AUTO LOAN CRISIS! Ally Financial Sounds The Alarm!
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- Опубликовано: 17 окт 2023
- REPOs, Delinquencies SOARING! People AREN'T PAYING
In this video we talk about the surge in auto loan delinquencies. We also discuss Ally Financial earnings.
My name is Brandon and I am a used car dealer. I created Car Questions Answered to share the ins and outs of the used car market from my perspective. I share with you updates on car prices, what's happening at the dealer auctions, and what it's like being a dealer. My goal is to share information to help you make the best decisions while buying a car to save you money. I do not want car dealers taking advantage of you.
Thanks for watching and please feel free to leave any comments you may have in the section below!
And make sure you don't forget to LIKE, SHARE AND SUBSCRIBE FOR MORE!!
*None of this is meant to be construed as financial advice, it's for entertainment purposes only.
#UsedCarMarket #CarPrices #carmarket #usedcarprices 
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The banks should have known better …….. and not lend all that $$$$$ when they knew/know that cars are over priced. Greedy car companies and greedy dealers
We're all born brave, trusting and, greedy most of us remain greedy.
How do you expect them to scam every fool out of money?
The banks don't care because the banks are too big to fail. While the consumer gets thier credit reckt by loans the banks knew damn well they were not going to be able to pay after the "new normal " went back to the old normal. Now these banks will get bailed out. you get screwed. just the way it was designed.
True. There should be congressional investigations in all of this, but here we are. Lobbying and bailouts.
@@lot2196 the congress and their crazy spending and debt is what caused all of this nonsense - please think for yourselves, fellow Americans
Have you seen truck prices? Alot are over $100,000. They are all nuts.
Okay dont buy a souped up fully loaded yee yee truck and youll be ight.
These new car dealers have basically destroyed their customer base for at least the next decade because they got greedy.
@@anotheruser5654 as someone who found a good used car for cash during the cough cough, who has no debt, you have to admit the reality it was an insane time and no one really knew what was next.
And all the stimulus and propaganda was telling people to do exactly what they did.
They will never stay in business like that.
@@P2B_JCthen it sounds like they need to lower their overhead. They don’t want to so they gouge their customers. Dealers are legalized crime syndicates
How is it greedy dealers when customers were over bidding each other for the vehicles? Free market means the true value of anything is whatever someone is willing to pay for it.
@@jamesschleicher8677 because they were setting up there Customer so they got 1 time sales instead of repeated sales. They are crying now because they destroyed a Customer base that is no longer capable of buying from them, maybe never again. And this includes my own family members, and now they are in deep crap, they thought it would never end. Now they can't sell anything because the prior customer is both way under water on their current car (up to 80% I hear, and their credit is damaged by being sold vehicles they clearly couldn't afford.
People need to learn and believe in the power of zero debt. Unfortunately the influence of social media and predatory lending is a honey trap.
Credit Unions... I love mine.
Client of mine took 2 Million dollars loan in 2012 put 1 million of his and bought an ocean view house, now the house is worth 10 million. There is good debt and bad debt…
@@trackeagle6013good point but this is a video about cars, very rarely is a car loan ever considered “good debt”
@@nolanf4248Thank you
Predatory lending is a euphemism for stupid people, and it needs to stop being used to shift blame from irresponsible ass hats.
Wife works at a bank. People that had really good income at loan origination and only bought a modest car are in repo territory as well. It's not just the typical deadbeats that don't understand money (or care). She also said that they are paying customers up to $5K to bring the car to them in good condition instead of waiting for recovery. Something big is about to go down.
You're very right, my wife had a 70% apr 😅 from CarMax and we went to our Audi dealer and traded that peice in for 9k we got 18 points on our cpo q5 at 24k after trade in. Not as best of a rate as 2016 rates but good for today. If the responsibile minded adult attacks their current situation right. They might be able to actually come out ahead instead of the lon they have. Litteraly everyone's that desperate including the Audi dealership.
5k is better than your credit going down for nothing. May I ask what do you say to get the loan ppl to give you 5k?
@@therealmotherhoodyou tell em you won't park it in the hood
@@christianfritz3373 thanks.I stay near the beach so I am not near the hood.
@@therealmotherhood google your lenders corp office, it's usually that parking lot you can surrender the vehicle is the words you wanna Google. Surrender vehicle from auto loan
Banks giving out loans for far above the value of a car is called "Predatory Lending". Thats what it was called during the housing bubble.
Nobody forces you to sign anything. What an idiotic take.
@@zachjones2346 Yes, It's always someone else's fault. No one takes responsibility for their actions any more.
Predatory lending is a phrase invented by the left, ever pushing Marxism and the state as a solution to all of your problems. Please think for yourselves, fellow Americans!
The only predators in the housing collapse of 2008 was the federal government that insisted the banks give loans to the people who could never qualify for the them. You can't fix stupid, but you can sure as hell put its owner in the street when they lose their house. People were speculating that the $400,000 house they bought today was going to be worth $800,000 in a couple a years, had no intention of maintaining the loan for the contracted life of the loan, and got caught when the housing market went to hell and they found themselves underwater in equity with no chance to recover. The Frank-Dodds Housing act guaranteed the 2008 collapse.
@dbatch5677 please forgive student loans for being overeducated.
I think another massive problem is the average new car costs more than what average Americans make in a year. That's a massive issue
This is the case with every other market right now, it's called inflation.
This is what's so annoying about comments blaming consumers for the mess We blame EVERYTHING on the poor and powerless. The car companies intentionally stopped selling base model vehicles in the US, and dealers throw all these add ons, so people literally have no other options than submit to these inflated prices. New cars are nearly impossible to work on, and not everyone has time, tool, space, resources, or ability to just buy an older car, and keep it working. Add that to our non-existent public transportation, people are just stuck with no other choice if they want to function in society. Im driving my old vehicles until they can no longer be repaired. My heart goes out to anyone needing another vehicle (new or used) in this economy.
That's an easy problem to solve... Don't buy them.
Ironically, people keep buying new cars, proving to auto makes that they were right to raise prices.
The choice goes both ways, but the ultimate choice comes down to consumers.
@@ImJustKindaHereFacts
@@cardboard87this.
In the Middle East, there are spartan-spec land Cruisers and Nissan Patrols (better Armadas) that start around $65k but last forever.
The same crash in the mortgage industry in 2007 was caused by pretty much the same reason. Banks lending to people who really shouldn't have qualified, house prices jacked up , then the defaults started....it's about to get nasty, we're just seeing the tip of the iceberg.
Bout time!
The housing crisis also had 1 major difference- banks were allowed to bundle & sell "mortgage backed securities". Looks like the loan originators have to carry the paper on these cars. Not a big secondary market for these loans until they go to collections.
This channel suffers from a massive fundamental flaw that is so fatal it eviscerates all of your arguments that have been made on this channel. That flaw centers around the misunderstanding and subsequent believe that these cars are overvalued. Of course in a vacuum this makes sense because the human brain thinks linear and it is quite easy to compare car prices in pre-Covid times to the current time, and it doesn’t take a rocket scientist to make the deduction that Hay everything is super high and that’s because price are now overvalued. The flaw that all of this possesses, though is that it does not take into account that the car value has gone absolutely nowhere. All of these cars are valued exactly where they should be considering, the absolute evisceration of the dollar value faster than has possibly ever happened in American history. Everything that you go to buy in the current country is essentially 60% higher. Everything that you go to buy whether it is gas houses rent cars commodities stock prices are 60% higher. You cannot take a disjointed view of a market such as auto vehicles, and then claim that they are overpriced, because they are simply not what they are is repriced to reflect the debasement of the currency that the asset is denominated in. If the only or one of the only markets that went up in terms of cough or price was the car market, then it would make sense to claim that these cars are overvalued, but the truth is that all assets and all prices in nearly every single commodity that exist has gone up. Stated another way the value of the currency in which all assets and prices are denominated has rapidly fallen. Therefore, these cars are not magically going to be priced at a lower rate in any foreseeable future and therefore you aren’t going to see bank take as big of losses as you think because people will come in and buy the cars that are being repoed. Sure, increased delinquencies due to larger macro economic issues that cause smaller purchasing power will cause a slight reduction in price due to the normal principles of supply and demand but it is not going to be the crash of 2008 Wear housing completely from all other markets vis-à-vis a massive inflated bubble. That is the major difference between this market and the housing market.
@ryanhughes1101 Ryan you are exactly right, the value of the dollar has gone down in an alarming rate over the past decade due to wreckless monetary policy.
The 2008 financial crisis was caused by government controlled financial groups fannie may and freddy mac misreporting the market. These two government run groups gave massive amounts of money to democrat candidates and not reporting it while misrepresenting quarterly financials. They started the predatory lending trend to make more money.
I just got done talking with a friend who drives a bus for a major city. He told me one of his coworkers (also a bus driver) recently bought a high end car. Her monthly payment is over $900. Just plain crazy.
$900 is"not bad" these days for a high end car, I've heard of a consistent norm of $1000+ on "high end" cars!!! I PERSONALLY would NOT do that to myself or my family!!! I'll continue to ride my paid for 09, do the proper maintenance, and keep it moving in Jesus name....🙏🏿 🙏🏿 🙌🏿 🙌🏿
@@bigjoewebb still outta my price range 😳
@@Thisoldhiker I guess I just not comfortable with that kind of payment. But what the heck, I remember car loans were 3 years.🙄
@@jimjohnston7688 same here, I remember $600 seemed a lot, but me, naaaaa I couldn't do it in these times with them prices, I'm good!!!! 😂
I'm a repossession agent out of Pittsburgh pa. I can tell you I have been in the repo industry for the past ten years and never have been so busy.
Everyone shoulda seen this coming. It sucks, but dealers knew and wanted short term profits, banks allowed dealers to jack prices by fronting loans, and people are too dumb to know what they CANT afford
In short bankers quit doing their jobs. Again. Here we go again 2008.
@@HiPlains1Yup, property & cars this time. Give it another 10&15 years and they'll do it again.
I guess I did see it coming. Slow moving train , but very obvious
@HiPlains1 crazy that "professional" economists are so short sighted and repeat the same errors in the name of a buck. I'm glad everything I own is paid
This has really nothing to do with people buying things they can't afford. They simply have no options. I need a new truck. I raise cattle, pull a trailer etc. I also have a job in town. My bank won't lend on a used truck with 200k miles on it that I can afford. But I can go out and buy a brand new one in an hour that's 3 times the $$. This is a problem created by banks and car manufacturers/dealers. Don't blame the guy who wants to buy used. Its the bank that won't lend to him for a used car/truck. So he does the best he can and tries get the best deal possible at the dealership.
Take me for example. I can afford 400/month comfortably for a used 1 ton. No bank will lend on a truck that will have that kind of payment. The dealers can find me a "good deal" at $850. I can't afford it, but I need a truck to haul cows. What should I do? BTW, I have $8k to put down, but what I get MUST be reliable. I can't break down while hauling livestock.
Questions all lenders must answer! Can he pay? (Income stream versus debt). Will he pay? (Past payment history). If he doesn’t pay can I make him pay? (Is collateral adequate to secure the loan). This was ignored by greedy lending institutions and will now pay the price!
When the customer signs the dotted line. Its a commitment to see it through
Of course it's a commitment but banks have a fiduciary responsibility to their investors to not loan money out to people who have questionable means to repay. Additionally, loaning far more than the vehicle is going to be worth if it has to be repo'd/wholesaled is bad business.
Credit Unions do all that. Yah regular banks don't really care..
@@kclefthanded427Yeah, look at 2008. You can’t afford a home rental? Want to buy one instead? Banks are greedy AF… everyone wants to make their money and get out.
50 grand for a truck that’s crazy
Nuts!
How much is a reasonable price of a truck before then pandemic?
50??!! Yeah the average is 60 something bro …. It’s bad bad
F250 135k
F250 135k
Also, when consumers are underwater on their loans; they're typically not well taken care of either; so even when you repo; you get a depilated POS vehicle that has no maintenance done to it what-so ever.
You’re absolutely right. And that $60-$80 oil change is the first to stop.
And that’s the most important maintenance you can do.
Well its the banks own fault for loaning beyond what the cars were actually worth 1-2 years ago and now its coming back to bite them. Why didn't experienced lenders at the banks say, "Hey wait a minute! Why are we lending to the people who can barely, by the skin of their teeth, afford the payments right now?" Its their fault for lowering the lending standards so low 1-2 years ago. Everyone seems like they forget the tough times, like the 2008 financial crisis. Its only been 15 years ago. Its not like there arn't lenders at the banks who wern't there back then and knew what kind of trouble the low standards from like 2003-2007 got them into.
Greed. They can't help themselves. This is America and our culture worships money so anything justifies quick profits. Same story time and time again and this won't be the last time.
Greed.
They don't care. They know the gov't will bail them out and not let them fail.
It would be interesting to see a breakdown of what types of vehicles are being repo'd. Chargers, Challengers, Mustangs and Camaro likely lead the list. Young folks with more hopes than income I suspect.
I‘d say a bit of everything Family Vans, the average standard Grocery getter, of course all the Muscle cars, Vans Pickup trucks ( Ute‘s ) hits most of the people unexpected most of the times.
You are right...Not many Camry's like mine I bet. I bought my 2017 Camry in 2019 as it came off someone's 3 year lease.. It now has 28k and is like new. Yes 28k not 128k
I baby it and have even changed the tranny fluid and cooling fluid and put quality brake pads in...just so it knows I love it....
You wasted money on tranny fluid and coolant in under 50k miles. there is ZERO benefit to changing fluid early. Brake pads...same thing. if you dont get 50k miles out of brake pads youre doing it wrong.@@SunofYork
I know why you really listed them cars. we all know why. lmao. 😂
The way they drive these repos is damning for any prospective used car buyer. These things are floored from every red light. I wouldn't go near these abused , thrashed cars
It's important for consumers is to keep the incomes coming by not losing your job and live by your needs. Layoffs are inevitable one way or other unfortunately
was laid off in November smh. This market is tough
I'm looking at a 2nd job. My first job pays nice(single childless man) but need to stay above water & I like to travel
im right there with you! Wishing you the best bro@@JB-tz8fu
You mean people live above there needs
Maybe banks should only finance the MSRP on the monroney and no more, if there are any extra dealer markups and add ons the buyer should pay for them out of pocket.
No,the bank doesn't care. They'll run to the government if they are about to go out of business
@@tearsbeers And give themselves a big bonus.
That's normally what they do.
That's what happened back in 2008. A bunch of banks got bailed out and a few executives from some of the bailed out banks got caught taking lavish trips right after they went to Capitol hill begging to get bailed out.
Good points and a bit shocking to hear about the increase in car loans now in collections. Ally tends to tolerate higher risk loans, but now they are tightening standards because of losses. The car loan industry is reshaping along with the vehicle market. I'm glad Brandon keeps us in the know! Thank you.
When a truck's Tailgate costs $5,000 nowadays, what else do ya'll expect
ill build one from wood myself 😂
@@fortheloveofnoise9298wood you? Wood you really?
The only ones profiting from all of this, is the dealership that originally sold the car, and the repo companies. If these banks are paying more money to repo drivers to get these cars, why don't they just offer a cash offer to the buyer to just bring the car to them? Win-Win.
2008 all over again. Banks decided to make the loans. They could have been more conservative
All these companies think quarter to quarter, let them drown.
@@weswest8666 We can't because someone in the gov will bail them out again...
@@AgentKenshin:(
Seriously, People, you need to be taking home AT LEAST $300k per year in order to actually afford a $100k vehicle, despite what a bank or a loan officer may have to say.
By that rate you’d need 150k for a 50k vehicle. Probably almost no one makes that much in my county. Yet we can’t all drive 5k clunkers there aren’t enough of them 😂
Not if you are not buried in other debt.
@@rotart12arx3well if you're a normal functioning adult with real bills most.cant afford. We're not talking about trust fund babies or people living with their parents.
@@drmvp21 I do not have a trust fund, only one parent left, do not have any credit card debt, own 2 homes outright which are rented. Did this on a middle-class income and taking advantage of when real estate was during the Obama years were values were flat. I have a 2022 Lincoln Corsair AWD that I pay $241 a month for 48 months at 2.9 percent. Took advantage of rising used car values and traded a 2020 Edge for a 2022 Maverick then traded to the Lincoln. All trade values were more than I paid and all were bought under invoice. If I can do it anyone with some common sense can do it.
Thanks for keeping us informed, watching your videos are all truth the news outlets won’t share.
Regarding the recovery of the cars in default. Yes, not enough drivers to get the ones that can be gotten with ease. Now, get the cars that are being hidden by people who have no intention of giving them up easy.
Lots of moonlighters, dashers, Uber vehicles gonna get repo'd and people are going to fall further behind
Love this video i appreciate whenever you speak with actual data and first hand knowledge. That is whst brings me here. Other channels like to speculate and speak hearsay
And now home foreclosures are up 34% from last year. Home & vehicle repo's, 2024 is going to be a disaster. CC debt hit 1 Trillion highest in history; CC delinquencies are at a 30 year high; student loans restarting for 25 million Americans, banks & credit unions tightening loan requirements, high loan rates and all this now, just before the Holidays!! Cash is king in '24.
Credit card delinquencies are half of what they were in 2009 and 2010 when it was almost 14 percent. Home foreclosures are just about 10 percent of 2010 when 1.6 million happened. People going through foreclosure also have more equity than 13 years ago. There not going to be a giant collapse in the economy.
@@rotart12arx3sure Brandon
@@rotart12arx3that's what you think buddy!
Brandon, would love to have you interview a repo driver!
Hello Mr. & Mrs. Brandon: Thank you for your expert opinion and advice on this never ending REPO CENERIO. Mrs. Brandon you did an excellent job with the charts & graphics thereby assisting your hubby & the channel. YOU GUYS MAKE A GREAT TEAM !!!! BRANDON another terrific video sir, & now it's ice cube time for the Single Barrel Burbon 😀. God Bless to all, TMP from N.J.
A repo guy showed me an app they use! They get hits for repos just like Uber! That's how much work is out there
I've had my car for 10 years, she's still in good shape, I'll drive her until she's 30 years old if I can.
I got a letter from the dealer I bought it from, and they offered me 15k! That's what I paid for it.
But, they can keep it, I enjoy no car payments.
Banks should only lend what the car is worth and have the consumer pay all dealer markups out of their pockets. This may force car prices down?
Ally defrauded a lot of people out of homes in the 2008 era. Then they widened their focus. Learn about fractional banking and the insurance those banks carry. Do not feel sorry for the money lenders. They have "adjusted" the system so they won't end up hurting long.
It's going to get worse for all car dealerships. Thank you Brandon for updating us.
Let them repos crash the market!!! I am waiting with cash and ready to swoop in for a great deal. Art of the deal, baby!!! Nothing gets me more excited than getting a deal that benefits me!!!
Another great video, Let's go Brandon!
Biden 24
37% approval rate as of today. good luck.
@heazilla nah they will replace the old man with Newsom and he won't even know it. Lol
I wouldn't buy anything that has been repo'd because you know it more than likely has not been properly maintained
you will need silver or gold for that cause nobody will want cash !
Banks with a lot of car loans in their portfolios are going to start bundling them up and selling them as income product to anyone that will buy them, and they will contain as many sub-prime loans as they can pack in. Somebody will have to take the loss, but the banks will try to be the ones not left holding the bag and they will set up the same kinds of sub-prime instruments that brought on the housing crisis and recession that we saw in 2008.
And people will buy them at a risk premium.
Your updates are great BUT have the wife leave up the charts for about 20 to thirty seconds more. They’re great charts but they kind of flash by before I can absorb them. You can keep talking while the charts continue to be shown. Enjoy your work. Best of luck to you and your family.
Thanks for a great video today. The charts and graphs were a big help. Your wife is a trooper for assisting you to make your videos even more informative and enjoyable. Carry On Sir and Madam!
I love your channel! Keep up the good work!
I know of a CU that proceeds to file a deficiency lawsuit to get a judgment and then garnish wages and levies bank accounts. The only way to avoid the collection efforts is to file BK.
Always best to pay cash for a car, and stay away from the debt trap. When in doubt pay a few thousand for an older Camry and save up for something else later when you have the cash. (Unless extreme circumstances)
David....... very good advice. Absolutely nothing wrong with an older Camry and then build up your savings towards a newer car, if that's what is needed (Retired GM Dealership Parts Department Counterman 45 years last summer of '21 Los Angeles and Orange Counties California 😎)
@@timmatthes9137 Thanks, and if one needs to haul larger items at times.... instead of going into debt for a new truck, just put a tow hitch on that older Camry and get yourself a used trailer. A Camry with a trailer should be fine for what most people would move around. I have a friend who did the whole Camry with a trailer for years.
The problem with buying used cars is the fact that most of the cars haven't been well maintained. That's why my philosophy during the past 50 years has been to buy new and keep the car at least 15 years.
@@josephkelleher8820 that is mostly true about used cars, but the big advantage is, Most repairs will run a little cheaper than a new car payment and that is for years. Take a few hundred every other month and repair a used car. Transportation is mostly what is needed. Looking good is nice but reality is most people are paying way too much to look nice
Always buy what you can afford. Not what you want. I have leased for decades because I can afford it@@timmatthes9137
Screw these damn banks. They knew they were giving out loans on over priced cars. Some were giving out loans for up to 40% more then what the car was even worth. Let them lose money. And the government better not help them. They need to learn.
Thanks for the thorough explanation and charting. Your wife and you did a great job.
The effed up part is if the banks go under, guess who is gonna bail them out. All of us.
That depressing and unfortunately, unsurprising
Well, we can hope for a Lehman Brothers moment. Not every big bank is going to get bailed out. Sometimes you just have to put down a rabid animal to let the others know you mean business.
@theopiumden4841 The way that banks are interconnected, one bank going down causes contagion that brings down other banks.
This looks so similar to the home market situation in 2008. It’s beyond me how banks could be this irresponsible.
Because we, the taxpayers, will bail them out as usual.
Car market crash possible?
Banks are run by democrats. Not irresponsible in their eyes but means to an end. As in the past, they only want to destroy my country.
Greed. Full stop. They saw dollar signs. No sympathy from me.
Exactly! Wait till It hits housing.
To have a nice car with no payment is a huge flocks nowadays but yet everyone is trying to act like they're rich
Another great informational and learning experience! Thanks!
Knew this was coming. No one can afford these outrageous prices and banks are seeing repos skyrocket. Something has got to give
I can vouch for how ridiculous these prices are. My car bit the dust about a month and I started looking around. I don’t have any credit score yet, should be showing up next month, and I got approved for 2 loans. The first was a Buick for 2,500 down and 500 a month for 75 months. The second was a used 2014 Honda Civic for 4,500 down and 450 a month for 48 months. I really feel bad for the people who really need a car and get stuck with these payments or worse.
450 a month for 48 months= 21600 thats 25k for an almost 10 year old car?? wtf
@@bwmanarificsmh!
You can get a brand new Nissan for less than $18,000, and you'd get a better rate, because it's new.
Yep I'm lucky to be able to work on cars and have always just bought used cars and kept them on the road, never wanted a credit card so I don't have great credit. recently wanted to get a newer car to enjoy modern amenities and have a daily driver that I shouldn't have to expect to work on. Looked at a car for 18,500 with a 4,000 down payment and was given a 21% interest rate offer for $500 something dollars for 48 months.... would love to have a new(er) car but I'm not a fool.
You guys give no muss no fuss concise facts and make it interesting thanks! Good on you.
Glad you liked it!
I am seeing your vids on other channels, obviously you are doing you are doing something right 🎉 Keep it up
Thank you so much! I've been seeing them pop up elsewhere too
its amazing how many buy here,pay here car lots have long term repeat customers who just continually repeat the same expensive process.NOT a good position to be in.
Wife has a great voice. Nice to hear her talk for a change.
Great content
Enjoying the show and the self deprecating humour
Very good video. That is it, banks are tightening to protect the house. Prices will go down and banks won’t write crazy checks to dealers anymore.
Yes, banks and dealers had a hand in this. But its the people who took these terrible deals and overpaid are the ones at fault. Nobody twisted their arm.
What if you actually need a vehicle? When prices are insane. Don't you know it's Americans' god-given right to have a new car ( sarcasm).
I live in the Chesterton In. area and noticed one car dealer storing his new trucks at a closed restaurant parking lot. I just passed another huge parking lot at another closed business absolutely packed full of new Mustang E cars, Expeditions and pickups.
They can wait out the strike for a year. They will declare bankruptcy before slashing prices.
That's pretty neat
They can't move the bigger & more high-end vehicles I've heard & see the same thing here in Florida.
I saw the same thing in Valpo
Gonna get worse… no one can afford these super over priced rides with high interest rates… food is killing most people on top of raised rents and homeowners property taxes moving up… food and shelter is #1.. not a 80,000 pickup
You're wife did a great job . She's very smart & has a great TV voice 😁
I don't know 😂😂😂 Im starting to see a spin off channel opportunity ❤ thank you the great information 👍
Hi Branden , years ago when i was working for a salvage dealer the repo cars came from the auction with a title that reads SALVAGE Repossession that means the cars value is 25 to 30 % less in value which means these banks take a huge hit and banks don`t like to loan on Salvage vehicles so if the banks are tightening up how will anyone get a loan and how will dealers like yourself deal with this mess ? could you include this in a next video, thanks .
Repossessed cars are not salvaged. They are sold as clear titled now.
I have a feeling this is going to be an epic mess with the strikes, the change to dealerships coming, the unaffordability, repos, EV nightmares (burning lithium batteries and self drive goofs) all this adds up to a compete massive increase in goofs.
Paying repo drivers extra money means time is a factor, and they expect the value of the cars to go down relatively soon.
Interesting observation. The Yen is in the toilet rn. The want to collect that greenback as much as possible.
Thank you for your videos.
Wonder how many UAW workers are now either delinquent or in default ..
A fool and their money are soon parted. Or at least their bank’s money!
The higher yield also means its risker higher chance of default but in the present they are more profitable.
All delinquencies going up. That's bad. Really appreciate the detailed deep dive into reading the numbers.
I'm using ally financial for my car loan company, my 2017 will be paid off in January, will be running my car until the "wheels fall off" if I've learned any lesson from this is that I'll never finance or lease a vehicle ever agian, it's way too much stress for me.
I don’t understand why buyers were prepared to pay obviously ridiculous prices. However, they knew when they took out the loans that the money would have to be repaid. Now what?!
Thanks again for the update
I'm a car hauler and I moved x 8 Chevy traverse units all the same model from a repo yard to an auction I got 1600 for the loads and it was only 20 miles to ADESA auctions , I think I might start contacting the banks directly and offering up to 10 units at a time to be moved from a dealers lot straight to the auction, and cut out the repo yard middle man
considering that the people who are getting repo'ed already paid maybe 20k, which is still a considerable amount paid out... i wonder what the numbers are on that.
With all this crash bro stuff you've been posting, I'm seeing no dealers lowering prices.
It’s a big game of chicken.
Yes, the lower-rate loans are rolling off the bank's books. But the bank's are also facing increased capital costs. The differential between the two remains about the same
Just waiting for the deals to pop up. I'm a moderator in a GTR Facebook group and I see so many going up for sale right now and prices are coming down again. Toy cars/boats/bikes are the first things to go when money gets short. This time next year will be a blood bath in the car/home market. If you have the cash you will do great!
Sounds like a good time to get into the repo business 🤔
Paid everything off during covid. House, cars, never used credit cards...writing was been on the wall all along. If you dont have the money in the first place what makes you think anything is more affordable to pay with additional interest?
If you need a car because the old one got totaled, and you don’t have the cash, what are you going to do?
@@EMichaelBall its called car insurance? it should not cost you anything.
@korg4273 Insurance rarely covers what it actually takes to replace the car. I know someone who got their Corolla hit. They offered to have it fixed, or $8,000 to total it. What _reliable_ car can you get these days for $8,000? And that assumes you don’t have liability only insurance. How much does full coverage cost? Food costs how much, now? Why is my paycheck stubbornly stable?
I got at least 15 rejection letters, before gm financial accepted me. It’s so crazy
What you want to do is compare the current monthly dq rate with that of the past during the 08 downturn. That will shed more light.
I praise God we started living biblically with our money. We have no debt, plenty of savings and the ability to help those who are in need when we can.
Kudos. Almost debt free on my end. The peace of mind is invaluable. Debt is slavery.
Ally financial is a sub-prime lender so these numbers while not great are probably something that Ally financial has already factored into their analysis.
Another great video, thanks.
She's very well spoken, good job.
System runs on debt. It didn't even take two years of above zero interest rates to completely break most people. Wake up! Find a different way to live!
Outside of Austin TX, gasoline $2.86 , Mission Viejo California, gasoline $6.09, groceries almost a third less in Austin TX. Gotta move outta California.
People could stop all the madness by simply not borrowing themselves into oblivion.
Sad isnt it? People just HAVE TO HAVE THAT CAR!
People spend too much time showing the Joneses that they're successful through debt until the repo man shows up. Spend half the time you do pretending into actually doing and those problems wouldn't exist
The amount of fancy new trucks on the road blows my mind right now. People who work in offices are driving $80k-$100k trucks. A truck used to be a basic vehicle that was used for work.
Sorry, that doesn't work in the modern day victim Olympics everyone is feverishly competing in. Most of them think communist dictatorship will bail them out.
@@jeremyweems4916 You ain't kidding, just looking around while driving and seeing all the temp tags (including the put of date ones) blows my mind. I've never seen so many at one time.
Like you said with there not being enough tow trucks for repo, that may be another reason they are trying so hard to work with customers because they know they can't get the car and don't want the customer to trash it knowing it will be repo'd in the future if the bank notifies them way before they can get a tow truck to get it
The bloopers at the end are fun.
The audio is all over the place
Interest rates high also 😮 18% on car loan
Similar score but got 5.5% through Carmax with big downpayment@@Leewilly440
Damn, had a sibling co sign as the main and I had a 630 and she had a 745. Best I got was 11.5%. And that was last week. I think you should’ve gotten a co signer or looked around before hand.
@@hectornevarez6926 pay extra on principle. If you double payments slash interest rate in half pay loan off half the time ???
To an extent, the banks did this to themselves. They loaned out at well above the market value of cars on a large scale. What do you expect when lending on collateral and the collateral is no good? "Back in the day", it was 20% down on the (true) value of the car or take a hike (at least at the prime lenders). Now it's a casino where one decides to lend above value, then the rest are afraid of "missing out" so they join the party!
Had two trucks a 2022 Nissan Frontier Pro4x and a 2011 Chevy Silverado 1500 5.3 paid cash for the chevy which is used for my landscaping company the Frontier with monthly payment and insurance was almost $900 a month and all it did was sit in my driveway wound up selling the Frontier and got out from underneath it and got some equity because of seeing videos like this for the last few months im glad i did no better time to own something and not pay monthly payments on something you probably will be backwards in in the next few months
Greed always precedes chaos
Markets got smashed today.
Ok, I am a data analyst by trade and I have some thoughts:
1. The Ally bank data is only showing a % increase. There is no way from this chart to know if that is catastrophic. Yes the trend is bad because it is showing charge-offs, but compared to national average? Or do they have a threshold concern? For example, when I am showing a trend that is concerning, there will be a ceiling or floor represented as a straight line perpendicular to the bars to indicate we are rising or sinking into dangerous territory. Or I'll have a 'compared to' trend line. Ie, I don't see how one could interpret this chart accurately as it isn't showing the whole story.
2. The WSJ second chart is a better graph. But notice the drop before the rise in auto loans the past 3 years. That is interesting to me as it is much lower than pre 2008. So it is an outlier and maybe we are getting back to a somewhat typical scenario. I don't know this industry, so not sure. It obviously is rising which causes concerns. But is it at 2007/08 levels? Not yet...
3. But as the third chart shows, banks are tightening up (as they should). Which means they are reacting to this increase (which is not what happened in 07/08). So a crisis may be prevented. I can speak anecdotally that the dealer I'm buying a new car through asked for proof of my ability to finance or submit and application, even to just put a deposit down. He said people are holding cars then can't get financing. This is a good sign.
4. That slide showing application increase vs approval rate, I agreed with your interpretation 100%.
5. Slide 5 showing 'retail auto volume and credit tier mix' is basically saying same thing as previous slide but in more detail. Again, agree with the interpretation.
It be great if you had a lender on your show to talk through these slides with Brandon. I'm not saying he's wrong, It'd just be good to have a person in the financial market weigh in on what the charts mean. Again, I'm a data analyst so I looked at this differently BUT, I'm also some random dude on the internet and know nothing about the behind the scenes at dealers. This channel has been interesting. But there is a lot of 'doom' messaging that I'm not 100% certain is warranted. Sorry, it annoys me when everyone is spelling doom. If there is no doom, we won't believe the next cry for concern.
Take a look at the number of late model pickups on the road. That's a lot of high monthly payments just waiting for a layoff.
It's the banks fault for lending huge amounts to people they knew wouldn't pay it back. They should be forced to take 100% loss and send the car to the crusher instead of auction
They don’t take hits, they pass them along. Explain student loan interest at 6% for all these years when (1) they got the money for next to nothing; (2) student loan debt isn’t dischargeable in bankruptcy so they’re getting that money regardless. Also explain the PPP at the beginning of the pandemic where big banks made sure the loans went to customers that owed them money.
What does this mean as a consumer? Will it mean I can buy a car down the road at a more fair price?
No
it means you have to drop the soap to even be considered for a loan
No wonder. Look what vehicles cost. New trucks won’t sell at these prices. Ur 100% right
Love your channel
Thanks!
No problems here in Colorado( land of the rich ) even the poor people are driving new teslas😮😮
I know I need to follow the people with all the new SUVs and pick-up’s so I can work where they work - lots of new vehicles in my part of Colorado and really no discounts