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Old 02-03-2020, 07:35 AM
gg
 
Location: Pittsburgh
18,758 posts, read 19,050,538 times
Reputation: 11940

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Fake news.
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Old 02-03-2020, 08:24 AM
 
Location: Upstate
6,034 posts, read 6,857,213 times
Reputation: 4507
I have a friend that works at a "buy here/pay here" lot. Business has been down for the last two years due to potential customers now have the ability to get regular loans due to better employment opportunities for them.

As for the customers they do have, most of them are dead beats. He says the owners just keep selling cars to these folks even though they have had previous repossessions of vehicles.
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Old 02-03-2020, 09:15 AM
 
7,047 posts, read 5,245,959 times
Reputation: 15338
Consumer debt costs are near a bottom low. Consumer debt has increased a bit but that makes sense because borrowing costs are low and more affordable.
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Old 02-03-2020, 10:47 AM
 
2,353 posts, read 1,366,828 times
Reputation: 2992
I think most Americans don't have enough savings for emergencies and retirement. While the economy is decent, most are paying their loans. However, the situation is likely to change when the next recession happens.

https://www.cbsnews.com/news/70-amer...g-financially/
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Old 02-03-2020, 12:25 PM
 
Location: In a vehicle.
5,593 posts, read 3,579,964 times
Reputation: 9313
Quote:
Originally Posted by ChessieMom View Post
An EIGHT YEAR car loan??? That makes no sense. ( of course a 6 or 7 year car loan makes no sense to me either.). I have not heard of an 8 year car loan. At least not yet. And as far as the article, America can certainly afford cars…the problem is that there are too many idiots that want to buy things that they canNOT afford.
I was out shopping for a van and the dealer said "We can do a 97 month loan also"... My jaw about hit the floor. I have done 5 years or less.....

In the final quarter of 2012, the average term of a new car note stretched out to 65 months, the longest ever, according to Experian Information Solutions Inc. Experian said that 17% of all new car loans in the past quarter were between 73 and 84 months and there were even a few as long as 97 months. Four years ago, only 11% of loans fell into this category.

https://jalopnik.com/the-97-month-ca...g-tr-472876323 (This was in 2013)
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Old 02-03-2020, 02:22 PM
 
Location: Western MA
1,914 posts, read 1,231,576 times
Reputation: 5360
Maybe the OP can't pay his/her mortgage and car loan and just assumes everyone is in the same boat.
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Old 02-03-2020, 02:50 PM
 
1,003 posts, read 599,185 times
Reputation: 2928
Quote:
Originally Posted by Bubble99 View Post
Most Americans can't pay their mortgage or car loan these days and it seems they back to allowing subprime car loans these days and subprime mortgage for their home.


How is this legal? I thought subprime car loans and subprime mortgage are not legal?


What is going on that most Americans can't pay their mortgage or car loan these days? I know the Auto industry is not doing well.

That Americans are that in debt they cannot pay the mortgage and car loan these day or just don't make enough money at their job.

--
Nope. Not true at all. In 2019 94% of Americans are currently up to date on their car payments. Leaving 6% of those with car loans are more then 3 months delinquent. That certainly is not "most".

People that are in that position likely made terrible choices about their transportation needs. They are buying a car that is too expensive for themselves. It has little to do with how much money they make. More money will equal more expensive poor choices and wants. We all work and live next to "those people". Live in the city in the south but buy the giant $45k SUV with 4 wheel drive. They are fools. Yes there are exceptions, but more often then not its because of a complete lack of discipline.

Last edited by 2Loud; 02-03-2020 at 03:00 PM..
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Old 02-03-2020, 03:12 PM
 
5,244 posts, read 1,393,466 times
Reputation: 6156
Quote:
Originally Posted by Bubble99 View Post
Most Americans can't pay their mortgage or car loan these days and it seems they back to allowing subprime car loans these days and subprime mortgage for their home.


How is this legal? I thought subprime car loans and subprime mortgage are not legal?


What is going on that most Americans can't pay their mortgage or car loan these days? I know the Auto industry is not doing well.

That Americans are that in debt they cannot pay the mortgage and car loan these day or just don't make enough money at their job.

--
I think it's just human behavior. It's hard to put your life on hold for 7 years because you have a bad credit score. Any time you try to apply for something after the damage is done, you're in subprime territory. If your particular lender decides to lend at A- rates if all your bad marks are 2+ years old, then it's something worth considering.

But make sure you learn from past mistakes: don't ratchet up a high DTI, preferably ever, but ESPECIALLY if you're low on savings. Rebuilding your financial world and credit will often mean that there are some things you must go without.

If you are long term unemployed 6+ months, do NOT take payday loans, do NOT cash out your home equity, do NOT cash out your retirement savings if they are ERISA-qualified. File BK if you will not be receiving any kind of income in the foreseeable future. There are protections for you to keep a car and home while going through this. Chapter 7 has tightened up quite a bit since the means test has been introduced but if your credit is already ruined, and you don't make enough to stay current on ANY payment plan offered by the lender, what else are you going to do?
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Old 02-03-2020, 03:14 PM
 
5,244 posts, read 1,393,466 times
Reputation: 6156
Quote:
Originally Posted by 2Loud View Post
Nope. Not true at all. In 2019 94% of Americans are currently up to date on their car payments. Leaving 6% of those with car loans are more then 3 months delinquent. That certainly is not "most".

People that are in that position likely made terrible choices about their transportation needs. They are buying a car that is too expensive for themselves. It has little to do with how much money they make. More money will equal more expensive poor choices and wants. We all work and live next to "those people". Live in the city in the south but buy the giant $45k SUV with 4 wheel drive. They are fools. Yes there are exceptions, but more often then not its because of a complete lack of discipline.
I'm reading this thinking "well $45k doesn't buy much SUV..." maybe in the early 2000's this bought something impressive. Nowadays it's a mid-sized SUV (bloated CUV) with a 4-cylinder and FWD.

I just don't bother with new anymore.
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Old 02-03-2020, 03:28 PM
 
Location: annandale, va & slidell, la
8,709 posts, read 3,548,333 times
Reputation: 7851
Quote:
Originally Posted by Bubble99 View Post
Most Americans can't pay their mortgage or car loan these days and it seems they back to allowing subprime car loans these days and subprime mortgage for their home.


How is this legal? I thought subprime car loans and subprime mortgage are not legal?


What is going on that most Americans can't pay their mortgage or car loan these days? I know the Auto industry is not doing well.

That Americans are that in debt they cannot pay the mortgage and car loan these day or just don't make enough money at their job.

--
Utter nonsense. The repetition in your post brings to mind Adam Schitt's droning on the House floor.
But keep trying.
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