Another canary dies in the Biden economy. Things are about to get a lot worse. (FBI, borders)
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"Young consumers who have managed to purchase cars aren’t having an easy time paying off their loans, according to data from credit reporting agency TransUnion. Gen Z and millennial borrowers are now dealing with higher auto loan delinquency rates than before the pandemic."
"The good times of easy credit seem to be coming to a close as subprime borrowers are increasingly falling behind on payments. That scary trend is happening on debts ranging from credit cars to vehicle loans. Car loan defaults hit 8.8 percent in February, a 15-year high, according to Equifax."
which is it? All-time, or 15 years?
I mean, it's as important as getting "Record oil profits!11!!!" correct to "in the last 10 years" as it is calling them a "record"
The article basically concludes people aren't trading in cars at the rates they were before. So that's the end of the world, having to drive a car for a few more years?
"“Loans are staying on the books longer because consumers just aren’t trading in their existing vehicles for new ones,” he says. “The longer a loan stays on, the more likely it’s going to go delinquent.”
"Young consumers who have managed to purchase cars aren’t having an easy time paying off their loans, according to data from credit reporting agency TransUnion. Gen Z and millennial borrowers are now dealing with higher auto loan delinquency rates than before the pandemic."
this first article is mind-numbingly horrible, both in presentation of fact and narrative.
Quote:
Gen Z borrowers had an overall delinquency rate of 2.21% in the first quarter of 2022, with millennials close behind at 2.14%—up from 1.75% and 1.66% respectively....While all generations show a marked increase from pre-pandemic rates, only Gen Z’s and millennials’ rates went up by at least a full percentage point
first off, a delinquency rate < 3% does not mean a significant portion of them are having a hard time. But, that's headline and narrative.
The crap-facts part is look at those numbers:
Went from 1.75% to 2.21% and from 1.66% to 2.14%. Which of those 2 went up by a full percentage point?
oh that's right - it's an article written by a 25 yr old who graduated with a Journalism degree from UPenn. God help us all if he financed that education.
A lot of the issues with cars are young people buying the wrong thing. They couldn't possibly be satisfied with a new Toyota Corolla that costs in the low $20k range, is reliable, is not expensive to maintain, and gets good gas mileage. They have to buy something with prestige, like an Audi, or a BMW, and such., Or, they spend a ton of money on a pickup that costs $50k or more. They then trade in the vehicle after 3 years, roll the upside down amount into the new loan, and start over.
I've always bought a car I can afford, not one that the marketing people say I should buy. There are lots of smaller, less expensive cars out there. Kia, Hyundai, Nissan, etc. Buy one, pay it off, and drive it until it falls apart, all while saving the equivalent of a car payment after it's paid off.
Sometimes, people need to learn a hard lesson.
yet another critical personal finance strategy that we don't teach them in HS or college.
Seriously? Where have you been for the past 5 years? It's a social media platform that allows you to create your own content and build a fan base. Many people treated it like YouTube in the beginning and made cool channels for sports, music, movies, etc. And then every woman that made an account discovered they could upload photos of them half naked or completely naked, and also add videos, and that OnlyFans didn't have an issue with it. So it grew into an alternative to porn sites for most subscribers. Many women (even porn stars) use it because they keep more of the profits. They can charge subscription fees to their followers, offer exclusive content like videos of them pleasuring themselves, or getting (rhymes with shucked), and even have a section where you can donate for them to buy sexy outfits and other tools to promote their content.
The only thing sadder than how many women are jumping on this to make it as their job or career, is the amount of women who foam at the mouths when people scoff at them for their weak justifications of why this should be considered an actual career.
The article basically concludes people aren't trading in cars at the rates they were before. So that's the end of the world, having to drive a car for a few more years?
"“Loans are staying on the books longer because consumers just aren’t trading in their existing vehicles for new ones,” he says. “The longer a loan stays on, the more likely it’s going to go delinquent.”
that's actually kind of stupid as a reason. If I buy a "new car" and choose to finance it for say 5 years ... I sure hope 10 years ago those people weren't trading in after year 3. Although that indeed is a pretty good way for the car finance guys to tie folks up/down into a car payment longer and longer every time. But let's say they were, and "now" they're keeping that car longer ... that could just as easily be the lack of supply and consequent cost of new cars for the last 18+ months.
Now, the sub-prime borrowers who are getting out-of-warranty cars, buying a payment without regard to loan length, and then having repairs to make? Yes, that is who always has and always will default at higher rates.
This is not surprising, more likely inevitable, and will come for all age groups. When the median price of a car is $46,000 and Americans started taking out 7-year loans on vehicles, that should have been a warning sign that transportation was getting too expensive. This was an issue many pointed out here back in 2016 and 2017 when these loans became commonplace.
Those extremely long loan cycles are also hurting the used car market. We went directly from Cash for Clunkers to 7-8 year loans ensuring the used car market would remain bare.
The US is the second largest global manufacturer, despite having 1.1 billion fewer people than China.
The US does not have the human or natural resources to reclaim the top spot. China has been losing market share to Vietnam, Bangladesh and India for clothing and leather goods because labor is cheaper. Imagine Indonesia will follow. No way the world is going to pay a premium for Made in the US, when the same thing can be imported from Asia for less.
Nearly every commercial product ( apparel, leather goods, jewelry, home goods, furniture, etc) sold by Trump Org was made anywhere but the USA. This includes the crap Don Jr currently sells on his web page. Why is this?
Trump and Pence made a huge deal out of Carrier back in 2017 when they intended to close a plant and transfer manufacturing some some products to Mexico. Once the hoopla died down, Carrier moved as planned. The typical Carrier plant worker was low skilled and made $25+/ hr, plus benefits and pension. Similar work could be performed in Mexico for $5-5/ hr, moderate benefits and no pension.
And yet it was Trump who helped bring those manufacturing jobs back, giving the industry the biggest growth since 2004 - 2005. Obama told us it would take a magic wand to do that.
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