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Old 04-23-2018, 07:31 AM
 
Location: Tennessee
20,947 posts, read 15,267,317 times
Reputation: 23722

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Quote:
Originally Posted by wheelsup View Post
A basic F150 is $23k these days. A Chevy Colorado is $20k.

The high end trucks are expensive but those are for the GC's that have the money.
If you want anything "nice," it's getting more and more expensive.

Do I think there is a bubble? Absolutely. I bought my first new car out of college in 2011. I had driven I don't know how many cars, and settled on one, a Nissan Juke. Payment was like $350. I was making about $35,000 a year then.

I ended up hating that Juke, and traded it in for a used Murano. My loan balance and payment dropped, a bit, but the Murano ended up being so unreliable that it was costing me more to keep it repaired than it was honestly worth. I ended up getting an Elantra, and was probably $10,000 underwater when I left the lot. I was still making about $35,000 and had a nearly $500 payment by the time that was all said and done. Three weeks after I got the car, I lost my job. I landed a job within a few weeks.

I did end up getting better jobs but that auto loan was an albatross around my neck for about four years. I finally got the negative equity cleaned up last year, sold it private party, bought an older Escape, then paid that off.

I should never been approved for the original car loan. I was fortunate to be able to keep the car.
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Old 04-24-2018, 12:59 PM
 
3,716 posts, read 1,666,317 times
Reputation: 5076
Quote:
Originally Posted by Serious Conversation View Post
If you want anything "nice," it's getting more and more expensive.

Do I think there is a bubble? Absolutely. I bought my first new car out of college in 2011. I had driven I don't know how many cars, and settled on one, a Nissan Juke. Payment was like $350. I was making about $35,000 a year then.

I ended up hating that Juke, and traded it in for a used Murano. My loan balance and payment dropped, a bit, but the Murano ended up being so unreliable that it was costing me more to keep it repaired than it was honestly worth. I ended up getting an Elantra, and was probably $10,000 underwater when I left the lot. I was still making about $35,000 and had a nearly $500 payment by the time that was all said and done. Three weeks after I got the car, I lost my job. I landed a job within a few weeks.

I did end up getting better jobs but that auto loan was an albatross around my neck for about four years. I finally got the negative equity cleaned up last year, sold it private party, bought an older Escape, then paid that off.

I should never been approved for the original car loan. I was fortunate to be able to keep the car.
Get a 3 - 4 year old certified Honda or Toyota, 35,000 miles or so. Low payment, high reliability, good gas mileage.

Forget about Nissans, Korean junk and German crap. There's no need.
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Old 04-24-2018, 07:14 PM
Status: "Always a Proud American" (set 5 days ago)
 
Location: Lee County, NC
764 posts, read 241,060 times
Reputation: 956
Quote:
Originally Posted by NewJerseyForever View Post
When completing the application the finance guy asked where she worked. I told him she worked for me.. my company. At that moment, I made up a title and a salary. He put it down and she got the loan. No checking... nothing.
You realize that's a pretty serious crime, right?
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Old 04-24-2018, 10:42 PM
 
608 posts, read 280,904 times
Reputation: 1932
Quote:
Originally Posted by somebodyfromnc View Post
You realize that's a pretty serious crime, right?
In a typical auto dealership, this was enough to make the finance guy jealous.
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Old 04-25-2018, 10:13 AM
 
2,767 posts, read 1,494,078 times
Reputation: 2172
Quote:
Originally Posted by Serious Conversation View Post
If you want anything "nice," it's getting more and more expensive.

Do I think there is a bubble? Absolutely. I bought my first new car out of college in 2011. I had driven I don't know how many cars, and settled on one, a Nissan Juke. Payment was like $350. I was making about $35,000 a year then.

I ended up hating that Juke, and traded it in for a used Murano. My loan balance and payment dropped, a bit, but the Murano ended up being so unreliable that it was costing me more to keep it repaired than it was honestly worth. I ended up getting an Elantra, and was probably $10,000 underwater when I left the lot. I was still making about $35,000 and had a nearly $500 payment by the time that was all said and done. Three weeks after I got the car, I lost my job. I landed a job within a few weeks.

I did end up getting better jobs but that auto loan was an albatross around my neck for about four years. I finally got the negative equity cleaned up last year, sold it private party, bought an older Escape, then paid that off.

I should never been approved for the original car loan. I was fortunate to be able to keep the car.
What you are describing has nothing to do with a 'bubble', but simply making somewhat bad choices.
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Old 04-26-2018, 01:50 PM
 
Location: Tennessee
20,947 posts, read 15,267,317 times
Reputation: 23722
Quote:
Originally Posted by damba View Post
What you are describing has nothing to do with a 'bubble', but simply making somewhat bad choices.
When enough people in that situation get auto loans, and especially if there is a deterioration in the larger economy, it will absolutely have the impact of a bubble bursting.
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Old 04-27-2018, 01:42 AM
 
2,621 posts, read 2,023,746 times
Reputation: 4761
Quote:
Originally Posted by GeoffD View Post
No, it's never a total write off. Worst case, it's towed to the auto auction.

The true bottom feeders are the buy here-pay here lots. They buy the auction cars nobody else wants, clean them up, and sell them at an enormous mark-up to people with a trashed credit rating. They put an ignition disabler and GPS tracker on the car. You miss a payment? The car is disabled. You still don't pay? The tow truck is dispatched. You're getting 18% interest on a $5,000 car you bought at auction for $2,000. Who cares if 1/3 of them get towed back to be resold? There are plenty more poor people lined up to buy the car.
Buy here, pay here aren't in the business of selling cars.
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Old 04-27-2018, 07:34 AM
 
2,767 posts, read 1,494,078 times
Reputation: 2172
Quote:
Originally Posted by Serious Conversation View Post
When enough people in that situation get auto loans, and especially if there is a deterioration in the larger economy, it will absolutely have the impact of a bubble bursting.
More gloom and doom predictions, parroting bad late night AM radio talk show nonsense.
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Old 04-27-2018, 09:48 PM
 
Location: Tucson, AZ
1,548 posts, read 1,868,898 times
Reputation: 3875
The current economical situation is stable and probably will be until 2019. Auto loan bubble? Well for the bubble to pop and to have an impact there has to be something at stake. With auto loans there is literally nothing at stake. You take a vehicle that is worthless, charge someone a bunch of money for it with high interest and if they default nothing happens. The bank just charges it off and sells it to a collection agency for pennies on the dollar. The car goes to auction then the cycle will repeat. A lender will get its interest payments when the vehicle is sold again. Credit card debt and Auto loans are similar to each other but both are are different from mortgages. Mortgage defaults have much more impact to an economy because homes/mortgages are supposed to be semi-permanents fixtures in an individuals life. Cars... get trade in every 2 or 3 years and have very little value and absolutely no chance to increase in value like homes.

Student loan debt is a whole other animal. I don't believe that bubble can pop, because if you default the lender can't simply charge it off, the debt is owned by the government. It's akin to not paying your taxes. They will get their money.

Long story short: even if the bubble pops the fallout will be minimal.
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Old 04-28-2018, 03:55 AM
 
6,058 posts, read 2,492,570 times
Reputation: 3876
Quote:
Originally Posted by skeddy View Post
Don't see forgiving student loans in our future. US Govt reduces SS payments by 15% if you owe student loan money you didn't pay back, it 's happening to a 66 year old friend
What happens as these people start to die off with MASSIVE balances still on the books ... that debt has to be discharged ... obviously. So the bubble wont pop for a very long time, but when it does, man its going to be bad.
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