Automotive bubble....has it burst?

thecj3man said:
I got offered 90 month financing on a used Subaru last night. I thought he was joking, but he was dead serious. I was amazed when he told me the average payment and term that they see is $900 a month and 84 months. Not like it was a high end place, it’s just a dang Subaru dealer.
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This was a salesman right? And you believed him?
That would be >$75k paid out.
Average?
Yeah... right.
 
i was mildly interested in replacing my boat this fall. I found the one i wanted and talked to the guy they would 100% finance me the boat.... for 20 years i think payment was going to be under 800 a month. i told him hell no. I got pissed off when the guy wouldnt tell me the out the door price for the boat. Hell i never could get the sticker price. all he wanted me to do was tell him what i was willing to pay a month and he would see if he could "make it work".
 
shelby27604 said:
Interesting article, surprised musk gets the headline as he is barely a single quote at the very end.

Why are people slipping out of a 20/21 and into a 22/23 vehicle?
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The article states some "insider" predicts a wave of repos in 23.
Color me shocked.
The .gov handed out money, paid people to stay at home and caused massive inflation with their policies.
Some folks went out and bought random crap on terms with that gubment cash and now, believe it or not became dependent on that cash. Crazy idea right? When that cash ran out (finally) they couldn't afford those payments with the higher cost of everything else due to inflation. Then they started living off their credit cards.
Now their CC are maxed out with zero available cash or credit
That brings us to present day
 
Jody Treadway said:
Color me shocked.
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With age comes wisdom; “We know a thing or two because we've seen a thing or two,”
Which usually is accompanied by a daily 🙄 or 🤦‍♂️ watching others not "get it"

Unfortunately, when you try and share wisdom you're often treated with hostility because all you are doing is trying to "poo poo on muh dreams" and butthurt ensues
 
CasterTroy said:
With age comes wisdom; “We know a thing or two because we've seen a thing or two,”
Which usually is accompanied by a daily 🙄 or 🤦‍♂️ watching others not "get it"

Unfortunately, when you try and share wisdom you're often treated with hostility because all you are doing is trying to "poo poo on muh dreams" and butthurt ensues
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"I deserve _____________"
"It's not fair I don't have _________'''"
 
"Edmunds data shows that 34% of financed new car purchases had an average loan term of 73+ months in October 2022, compared to 27% in October 2017. "

On first pass this blew me away. 1 in 3 people with 8 year financing.
But then.... 15 years ago that was still > 1 in 4.
So while it's concerning.... its not really a massive jump. Which still baffles me.
 
RatLabGuy said:
"Edmunds data shows that 34% of financed new car purchases had an average loan term of 73+ months in October 2022, compared to 27% in October 2017. "

On first pass this blew me away. 1 in 3 people with 8 year financing.
But then.... 15 years ago that was still > 1 in 4.
So while it's concerning.... its not really a massive jump. Which still baffles me.
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2017 was 15 years ago? In 2017 I was part of that statistic, but it was because interest was stupid low. I financed my 2015 GMC for 7 years and paid it off early.
 
LBarr2002 said:
2017 was 15 years ago? In 2017 I was part of that statistic, but it was because interest was stupid low. I financed my 2015 GMC for 7 years and paid it off early.
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ok I just realized that was terrible math.
2017 was only five years ago.... lol
 
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I just hopped in here to check as I'm going to look at trading my 2022 Ram Rebel tomorrow evening for a nice used 2017 Ram Bighorn with too many miles.

At least once a month, since I bought it, I've considered selling it.

Because once a month, I pay $840 and think about how I could be investing that money instead of pissing it away on a super fancy truck that I REALLY don't need.

And after doing some quick and nasty math, if I keep paying the same amount, I could likely pay off the 2017 in less than 3 years.

Dave Ramsey is right, buying new vehicles is for fools or millionaires.

<- Fool.

But to be fair, I was a fool in a truck with a full length sunroof. ;)

UTfball68 said:
no wonder Covid revealed 75% of Americans couldn’t afford a $4000 emergency.
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Shoot, it wouldn't surprise me if 75% of American's couldn't afford a $1,000 emergency.
 
Atla said:
I just hopped in here to check as I'm going to look at trading my 2022 Ram Rebel tomorrow evening for a nice used 2017 Ram Bighorn with too many miles.

At least once a month, since I bought it, I've considered selling it.

Because once a month, I pay $840 and think about how I could be investing that money instead of pissing it away on a super fancy truck that I REALLY don't need.

And after doing some quick and nasty math, if I keep paying the same amount, I could likely pay off the 2017 in less than 3 years.

Dave Ramsey is right, buying new vehicles is for fools or millionaires.

<- Fool.

But to be fair, I was a fool in a truck with a full length sunroof. ;)


Shoot, it wouldn't surprise me if 75% of American's couldn't afford a $1,000 emergency.
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I vote for @Hacksawking Bronco in your driveway. You'll be money ahead. And it'll be perfect for when everything goes sideways



:sniper:
:bronco:
 
Jody Treadway said:
I'm about to pull the trigger on ordering a 23 Super Duty with a Gawdzilla.
I can sell and/or trade my 22 with a diesel for what I paid for it even with 30k miles. There's such a shortage of diesel SDs on the lot, dealers are paying stupid money for used ones
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:ghostnut:
 
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