Repos are Flooding the Auction and Banks are REFUSING to Sell for this DUMB Reason!

[@jamesf4405]

No one wants to spend $60k on a new car. No one wants to spend $40k on a repo. Prices have gotten insane.

[@dmo848]

Not even 20k I'd pay. Ain't no way

[@eriknelson45]

Boo hoo for the lenders, but in reality they just turn their loses into higher rates, it's a modern cycle of loses all sides, don't borrow what you can't pay, e z p z

[@theyhateme8763]

most those cars were extreamly abused

[@paulbryan6716]

They are price gouging everybody.

[@theyhateme8763]

@@paulbryan6716 it's not gauging.. it's not a necessity.. it's not bottled water after a storm

[@FixtIt]

As a mechanic, I can tell you these new cars seem to have a lot more problems. We're doing more engines than we used to. We're doing more transmissions than we used to.

[@richceglinski7543]

Same here as a career mechanic the price of vehicles is so high spending 4-6 grand to replace an engine or transmission isn't a deal breaker to fix it anymore. Business is booming.

[@stevedee8158]

The people who lease them beat the crap out of them, don’t maintain. And know they will lose it. So another family gets a lease under false pretense.

[@alsetsolar3450]

The mechanics have been expected to become electricians, understand computers and now IT. The pay has stayed low and these very specific trades have never divided from the mechanic which has evolved into big parts changers to avoid shop liability to shovel warranty repairs to the manufacturer of the big part and put the cost of doing so on the customers who knows nothing

[@JohnDo-ntchaknow]

I used to work in data for Ford and the amount of issues they were seeing was insane. Having started with them prior to 2008 and leaving in 2021 it was like I had worked for two vastly different companies.

[@alvnphmn]

Gotta love that warranty time for engine and tranny replacements. 4 hours? lol

[@bannedtwice7767]

50k for a car that won't last past 100,000 miles. I cannot wait for these companies to go out of business.

[@hollymartin3291]

Exactly, me too … yet the govt likely will do bail outs

[@holmestim63]

Designed to fail

[@brentroscoe9922]

93 Chevy pick up 2012 Corolla no one to impress and no payments

[@andreinastase1604]

They won't. New generation buy the gizmos in the car not the miles they will drive. Their brain don't process long term information

[@robertf3340]

I feel the same way. Several dealers in my area that I’d like to see close their doors. Greed!

[@johnstickles6789]

I refuse to pay more for a vehicle than what I paid for my house. I'll drive my older car till the wheels fly off.

[@dixiecyrus8136]

@@johnstickles6789 yep! Got a 96 Jeep Grand Cherokee Laredo, almost 300,000 miles and a parts car for back up. She runs like a top. They can keep their junk.

[@jspin1103]

Yup, same here. And when the wheels falls off, I’ll bolt them back on and keep on truckin! 😁

[@squirrelsarepeopletoo6678]

@@jspin1103 And when the bolts break, duct tape JB Weld zip ties etc. 😆

[@shawgeasland2096]

Same here! It's insane to play more for a vehicle that is made of cheap parts with electrics that make it impossible to repair yourself than I did for my house. Just crazy. Can't find anything affordable and reliable any more.

[@rustybumperclassics6342]

@johnstickles6789 more and more people are thinking this way. Not going into deep debt for a junk car

[@jamescarley4207]

Banks are doing the same for foreclosed homes.. holding them letting them rot away then still asking for above market prices when a 300k home will need 150k in remodeling or repais!!

[@tomgibbens6261]

You are not correct. Just because your bank’s name is on your loan paperwork does not mean your bank owns the loan. The bank is merely servicing the loan. After the bank makes the loan, they sell the loan to someone (usually FNMA) who packages and sells the loan as a CMO (collateralized mortgage obligation). The loss on the loan will not be born by the bank but but the poor investors that bought the loan. If someone sends the keys back, the bank dumps it. Again, it’s not their loss. Same is true for auto and other consumer loans. CDO = Collateralized Debt Obligation.

[@vickijohnson9367]

@@jamescarley4207 Banks have derivatives (default insurance) on the back end of their portfolios.

[@vickijohnson9367]

@@tomgibbens6261The institutional finance investors have derivatives on the portfolios. Really rare not to have them in the boom bust 21st Century.

[@2nickles647]

You mean a 95k house being valued for 300k because some fool bought it and didn't like it and threw money at it and now they can't make payments? Now the bank wants 300k to try to recover their loss? 😅😅😅

[@Carnutzjoe]

@@tomgibbens6261I think they’re using the term ‘Bank’ as a generic term. In this case Bank is whatever, or whoever owns the vehicle.

[@dchawk81]

Every financially literate person saw this coming way back when it started.

[@Xenophon1]

2008 2.0

[@dchawk81]

@@Xenophon1 Exactly. Cars are just the beginning. I didn't grow enough financially to vulture the coming real estate crash. But I'm salivating about what I'll be able to get brand new for cash for myself here soon. I'm not going to mess around with auction junk.

[@MH_Bikes]

Cars/trucks are way over priced, and that will sort itself out. Houses will also come down, but at the expense of wall street, not main street.

[@analogueoverdigital929]

Wait until these same people who thought they could get a demon in a 96 month payment schedule go and try to pay rent.. or their mortgage if they actually do semi own something. 2008 all over again.

[@jayrobertson232]

@@dchawk81 what do you recommend?

[@MrTigurius]

I be damned if I would finance 50,000 dollars at 12% with a 30,000 dollar down payment to buy an average truck.

[@MarkStockman-b4j]

Japan has a thing where when a vehicle is X years old, you have to do this complex and expensive "safety inspection." Most people just replace the vehicle at that point (which is the point of the exercise.) So there are a ton of "Kei trucks" on the market - those handy little cab-forward trucks that will do everything a full sized pickup will do for half the gas, and even come in AWD. Aaaaaand the US Government is banning them here, because "they're not safe."

[@joeblow8837]

Most likely this is going on so they can put trackers in every car

[@tedroesch9133]

Back in the late seventies housing loans were +12%.

[@zeroch1ll150]

@@tedroesch9133 yea and that froze the housing market.

[@meatybtz]

@@tedroesch9133 what matters more than the interest rate is the house total cost vs annual income. It was very favorable then vs now where your average home is 4-7x annual income.

[@chinatownimportscom1434]

New cars have too many electronics in them and will be a nightmare to repair and maintain in the future. They are designed to fail.

[@coreyswaz5702]

@@chinatownimportscom1434 i will never buy a car 2010s or newer, specifically anything with a computer that tracks everything about the car, where you go, what you do, etc. its bad enough theirs cameras on every corner and they can and do track your phone and internet all day everyday “for our safety”, i dont need a car company telling the government what i do and when i do it!

[@michaeltrosenfeld]

@@chinatownimportscom1434 the average age of cars on the road in the US is highest it has ever been.

[@rsg1963]

The electronics will be fine for the most part, even a decade down the road. The engines and transmissions are the REAL issue with longevity.

[@jefflong7036]

@@chinatownimportscom1434 As my dad used to say, planned obsolescence.

[@AlanKelchner-c8f]

The electronics are why, when I can afford to get another car, I'll be looking for one built between 1960 and 1972. Tired of all the unnecessary bs they put in the vehicles today. Also, I prefer manual transmissions which are getting harder to come by.

[@joeblow8837]

Blackrock is the main investor in Copart. That should explain all the theif like behavior.

[@SERBIAZ]

Run by a Zionist named Fink

[@CynthiaWord-iq7in]

@@joeblow8837 no way--cars too? Is BlackRock Satan or something...you cannot buy. Sell. Trade. Inhabit. Consume. Grow. Eat...without them?

[@skipb525]

@@joeblow8837 Copart is absolutely a bunch of thieves.

[@5710fpilot]

@joeblow8837 vanguard actually.... it's sad. Look at who owns the dealer auctions.... it's only time before those go to PE too. Smfh

[@crossbow1203]

My father had a small lot and we stayed away from the repos at the auction. The truth of the matter is that they didn't have the money to retain the car, they damn sure didn't have the money to maintain the car!

[@timkis64]

i find it amazing how many people were willing to stick their heads in a financial noose for a severely overprived vehicle to begin with.

[@cutehumor]

@@timkis64 it just shows how many dumb people in this country can’t manage their money right

[@briandeschene8424]

@@timkis64 When it was happening, I thought that many of these people knew full well they were getting in over their head but did not concern themselves. Many of us worry about being responsible and doing the right thing. But lots of folks aren’t “wired” that way. If they can have a good time here and now, that’s all they care about. If they get a “bad name” or bad credit, whatever they don’t concern themselves about it.

[@FixtIt]

Stimulus ballers

[@JoeSchmo-u1d]

When I worked at Kia, people were paying $7000 or more OVER sticker for certain models. The monthly payments were $700+ a MONTH. Talk about ridiculous.

[@Audrey-k2h]

@timkis64 yes, it's difficult to find a good used car at a reasonable price

[@highonsmog]

Junk good cars and force people to buy new ones at full price, and used ones at high interest rates. Artificial scarcity should be a crime.

[@safeandeffectivelol]

How is it artificial? If the banks start lowering prices on repos, their entire loan book gets a haircut and they become insolvent.

[@tuvoca825]

@@highonsmog It is if we get someone in.there who would do that. But corruption is in the way

[@joedennehy386]

No bank or dealer compels you to borrow money to buy a car. I never buy new and pay cash for nice cars, like most people in New Zealand

[@willia3r]

@@safeandeffectivelol its artificial when these corporations screw up and asked for a loan from the Federal Government at zero interest rate to bail them out of their screw-up. Especially, when that _"loan"_ turns into buying shares in that company in the hopes that they actually conduct a successful turn-around. But dont and still go bankrupt anyways. And the taxpayer is on the hook for the bankruptcy in regards to paying off creditors. All the while the CEOs, COOs, CFOs, and other executives sell their shares and get off scott-free.

[@safeandeffectivelol]

@@willia3r That has nothing to do with the price of cars

[@leedstown]

2017 in the UK a new transit custom limited was £19k 2023 same van £50k Worlds gone mad

[@robertmitchell8630]

@@leedstown Yeah I here in USA Coming back home to me dear ole England

[@billdoodson4232]

@leedstown That £19K, should be £25,250 now according to measuringworth. Vans used to be cheap, my son is looking for a van for when he starts up as a self-employed electrician, hopefully early next year. I've told him to keep the estate car going for as long as possible, as vans are so stupidly priced.

[@robertmitchell8630]

@@billdoodson4232 I'll be back in UK in about two months Is he looking to hire an assistant??

[@leedstown]

@@billdoodson4232 I got a decent price on my van from trust ford main ford dealer at Barnsley

[@billdoodson4232]

@robertmitchell8630 Hopefully me. I'm retired, but need some extra money coming in.

[@megadawg342]

I work at a Buick Cadillac GMC dealership. When wealthy people don't have the money to buy new cars and trucks it's a red flag. When they don't need to buy a new vehicle for tax reasons that's another bright red flag.😮

[@genespell4340]

Maybe they aren't wealthy or never were.

[@ma055pro]

@@genespell4340 or they buy cars without loans and they now keep their money and wait until new cars prices really collapse

[@caseyddr]

Cadillac isn't a sign of wealth. The places based off of wealth are pulling their best numbers right now.

[@analogueoverdigital929]

Cadillac and GMC. Two brands I wouldn't be caught dead in. Both haven't made a decent vehicle in forever. 😂

[@MarkStockman-b4j]

LIES! The economy is better today than any time since amphibians first crawled out on land!

[@robertjohnson6601]

I worked at two car dealerships and know a few things about car sales. Sometimes the salesman can't come down on the price because the dealership had to give more value on a used car then it was worth. Then they were stuck and the dealership owners would not cut their loses by reducing the price. When a salesman can't come down it is often the managements fault. They expect the used car department to sell the overpriced cars and yell at them when they can't. I burnt out quickly and quit both times. I have one suggestion for people looking for just transportation. Often times, towing companies sell cars that they have towed in public auctions. People are stupidly proudful and refuse to pay the towing fees. So check out towing companies in your local area and find out when they are going to have public auctions. Sometimes they let you check out the cars ahead of time and decide what cars, tucks or vans you want to bid on. One last thing. Have the ignition switch and locks changed on them so the previous owner can't come up and drive the car away. Good Luck

[@joepyfer1696]

@@robertjohnson6601 good advice

[@RoseanneSeason7]

Fuck tow companies. Biggest racket out there. They towed my car that I had financed and owed on it. They sold it at auction not long after they towed it. The place I bought it from sued the tow company. Not sure how that turned out

[@mss350]

Mine was stolen, I spent time trying to find out if It was towed from the business and never found a location that said they had it. Owner of business said he didn't tow it either . So last result was told to call and tell police station was stolen cause themselves claim they didn't tow it either.

[@jaredbryant8297]

The towing companies charge wayyy unfair prices and don’t work with people to help strike a fair deal between getting a car out and them getting paid. Tow companies suck, and the charges they apply are almost government guaranteed depending on how you interpret the law. I’m nottttt a big fan of the business.

[@benfranklin3638]

My theory, they won’t drop the price. They are waiting/hoping for price controls and bailout programs like “cash for clunkers “ and the government will pay them to just destroy the cars to limit supply.

[@marcodarko6941]

I see that scenario playing out. Another attempt to push everyone into an e v.

[@grgygantz6760]

@@marcodarko6941 yes they’ve made it clear they want us to drive the electric vehicles, even though they have no range. They should tell you right away they don’t want you going anywhere. Except maybe down to the local grocery store, the fitness club and then back to your damn house.

[@marcodarko6941]

You are right about that.. though the control and range issues are a bit more nefarious and the agenda goes deeper than that. You mention the fitness club.. if you remember during the 2020 lockdown, the gyms were being shutdown and people were entry. They don't want anyone healthy and in shape, that would mean less customers for BIG p harm a. @@grgygantz6760

[@badkittynomilktonight3334]

​@@marcodarko6941 are you kidding? If people are balking at $60k why would they be buying an EV at $70k to $100k?

[@JoeGator23]

@@badkittynomilktonight3334 My guess is that these banks really are waiting to be bailed out. Same for the US Auto industry itself- using the "too big to fail" game to bilk taxpayers... again. The USA's middle-class is dead economically and barely surviving, much less car shopping- new or used. "It's a big club, and you ain't in it." - George Carlin

[@kevinpratt-ge5ye]

The banks should have never approved loans for overpriced cars and homes. Now, the chickens are coming home to roost. 😂😂😂

[@bladerunner5810]

It is confusing to me that banks will approve a loan on anything that depreciates in value by up to %40 the moment a customer buys it.

[@OkieSkies]

Watch if u havent, The big short. Except when it happens this time, it wont be just housing, it will be everything.

[@brianboe3774]

With the price of eggs they could turn that lot into a chicken coop

[@botmoderator3405]

Well the ponzi scheme has to continue somehow.

[@jeabo0adhd]

I bought a house 3 years ago and I'm paying it down ASAP for this very reason. Stability is paramount in these hard economic times.

[@TheBigdog868]

If they sell for cheaper, then the bank's portfolio has to be written down, hurting their numbers. It's far better to let these cars rot away than to sell for less, at least for them. BTW, they're doing the same thing with homes 🏡

[@theyhateme8763]

not how that works

[@lot2196]

Exactly.

[@lot2196]

Same with dealers who's lots are overflowing. They refuse to deal. If they cave just once the jig is up and everyone will want the same deal. They are willing to go out of business before giving the customer a deal.

[@jonsaircond8520]

Bingo also on as they sell it's a realized loss. In 2009 banks finally came to the realization they had to just cut bait and sell for what they would bring. I got lucky and got my current house then for 50% off of value back then. Hang in there they will dump them sooner or later

[@gszookeeper77]

Also, I would think there may be a depreciation the bank can take before selling at a loss. If that schedule is based on the age of the car or length of repossession, it could be a reason as well ( but I am not a banker...)

[@armadillotoe]

The banks will hold on to those cars until the Government bails them out.

[@ryam8962]

@@armadillotoe we can let them.

[@davefink2326]

@@armadillotoe you’re right, sadly.

[@fortheloveofnoise]

then we have to elect someone who will not bail them out

[@rustybumperclassics6342]

True. If we had a true free market, they would have never gotten into this mess with the bad loans.

[@viscountalpha]

@@armadillotoe a crash is inevitable.

[@jarreds3110]

Ex-bank upper middle manager here. You are a little off. It is greed but it's creative accounting. Right now they have X number of dollars in assists. If they sell them for less than that then they have a loss. Assists are better than losses on a financial report. Assets equal raising stock prices and big bonus checks. Loses equal dropping stock prices and no bonus check.

[@gm12551]

F the bonus check. Just be an honest person and show good correct financials but no one does that today 😅

[@nobody46820]

DEPRECIATING "assets"!

[@nunya3163]

Creative accounting, aka fraud.

[@rustybumperclassics6342]

So funny they see cars as assets. Every day, they lose money and value. This problem isn't going away. Eventually someone is taking the loss. Right now it's the consumer but the banks and dealers are next.

[@CT_Taylor]

@@nunya3163 its not fraud when they do it Dont get any ideas young man!

[@lot2196]

Once they learned stupid people would line up and almost fight each other to pay thousands over retail, they decided never to go back to the way it was.

[@DontCensorMuah]

Facts. My brother (29) im 30 wants a shelby500. He has no assets, lives with my mon and barely maintaining his paycheck for an entire week. People want to be in financial ruin

[@fortheloveofnoise]

​@DontCensorMuah i drive a 27 year old 5 speed manual Sentra and still can barely afford my bills....and I work full time, i only make 12 an hour....only a dolar more an hour than I made in 2017...im 29

[@DontCensorMuah]

@@fortheloveofnoise idk where youre located but spend 100 to 200 for a forklift license and try and compete in the warehouse sector. If you can drive a hour or so out i would. Potentially sleep in a car

[@edg8535]

I have wanted to trade in our oldest vehicle for over three years. We would not have had any problem in making the payment, but I refuse to pay the price they want. I will pay an independent mechanic to keep the older one running.

[@MarkStockman-b4j]

A ton of people are tracking down an older vehicle with a reputation for being reliable and having it restored. Way cheaper than a new vehicle, better quality and more reliable. Any day now I expect the Government to order every vehicle older than 20 years confiscated and scrapped.

[@Skyhawker6177]

@@edg8535 my thoughts exactly! Ridiculous prices for new cars!!!

[@jonathantaylor6926]

Pretty sure the banks are playing accounting games. I have also heard stories of cars 6+ months in arrears and not being repossessed. Looks to me like some of these banks are setting extremely high reserves or not repoing cars to protect the banks books by not "realizing" the loss through asset sales. To be clear the loss has happened 100%. The money is gone. This is just an accounting trick to keep these massive losses off the books and away from investor eyes.

[@donc6781]

Some banks really don’t want the car and will work with you to get current

[@Scriptorsilentum]

what phukkin parasites. i have been in a credit union for over 20 yrs. i have never regretted leaving banks.

[@rustybumperclassics6342]

💯 agree. People out there driving around cars that should have been repoed 2 years ago.

[@punkagrrlzero]

@@jonathantaylor6926 I stopped paying after principal was paid off. Still owe 20k in interest 🙄 it's been 1 year now and they just sent me an email saying they'll settle for half of what I owe. I'm gonna offer them $0 and bargain from there. 😆 Looks like I hold all the cards. They can't find my vehicle and I can wait...

[@christinesmith4897]

Saw this with the housing crash. The bank hangs onto everything until the value drops by 50%or more. They write off the losses and the taxpayer is the big looser…

[@danielhutchinson6604]

The Bankers now face a Parking Problem. Where do they put all the Repo's?

[@greatmartini1]

Unfortunately, you have a person coming in with a trade in that they still owe 20k on, and they get get 11k for the trade. So 9k is rolled into the new overpriced vehicle. Now, the loan for 56k is 65k, and then they are paying 8% to 18% interest. So a payment of $1,300 to $1,650. ARE YOU JOKING???

[@Mike232-j2p]

Yep they steal your trade in car

[@chriscordray8572]

I'd never go for a loss. Pay it down or don't trade yet.

[@analogueoverdigital929]

​@@chriscordray8572exactly, why don't people do this more? It's just common sense.

[@MarkStockman-b4j]

Never learned about credit in school, but dang, the Pythagorean Theorem comes in handy every April when I'm trying to get my triangles done by the 15th.

[@Enonymouse_]

2023 interest rate for a decent credit rating was almost 11 percent on 40k.

[@stevef5812]

The real problem is that these vehicles were not worth what the bank originally paid for them. No bank should loan more than $30000 for any vehicle. No vehicle is worth more than that.

[@vernevens1598]

Then explain the lot full of cars.

[@stevef5812]

@@vernevens1598 it’s full because they aren’t selling duh

[@robertthomas5906]

You've got to be kidding. A duelly 30 years ago was going for 70K all day long. 30 grand today is a good used vehicle. A runner is worth 2 grand these days. Probably more. Thank Joe Biden for the high prices.

[@billsmith5109]

@@robertthomas5906 The price jump happened during the worst of the epidemic, when Trump president. The auto manufacturers shut down production, and they strong armed the chip manufacturers to cancel their ‘guaranteed’ buys. The chip manufacturers said fine, people are staying home, buying electronics. Car manufacturers said we need computers, now. Chip manufacturers said our production is already sold, sorry. It is even Trump’s fault. Moral of story: Don’t screw your suppliers if they have other customers.

[@dimedriver]

@@robertthomas5906 30 years ago 1994 crewcab dulley's which were rare topped out around 40k. Most didn't have 4wd. They had similar pricing to suburbans which started in the high 20's. Most of them would have been work truck trim 4x2's. They need to make working man's trucks again. Vinyl bench seats and roll up windows.

[@mikefalderoff8236]

What really gets me about repos….banks will sell the car or try to. They take the sale price off of what is owed. If they don’t get that return, they write it off as a loss…so essentially they’re getting paid for the car but in an indirect way. AND they’ll still hit up the original debtor. If the debtor accepts a deal to settle, they get the difference held against them on their taxes - as income !!! BUT the bank still gets to write everything off as a loss !!! Absolutely NUTS IF a Presidental candidate can fix problems like THIS in the credit system…THEY GOT MY VOTE

[@RoseanneSeason7]

Unfortunately Ralph Nader is too old to run for president

[@tboogz284]

I don't think any politician wants to burst those bubbles. Stock market, housing, automotive, utilities. The executives/corporations also funnel them a ton of money through lobbying.

[@pinschrunner]

@@mikefalderoff8236 that would be hinky accounting. When they collect from the former owner, it is claimed as new revenue or recaptured revenue. However, most corporations sell their debt for pennies on the dollar to shyster collection agencies. THESE are the ones making a profit off an already written off car

[@megadawg342]

What happened was all of the automobile manufacturers collectively realized well it is a transportation based economy. So they decided they would drive up the prices of... driving. In the summer of 2018 you could buy a Toyota Camry for around $36,000. That same car is now over $46,000. I know my salary did not go up 25% between 2018 and now. I'm pretty sure there was a pandemic during most of that period.

[@MrBiggBs]

I work for a very large lienholder and I know we don’t sit on inventory. Values are dropping, and better to sell now than later. The deficiency balance goes straight to customers bottom line and credit.

[@stevef5812]

Hell, in all honesty even a brand new truck isn’t even worth 30000

[@bud5084]

A work truck was 3000.00 in 1973 without all the stupid bells and whistles, now you can't get on without them.

[@michaelwayne7887]

I don't think it ever stopped from 2008. Manufacturers made expensive vehicles to sell to people cashing out equity in their homes. The housing market crashed and home equity loans were suddenly a thing of the past but auto manufacturers want to keep the party going. I refuse to buy a new car. Too expensive.

[@tradefxer7037]

@@michaelwayne7887 you are exactly right!

[@OpenCarryUSMC]

To expensive and entirely too many computer controlled systems.

[@cutehumor]

I hope copart is charging storage fees everyday those bank owned repos sit on their lots. put da pressure!

[@sellickusa]

@@cutehumor yeah, hit them at $25 a day and I bet they'll unload them. The banks fault for the subprime loans and not requiring money down.

[@mikefalderoff8236]

@@cutehumor - probably not, I’d bet it’s a fee tied into the sale

[@johndowns7536]

Where are the toyotas? I only buy toyotas.

[@Savi80]

They don’t charge them storage fee Copart charges everything to the buyer with crazy fees

[@robbrobb5543]

Buyers always pay for everything with auctions so no surprise storage isn't a thing. If Copart was smart though it would be 😂. Id be charging them and once it got over the value file to take the car. I'm petty like that.

[@DaveinUS]

Problem we have around where i live is what dealerships want for used cars also selling used cars in the shape they were brought in still containing all the trash and nasties from the previous owner. I remember when dealerships would at least put a new set of tires on a used car now they can have almost bald tires or 4 mismatched treads and still want $30,000 for a 150k mile car

[@jasonweishaupt1828]

I made an offer on an overpriced RAV4 hybrid over the weekend. Dealer would not budge. I told them correctly priced these hybrids sell in 3 to 5 days. The one I bid on has been on the lot for 54 days. 😂

[@davidnewland2461]

Auction prices are actual market

[@anonymousinc6330]

When I was in the market for a Camry, I found two in my preferred color. One with 24k miles for $21k, one with 75k miles for $16k. Offered $20k cash for the first one, they refused. So I went with the second one and still got a great car. These banks need to get familiar with the idea that no one has to buy their repos.

[@RoseanneSeason7]

​@@anonymousinc6330that Camry will last forever if it was a bit older.

[@anonymousinc6330]

@RoseanneSeason7 Maybe with the 2200 or V6, but not with a 2.4L 🤣 And I've seen others like mine still running at 300k with improperly maintenance.

[@Scriptorsilentum]

hope you get a car you want but... the dealer won't budge? laugh at him as you drive by and wave from a car you bought SOMEWHERE ELSE AND NOT HIM. 😁

[@miguelvega7769]

Greed is all I can say, the banks KNOW cars aren’t worth what they claimed they are worth 😂😂🤷🏽‍♂️just greed

[@rpk2012]

@miguelvega7769 greed may be present in the situation, but you must also account for the fact that banks already paid out the full amount when the car was purchased. So in reality the bank overpaid and really needs to recoup their investment. They could take a loss and claim the loss on taxes, but they still are out the initial investment.

[@macwizer]

Blaming the bank because you didn’t pay for your purchase don’t blame anyone but yourself

[@Zulonix]

True greed would end up in a sold car. Unrealistic greed ends up with no sale and perhaps a total loss.

[@breft3416]

The banks aren't able to start foreclosing on mortgages just yet, but they can on cars!

[@aboveitall9600]

Greed started with dealership mark ups.

[@FiveStringCommando]

I worked in the parts department of a dealership group’s recon center during the height of the craziness. I would see the reconditioning work order come across my computer and the price tags on these cars were astronomical. People were buying it, too!!! I thought people were sick in the head for paying $85,000 for a four year old Suburban.

[@jwill540]

@@FiveStringCommando just dumb.

[@TheCobruhAlienat0r]

When I was looking for a new car in 2021 I was looking at 4 year old Camry's and all of the ones in my city had 60-80k miles on them and they wanted $25-27k for them, that's only a couple thousand less than what they sold for brand new! I had to go to a smaller city an hour away to get a 4 year old one with 33k miles and was still being sold as certified used. I got it for $19k and it had a warranty! That same dealer though had a 1 year old 4runner with 100k miles and they wanted close to $40k for it. Just nuts. I dunno who they thought would pay that much for a 1 year old vehicle with no warranty and 100k miles when they could buy a new one or a 1 year old one with normal miles for the same price.

[@bluewffl8472]

@TheCobruhAlienat0r some 4runner packages are north of 70k optioned out otd pricing...some are way less...there is a pretty decent difference in drivetrain and suspension options between them...that much $ difference to produce though? I'd say not....just pointing out an SR5 can be vastly different than a pro.

[@RoseanneSeason7]

​@@TheCobruhAlienat0rsadly that 4Runner probably sold the next day

[@jimmyaber5920]

​@RoseanneSeason7 I'm in Texas where things are supposedly booming but Toyota dealers are out of places to park tacomas and tundras.

[@shermantincher3417]

It is called pricing yourself out of the Market! Back in 1988 I got out of the Navy after four years. Was talking to my brother in law who worked at the Ford plant in Lorain, Ohio. Taking about the increasing cost of cars back then. He said on the new model year of Fords Mini Van. The only change was the tail light lens. The price increased 3,000.00 dollars.

[@notmyname3883]

That's because the union cost for that particular vehicle went up $5,000 that year your brother-in-law got 1800.00 new dental credit and 500 new medical care and the company has to make that up somehow

[@sawtooth4615]

Here is an example of how people get hooked in a new car purchase. There is a new car dealership in my town that has been advertising new models with these finance features. They will give you 130% over book value for your car. They will also pay off your current car loan and then delaying repayment until 2025. You are guaranteed to be upside down with the loan the moment you drive the new car off the lot.

[@tjhess2]

Sixt is a German rental car company that is relatively new to the U.S. market. I used them recently on a vacation and found them to have phenomenal customer service. I would absolutely use them again.

[@carynewman421]

they do 0 rmaintenence

[@tjhess2]

@@carynewman421 doubtful hyperbole.

[@darkbeer9928]

2 banger turbo banger with 5 speed 5 finger bang bang...cartman south park 😊

[@johnbuniack5671]

I've found just the opposite and would never use them again.

[@danm2144]

not only were the cars overpriced, the banks often lent 110%-120% of the cars overpriced "value". now they are way under water on the loan to value.

[@Ergo8152]

Don't worry about banks if I've learn anything bastards always come out on top😅

[@bmy501]

Ya but they got 25% down of the inflated value. They are not upside down

[@MarkStockman-b4j]

And remember, they keep rolling the balance from the trade-in loan onto the new vehicle, so people end up deeper and deeper in debt. But when they default, the banks have way less collateral than they should.

[@MarkStockman-b4j]

@@Ergo8152 Granddad told me, "If you owe the banker ten thousand dollars, he's got you b***s. If you owe the banker a million dollars, you've got him by the b***s."

[@webmastersof]

The banks wouldn't be able to sit on them and hold them forever if the auctions would start charging the banks a storage fee every single month. There would be an incentive for the banks to get rid of the cars and the auction houses wouldn't be on the hook to store vehicles for free

[@bobmalone6076]

Eventually, all markets are self correcting. This will be great for the used vehicle market and the consumer.

[@chriscordray8572]

We aren't buying at those prices. They can keep it all.

[@BarryThacker-t5l]

A sign of a great economy. They also told us bugs and inflation are good.

[@Roachman-TT]

And empty shelves are good for your diet

[@marcodarko6941]

Now, now.. everybody just go back to slurping down your roach milk and munching on your mosquito burger with flies.

[@MarkTurner-vs7uc]

And 50 million illegal immigrants are great. No crime at all. The best economy I'm history and nobody is eating your pets. Remember ,you now have 3 fingers on 5 hands.

[@user-pj5ff6xw4x]

Sounds like to me you just need to get off your butt and get a job and stop being lazy.

[@LLQ423]

@MarkTurner-BS where do you get 50 million, last time I heard another Trumpet said it was 1,000 million illegals eating your pets.

[@2003cobramustang]

So crazy all the repos but your right banks are asking too much.

[@Scriptorsilentum]

with the look on my bank's loan twerp they aren't asking, they are demanding.

[@jamesf4405]

I dont knew what's going to happen. I'm retired. I've got plenty of money, but I'm not spending it on an overpriced car. I'll keep driving my 10 year old car. Most people can't afford these prices.

[@dmo848]

Don't buy new buy 36k miles cars. Way better prices

[@jakepepper2279]

@@dmo848 They want just as much for them used as new. That is why I am still keeping my twenty year old Toyota. It never breaks down and never costs me a lot to maintain.

[@hazacarrobinson6673]

@@jakepepper2279so right it’s ridiculous,y tf is a used car almost the same as new and yk those Toyotas are reliable

[@dennissvitak5475]

@@dmo848 - Sure. Buy a car that has been treated badly, and has no warranty. That will work out well.

[@iceman9678]

Agree. I'll keep my 20+ year old car and one day sell it more than what I paid for it.

[@nomocooties6996]

I wonder how many of those cars and trucks might be cleaned up flood cars.

[@Dmt614]

I work for a bank as an automotive remarketer… I sell these at auction. Believe me I hate banks too… more than you can know, but the greed isn’t just from the banks… everyone is culpable… dealers screwed the customers over, customers screwed themselves over, the government is dicking all of us over… typically the market values dip from September through November. Inexperienced reps maybe don’t know it and don’t cut them this time of year like they should

[@nilsalmgren4492]

The same problem in housing. Businesses buy and refuse to sell when they get taken. The rich are saying if we corner the market on property and vehicles, no average person will own anything. We can afford to spend a few bucks to get cars and houses off the market

[@michaelcinaz]

Car dealerships have made a lot of money the last few years selling vehicles way over msrp. Yesterday I saw a guy buy a new 4 cylinder tacoma for $65k. Once the recession starts, buyers won’t be paying double what they should. If dealerships want sales, they will have to lower prices.

[@Scriptorsilentum]

the banks ain't gonna lower loan interest, the credit card vultures won't lower interest, the stealerships and banks ain't gonna lower prices. no one is gonna take a hit. they will hold on to these repos till they're pried from the cold dead hands of the banks and stealers. in the meantime they know if they hold out sooner or later us peons will bite, or at least that's their thinking.

[@Demonoid1990]

Same thing with the over inflated prices on real estate/property as well.. As some old physicist said "what goes up, must come down." I'm eyeballing real estate lately, like a wolf trailing its prey, waiting for a sign of weakness.

[@knote4958]

Let em hold onto the cars then. The more they keep trying to hold out, the more they gotta pay in auction & storage fees, and the more the cars depreciate as time goes on. They're financial institutions so they know the risks. I am kinda curious where the auto market will go from here. Car prices keep rising faster than wages, the cars themselves keep having more catastrophic expensive failures, and car buyers can only buy them with long term high interest loans that just feed the repo crisis. Now automakers are cutting back on cheaper ICE options by doubling down on EVs that have substantially higher upfront costs and soon-to-be rising insurance rates (EVs have a higher likelihood of being totaled out due to the battery packs being enormously expensive yet extremely susceptible to damage). Definitely feels like something's gotta give here soon.

[@72151]

I have zero plans to purchase a new vehicle due to the high prices. If I have to get a new vehicle, it will be an older model.

[@davidwilliams4498]

I just turned 66 years old an retired I've bought 7 new vehicles in my work past an last 1 was 2011 Today no way will I pay these insane overpriced on new or few years used. Be cheaper have Walmart deliver my grocery's give gas money to family or call Uber. Greed since pandemic is beyond worse I've ever seen in my old life.

[@dough9512]

Thank Jack Welch of GE!! He's the one who really got the "greed" band wagon rolling!

[@ggeorge4144]

You are right about grocery delivery. I had Safeway for a while and with the savings on the food and the free delivery it was much cheaper than driving to the store. That coupled with Amazon and there is very little reason to drive.

[@davida1878]

66 is not that old

[@SamLee-e3b]

@@davida1878 that's part of the problem Once you start to referring to yourself as old you give up on yourself and if you quit moving you really get old

[@jenjen9266]

@@SamLee-e3b our dollar has been devalued by all the printing of money. This is what happens Inflation is a hidden tax they are doing this intentionally

[@bigbullfrog98]

As soon as I saw banks were financing "market adjustments" from dealerships, I knew it would only be a meter of time before these pandemic cars would begin to be repossessed.

[@alanjameson8664]

A co-worker of mine lived in Idaho for several years, and hail damage was common there. They would press a bit of dry ice into the middle of the dent and it would pop out.

[@corydriver7634]

How do banks afford to have this much on their books? It’s tied up money and every day the value drops.

[@WesBit]

You speaking the truth, none of those cars are worth anything and definitely not woth 700-1000 a month, even 500 a month is not worth it. Why buy a trashy car, you are buying nothing but ppls problems and also worth much less wen they don't keep up with the maintenance, Its a money pit for sure. We definitely holding out for better prices, I already have a pos I don't need another one. Dealers use to fix the problems but they have quit that years ago and still keep the high prices hahaha..

[@donniem3831]

A BMW with electrical Gremlins? NO 😂😂😂😂😂😂😂😂

[@marymacdonald2379]

Squirrels can wreck electrical damage. Car still runs but one or more warning lights come on.

[@donniem3831]

@@marymacdonald2379 I’m pretty sure BMW includes squirrels with every purchase.

[@brooksbelanger8799]

Guy has no clue how to start a car, yet makes videos about cars 🙄. Put your foot on the brake next time…duh!

[@jimoconnor6382]

@@donniem3831 I would buy a Gremlin before a BMW. I actually found a 73 Hornet with only 22k on the odometer, no rust, 360, and only $3,000.

[@donniem3831]

@@jimoconnor6382 I would have to agree with you.

[@mph5896]

Repos are generally trash unless it was repoed fairly quickly after purchased or somebody died and was turned back in

[@glennbeadshaw727]

Banks became part of the problem financing overpriced cars they should never have agreed to finance an overpriced car to begin with so now they are reaping the benefit of keeping automobile prices artificially High

[@matthewc3120]

Yep, had banks not entertained the price gouging by dealerships then the banks wouldn't be in this position and dealerships wouldn't have been able to move those cars and would have had to sell them for their actual value. Banks rewarded the dealerships for bad behavior...now they have to deal with the fallout.

[@chriscordray8572]

My bank told the dealership to drop the price or they would no longer do business. The immediately dropped the price to the banks value. 😂 I already got half off msrp..lol.. I love my credit union...lol

[@BetterCallSaul450]

Mate I have no clue of the technical side of cars but loved to watch the whole video. Greetings from Germany.

[@OGknowbuddy]

the only old cars on the road today are collectible and also very expensive. they crush everything else.. that $500 beater went to $1500 then $3000 to $5000. and now almost impossible to find

[@WanderingCactus]

I'm not surprised that the Jeep is a four banger, person who bought it prolly wanted the nicest/most comfortable Jeep they could get, and did it by scrimping on the engine. As to fuel economy, that depends on if'n it makes enough power, there is such a thing as too little engine.

[@alanjameson8664]

My recollection is that recent Jeeps are real gas hogs.

[@ericecklund676]

The older 4.0 liter straight six is a much better engine, lots of torque in that old six.

[@WanderingCactus]

@@ericecklund676 That was an awesome engine, Downy Jeep in CA used to do ridiculous things with that engine for their Baja race trucks, I think their most powerful one hit around 500HP

[@paulsweeney794]

Buying a car right now is like falling on knife.

[@prettyboyjeremy]

@@paulsweeney794 believe me i know

[@chiplacey256]

Some insurance companies will now pay you for the reduced market value instead of totaling the car. The Carfax will have a note about it for those who can not see the obvious, but since they don't buy the car and pay you back, you do not get a branded title. You have to ask though.

[@rex8255]

So, let me get this strait, Banks... You loaned money to people that couldn't afford to pay you back... Who then paid to much for a car Because at the time, the Government was giving out money it didn't have. What could go wrong?

[@mrhappy4521]

Fanny may in used cars! But not to big to fail!

[@bennyblanco692]

Not only that but copart and better bids are just a bunch of thieves with all the fees added on top when you try to buy from the website. Over 1,000 plus you can't pick up they have to deliver for an additional 400 plus.

[@danielsteward5090]

I dont care what you are peddling. Its only worth what you can get someone to pay you for it. no more, Not a penny. I buy them dirt cheap and wear them out. Then i junk them. Or i trade them. I have never paid more than $3,000 for a used car in my life.

[@richdiana3663]

Too many automakers and too few customers. This is not getting resolved anytime soon.

[@CuttySX455]

@@richdiana3663 I was thinking the same thing and due to the competition, automakers are selling less and trying to make it up with higher prices.

[@michaelkane7999]

Short answer, everything is UNDER WATER Debt. Banks Cant cut their losses right now.

[@cecilmckeithan5088]

Start charging the banks storage on vehicles not being sold and I’m willing to bet they will rethink there worth

[@rustybumperclassics6342]

I knew a guy that owned a body shop. He would charge $300 a day for storage. The insurance companies hated him. He said he made more in storage fees than the actual boy work. He told me sometimes the insurance would say they wouldn't pay, he said fine don't pay. The days just kept adding up. Then he'd put a lien on the car. He was ruthless. 😅 small business.

[@2nickles647]

​@@rustybumperclassics6342It's no different than a mechanic taking a lien on a vehicle that the owner refused to pay. It's just basic business. I'm a DYI mechanic. I did exactly what he did. I lost out on parts and labour. So some neighbor hood kids towed it off my property for free and they kept the money. 😂😂😂

[@MSsearcher]

The state I live in, it is normal practice for banks to charge storage fees for repo’ed vehicles. The bank clients that signed loans for a vehicle that was eventually repo’ed are charged for the cost of recovering the vehicle and storage until the vehicle is sold at auction. The banks then add on the difference between what was owed and what the cars sold for at auction…the client is now on the hook for thousands of dollars on a car they let the bank take back. Collections are up to 25% of your paycheck, and the banks will sell your debt to a debt collection agency. Letting the bank repo your car is just the start of your nightmare. You are not off the hook by giving the vehicle back. For a lot of people it means destroyed credit and bankruptcy for years. So if a car sits in the repo lot for a lengthy time then the value of selling the debt to a debt recovery company goes up.

[@MyronGreenfield]

And what the banks don't realize is that a lot of these cars have been beat up and neglected. They may look nice on the outside, but if you look closely, they have blown head gaskets, blown engine mounts, blown struts, and suspension and check engine lights on.

[@chuckschillingvideos]

Banks are NOT personally evaluating the condition and market value of these vehicles. To the extent that the valuation supports it, they might pay inspectors/appraisers for assessing the actual vs. the residual loan value of the vehicle, but no bank physically inspects any of the vehicles they have liens on.

[@terryhillman8755]

This isn’t new. Blown motor mounts and blown check engine lights has been a major problem for quite some time. Especially on vehicles with rubber tires.

[@MyronGreenfield]

@@terryhillman8755 What I meant was the banks want full price for cars that are beat up.

[@vanhasydan4754]

Also add to that the fact that when people know the car is going to be repoed, they aren't going to do the maintenance and combine that with lot rot and those cars are garbage.

[@megadawg342]

We have new Escalades that are over $140,000. I just bought a house in Oklahoma in the Mid-South area about an hour north of Dallas and I paid $38,000. It's a nice house

[@Scriptorsilentum]

"... new Escalades that are over $140,000..." 🤣🤣🤣🤣🤣🤣🤣🤣 jezuss christ barnum was right: there's another one born every minute. if i ever paid that for an escalade it better come with its own gawdam chauffeur and a stewardess from Hooters!

[@jimmyaber5920]

​@@Scriptorsilentumescalade V models with the 6.2 supercharged V8 are in that area MSRP and those have added markup. The taking class has that money that the working and giving class doesn't have

[@Mark-fh5lp]

I bought a 2007 Jeep Liberty for $3000. One year later still running and no issues. Have fun with your payments.

[@russellstyles5381]

The Honda with 160,000 is probably worth 25% of what they are asking. Even a Honda has limits, 160K is a lot for somebody else's problem. If YOU put those miles on it, and knew how well it has been taken care of , maybe. The battery says it was not taken care of.

[@ChevySS1968]

Hard-working buddy of mine recently took his Toyota Tacoma to the dealer and handed them the keys, he was sick of paying the $900/month.

[@steveg2277]

@@ChevySS1968 for a TACOMA

[@ChevySS1968]

@@EVS-w1m - pretty sure the dealer sells it on the lot, and pays off the loan with proceeds. I would suspect my buddy would get charged if the sale price won't cover the loan payoff. Any dealers here that can clarify this?? Thanks

[@donc6781]

@@EVS-w1m He basically did a voluntary repo, so you at least don’t have repo charges added to your bill

[@turtle19dad]

How did that go for him?

[@Malte-Micha]

When you take the car to the dealer and drop it off, the car will sit there for 90 days. Then it will be considered repod. Then a tow truck will show up and take the car off. However, this does not help them person buying because the repo still goes on their credit and that will hurt you in the long run. You will never again be able to establish yourself for 10 years, so if you can't afford a car, don't buy it or save your money. Wait till you have 25000 saved app, then put it down as a down payment for a vehicle. Then you won't have the high interest rates, and you won't be upside down. No matter what your credit score is, americans are stupid and how stupid things are happening to them.Congratulations idiots.

[@maxgomila8209]

A lot of the CVT transmission vehicles develop problems because drivers don't understand that the CVT transmission fluid needs to be replaced fairly regularly.

[@ggeorge4144]

I am 82 and have owned cars all of my life. I have never changed anything but the oil. All the rest is a ripoff. I have been to oil changing places who bring in a sample of brake fluid or antifreeze and show you a sample of what it looks like new, and then try to sucker you into hundreds of dollars to change all the fluids. The new fluids will look like the old ones in a very short time. Antifreeze or brake fluid or transmission fluid does not have to be pretty to do the job. I currently own a 2001 Buick bought new and now has 130,000 miles. I have never changed anything but the oil and car runs perfectly.

[@plankton199]

​@ggeorge4144 the CVT is a different animal. The belts and ball bearings in them will eat themselves if you don't change the fluid every 30k interval. I learned the hard way on a Jatco in one of my cars.

[@1in0]

That means you drive with an egg between foot and gas pedal. It also means you mostly drive highway in a temporate environment. Fuck You hardly anyone wants to drive like you or drive mostly highway.

[@THOMMGB]

@@ggeorge4144 I had a 'grinding sound' when I went into reverse on my 1991 Nissan Pathfinder. It turned out the rear differential fluid needed changing. The additives in the oil were worn out. I changed differential oil myself and the rear differential is once again perfectly quiet.

[@heshe1976]

So far so good on my 2016 Rogue. Have changed the cvt fluid every 30k and now have 110k on it. No problems yet.

[@timkis64]

funny how my 08 & 90 vehicles still operate just fine.i'll at least have one of them till the day i die.back when cars were affordable & reliable.

[@diamondjim7560]

Everything is a market economy. Nothing is worth more than someone is willing to pay for something; be it cars, jewelry or real estate. Banks and finance companies are getting nothing for their money if they can’t get past that fact.

[@darrenduffy-w6h]

I really wouldn't recommend anyone by any type of vehicle. Keep the one you have pay for it. Fix it, do not borrow money to buy a car. Do not give the big car companies any of your money until they hurt badly

[@tomedgar4375]

I refuse to pay these ridiculous prices on new vehicles, the F250 just turned over 100k miles and plan to keep it until I see this market normalize

[@Mike232-j2p]

Still cheaper to customize what you got

[@tomedgar4375]

@@Mike232-j2p I am a cheap bastard and ran the last one to 375k miles. The problem I ran into was poor quality aftermarket parts. After 20 years old OEM were not available and got real tired of multiple replacement of aftermarket but I am sorry I sold it.

[@cherylcampbell7495]

Scotty Kilmer knows what’s a great car or a money pit. Great videos.

[@douglasgreen437]

@@cherylcampbell7495 Good old Scotty...

[@RARochester]

You're right about your assessment regarding the whole situation on all sides.

[@elw6150]

Same with the housing market, 750k for tear downs!!! The banks get to keep them.

[@stevedee8158]

Supply and demand will eventually fall into place. I did real estate appraisals for a while, I stopped because the prices and loans were ridiculous, I knew people were going to default. Some buyers had huge credit debt so banks paid their credit card debt and rolled it into the mortgage. So much for subprime lending.

[@KNIGHTOFELEMIA-i7i]

Banks can ask all they want for a repoed car but in reality they won't get their asking price. Banks are going to have to write off their asking price and get what they can for the car now. But buying a repo is a gamble the car on the outside can look great but on the inside or with the engine it looks and sounds like crap. Nissan CVT's like any CVT can be good as long as you service it no different then changing the oil.

[@mwaynem]

It isn't just the banks. Manufacturers, dealerships, and private sellers are all upside down in this market. They are all holding on for dear life, hoping that the market will turn. I still see lots of late model pickups with 200k to 300k miles for sale by private parties for $30k to even over $50k dollars. For a truck that will need a new drive train right off the lot, it's insane. You know that they tried to trade it in and were offered half or even less than half of what they still owed on the truck. So, in desperation, they are trying to sell it themselves. Greed is part of it, but it's also fear. They know that they are in big trouble and are hoping someone is desperate for a vehicle that they will pay what they want. This whole house of CARS is about to come crashing down.

[@jeabo0adhd]

This reminds me of the CDO crash in the late 2000s. Today, its overvalued used cars being propped up by overvalued new ones. But unlike property, cars lose value. If an auto manufacture gives in and makes affordable cars, the tower will collapse.

[@bolivershagnasty3851]

I live in south east ok and I’m telling you the repo trucks are doing overtime .one owner said he’s have to put them in his pasture at his house because he doesn’t room at his business.

[@gixxerbundy]

Banks and the Auto industry is now suffering the wrath of PISSED OF CONSUMERS!!!! The banks and auto industry never thought the consumer had any option to retaliate against there pricing games, now they are finding out the hard way.

[@iowahank1]

Nobody forced anyone to buy at the inflated price.

[@gixxerbundy]

You're correct, but some people had no choice. When your car is at end of life, you have to replace it. The used car market was just a corrupt, so a lot of good folks got screwed.

[@iowahank1]

@@gixxerbundy Replacing with something to get you to work, grocery shopping or to grandma's on Sunday or with an overpriced newish toy was a choice.

[@Sir_Galahad777]

At this point someone is going to have to take a loss on these cars, its going to be the banks no choice. Its better to sell for something then get nothing for them. The banks will tighten thier loaning requirements in the future for sure.

[@mikedubovs1574]

I went to Kia to get a telluride... In 2022... MSRP 35k they had a 2021 with 25thousands miles and they wanted 42k for it . Wtf.. it was insane.. cars lose value and fast

[@brotherbrovet1881]

It doesn't get booked as a loss until the vehicle is sold. It's still an asset as inventory.

[@fragslap5229]

As long as they don't sell them, the banks can carry them on their books as "assets" and assign any value they want to them. If they went ahead and just accepted the true value at an auction, the realized losses would damgae their balance sheets and possibly get them in trouble with regulators.

[@DavidM2002]

I don't think that the banks believe that the cars are worth more. As long as the cars remain unsold, the assets ( either the loan or the car ) stays on the books at its carrying value; that is, the unpaid balance of the loan plus interest that may continue to accrue. As soon as the car is sold, the bank books the loss and they don't like that. Typically, you get some low level manager who makes these calls and taking that loss likely affects their annual bonus.

[@unusallife6326]

@@DavidM2002 Agreed, as soon as, they mark to market the value of these vehicle loans just like commercial property REITs and other businesses they would be goin against their own short term interest in bonus structure all the way up the ladder.

[@adamwalters4709]

A lot of people overpaid for vehicles since 2020 and now they're stuck in a pool of negative equity. Try to trade out and the negative equity gets added to your new loan. Had a co worker go from a $450/mo payment to $1000/mo payment because of how much negative equity they had while trying to trade up. My understanding is they gave the vehicle back to the bank.