"cash for clunkers" created a huge shortage in the used market. Since the used market is so crap, Americans have been going crazy for car debt. Repos are skyrocketing rn. Well Fargo particularly is cleaning out their delinquents in anticipation of a big contraction in the market.

I work in finance & have a few friends in the auto loan industry. ****s on fire.

You'd be shocked how many people FINANCE THEIR DOWNPAYMENT

Most people have like a 600$ car payment atleast. My daily is a $500 1991 lexus.

I think this is a weird cross section in time where americans are used to buying new cars since generally cars have been cheap (lol not anymore) & given the recent interest rate environment people have been able to afford a lot more car than usual. The auto makers have taken advantage of this obviously. New car prices are INSANITY. Now that interest rates are up again, we are starting to see the true market.

Personally, i think either car loans or the property insurance sectors will cause the next broad-based recession. 2008-esq if you are an idiot who buys new cars.

When you start seeing Wells fargo selling brand new work trucks on the repo lot you know something is horribly wrong.

I feel like in a few decades every purchase will have to be financed. even chit like a grocery bill and rent perhaps...

Why would you ever put money down on a car? I've always driven away without paying anything.

Have a 2018 paid off. Driving it until it disintegrates ded fkin SRs

same

great move

man even if it disintegrates keep it & fix it lol

Before all that chit it was easy to find a running chitbox for 100 bucks, and within no time it jumped to 500. Now it's hard to find anything below 1K.

I can't even imagine having a car payment.

Knew a guy clearing $300k as a finance manager at dealership. Like wtf?

Now people have their phones financed as part of their cell service.... It doesn't end.

The latest one is the app (can't remember its name) where you finance your takeout order.

Everyone is fuked.

Yeah, I won't do debt anymore. Bought a car a couple months ago, and financed it in order to negotiate the price lower then paid it off in full after 2 months.

One of the "goals" of cash for clunkers was to get old cars that have worse emissions off the road..... So somehow it is environmentally better to force manufacturers to design, build, and ship a completely new car (sometimes over the ocean) than it is for someone to just buy their neighbors old beater LMAO.

Logic, not even once.

had a 5 year loan but paid it off in 3.

feels like a weight has been lifted off my shoulders.

most people don't have $40k+ laying around for a new car.with the way things are going, pretty soon a snickers bar will cost $100, and people will be financing it.

you will own nothing and you will be happy.

boomer stole everything.

I don't know man.... The fact a car CAN last 20 years+ would imply that there IS still an impact from the program. Cash for clunkers basically reset the entire lineage of the used market to the beginning.

This is exactly what I did lawl

They poured liquid glass into the engines and ran them till they seized and destroyed everything so they're even useless in the junkyards srs

not shocked. amazon offered me to finance a shirt with $1.75 biweekly payments. shirt was 8 dollars and change

Not entirely blaming cash for clunkers. Its clear that the main culprit is loose underwriting on those loans.

Cash for clunkers has hurt the used market though. 680k is still a lot of cars, 3 billion dollars.

Even if 14 years ago.

I see your point in scale though. Def not as big as i thought. Point stands, these loans are on fire.

Fo realz? I always thought it worked the opposite way; you offer to pay in cash and they give you a discount. Less hassle for them to file the financing paperwork.

Dividing the country was the worst thing he did

No, the dealership often makes more money off the financing than they do the actual sale.