Auto Loan Crisis is affecting small Banks

[@EndoExcision]

Help me understand. You’re telling me the bankers overstretched themselves to give bad loans to people who couldn’t afford cars, and I’m supposed to feel… what?

[@dickensider6049]

Because when banks go down they take the whole economy and country with them…do you not recall 2008?? Whether that’s right or wrong is irrelevant, it’s just the facts.

[@RapiBurrito]

Exactly, if you make bad decisions you should go bankrupt.

[@Nothinf-k2v]

Didn’t they do the same thing in 2008 but with homes?

[@Nothinf-k2v]

@ unfortunately

[@benchoflemons398]

@@Dfgbuiiyyyybbwhy would a banker go to jail for writing a bad loan? Would the consumer go to jail for signing a bad loan?

[@wendellmontgomery4172]

Very informative, Lucky. You always deliver great work !

[@LuckyLopez777]

Thanks again!

[@jdub264]

Bigger credit unions are gobbling up smaller ones here in NE Florida. Not just happening with banks.

[@bena9221]

Best auto news network

[@LuckyLopez777]

100%

[@jdaddy2317]

Wells Fargo forgave the last $4k of my auto loan and sent me the title a few months before it was due to be paid in full. I called to ask why and they said it was because they were exiting the direct auto loan business. They said they were only going to do indirect auto loans through dealers going forward. I was happy to save the money but it was very odd. I had never heard of banks doing that.

[@fishhuntadventure]

…balance sheet

[@leos3003]

It's gov regulations. If you want to exit a loosing business before it caves in on you, you are required to do it by a certain time and as you can see $4K to a large bank is not even lunch money.

[@wespotter6985]

Too much bad debt will sink any bank. Lending. Money to people who buy Dodge chargers.And challengers was a bad business model. These dead beats are bottom of the barrel.

[@fishhuntadventure]

There are no small banks- they are all fed reserve charters, and fed reserve is a private bank. It’s all a sham. Buying new cars at interest is stupid anyways.

[@FrankAllanWright]

commercial-property landlords/brokers never lower the rent and cry why there are no potential-tenants available; lower rent 8% below what the computer tells you (rental software or website) and put power/HVAC/Internet/etc. you will have 100% tenant-occupancy guaranteed......😁😁😁*allot of the new commercial buildings have no power (wired through out)/phone/internet or HVAC and they want the new rental tenant to pay 100k-250k to add it to the building before moving in so it can be used for business otherwise it is a big storage room (useless)....🤣🤣🤣🤣🤣

[@jayc4715]

Nah

[@boedayious4993]

Many landlords do not - will not lower rents because these rent values affect the value of the building / unit. They do not want to DEVALUE building price

[@CaptainCaveman1170]

​@@boedayious4993So let them go into BK due to no tenants...lose/lose if you bought too high.

[@gregorymalchuk272]

Everyone using the software should have their properties seized for price fixing and lien sold.

[@lot2196]

Exactly. They will crush unsold vehicles before seriously slashing prices.

[@PassportBrosBusinessClass]

I recommend that stock investors building their portfolios buy Banks that pay Dividends and CREDIT CARDS. Don't buy small bank stock. Only the big boys. They know how to treat your money. Their risk assessment teams are larger than most small banks all on their own.

[@LuckyLopez777]

$$$$

[@richyrich7288]

Lucky - I live in Vegas and have noticed all the cars without license plates... what's up with that! I assume people not paying on their car.

[@tuy60]

Have Chase bank account that started as a Washington Mutual Bank account. Changed after they were taken over during the S&L crisis. Things go in cycles.

[@operationretribution1263]

Sounds like Huntington Bank, based out of Columbus. They went heavy into commercial real estate, and everyone knows how much of those properties are setting empty.

[@kiLLinEmSoFTly]

I worked at a small Community Bank from 08-10. We got absolutely slaughtered by Delinquent SBA Loans. Loan Loss Provisions/Reserves got out of control. FDIC walked in on a Friday afternoon and shut it down and put it into receivership. It's not just huge mortgage loans that can leave financial institutions in crisis. New President taking office in 40 + Days...2025 could be a wild ride.

[@cpcreit]

I honestly think the old model of many things will go thru some drastic changes, don't be on the wrong side of history....

[@saleens330]

Some of the banks and credit unions was like the movie Yes Man. They said yes to way too many ppl that would never pay it back….

[@StefanMarquardt-u1y]

Savings Bank of Danbury changed their name to the Founder's name, George Ives. The bank is 175 years old and is in great shape. They are expanding to New York , Mass and Rhode Island. They need a more common name instead of a long name where most people in other states don't know where Danbury CT is. It is a smart move.

[@MrJuanete12]

Inflation is always a monetary phenomenon... less loans in the system (debt = currency), the less inflation in the system... this isn't only about cars....

[@fishhuntadventure]

That’s myopic and underinformed. The banks love inflation when their new loans produce triple the income than low-inflation loans brought in. It’s a charade - and too many people are happy to give away their income to pay loans for stuff that’s beyond their income bracket.

[@johnanderson9735]

I have started looking at banks and how they do business as a form of gambling in the financial sector in terms of loans. Some will just refuse to loan if your credit score is not a certain number, some, sub prime, take a bigger risk taking on those with lower than great credit scores, in some cases the borrower knows they won’t be making the payments as you have pointed out before!

[@luckymanindeed]

Lucky, the problem is not the economy when talking about the auto industry. The problem is the cars are too damn expensive (ridiculously so during the pandemic) and thus many people bought way above what they could realistically afford. I’m not saying the economy is as good as it could be, but it is not awful either and it continues on the right path as we move into his transition from one party to the other. I hope you’re right that things continue to progress but only time will tell in that regard. However, when it comes to cars, the auto makers need to start making good, reasonably priced transportation, not the blinged out statements of needless excess they’ve been peddling of late. Most people need transportation; they do not need an overpriced status symbol.

[@gregorymalchuk272]

Government regulations are half of what makes cars expensive. The other part is the rising cost of ownership because manufacturers are trying to subsidize first costs by building unreliability and parts sales into their junk cars.

[@lot2196]

There are enough high wage earners to keep them afloat at these prices. The manufacturers will adjust by laying off, closing factories and dealerships, and moving offshore. Less vehicles at outrageous prices is the new business model.

[@pentoo988]

But they want an overpriced status symbol and will go into massive debt to get it. Manufacturers know that people are stupid and jacked prices up farther than inflation and EV development costs warranted. Banks have been gone along with it, now they pay the price.

[@vladimus9749]

The job market in tech is the worst it's been since the great recession, if not worse. The economy is only strong if you already have money and assets.

[@Vintage-Vespa-Miami]

I’m trying to buy a Land Cruiser 1958 with no acessories ( I mean nothing even rubber mats) I want to pay CASH. Guest what dealers play me around to avoid give me final price .. then tell me the price is not that if I pay in full and pop up with extras fees. I thought will be much easier to pay cash. I finally gonna end buying for q private owner in a year I will never buy again or lease a car from a dealer

[@wespotter6985]

@Vintage-Vespa-Miami just email 20 dealers, get your final $$, may have to travel for best price.

[@Vintage-Vespa-Miami]

yes I can go and apply for a 8% interest like everybody pay, and then pay for a couple of months and pay off that’s an option too ( but I have the cash in hand, why pay someone else’s for lend me the money I have )

[@Vintage-Vespa-Miami]

@ need to check the payoff terms, if it’s after third payment then …. yes is an option

[@scottchamberlain5594]

Savings Bank of Danbury, a growing chain of banks in Western CT just became Ives Bank. Reason given? Now that we are no longer a Danbury centered institution, a new name makes sense. My opinion? Ives will go the route of the rest of our CT based banks, and get gobbled up by a bigger regional, as Peoples/United just got consumed by M&T.

[@JFEnterprize]

Wonder how newtown saving bank or whatever will fair? 😮😢 people’s United bank became M&T within last 5 years.

[@LuckyLopez777]

thanks for sharing

[@markokrasinski8033]

Work from home did in commercial, 150% LTV on autos, high housing mortgages. Oooops!

[@bradtrades]

The proverbial canary in the coal mine

[@fredhenry9660]

No surprise banks & credit union are not immune to buyouts & merges. Just like other companies. Sad when it happens in smaller communities. But it is what it is. Scale & efficiencies matter. Same as any other US companies. Sad.

[@jcsc2490]

actually is because the Basel III regulation that began last June. With that Bank of America is having problems with the Capital ratio. That's the main reason small bank are merging with larger banks. In april 2020 FOMC remove the minimum reserve to support the Repo bond market. Now the International regulator want to set a new standard for capital vs standing liabilities for all Banks.

[@adotdior]

NYCB to Flagstar, & started noticing Bethpage Federal Credit Union popping up.

[@winstonsmith6204]

Launch Bank in Brevard county is merging with Community Credit Union. Just found this out

[@rickmcsheridan4949]

They made bad financial decisions, so let them fail no sympathy. Also, if there had been financial sanity at these banks, these crazy car prices would never have happened. Also, all the people who followed the hurd and bought cars over sticker let them feel the pain too.

[@Tsaki1425]

The problem is all the people who just had bank accounts are also hurt. The problem is our government system that protects the bank from failure and does nothing for the poor/illegal/immoral decisions the bankers make.

[@jeromeandre4915]

Another interesting perspective thanks @lucky

[@robertallan4489]

And, since the Fed has stopped cutting interest rates expecting Trump's policies to be inflationary the REPO crisis will continue and freeze sales in the consumer car industry.

[@sbennettyt]

Already blaming Trump. LMAO Inflation is here to stay because the government spending and deficits are so astronomical the interest on the debt is more than we spend on the military and it's growing exponentially. The debt cannot be paid and so the only option is to allow inflation to eat it away. Inflation is only going to get worse and nothing can stop it. If they raise interest they cannot afford to pay the debt. If they don't raise interest inflation goes parabolic. It's a no win situation. Blame the big spenders in both parties.

[@vladimus9749]

Why would they lower interest rates if they expect his policies to be inflationary? Or are you saying they're trying to screw him on purpose?

[@Steve-Richter]

When loan is foreclosed on bank gets down payment + all monthly payments + current value of vehicle. How does bank lose money?

[@jefferywylie4456]

The vehicle is worth less than what was owed on it. 20% upside down. Repos are normally beat up, no maintenance was done and don’t bring much (if anything) at auction.

[@oleradiodudea.m.4735]

Banks are sort of like grocery stores working on very small margins.

[@LuckyLopez777]

Very true!

[@zdenekcanada5408]

@@LuckyLopez777yes .. and every one bank employe making +100k a year .. except cleaners😂

[@WTF-sh4is]

Banks are going bankrupt. Things are FINALLY getting good!! Bring these prices down!

[@redrocklead]

Lucky how will 20% tariffs on all imported vehicles bring down prices and rates. Love to see your math on that.

[@mikechopek2682]

Had to resubscribe again...🤔

[@WildDisease72]

JPM carries all of my auto loans. One of biggest banks

[@simonbrunet5605]

Its ok that big bank are tighter with money how do you think they got there at the first place. They had better customers and the gov to back them up. Realy sad time.

[@the305hauler]

Booyah 👊🏽 😁 👍🏽 🇺🇸

[@skepticalmechanic]

Greedy business.. now they want to be bailed out… disgusting

[@georgemac-o6f]

Is Canvas Credit Union being affected by this?

[@leopapio683]

As much as i want to blame the banks people who didnt take advantage of these historical low rates are idiots. refinanced my home for 2% Purchased cars 2% Actually had one for 1.75% My biggest regret is not accepting a fixed Heloc loan that was offered to me $300k @ 4% I could've literally invested that money and made back more than the 4%!

[@Xp200dr-gj8lz]

No lessons learned from 2008 That goes for the public and banks. Humans smh

[@redrocklead]

What about banks that loaned businesses money for Russian investments. Research 737's aeroflot stole.

[@williemccaskey7370]

Eastern bank gave me $120k

[@BillGates_Alex]

Any car mechanic tutorials?

[@NSXavier997]

So basically small banks get a margin call 😂

[@fiily1]

Greed through and through. Sorry, but not sorry. I save my money, I invest, I pinch pennies, I don't go on lavish vacations, I pay my bills. I don't feel bad for anyone who allowed themselves to get sucked into this situation, greed and ignorance karma is finally winning again.

[@john.johnb_online1438]

Thanks

[@user-zo6xg8bx4l]

People who are BAD at what they do (making loans) go out of business.

[@whitejodeci8926]

Lucky, do you offer any purchase assistance services? I'm looking for a white 720s. Dealers either have a shit spec or want 220 for a 2018 with 20k mjles.

[@PassportBrosBusinessClass]

Take a look at the movie on HBO: TOO BIG TO FAIL Having large banks buy small banks is like a shell game. The consumer has no idea which banks are weak and which are strong so they won’t immediately RUN on the bank and withdraw their money. When these small banks take on subprime loans and end up in default, this is the tidiest way to sweep the dirt under the rug. Unfortunately the dirt is still there. Waiting…

[@pinkyandnick]

But we are in a "good" economy

[@LuckyLopez777]

i know right lol

[@EndoExcision]

Help me understand how banks are going to “open up” with a new president when they’re all going under because they were loaning 140-150% LTV in CRE and cars? Does the new president suddenly discover a pile of capital on the balance sheet?

[@gabsmotors5428]

Hey what's up brother Your channel might be shadow banned. Your views don't match your subs.. look into it

[@PositiveVibes310]

[@cazu2479]

Reaganomics is still at work. We need a new and better economic system

[@ggfinger1]

The new system- Don't be an idiot with your money. You're responsible for yourself, and if you want the government to fix it for you, you will always be broke.

[@pentoo988]

Reaganomics is long gone. Both our gov. and voters are hooked on debt and spending beyond our income and we have a front row seat to watch the implosion of society. And it doesn’t matter what party you support or who is in power, everyone is addited to the same spending drug. So easy to stop… just can’t.

[@PositiveVibes310]

👏👏👏

[@rubyvolt]

bigs get bigger...fascism grows. They get the "good" assets and the PEOPLE get the shaft. As usual.

[@arthurbilenker2622]

Lend money to people who have the ability to pay back the loan. During the bank crisis in Iceland the only bank to do well was one run by women. Their “secret “, lend money to people they knew and keep the loans in house. This leads to very careful lending.

[@PositiveVibes310]

🏎🏎🏎

[@roamma20]

Post something positive

[@XennialGuy]

More banks will positively fail.

[@LuckyLopez777]

you didnt see my SEMA builds

[@raymondreiff8170]

Lucky is doing a Public Service because Your Mainstream Media won't, And hasn't in Years.

[@chrisr4318]

It’s hard to keep listening after you say “now that the election is over I think” - you are not an economist - stay out of politics. I watch you for car industry insights and you really struggle to toe the line. As soon as Trump takes over, it’ll be the best economy ever and nothing else will have changed.