like" GM's cars are, Americans will lever up and buy 'em. Many were shocked to hear that GM reported the highest sales this month since August 2008 - especially in light of the record-breaking recalls and now Reuters reporting that up to 74 people have died from faulty ignition switches - but one glance at Experian's auto loan data and it's clear why... The average loan term and average amount financed for a new light-vehicle hit record highs in the first quarter, signaling U.S. consumers continue to extend themselves to afford pricier cars. GM cars may be "grenade-like" but US consumers - with stagnant wages - are extending maturities (loans with terms 73-84 months grew by 27.6%) to manage that monthly nut... This will not end well.

First we are treated to exuberance this morning...

  • *GM MAY U.S. AUTO SALES UP 12.6%, EST. UP 6.4%
  • *GM REPORTS BEST MONTHLY SALES SINCE AUG. '08
  • *GM MAY SAAR FOR LIGHT VEHICLES ESTIMATED AT 16.5M

Great news, right... and extrapolate that (even as inventory levels on dealer lots remains just shy of record highs).

Which is all very surprising given that Reuters reports that...

At least 74 people have died in General Motors cars in accidents with some key similarities to those that GM has linked to 13 deaths involving defective ignition switches, a Reuters analysis of government fatal-crash data has determined. Such accidents also occurred at a higher rate in the GM cars than in top competitors’ models, the analysis showed.

 

...

 

GM, which has offered few details of the fatal crashes related to faulty switches, told Reuters it derived the tally of 13 deaths from claims and lawsuits filed against the automaker. GM checked those claims and lawsuits against other sources available to it, including vehicle data recorders recovered from some crashes.

 

The Reuters analysis relied on the FARS database, which encompasses a much wider universe of accidents. GM declined to say whether it had used information from the federal database.

 

Read more here...

But the reason why "rolling-sarcophagus" "kevorkianesque" car sales are so robust is simple... easy credit...

  • Average automotive loan term reaches record high of 66 months; loans with terms 73-84 months grew by 27.6%
  • For new vehicle loans, the average credit score was 714, down from 722 in Q1 2013.

As Experian notes,

The average loan term, average monthly payment and average amount financed for a new light-vehicle hit record highs in the first quarter, signaling U.S. consumers continue to extend themselves to afford pricier cars, Experian Automotive reported today.

 

Lease penetration also hit a record high in the same period in another sign consumers are willing to leverage their spending power to afford more expensive vehicles.

 

"As the cost of purchasing a new vehicle continues to rise, consumers clearly are stretching the loan term to help lower monthly payments, keeping them at a manageable level,"

 

...

 

Experian Automotive said the average new-vehicle loan term reached 66 months in the first three months of the year

 

Also in the first quarter, the average amount financed on a new-vehicle loan was $27,612, an increase of $964, or 3.6 percent. For used vehicles, the average amount financed was $17,927, up $395 or 2.3 percent.

 

At the same time, Experian Automotive said leasing hit a record 25.6 percent of all new-vehicle sales volume in the first quarter, up from a previous high of 24.2 percent in the fourth quarter of 2013.

 

As it seems cash-for-clunkers as well as recent sales is maintaining prices in the used car market and thus reducing the cost of leasing (depreciation) relative to buying (financing)...

 

 

Market share for nonprime, subprime and deep subprime new vehicle loans rose slightly in Q1 2014 to 34.34 percent.

So the Fed's reach for yield has created demand for yiled-providing CDOs stuffed full of auto loans, no matter the risk... when has that ever gone wrong?

Imagine how great GM sales would have been if 74 people had not died and record recalls had not happened.??

 

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Tue, 06/03/2014 - 12:52 | 4820471 earnyermoney
earnyermoney's picture

GM vehicles, the new mobile home.

Tue, 06/03/2014 - 13:01 | 4820510 RevRex
RevRex's picture

Obama and the Demoshit Party are accesories to murder.

Tue, 06/03/2014 - 13:03 | 4820519 Pladizow
Pladizow's picture

Its incredible what Americans will pay for a COW - Coffin on Wheels!

Tue, 06/03/2014 - 13:06 | 4820533 knukles
knukles's picture

WAIT A MINUTE!

Isn't his sales as per GM to dealers and not dealers to the public or is this balls'oshite flowing off dealer lots into suicidal retail motorists?

WHICH?

Tue, 06/03/2014 - 13:17 | 4820563 Dr. Richard Head
Dr. Richard Head's picture

I would gander a guess of shipped to lots and nothing more.

Tue, 06/03/2014 - 13:22 | 4820586 NotApplicable
NotApplicable's picture

That's one helluva "First Time Buyers" program!

More like "Last Time Buyers."

Tue, 06/03/2014 - 14:30 | 4820808 alexcojones
alexcojones's picture

One HUGE reason I get a daily dose of the drug known as ZH, is the dark, dartboard humor.

ZH is funnier and more daring, more sarcastic, more Political Un-correct, than the Onion.

ZH posters are often funnier than the paid writers on the Jon Stewart show.

Actually I think some of the Daily Show show writers READ the remarks here to get good ideas.

Reading Zerohedge is better than crack to a crack addict, because our teeth are less damaged.

AC

Tue, 06/03/2014 - 16:30 | 4821183 Joe A
Joe A's picture

Hear hear.

Tue, 06/03/2014 - 14:43 | 4820844 Metalredneck
Metalredneck's picture

I've worked with dealerships for decades, and I recall telling our sales manager:  "A dead customer is not a repeat customer."

 I left the next week.

Tue, 06/03/2014 - 13:17 | 4820564 Citxmech
Citxmech's picture

Exactly.  Can't wait to see the next installment of the Dealer Inventory numbers. . . 

Tue, 06/03/2014 - 14:31 | 4820811 Freddie
Freddie's picture

They will probably look like Mr. Lundegaard doing the inventory.

http://www.zerohedge.com/comment/reply/489230/4820564

 

Tue, 06/03/2014 - 13:04 | 4820524 NOTaREALmerican
NOTaREALmerican's picture

If it wasn't for infinite debt GM wouldn't exist.   Which Team loves infinite debt more?

Tue, 06/03/2014 - 13:03 | 4820526 SamAdams
SamAdams's picture

GM lost me at bailout.  They are owned like CAT.  Should add a pyramid to their logo.

Tue, 06/03/2014 - 16:44 | 4821220 jackstraw001
jackstraw001's picture

New GM Motto -- "The last car you will ever buy..."

Tue, 06/03/2014 - 22:19 | 4821948 thecoloredsky
thecoloredsky's picture

"... so make it count."

Tue, 06/03/2014 - 13:07 | 4820538 813kml
813kml's picture

And the GM vehicle can also double as a coffin.

Tue, 06/03/2014 - 13:11 | 4820551 BennyBoy
BennyBoy's picture

More like mobile tomb.

Tue, 06/03/2014 - 12:52 | 4820474 quasimodo
quasimodo's picture

The assholes in DC be partly to blame for this. Guilty by association.

Tue, 06/03/2014 - 12:56 | 4820478 TideFighter
TideFighter's picture

"Merikans love anything on sale-even shit that kills them."

Example: Dollar Value Meal

ObamaCare

Pet Meds.com

Outlet Stores

Walmart

Let's get a list going

Tue, 06/03/2014 - 13:02 | 4820515 RevRex
RevRex's picture

^^^^^Stupid post^^^

Tue, 06/03/2014 - 13:56 | 4820694 Headbanger
Headbanger's picture

Even moar stupidier post ^^^^^^^^^^^^^^^^  (up there!)

Tue, 06/03/2014 - 12:54 | 4820479 pods
pods's picture

If you like your faulty ignition switches.................

Tue, 06/03/2014 - 12:55 | 4820483 replaceme
replaceme's picture

Holy shitsnacks, 84 month auto loans?  Who the hell thinks that's a good idea besides about 51% of the population?  That really makes me want to give up.

Tue, 06/03/2014 - 12:58 | 4820498 Dr. Richard Head
Dr. Richard Head's picture

Might be a signla of the coming pop of those CDO's.  When I worked in the mortgage insdustry for a very short while I saw people rolling in their credit card debt right into a 30 year mortgage.  That was the beginning of the mortgage debt pop.

Tue, 06/03/2014 - 14:01 | 4820704 Headbanger
Headbanger's picture

It's also a signal that these 84 month loan buyers are going to be way way under water on their car loans in about four years if they want to trade up.

This could mean future used car prices will go up cause dealers will have to cover the loan value of these cars on trade in to sell new cars.

Or.. It could mean these car buyers will get fucked on their cars just like their homes and will stop making payments and the repo man business really takes off!

Tue, 06/03/2014 - 12:59 | 4820502 NOTaREALmerican
NOTaREALmerican's picture

As long as you can make the minimum payment everything's fine.   

Tue, 06/03/2014 - 13:02 | 4820517 Tsar Pointless
Tsar Pointless's picture

Just give up already. Get one of those shirts that once were advertised on this site - "I Used to Care" was the slogan on them.

If you have come to the realization that it's all pointless, then you'll understand my moniker.

Americans are the dumbest creatures on this planet. Seven-year automobile loans? Ludicrous. But pointless to fret over it. Live your life. Be happy, even if you force yourself to do so. I did, and it's worked. Homemade Kool-Aid is the best kind.

Tue, 06/03/2014 - 18:46 | 4821472 Pootie Tang
Pootie Tang's picture

Kool-Aid with Grey Goose?

Tue, 06/03/2014 - 13:18 | 4820561 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

Pontoon boat loans go out to 144 months now... That's right, a boat that's little more than plywood on some tin cans (and is good for nothing except partying all day) will take you 12 years to pay off.

Tue, 06/03/2014 - 13:21 | 4820576 Kprime
Kprime's picture

wow a 12 year, all day, party.  Where do I get one?

do you get free obamacare with that purchase?

Can I upsize the drink holders to hold a 40?

Tue, 06/03/2014 - 13:18 | 4820567 tarsubil
tarsubil's picture

The economy is so loaded with cheap debt that any problem is going to cause a monumental implosion. The biggest house of cards yet.

Tue, 06/03/2014 - 13:19 | 4820571 Kprime
Kprime's picture

I am holding out for 120 month loans for those with 420 credit scores.  The stock market will soar and gold will be 800. When silver hits 12, I am going all in.

Tue, 06/03/2014 - 14:02 | 4820706 oklaboy
oklaboy's picture

we don't know what's gonna happen in the next 7 weeks, let alone 7 years.

Tue, 06/03/2014 - 14:02 | 4820710 oklaboy
oklaboy's picture

we don't know what's gonna happen in the next 7 weeks, let alone 7 years.

Tue, 06/03/2014 - 12:56 | 4820491 NOTaREALmerican
NOTaREALmerican's picture

New home size (as measured in square-footage) increased this year.   Looks like more debt is a good thing.

Tue, 06/03/2014 - 12:57 | 4820493 moonman
moonman's picture

"the average credit score was 714, down from 722 in Q1 2013"

 

Not exactly sub prime loans being made here.

Tue, 06/03/2014 - 13:00 | 4820506 the not so migh...
the not so mighty maximiza's picture

you know they will revise it in the middle of the night in september too 620

 

Tue, 06/03/2014 - 14:04 | 4820721 Headbanger
Headbanger's picture

Nahh.. I think they start "grading it on a curve" so we all look good.

Tue, 06/03/2014 - 13:02 | 4820514 Dr. Engali
Dr. Engali's picture

The fact that they are being financed for up to 84 months suggests they are.

Tue, 06/03/2014 - 13:21 | 4820581 tarsubil
tarsubil's picture

FICO scores indicate how good of a debt serf you are. Many good debt serfs are loading up on ridiculously termed car loans. They'll pay out the ass and have their scores go up. At least those that make it. Many will have a personal crisis and won't pay the damn loan back.

Tue, 06/03/2014 - 13:54 | 4820661 Dr. Richard Head
Dr. Richard Head's picture

Indeedy doodie.  A gal I know carries a high balance on her cards, makes the minimum payments, and keeps charging up that plastic for her whoreshit consumerism.  She is near 800 on her score.  Still cheaper to keep her though....

Tue, 06/03/2014 - 14:21 | 4820784 Osmium
Osmium's picture

For a second there I thought you were talking about my wife....

Tue, 06/03/2014 - 17:33 | 4821306 nightshiftsucks
nightshiftsucks's picture

Who down voted you Doc ? Was it your wife ?

Tue, 06/03/2014 - 12:58 | 4820496 Bunga Bunga
Bunga Bunga's picture

74 died, get over it, it's not NSA's business.

Tue, 06/03/2014 - 12:57 | 4820497 disabledvet
disabledvet's picture

Of course "GM will be bankrupt again soon" so good luck finding parts.

Tue, 06/03/2014 - 13:00 | 4820508 NOTaREALmerican
NOTaREALmerican's picture

"Bankrupt" is so old-school.   It just means there's a lack of financial immagination. 

Tue, 06/03/2014 - 16:42 | 4821210 James T. Kirk
James T. Kirk's picture

And with two sentences you have managed to capture the entire philosophy AND essence of fiat money. When you are long dead, and our civilization finally rises from the ashes, you will be posthumously awarded the Nobel Prize in Economics.

Tue, 06/03/2014 - 13:08 | 4820540 Bunga Bunga
Bunga Bunga's picture

Obamaparts

Tue, 06/03/2014 - 13:00 | 4820505 Kaiser Sousa
Kaiser Sousa's picture

must....

           keep....

                      illusion....

                                     alive...

debt slaves.

Tue, 06/03/2014 - 13:06 | 4820513 JustObserving
JustObserving's picture
GM Sales Soar In May

Perhaps, GM started marketing its cars as mobile crematoriums. Have you looked at the cost of a funeral in the US?

Tue, 06/03/2014 - 13:58 | 4820697 JuliaS
JuliaS's picture

That's brilliant! Instead of playing lottery, buy granny a GM car and a life policy.

Tue, 06/03/2014 - 13:02 | 4820518 youngman
youngman's picture

Gots to have a new car to visit your kids in college on thier free loan Education...jus sayin

Tue, 06/03/2014 - 13:35 | 4820624 Spastica Rex
Spastica Rex's picture

Yesterday, while dropping my daughter off in her high school parking lot for volley ball practice, a fancy middle-aged woman in a new Escalade flipped me off as she drove past us in our 10 year old Subaru beater.

Why?

I don't know.

Tue, 06/03/2014 - 13:48 | 4820666 Dr. Richard Head
Dr. Richard Head's picture

I can tell you why.  Because she hates herself, her fake titties, her fake tan, fake lips, fake hair, and fake life.  She mistakenly thought that she could take on both a carrer and her kids, but now is having the mid-life crisis moment where she "missed" out on all of the partying and no amount of plastic surgery will save her droopy piece of shit life.....

Just a guess though.  

Tue, 06/03/2014 - 14:33 | 4820815 cougar_w
cougar_w's picture

I'm writing a slutty bondage porn novel with that chick in it.

She's not the main character (the main character is a hot, axe-wielding red-head into voluntary sex slavery and bondage) but this fake chick ends up being blackmailed into doing anonymous torture porn videos where she's hard raped nearly to the point of insanity. She puts up with it (even plans her day around it) so as to keep her reputation intact in the "real" world because after failing to attain any of the other important milestones in a woman's authentic life her "reputation" and success-at-business is all she ends up with and she cannot face life without her high-society party pals.

Facing life ... well of course she becomes addicted to the performances and eventually dies. She admits in the end to being a stupid cunt, so she has that going for her.

Writing this is just about the most fun I've ever had (even when I'm having to kill off one or two stupid cunts) and the best part is that most of the material is taken from the daily newspapers. It's a novel that's writing itself.

Tue, 06/03/2014 - 14:06 | 4820727 Headbanger
Headbanger's picture

Just key her gang-banger POS next time!

Tue, 06/03/2014 - 13:04 | 4820523 Seize Mars
Seize Mars's picture

74 deaths? Are they real deaths, or hoax deaths like Sandy Hook?
So that's more than Sandy Hoax, right? So we should be hysterical about this, right?
So what are we going to ban? Cars? Companies? Fake Marxist dictators installed as CEOs?
Ban death! For gods sake think of the children!

Tue, 06/03/2014 - 14:38 | 4820828 nope-1004
nope-1004's picture

+1

Tue, 06/03/2014 - 13:04 | 4820528 young turk
young turk's picture

who cares that they are buying a piece of crap as long as theres no down payment and 84 months of servitude to look forard to winning

Tue, 06/03/2014 - 13:08 | 4820542 sleigher
sleigher's picture

I drive a POS just so I don't have to take a loan.  I would rather drive a craigslist special.  Leased a car once after sitting in the dealership for 10 hours brow beating the salesman.  I will never get that time back.  

Tue, 06/03/2014 - 14:54 | 4820881 Greenskeeper_Carl
Greenskeeper_Carl's picture

I drive a 10 year old Tahoe, from back before they had to get bailed out, 155k and still going strong. Got it years ago, before all this bailout business. Won't buy another one, but I'm driving this one until it falls apart(or it kills me, apparently that's a possibility). 18 months left on my wife's 4 year loan. Then it's taking that car payment and saving it for when one of the cars dies so I can pay cash for at least most of it. No way will I finance a car longer than 2 years. If you can't pay it off in that time, get a cheaper car.

Tue, 06/03/2014 - 15:29 | 4820969 cougar_w
cougar_w's picture

Old Skool is still the best skool: '68 Dodge D-50 1-ton with the original 383. Needs rings and the radiator leaks a bit but the thing is a monster and works like an animal. People all the time ask if I'd sell it. Are they kidding? Thing will run for another 40 years at least.

I'm thinking of making it into a ratrod with a stake bed, though. Refresh the engine and maybe drop in a roots blower just to fuck with people. Can you imagine rolling into Lowe's with that bitch growling and throwing smoke like a metallic dragon, and then loading it up with plywood and sheet rock? The soccer moms would faint and the Mexicans will all want a ride in the back.

Fuck yeah. Old Skool or GTFO.

Tue, 06/03/2014 - 13:07 | 4820529 valley chick
valley chick's picture

Credit...good or bad it doesn't matter.  As a salesman told me at a dealership as I waited for my vehicle to be repaired....the only requirement to purhase a vehicle is to fog glass.

Tue, 06/03/2014 - 13:08 | 4820541 NOTaREALmerican
NOTaREALmerican's picture

Now that we've eliminated the business cycle and all credit risk, there's really no reason to deny a loan to anybody for anything. 

Tue, 06/03/2014 - 13:18 | 4820569 valley chick
valley chick's picture

I wonder if there are stats on repos. I would find it interesting to see as it would give a better perspective on auto sales. And percentage of leased vehicles too.

Tue, 06/03/2014 - 13:52 | 4820680 Dr. Richard Head
Dr. Richard Head's picture

Here is a bit of some statistics I found - http://www.cutimes.com/2014/05/26/deflating-a-vehicle-repo-bubble-before-it-pops

"In 2013, there were approximately 1.4 million vehicle repossessions in the United States"

"According to Experian Automotive, repossessions were up 42.8% in the fourth quarter of 2013, going from 0.46% in Q4 2012 to 0.65% in Q4 2013. However, the increase was driven entirely by finance companies that provided a significant majority of their loans to credit-challenged customers."

Looks like financing companies haven't learned a damned thing.

Tue, 06/03/2014 - 14:03 | 4820717 valley chick
valley chick's picture

Thanks!  :-) 

Tue, 06/03/2014 - 13:08 | 4820539 i_call_you_my_base
i_call_you_my_base's picture

I wonder if they pushed new cars at low rates on the recall visitors.

Tue, 06/03/2014 - 13:09 | 4820545 laomei
laomei's picture

I actually just bought a brand new car last week.  Of course, I don't live in the US, so I was able to actually buy a nice car that was unmolested by the US.  $50k for a fully loaded full sized gas sucking RWD sedan, in cash of course.  Seriously, there are 2 types of people who finance cars.  Those who don't need to do it in the first place and get more dealer cash from it than they will pay in interest, and dumbasses who should never even be considering a new car in the first place.  As for me, I just didn't want to deal with the hassle of financing.  The earnings from interest are mostly negated by the increased expenses from the additional insurance coverage that goes with financing, not worth the hassles for a whopping $200 at the end of the year.

Tue, 06/03/2014 - 13:20 | 4820579 kchrisc
kchrisc's picture

"... in cash of course"

Just that act alone is enough to get all of your assets "seized" and you 3 years in jail for "laundering."

And that is if you make it to the dealership with out being pulled-over and having your cash "seized" by the local gun and badge thugs.

But don't worry, the DC US' prosecutor will allow you to avoid trial and jail if you will plead guilty, relinquish all "seized" assets to them and surrender all "criminal removal devices, " guns.

 

"...land of the formally free and home of the drone pilot."

Tue, 06/03/2014 - 23:20 | 4822121 laomei
laomei's picture

Lol, yea, no shit.  There's just something satisfying about plopping down a stack of cash to buy a car.  No financing, no bullshit.  Here's a pile of paper, sign a transfer contract and drive away in a new car that will last a long long long time and keep value.  The notion that someone in the US had $50k in cash to spend on anything would surely raise some eyebrows and warrant investigations.  Over here, nothing unusual at all.  They just tossed it all through the counter checking for counterfeits, and that was that. Sure, we could have just swiped the bank card, but where's the satisfaction?  To pull out the cash didn't require an appointment or advance notice either... just go to the bank, take a number, wait 5 minutes and ask for cash.  They even gave us a nice little totebag to carry it all in.

Tue, 06/03/2014 - 14:02 | 4820708 post turtle saver
post turtle saver's picture

yep... I finance to get all the dealer cash, then turn around and pay it off early... people should do the math on their available cash beforehand, but math is hard I guess

what is this additional insurance requirement you speak of... never had to worry about that

Tue, 06/03/2014 - 17:32 | 4821301 StychoKiller
StychoKiller's picture

Loan companies require complete auto insurnace coverage in order to protect their interests, where have you been?

Tue, 06/03/2014 - 17:54 | 4821347 post turtle saver
post turtle saver's picture

I've been in a place where I have always had, and will continue to have, complete auto insurance... since, you know, it's required by law. I don't know what planet y'all are from, but here on Earth that's just a matter of course. My premiums have never been affected by me taking out an auto loan. Ever.

Tue, 06/03/2014 - 22:18 | 4821946 laomei
laomei's picture

You don't know what you're talking about.  There are state minimums for insurance, then there are reasonable and smart levels, then there is what the bank requires to ensure that if *anything* happens, they get their money back.  This is your gap insurance and whatnot.  Ditto happens here if you finance, it adds in an extra $800 or so of annual premium for the first year.  Eating the interest, in theory makes up for all of that and leaves a small profit if you pay it all off in the first year, but as I said, it's simply not worth the hassle, at least not for me... as that would require an extra 2 trips to the other side of town and my time is worth more than $100 a day.

Tue, 06/03/2014 - 13:12 | 4820553 Yellowhoard
Yellowhoard's picture

GM needs to solve this problem with a new marketing program.

Some ideas:

GM, you'll most likely not die!

GM, we don't need no stinking R&D!

GM, safer than YUGOS!

I'm so happy! I just got home safely in my GM!

Tue, 06/03/2014 - 13:13 | 4820555 gdiamond22
gdiamond22's picture

And in other news - Obama released 5 terrorists for 1 traitor all while going around his OWN law of letting CONgress know 30 days in advance. But, on to the next scandal which I'm sure should pop up soon.

Tue, 06/03/2014 - 13:19 | 4820572 Dr. Richard Head
Dr. Richard Head's picture

It is merely a distraction from the illegal war started by Bush, continued by Obama, funded by the Merican plebes.

Tue, 06/03/2014 - 13:31 | 4820605 kchrisc
kchrisc's picture

I am not saying that you are incorrect or defending Bergdahl, however, how do you know that the 5 were "terrorists?" The DC US told us so, and they never lie, right?! Next, if they were "terrorists," were they threatening us or the criminals occupying their country, region and bombing wedding parties and schools?!

Seems to me that they traded 5 Unconstitutionally held prisoners for one confused young man that they had criminally sent to Afghanistan to subjugate the people and land.

 

Note: Bergdahl did NOT betray me. He may have betrayed his comrades in his unit, but he did not betray me.

Tue, 06/03/2014 - 14:24 | 4820792 Overfed
Overfed's picture

I look at it this way: when have those fucks in DC ever, ever told us the truth about anything?

Tue, 06/03/2014 - 14:59 | 4820883 kchrisc
kchrisc's picture

Absolutely.

That was what I was getting at via the long way through the woods.

I am not attacking the original commenter, but it amuses me when people know that they are criminal liars, but then quote them like it's gospel when what they say agrees with what they think.

Or put another way: I wouldn't quote any of them even if it were that the sky is blue.

Tue, 06/03/2014 - 13:14 | 4820559 kchrisc
kchrisc's picture

"GM just announced new purchase incentives: A free coffin."

 

Tue, 06/03/2014 - 13:39 | 4820638 B2u
B2u's picture

A free coffin?  Like a Pinto or just the trunk?

Tue, 06/03/2014 - 18:35 | 4821447 kchrisc
kchrisc's picture

Yeah, on a GM car the "trunk" should forever now be called the "coffin."

"And look at the space in the coffin. It will amaze you. There is room for the whole family if need be."

Tue, 06/03/2014 - 13:16 | 4820562 WTF_247
WTF_247's picture

Farce/Lie.

My guess is the massive recalls "created" new sales.  Hertz, Avis etc all buy massive amounts of vehicles in a partnership with GM.  For recalls, it is likely far easier and cheaper to get them to just take the old car back (2-4 months old) and replace with new vs fixing that many problems.  This is counted as a "sale".  The buyback = "charge for recall".  Take this on top of old cars sitting (unsold) that will simply be recycled rather than repaired.

Tue, 06/03/2014 - 14:05 | 4820726 Emergency Ward
Emergency Ward's picture

Farce/Lie = Win/Win

Tue, 06/03/2014 - 13:17 | 4820565 bbq on whitehou...
bbq on whitehouse lawn's picture

Why not a 300 year loan a 8% on 500,000$. Ill take the balloon payment option please.
At this point. why not.

Tue, 06/03/2014 - 13:44 | 4820653 Winston Churchill
Winston Churchill's picture

You know damn well that only paper assets will get raped.

Somehow, someway ,debts will be converted into any new currency that emerges.

Tue, 06/03/2014 - 18:11 | 4821386 RafterManFMJ
RafterManFMJ's picture

Hee Hee Hee

Via Mish "In Sweden, it is very common for mortgage repayment to occur at such a slow pace that the life expectancy of the borrower must be 140 years on average repay their mortgage. And household debt is expected to reach 177% of disposable income by 2015. "

Read more at http://globaleconomicanalysis.blogspot.com/2014/06/sweden-central-bank-g...

Tue, 06/03/2014 - 13:19 | 4820575 wmbz
wmbz's picture

The" how much a month" crowd would go for 15-20 car loans at any rate if they could get them. Who knows that may well happen!  Willing debt slaves.

Tue, 06/03/2014 - 13:25 | 4820593 NEOSERF
NEOSERF's picture

7 years to pay off a car.  Truly teach your kids to stay off this crazy government seduction Tilt-o-Whirl.  President has become Chief Huckster at the Carny.  Stay off the grid and stay out of debt, same as it ever was.

Tue, 06/03/2014 - 14:03 | 4820703 lakecity55
lakecity55's picture

No joke.

Buy the car cash/certified check.

Get a cheap car and save for a very nice car in the future.

I took out only 1 car loan when I was a kid. The rest I paid $$$ on the barrel.

(edit) I rode an old BMW R/75 for years to work so it was not easy when you saw new cars rolling by. But! The bike never failed to crank.

Tue, 06/03/2014 - 13:33 | 4820617 hoist the bs flag
hoist the bs flag's picture

 it appears that leveraging death vs stats is a win win...

Tue, 06/03/2014 - 13:34 | 4820620 all-priced-in
all-priced-in's picture

84 month loans?

Everyone knows if you buy a new car with zero or a really small down payment loan and you start off under water --

With a 48 month loan - you should be about even - loan balance = to car value - within 24 months of making payments.

With an 84 month loan I will guess you are out close to 60 months before your loan balance is less than the value of the car. 

 

 

 

 

 

Tue, 06/03/2014 - 13:45 | 4820660 Winston Churchill
Winston Churchill's picture

Its called a never,never loan, for a reason.

Tue, 06/03/2014 - 13:35 | 4820628 starman
starman's picture

GM sold 8 million cars in 07, 4 million in 2013. "Recovery"

Tue, 06/03/2014 - 13:37 | 4820631 B2u
B2u's picture

I want a 30 year loan.

Tue, 06/03/2014 - 14:02 | 4820705 JuliaS
JuliaS's picture

Sure! Take an equity loan. Buy a car.

Tue, 06/03/2014 - 13:39 | 4820639 bpj
bpj's picture

Commentators here should realize that all the info they are getting is from the very MSM that they despise, to wit, 9 of the 13 deaths involved alcohol, drugs or no seatbelt usage. I don't believe that was reported.

Furthermore, Car and Driver's latest edition tests a a Saturn subject to the recall and finds that the car can be controlled via brakes (there is a vacumm resevoir) and that steering can also be managed. This whole case is an Audi phantom accleration redo. Not to mention Toyota.

You can't cherry pick the MSM, it's all or nothing.

Tue, 06/03/2014 - 13:43 | 4820649 ejmoosa
ejmoosa's picture

So if you get killed, will the auto loan be forgiven?

Tue, 06/03/2014 - 14:03 | 4820701 Emergency Ward
Emergency Ward's picture

No, the GMAC collection agent will kick your cadaver and tell you you have 72 payments left......

Tue, 06/03/2014 - 13:45 | 4820655 Anybody
Anybody's picture

Remember the outrage over Toyota? 37 deaths? When it's 74 with GM there' nary a peep. Bullish.

Tue, 06/03/2014 - 18:13 | 4821393 RafterManFMJ
RafterManFMJ's picture

That's because it's Amurikans doing the killing. And that's OK with us.

Tue, 06/03/2014 - 13:59 | 4820699 lakecity55
lakecity55's picture

GM.

What a Fucking Joke.

Forward!

Tue, 06/03/2014 - 14:08 | 4820731 Who was that ma...
Who was that masked man's picture

It used to be if you had a job, you could get an auto loan.  Now, all you need is a pulse and even without one, you could probably still work a deal.

Tue, 06/03/2014 - 14:19 | 4820777 yogibear
yogibear's picture

Loans to anyone that can fog a mirror. TARP #2 planned.

Cash for clunkers #2 when the SHTF.

Tue, 06/03/2014 - 18:15 | 4821397 RafterManFMJ
RafterManFMJ's picture

Look for Hillary to implement cash for cankles in 2016.

Tue, 06/03/2014 - 14:20 | 4820779 ThirdCoastSurfer
ThirdCoastSurfer's picture

Anyone know the numbers on how many of these purchases are from corporations, the government, rental agencies and the like? 

Tue, 06/03/2014 - 14:21 | 4820781 yogibear
yogibear's picture

My dog should apply for a GM loan. No surpise if he gets approved.

Tue, 06/03/2014 - 14:21 | 4820783 ExploitedCitizen
ExploitedCitizen's picture

I hear people griping about how their 3 year old GM needs four new calipers, hoses, belts, and a ton of things stopped working...

Then they turn around and buy another one because they have 0% financing and employee pricing.  Junk cars for junk people.

In my area, you are a loser if you drive GM.  Only poor-ass white people drive them.  Everyone with money buys either European or Japanese.

Tue, 06/03/2014 - 14:38 | 4820829 yogibear
yogibear's picture

Obama's limo is a GM. Kind of like the Obama phone.

It would be embarrising if Obama drove a Toyota limo. 

Tue, 06/03/2014 - 15:59 | 4821084 BeetleBailey
BeetleBailey's picture

My 1996 Ford Ranger Pick-em-up runs just fine.

Gas, oil, lube, tires every 18 months - insurance - cheap.

My very own Sam Walton special. Don't need any new-fangled crap on it that they offer. Fuck it. I can read a map - have my trusty flip phone with me if I get lost.

All mine. No bailout from the gubbermint to this company - which makes me feel good about owning a Ford.

No complaints. 400,000+ miles on it.

Took it in for an oil change last week - the shop guys all wanted to buy it - especially the one that worked on it.

FUCK GM!

Tue, 06/03/2014 - 14:48 | 4820862 Alien 851
Alien 851's picture

Newest offering to pare down "old stock" sitting in lots.   12 Month lease (cheap) on a 2014 from inventory. No worries, at the end of 12 months just turn it in for a replacement 2015 no change in lease payments.  Dodge offering this now.    

Tue, 06/03/2014 - 14:48 | 4820865 Jano
Jano's picture

Hussein kenya Obanana has to donate each army veteran a GM.

There is a big chance to kill two flies with one stroke.

Tue, 06/03/2014 - 15:00 | 4820892 Canoe in the Desert
Canoe in the Desert's picture

Sign the contract at the bottom....right there. Press hard - three copies. Don't you feel better now? Congratulations on financing your new car! Don't bother reading the fine print - it sucks anyway.

The credit requirments for auto loans are still high. However, it makes sense that there is pent up demand in auto sales since credit/leasing was unavailable to many consumers over the past 6 years.

Press hard...

Tue, 06/03/2014 - 15:32 | 4820980 robnume
robnume's picture

No doubt the bitch was the sole occupant in that 12 passenger vehicle; like so many other douchebags I pass in Suburbans, Escalades and that huge Lincoln POS.

Tue, 06/03/2014 - 16:32 | 4821186 Joe A
Joe A's picture

The buyers of GM cars should get a Darwin award. Goldman Sachs is probably taking positions agains the lifespans of GM owners.

Tue, 06/03/2014 - 16:39 | 4821203 TalkToLind
TalkToLind's picture

It's coming...zero down 15 year auto loans with PMI!  Yep, the gum chewing public is stupid enought that they'll "buy" anything so long as the payments are "low enough".

Tue, 06/03/2014 - 17:34 | 4821307 esum
esum's picture

gm car  =  death  wish 

Tue, 06/03/2014 - 18:24 | 4821419 sessinpo
sessinpo's picture

If you hate your spouse, get an insurance policy on them and buy them a GM car.

Wed, 06/04/2014 - 00:08 | 4822218 pakled
pakled's picture

Ignition system faults seem a reasonable way to cull the gene pool of those less adept at adapting to real life pop quizes.

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