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And If You Act Now, We'll Throw In A Subprime Car Loan Bubble For Free
When at least 3 readers receive, at exactly the same time the following email...
From: Bank of America
Subject: Now is a good time to buy a car or refinance
... Then two things become abundantly clear:
i) what we wrote a week ago in "A Tale Of Two Credit Markets: New Auto Loans Highest In 9 Years As New Mortgages Slump Near Record Lows" is nothing but the truth, and
ii) the next subprime car loan bubble is now in play.
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The collateral comes with wheels.
I remember during the real estate melt down many people skipped the house payments but continued to make car payments.
The reasoning was that:
1.) Car can get repo-ed quickly. Foreclosing on a house can take a year or more.
2.) You can sleep in you car. You CANNOT drive your house to work.
So when the SHTF this time what will be the trade off?
Car loan bubble won't take nearly as long to pop as the housing bubble...
...it occurred to me looking at (i) the distribution of job gains by oil & gas states and (ii) the auto loan default rates by state (i.e. ND) that when oil bites the ripple into auto subprime will be one to watch.
Maybe they should be push some RV/camper loans and move some of that inventory...everytime I pass one I can't help but think of the millions of dollars of debt just sitting there waiting to take up space in driveways across America.
Wait a sec, is BofA stating that you can "refinance" yer car? WTF?
yep and the banks got no skin in the game... Uncle Sugar will just bail them out for their bad business decisions.....
...the next subprime auto loan bubble? This has been in play for some time now.
Those "open box" specials before January?
It's really sad. Albeit I'm quite happy.
I before E except after T.
"Ask us about our 120 month payment plans."
Never mind 10-year loans, in Canada they're advertising bi-weekly payments because $199 bi-weekly is so much more palatable than $431/mth.
I'm holding out for the 120 year plan, plus a free toaster.
US government contract for ambulance transport of Ebola and highly infectious disease patients?
Iraq denies Lebanon captured wife of ISIS Leader Baghdadi despite daughter’s positive DNA test
France parliament votes in support of recognizing Palestine, Israel says peace process will suffer
We repoed some folks.
My credit union has been nothing but auto loan signs since GM was "rescued." For the longest time, the tellers would even ask you every time if you were interested in their loans.
Just before Haloween my CU actually had a car show with inventory (both new and used) from a couple dealers sorted by price bands with loan officers at the event. The dealers didn't need sales people, the CU was doing it for them.
all the credit unions got into car loans real big in the last coupla years at very good rates. we were forced to buy a car at the beginning of the year and i financed it because the interest rate is negative using shadow stats inflation rate(they pay me to borrow money). i put enough cash down to cover the loan in case i wrecked the truck in the next year but i have found that the rate of payoff of the principle of the loan would have already put the value of the truck above water by a nice margin of error 10 months later.
that is one reason i don't worry too much about the subprime car loans bubble too much under a 5% rate. the only danger is if enough cars are dumped to affect the residual rate.
Did a primary school child draw that car?
No. In case you didn't notice, it looks just about 100% accurate of the shit they're designing. Can you imagine being stuck with a Lincoln MKZ for 120 months. Holy Fuck.
yep, bought a used 1992 Toyota 4Runner and fixed it up instead of buying the crap that is produced today.
https://www.youtube.com/watch?v=17qN8-NwLIs
11/93 production Dodge R2500 2WD 5.9 Cummins 12 valve 8,600 lbs gross. Dana 80 rear differential. Second generation Bosch fuel injection and Holset intercooled tubo (factory). Replaced the mechanical fuel pump at 130K. Water-based paint started to fall off at 53,000 (but who really gives a fuck about paint, anyway?). New Venture 4500 5-speed manual. Manual windows, manual door locks. Everything electrical works flawlessly. Starts without any fail, ever. A/C has never needed service. 230 K on it now. Expecting another 200K before any major repairs.
Toyota had an issue with oil drainback on their 3.0 V6 engines back then. It took out main and rod bearings and caused seizure of the crankshaft due to oil starvation. ALSO, their wiring was really sub-standard. Too many wires, in too small a loom, with fucking 26 and 28 guage. TECHNOBOT' shit. Blown head gaskets due to lack of maintainence and a stuck thermostat were also issues. Deterioration of the plastics that Toyota was using (like the air intake ducts, vacuum hoses, and all the other shit) was ALSO a problem.
damn it man, speak english
I understood every thing he said.
Helps when your dad wasn't a complete paper-pushing pussy.
Nice we drive 1986 camry 202,000 miles 1996 nissan pu 250,000 1996 toyota pu T100 our baby only 156,000 miles and all of them run great. Repairs are cheap when they need it at our local small time fix it guy
Well, you wouldn't have a Lincoln MKZ for 120 months. You might have the payment for that long, but the car wouldn't make it past 48 months, if you got a good one. You might die horribly as the electronics wouldn't let you open the door to escape when the heated seats caught fire, or something similar. But no way you'd be stuck with the thing for 10 years.
Try being an owner of a 2000 Lincoln LS with a 3.9 liter.
They tried to 'Micheal Hastings' everyone back then, but the damned things couldn't run long enough. Maybe THIS is the REAL reason of 'Cash For Clunkers'...
INCREDIBLE... Lincoln tried to do a fucking 'SUV/CROSSOVER'...
Have you driven a Ford, lately?
https://www.youtube.com/watch?v=_stpBzOAcWw
It's a good thing we're in an economic recovery otherwise I might be a bit worried....
These people are jonesin' for their securitization fix, yes siree we gots to set up those SPV and SIV's again...yup need to fill those NY common law expres trusts, then get that underwititer to sell the shit out of those certifictes, but in reality these assets were never legally conveyed
Check out the link below from GM
https://www.gmfinancial.com/Docs/About-Us/understanding-securitizations.pdf
Yes siree, its time to party like its 2005
A few weeks ago I was contacted by three different "personal bankers" within a week. The same thing happened a couple months before the '08 crash.
Lots of topping signs if you ask me.
Seek I love your posts. You're exceptionally smart.
I was contacted by a few similar types last week, but I was in Las Vegas so I assumed they were hookers.
My Credit Union has been pimping me in my e-mail to refinance auto loans w/them for a $300 (Ithink) "cash bonus" for - ? - 3-4 mos. I don't have any auto loans so, whatever but a little scary. Once in the last 3-4 mos. they sent me the same type of thing but for student loans. Don't have those either, must have figured that one out.
Hell, a few minutes ago I got a robo call advising me of Obolacare enrollment is now open.
I'm so relieved, I almost forgot.
yep, most car buyers now don't ask how much is the vehicle but how low of a monthly payment can you get me.
Sub-prime auto loan bubble, student loan bubble, housing bubble 2.0, tech bubble 2.0, equities/pensions/401K/IRA bubble 2.0.
Frame those year-end statements sheeple, they'll be a novelty item just like 2009.
Mr. EBW,
You've been around here for a while. . . I love you, man... It's Comin' Down: https://www.youtube.com/watch?v=8IQa3tZ5Kz4 - bring it! Another "novelty item", I'm afraid.
Thanks infinity8, back at you. Had a girlfriend who liked to play that album, drink tequila, play 10,000, and screw.
Good times, not "novelty" at all, and "it" is going to come down. Hallelujah. ^5
I proudly drive a 1994 Chevy G20 van. Best vehicle I've ever owned (maybe the 1988 Nissan 300ZX Turbo was better). Paid $1000 six years ago. Maybe another $1000 in repairs, tires. Fucker kicks ass (V-8) even in chilly upstate NY winters. Hauled tons of stuff, continue to. Awesome vehicle, little $$. Gets a whole 12-15/gallon, so the recent price decline has been good for me.
The system is fucked and more and more people are feeling it. Half of the wage-earners in this country make less than $30000 a year. Broken down after taxes, it's about 1750 a month. It ain't much, especially if you have any dependents, leeches, garnishments, cops stealing or bribed, etc.
I don't have a ton of personal experience to relate, but I'll wager that black markets are thriving in America and getting more robust with each passing day. You keep inflating the money supply and shit is going to happen. Buying cheap shit from China at Wal-Mart? I don't think so. Used shit on craigslist? The (present and) future of retail.
We're entering the worst phase of the depression, when all attempts at revival are failing and the natural laws of supply and demand begin to dominate. There's money sloshing around everywhere, much of it being wasted or gambled (speculated), but prices and wages are stagnant. Weird, but the result of Fed engineering. We get the following:
Price Deflation + Money Supply Inflation = Savings
Really. But only for smart people. Muppets need not apply.
When the whole economy is based on usury, eventually the only rational response is fraud. The entire system, as we've been taught, is based on trust and faith. When those things fail, nothing's off-limits.
Good for you.
My '95 Grand Cherokee from down South will come in handy, here in Rochester. Wanted the six but settled for the V-8, for $2200 cash back in June. Happy as a clam, rides nice, tranny was rebuilt already by the seller's father-in-law, whom I know personally.
Fuck these newer cars, especially the ones the gubmint can track (which is just about all of them at this point).
97 wrangler ...one of the first TJ's off the line simple in design and easy to fix. Just rebuilt the frame this year 4 banger 5 speed.. Mini 4wd kick ass truck...works in Maine. Doesn't go fast but goes anywhere and thru anything. Steel I beam for a front bumper.
Proudly rolling around in a '90 Cutlass Supreme - that's right, SUPREME.. go-cart-style. Looks like it was parked in the Saraha for 10+ yrs or in a flood. Definitely has some issues but drives great. My next favorite of all time was a cutlass 442 that was the 1st (and almost only) car loan for me ever - @$2200.00 in @'84 - stuck out like a sore thumb in their lot, only had @30k on it.. drove that bitch for 8 yrs.
You got it figured out for sure
Mine is a restored 1964 GMC 4x4 swb. Only have to put plates on it once every five years (about $120 for all 5), exempt from wearing seatbelts because they were not mandatory back then, and not covered by emissions standards. Oh yeah, EMP-proof as well.
10-12 mpg but I can buy a lot of gas every month instead of making a car payment, paying massive license fees and full coverage insurance and still come out ahead. Plus I get a lot of thumbs up for my sweet, unique ride, chicks dig it, and any new car that runs into it will need to be towed to the boneyard while I will need to touch up the paint and tell it how sorry I am that it got scratched.
Rooms-to-Go no offers...get this and no shit, saw the commerical yesterday. ($567.00 special on a matress and boxspring set. Financing at 0% up to 2023.)
No Interest until January 2019*
On purchases priced at $499.99 and up made with your Rooms To Go credit card through 12/1/14. Equal Monthly Payments Required until January 2019*.
http://www.roomstogo.com/view/creditOptions.jsp#
We have now got to the point that $500.00 needs to be financed for how fucking long!?
Dude look at all the fucking rent-a-centers popping up... why buy a mattress for $500 at roomstogo when you can get the same thing for free out the door and monthly payment of $40 for 2 years? No credit? No problem!
I took the bait :-) Fuck it. 1.49% rate and 12k off of inflated MSRP as a year end. I drove a betaer for almost three years while my money was in investments. I could have bought the car cash, but when they're loaning money that cheap, why not? Not to mention the sweet tax deduction. If things really go Full retard its's not gonna matter anyway.
On a long enough timeline were all dead. The only other thing i've wanted to do is put down roots with a house. Being that the trough from Housing bubble 2.0 likely won't be reached until 2018 i've decided to ride fly in the meantime LOL
Roots aren't always a good thing.
If there's a fire, and you are a tree, you can't relocate to avoid the problem.
You don't own your house even when you've paid off the banksters. You still rent it from the government due to property taxes.
I'm leaning towards that thinking brother :-) I'm a SoCal guy who needs to decide if he wants to stay one. Prop 13 makes taxes a lot more bearable. The trick is BTFD between the RE bubbles LOL.
I remember when cars were about the freedom to move around.
I now refer to steel and glass boxes with wheels as 'debtmobiles'
Pretty good tax collectors too.
I cycle 365, by the way.
Literally 2/3 of the physical mail in my mailbox is for car loans, invariably with the envelope tricked out to make it look official or important or from the government.
It's the last gasp of the debt creation machine that preys off of average people. So many got sucked in and wiped out in the housing boom and bust. Now, stuck in a rental house and poorer than ever, they are getting sucked into the sub-prime car loan swindle.
I figure when this one blows it will the end of the line. Unless they start selling scratchers and lotto tickets on credit.
whack the bankster/pols.
The perfect holiday gift to go with the defaulting student loans
hey Wall Street!
us retail guys want to trade asset backed securites too...is there an ETF for these fuciking things?
us retail guys want to SHORT auto asset backed securities too...
there, fixed it for you
Know and trust a bank?
Arrest Loyd Blankfein.
I got an auto loan a few months ago. Tragedy struck one vehicle and we had to replace it. Got the price figured out then they asked about financing. I believe the 4 yr rate was 2.5% on a used vehicle.
PE's in industrials currently 25, in techology 30, and in real estate is 60
It's not going to be one thing, but many
Gummamint bond defaults should lead the way.
Santander bank, how are those subprime loans working out for you? You loaned money to folks in Espanola, NM and to the folks on the rez? You will never find those cars to repo!
98 Accord, 05 highlander. Both bought used. Black market will be largest market by 2020.
BTW, fuck you skunk of America bank! Sorry, skunks.