Banks are SCREWED | Auto Loan CRISIS

🚗 Save 33% on a Data Subscription or CarEdge Reports!
Code: yearend33
⮕ caredge.com
Cox Automotive Data:
⮕ www.coxautoinc...
Auto Finance News Data:
⮕ www.autofinanc...
CarEdge OTD Price Calculator:
⮕ caredge.com/ou...
🚗 Join the CarEdge Community:
⮕ caredge.com/co...
🚗 Search for your dream car on CarEdge:
⮕ caredge.com/buy
🚗 Get educated on buying a car with CarEdge's Deal School 3.0:
⮕ caredge.com/de...
CarEdge Podcast: Daily News You Can Use
⮕ Spotify: open.spotify.c...
⮕ Apple: podcasts.apple...
Instagram ⮕ / mycaredge
TikTok ⮕ / zachshefska
Check out CarEdge merch:
⮕ shop.caredge.com/
Ray and Zach give a big update on the brewing auto loan crisis, including new data from Cox Automotive and Auto Finance News detailing increased delinquencies and auto loan rejection rates.

[@Peterl4290]

The bank crisis isn't over yet, and experienced individuals know credit crises don't end quickly. Some find it amusing that some think it's resolved, but in reality, we're headed for a major economic downturn due to this credit contraction.

[@larrypaul-cw9nk]

After the '08 financial crisis, I've learned not to trust corporations. Since 2020, I've been investing with a financial advisor and have had no major losses, so I'm not going back to relying solely on banks.

[@Mrshuster]

A common oversight is that banks operate solely in the service of yield. Personally, I am hesitant to keep substantial sums of money in a bank. Instead, I opt to invest under the guidance of experts, reap the advantages, and diligently save for my retirement.

[@sabastinenoah]

That's impressive! I could really use the expertise of this advsors.

[@Mrshuster]

Her name is “Vivian Carol Gioia” can't divulge much. Most likely, the internet should have her basic info, you can research if you like

[@sabastinenoah]

I just Googled her name and her website came up right away. It looks interesting so far. I'm going to send a mail to her and let you know how it goes.Thanks for sharing truly!

[@GillerHeston]

Really, banks require more regulation. The entire idea of banking as "let's gamble" is terrifying. Because they discovered in 2008 that the government will always bail them out, there are no repercussions. These bank crisis are so worrisome. This whole financial crisis and the Great Recession posed the most significant macroeconomic challenges for the United States in a half-century, leaving behind high unemployment and below-target inflation and calling for highly accommodative monetary policies. And this is only the beginning!

[@rogerwheelers4322]

Since 2020, the banks have been over-leveraging their assets, which was one of the reasons for SVB's implosion. I have never been okay with keeping much money in the bank. I simply focus on diversified investments through a financial advisor, collect my profits, which I either spend or repeat the process. Never been this comfortable with my finances.

[@joshbarney114]

I wholeheartedly concur, which is why I like giving an investing coach responsibility for making everyday decisions. Given their specialized knowledge and study, as well as the fact that every one of their skills is aimed on leveraging risk for its asymmetrical potential and limiting it as a buffer against certain unfavorable turns, it is practically impossible for them to underperform. Over the course of more than two years, I've worked with an investment coach and earned over three million dollars.

[@FabioOdelega876]

This is huge! Think you can point me towards the direction of your advisor? been looking at advisory management myself.. seeking ways to invest and make more money with the uncertainty in the economy.

[@joshbarney114]

Colleen Janie Towe covers things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk. many things like that. Just take a look at her full name on the internet. She is well known so it shouldn't be hard to find her.

[@FabioOdelega876]

She appears to be a true authority in her profession with over two decades of experience. I looked her up on the internet and skimmed through her site, very professional. already sent her an inquiry hoping for a response soon.

[@lilmsgs]

Banks are almost never screwed. They always find a way to come out ahead usually sticking it to their customers

[@temerich1]

Or the tax payers like in 2008. Too Big to Fail.

[@Joce123]

But..people are losing their previously high paying jobs as a result of the return to reality...So many job losses have a ripple effect

[@lilmsgs]

@@temerich1 That's one good example

[@markp.9707]

Anytime people make the comments about bank and them being screwed. They are way ahead of this and have probably already cleared their books of high risk auto buyers notes. You kidding me banks are the most well capitalized businesses on the planet.

[@Hutch_Davenport]

Banks create 90 dollars out of thin air for every real $10 they have, they are rarely screwed. I agree 100%.

[@SingleStacked]

If banks refused to finance over MSRP, dealers would stop adding market adjustments.

[@madeyoulook2869]

They shot themselves , the banks

[@Clayton_White]

If people quite paying over MSRP. Can’t blame the banks and dealerships. It’s like blaming tobacco companies for giving people lung cancer.

[@jakemanchester5139]

He/She would blame the tobacco company.@@Clayton_White

[@mareble412]

​@@Clayton_White but tobacco companies are restricted who and where they can sell. Banks should have similar restrictions

[@johngivens9150]

Larger loans means more $$$ for the bank. No incentive to do so

[@jerrylundegaard2592]

People who paid over $50K for a Kia have a serious need of financial help.

[@ryanespinoza7297]

Mental*

[@couchwarrior2449]

No, they have a serious need of our mockery, ridicule, and scorn. My vehicle runs great, and IT'S PAID FOR!!! 😂 *me laughing at all the SUCKERS out there*

[@logdon17]

lol, so true. You can buy a Lexus GX460 for the same money and those things hold their value extremely well.

[@jorgemoro5476]

So true. Garbage.

[@The_Turd_Ferguson]

people who paid for a Kia have a serious need of financial help.........(fixed that for you)

[@NGMonocrom]

I'm sorry but I have *zero* sympathy for such car-buyers as the one who bought that KIA. They agreed to the huge dealer mark-up! Everyone knows that the instant you drive _any_ new vehicle off the lot, it takes a huge bump in depreciation right there! And, it just gets worse from there during the first 3 years of ownership. You don't have to be an accountant to figure out how much less your new vehicle is going to be worth after only 6 months of ownership. Heck, nothing wrong with once in awhile blatantly over-paying for something when you know you're doing it, and really want it. Though personally would never do that with a vehicle. Everyone who is upside down on their car-loan.... brought it on themselves!

[@toddw6716]

Some folks had cars breakdown or accidents. They might not have had a choice

[@the_truth21]

You’re off topic. Buyers are screwing the banks. So it will screw others

[@dustincollins16]

If your gonna finance a car you should always save up a large enough down payment so your never upside down for the life of the loan. But most won't do that 4:47

[@bennyfredriksen5700]

They have a choice what car to buy and how much to spend. @@toddw6716

[@jimandersen3003]

@@toddw6716 Why can't I buy a house. They cost $500,000 plus here but I need a place to live. Your argument says I should be able to only my gross income will barely cover the mortgage. Oh, Clinton passed that bill and absurd numbers of people were allowed to buy houses they had no prayer of affording.

[@mrkattm]

Wow, completely crazy! Back in 2005 I purchased outright a brand new 2005 Z71 Tahoe using my father GM discount, it cost somewhere in the mid $40Ks, I am still driving that same Tahoe with 330,000 miles on it and it still looks and works great. I have not had a car payment for almost 20 years now so when I thought about buying a new car this past years I was completely blown away at the cost. Even with great credit and a decent down payment there was no way I was going to plop down that kind of cash. It begs the question, what the hell is wrong with people?

[@accordv6er]

The repair side is a huge aspect as well actually, since it often drives new purchases and trades. Not to mention a culture of people obsessed with paying for things like a screen that will be outdated in 5 years, mandated tech we don't need, no cash for anything, rent everything own nothing no stewardship etc etc. Driving a tahoe like that must feel like a win every time you get in it! Keep er runnin. LSx is too easy to build

[@mazpr2025]

Do you live under a rock? Do you really think that $40,000 kept in your mattress in 2005 has the same value in 2005 and 2024?

[@SpiKSpaN-ei6zq]

​@@mazpr2025that's why I buy gold and silver

[@bri-manhunter2654]

A whole lot of Hellcat owners with 30% interest rates out there. I remember how it actually used to be hard to get a loan, even with a great credit score.

[@bigdogdad4591]

People that paid these ADMs are reaping what they sowed. So are the banks.

[@alwaysbetruetoyou]

Absolutely!

[@Hutch_Davenport]

Too bad the commie government will bail them out and that will leave us on the hook for banking greed. Wall Street is protected by the libs and the neocons.

[@Notfiveo0]

When I sold cars banks would not finance over invoice, so the customer would need a trade in or down payment if the dealer wanted to make any money. So dealerships got creative and pumped up the cost of the vehicle invoice with fictitious things such as pinstripes, super dooper coatings, truck bed liners, undercoating………..etc.

[@EmmyPierz-ek7hi]

Nailed Ittttttt! CB

[@EmmyPierz-ek7hi]

@@Notfiveo0 never forget the Extra Heavy Duty Muffler Bearings. CB

[@douglaswilliams5794]

My wife said today…” I really don’t want a new car. I’ll be happier to quit my job instead.” Goes to show how smart she is. If I don’t do this, I can do this instead…love this auto market for how manufacturers made price a driver to a more positive choice.

[@EmmyPierz-ek7hi]

Employed... buy a new car payments higher car insurance. Retired

[@EmmyPierz-ek7hi]

keep older paid for car lower car insurance keep YOUR money... Kinda a no brainer. CB

[@GreenAppelPie]

Maybe if these buyers weren’t so stupid to over pay in the first place, this wouldn’t be an issue. People are so dumb when it comes to buying cars

[@petethehawk5186]

You’re 100% right. The banks may have gotten greedy and enabled it, but as the person who ultimately agreed to that nonsense it’s on you. If you’re not smart enough to know what your budget should be or understand that unless you pay that overpriced vehicle off you’re pretty much never going to get any value out of that vehicle except usage I don’t know what to tell you.

[@jonnyturcios2327]

Absolutely agree with you. Thanks to these idiots, dealers are getting away with this 💩

[@OtisFlint]

Yep, i bought at the tail end of the madness when prices really started to fall. 25% down and 48 month loan because i expected the market to drop a bit further. No chance of ever coming close to being upside down and overpaid by $4k vs current deals, not $20k like i would have been at the peak.

[@jamesvw769]

Working at a dealer i assure you all 99% care about is the monthly payment. They pay no attension to anything else. Yes very very stupid and yes we love it.

[@petethehawk5186]

@@jamesvw769 Yea you’re just failing at the game if you don’t do the math to see what you’re paying for or what you’re vehicle will be worth in a year or two and what you’ll still owe.

[@lilibear62]

The entire situation is sad, but it's also ironic that for all of these overpriced, over encumbered vehicles they probably won't last as long as their loans!

[@michaelb7718]

I bought a new Subaru Outback in 2020 for 28k. It had 10k miles on it in 2021 when the used car market surged I sold it for 34k(6k more than it was new with 0 miles) and paid off the loan and bought a 15 year old used Outback with the extra money. I’ve been investing the $600/mo car payment that I had into the stock market. Some people(mostly poor) make comments about my old car but it doesn’t bother me. When the car market really bottoms out then I’ll think about getting a new one

[@ryanrodgers6969]

I too bought a ford pinto in 2019. Sold it in 2021 for 5 times what I paid for it. Invested in pork bellies made a million dollars in a month. We are smart lol

[@wildcard9724]

BEATERS RULE!!!

[@Mach11976]

People laugh at me because I drive a 1997 Chevy Astro AWD with 174,000 miles. I've been actively looking for a decent used vehicle so I can get to work and to my VA appointments. As long as this van keeps running I'm staying put with it. I'm just going to wait and stack cash.

[@EmmyPierz-ek7hi]

@@Mach11976 4.3 Astro van engine 350 C. I. Sans 2 cylinders is almost Indestructible. Astro van weak spot: Dual $150 idler arms wear prematurely. Great choice, otherwise. CB

[@Mach11976]

@@EmmyPierz-ek7hi It's been great and lucky to have a mechanic that I've known since high school and he worked for my dad building and test boats. He stays on top of it. Because I'm no mechanic, boat builder and racer years ago.

[@wags99999]

This is the exactly why people have huge loans for college. The government took over the vast majority of loans for college. The schools knowing that the government would loan whatever amount the schools asked for. So you get a $200,000 loan on a social worker degree. Impossible to pay it back. Banks should not of given loans for more than the asset is worth, dealers would not be able to over charge for the vehicles and hence, banks would not be in the situation they are currently in. On the other hand don't spend more than you can afford.

[@gymjoedude]

Since there was unlimited college money, schools raised tuition and salaries. If there were limited funds available for school, prices would drop.

[@mazpr2025]

When I was in college, I only requested financial aid for technology equipment as part of my degree. Graduated, the banks continued sending me approved letters "you qualify for this amount", I was tempted. Immediately placed the letter in the shredder and gave them a call to stop sending me offers. The next scheme continued when I would receive letters I do not need to pay off the loan right away, I can postpone it, and it would incur "just" this interest rate, paid it off within three yrs, no extensions.

[@jimmyPx9]

It is criminal that they don't teach everyone about compounding interest and depreciation in school. IF you decide to buy a brand new car then you need to keep that car until the loan is paid off and wheels fall off. Getting a new car every few years costs a FORTUNE and is dumb financially. If you MUST do that then look at leasing.

[@marksmall7790]

You can teach it but doesn’t mean people care to learn it. I have assisted high school math teachers who lack any understanding of basic account balancing and finance. It comes down to people wanting instant gratification so they just sign their life away with all sorts of loans.

[@Lifewithemerson323]

Yeah bro I checked out. I had a total loss car a few months ago. I spend 3,200 just on the payment, insurance and gas. Audi rs5. Dealer begged me to come purchase another one. I told them no way. Interest high ass hell and insurance is higher then last year. Am just taking Uber now. In the past 11 years I have paid $380,000 on car payments! I have zero car titles in my possession. Took me a while to realize cars are the biggest scam out there.

[@nicholasyoung2867]

Hell, they don't even teach kids how to write a check anymore

[@EnFuego79]

That would defeat the entire point of public schools. Read 3x NY teacher of the year John Taylor Gatto's work. He blew the whistle decades ago.

[@Radioman7600]

Nickyoung, they don't teach kids or high school students how to address a letter. We as a people are screwed

[@garysteinert8040]

Looked at a 21 Telluride here in Daytona new in 21. It had a $15,000 mark up. Dealer came down to $7500.00 markup, we walked.

[@mikeskidmore6754]

New in 21 or did you look more recently as a used car?

[@garysteinert8040]

@@mikeskidmore6754 this all happened in 21

[@EmmyPierz-ek7hi]

HyundaiKiaKrap. CB

[@alex1vid]

Poor Kia, Telluride in particular. To think they became the 'go-to' example for people being stupid with making awful decisions to purchase obviously overpriced vehicles. Basic ones are like 42k now. To think people were paying almost Range Rover money for one.

[@75thrangertreymus6]

KIA = POS

[@OtisFlint]

People were dumb. Some of the enthusiast cars are selling for 1/2 what they were 1 year ago. Motorcycles have dropped 40%.

[@nissan300ztt]

Well they bought a KIA. First big mistake.

[@rtj2397]

People only buy Kia’s because of the 10 year warranty they offer

[@couchwarrior2449]

There's a sucker born every minute...

[@wesleyruble1516]

Falling behind for 3-5 months, great way to get the down payment for a buy here, pay here. That was a common thing 2009 - 2012, all sub-prime cared about was how much is the down payment.

[@dccd3237]

Banks knew these cars were overpriced and they never should have made those loans. Would have slowed the price increases and avoided this mess.

[@billsmith2915]

There's hundreds of 2021 Tulluride's on autotrader for28k-32k, and that's retail. So whoever traded in probably got 25-26k on the trade. So yes, people are screwed, but, if someone paid 50K for a kia, do you really feel sorry for them? I don't

[@EmmyPierz-ek7hi]

HyundaiKiaKrap. CB

[@AyeGeesy]

Banks know that they will be fine when things head south because they will be bought by a larger bank or bailed out by the government. They’ll even throw in a nice CEO bonus on the way out.

[@TheMrAristokrat]

I was at a Kia dealer in late 2022. They tried to sell me $47k Kia Telluride for $62.5k. I walk away as fast as possible. Please don't pay for a car more than it is worth, especially for Kia.

[@EmmyPierz-ek7hi]

HyundaiKiaKrap. CB

[@loukatzerman4517]

A certain cars I guess I can see somebody selling their soul to the devil to buy them. But a freaking Kia?

[@joegrahe3958]

Earlier this year (2023)- Kia dealer in Stuart Florida- 15k mark-up on Tellurides. The way all the Kia dealers were back then with their attitudes assures me that I will never step foot on a Kia (or Hyundai) lot again.

[@EmmyPierz-ek7hi]

HyundaiKiaKrap. CB

[@igorkoske8376]

Back in the days the most I had seen in LTV approvals was 135%+++ but that’s it and that was very limited banks who would approve that loan and only on excellent credit of 740 score and above but during the pandemic we had seen approvals on LTV’s as high as 150%+++ with credit called “I got a pulse” 😂 and that was crazy.

[@Genesis.1-1]

Yikes! I have friends who's car loans are more than my mortgage...and the cars are not makes/models that hold their value. Given the interest rates available right now, I don't see myself trading my car anytime soon. I was fortunate to get my car when interest rates were really cheap...my loan was 0.09% and with my trade and money I put down I financed my new $46K 2021 Honda Pilot for less than $10K. My loan was for 60 months but I paid it off in 24 months. I still make my car payment every month, but I pay myself and will use that money to put down on my next purchase. I tried to talk my kids into buying because the deals were so good, but they hesitated and are kind of screwed at this point. I appreciate your videos.

[@EmmyPierz-ek7hi]

HyundaiKiaKrap. CB

[@Rosie-6]

I just bought a used car (2014 Civic). Turned in a 2022 Corolla SE (CarGurus offered $15,800. Dealer gave me $16,000). Didn't want the car payment anymore ($583/mo), but I had paid ahead so only owed $8,900. Net $7,100, towards $8995. Plus some paperwork fees I owe $2564. I expect a payment under $100/mo. from the credit union. At that rate I might pay it off early. Result a payment I can live with and a car I like.

[@kingtyty5]

As an loan officer for an major credit union. Alot of the time it really is on the consumer. We try to explain to mbrs about their LTV being really high. And they still will sign for the loan even though we recommend looking for a different vehicle. I think thay consumer are really not educated financially on how bad these bad decisions are going to hurt them in the long run

[@dustincollins16]

I'm sorry but I think the banks should deny alot of these loans with large LTV. More people should be told no on these loans. Part of these insane vehicle prices is because the banks approve these crap loans for 72 plus months on cars they buyers can't afford. Start requiring a minimum 25% down payment even with a trade, no negative equity trade ins period, and no more financing terms longer than 60 months. Those 3 requirements would force a major correction in the auto industry

[@EmmyPierz-ek7hi]

@@dustincollins16 YOU Nailed It!!! CB

[@colveraki]

Feel lucky that I pounced on Ford making the decision to get out of making sedans. Got a 2018 Focus SEL for 8K off MSRP. Gonna keep this car till the bottom drops out

[@shekharmoona544]

Is that the one with the transmission issue and buy back?

[@colveraki]

@@shekharmoona544 I've had zero issues. The buy back program was for up to the 2016 model year. Mine is a 2018.

[@jimandersen3003]

@@shekharmoona544 Really? You a Honda owner?

[@jorgemoro5476]

Bottom drops out of the car or the market?

[@colveraki]

@@jorgemoro5476 I'm not going to sell her, so who gives a F.

[@ddm3548]

All those buyers and the banks knew exactly what they’re stepping into. We live in the gotta have it now times. You’ve made your bed, now sleep in it.

[@John-p9j8o]

I'm driving a 15 year old Acura that I bought 5 years ago with 64K on it for 10 thousand dollars. It was 50K when originally sold. All I've replaced was the alternator. I never thought I'd see 8 year loans, people are stupid.

[@cashflo502]

Banks need to clamp down on financing any new vehicles and put their repos out on the market for 70% of it's current appraised value. Consumers would buy those instead of buying new cars and screw the OEMs over instead.

[@oldkid6]

I find it hard to believe banks do these type of things, it's just incredible. And, let's not forget the idiots that purchase these loans/cars, they deserve it because they're part of the problem.

[@hummyhero1484]

You are correct for sure

[@EmmyPierz-ek7hi]

Nailed It. CB

[@leonardpoindexter5289]

It makes my brain explode how talking about ANY car being $44000 is normal. This is mass insanity.

[@SmittyAZ]

Been to the grocery store lately?

[@kevman949]

@@SmittyAZ 6 dollar eggs and a 44000 car aren't the same thing, but you know that.

[@hben1052]

I am going to struggle to replace my 8 year old accord that was bought for 27k all in out the door. Still keeps going, no issue.

[@EmmyPierz-ek7hi]

it’s our December “ dad joke” !😬 CB

[@halflife82]

$44k? That’s stupid cheap. Here in Canada the AVERAGE new vehicle price was just announced to be $67,000!!!! Then tack on all the taxes, insurance, etc. You can spend well north of $100,000 on a new 1/2 ton truck here, and it’s not even fully loaded or a top trim level these days! It’s insanity.

[@briangasser973]

A little perspective is needed. The delinquency rate is 1.92%, which means +98% are current. How many of these delinquencies are from major life events (divorce, death, injury) than people walking away because the value of their vehicle has declined? If you have the means, you have an obligation to pay your debts, regardless of what poor auto choices you made. I would be surprised if banks dont sue to collect money from people who have the ability to pay but choose not to.

[@waynekraft7591]

Pay cash for cars. Don't finance. Example: My childhood friend, Dick. When Dick turned 16 in the mid-60's he got a license and bought a car same day. The car was $50 and it was a wreck. He drove the wheels off and bought another $50 car and so on. Some of these cars lasted only a few months, but he finally lucked out on a $50 car that lasted a couple of years. By the time that 1950 Studebaker gave up the ghost, Dick had saved $500 and he paid cash for a car that was nice enough to impress a date. Dick is now 70 something. His daily driver is a newish Toyota Camry and his garage contains two mid-60's Corvettes and a 1967 International Travel-all, each perfectly restored. Dick has had nothing but fun with cars his whole life. Because, over the last 60 years, Dick spent $0.00 paying interest to banks for depreciating assets, he could easily pay cash for a $95,000 brand new pickup today, but he won't. He's having too much fun.

[@EmmyPierz-ek7hi]

Dick I$ a $mart Dude. CB

[@chuckjones6386]

A few years ago I decided to stop financing new cars and bought an older square jeep Cherokee and put a new motor and trend, all new front end, breaks, hoses, battery, wheel bearings and had the rear end rebuilt. Basically new for about 11000. It worked out so well that a year later I bought an 80s land cruiser. It’s had the motor rebuilt and a rebuilt trans done. New shocks and front end. Differential rebuilt. We’re estimating about 14 to 15k all in, and basically new.

[@EmmyPierz-ek7hi]

“ motor & trend” “ breaks”??? CB

[@EmmyPierz-ek7hi]

dems da breaks! CB

[@mavfan1]

Which banks are screwed? Can you please name them and where your data about each bank’s situation is detailed?

[@hvaball150]

None really. They just write off the repo loans, worse case. The only way banks are screwed is declining interest from now less expensive loans.

[@bossmodl3thalpoppa484]

Got me a new outlander in 21 traded my 2016 evo My payment is 370.00 it was around 32k so glad i decided to do this BEFORE all this greed started

[@chanman83]

My wife and walked away back in 2021 because of this. We went to look and wanted to buy a telluride. When we got there, guy was like yeah 10k markup. I looked at him like seriously. Wife and I knew it could be a stupid deal in 2 yrs, now it’s coming to the surface. Glad we dodged that bullet.

[@CraigerAce]

Buying anything that’s a depreciating asset by borrowing to do so is stupid. Much less what’s talked about in this video. That’s beyond stupid. But this is the world we live in. Peace. Out.

[@youn1700]

I know currently, a company I code for will give LTV of 175% at 28% APR. It should be noted that if your score is 600+ they will not give you a loan. The way they work is they take out loans from the bank for 6% and then lend that money for 28%. They expect a pretty high delinquency rate.

[@mwaynem]

I haven't had a car payment for 20 years. I pay cash or I don't buy. I also never buy new and I never buy when the market is high. Not being a slave to the banks is a very happy place to be. 😊

[@EmmyPierz-ek7hi]

Da Best! CB

[@rubyvolt]

this is the same as the housing market as they made mortgages that they knew people couldn't make. Now they try it with cars and trucks. $100K for a truck? $60-80K on a 6-7 year loan? LOL... NO WAY!!!!

[@michaellalanae7228]

Cars worth 15k allowing 48k debt on ? Didn't see this one coming 😂,these dumb ass banks deserve what's coming .they better have a huge parking lot or have a scrap yard and car crusher available . 😂

[@5dc61]

Friendly reminder; when a bank gets bailed out the money given to them is our tax dollars

[@EmmyPierz-ek7hi]

Dammmn Foooolz. CB

[@aerated]

It’s not the banks who are going to have to deal with the worst outcomes of a credit collapse, it’s all the rest of us

[@dcsnunes]

I saw telurides being sold at beginning of the year for 65k (21k dealership markup). Believe it or not! The salesperson got mad at me because I asked her why on earth they were asking like 21k markup price. Her argument was "Imagine if I don't put it and sell 300 telurieds in a month, next month i don't have nothing to sell/do."

[@OtisFlint]

People who bought those with little down and 72mo (so most people) are $25-30k upside down. Those dropped $30k in 2 years.

[@EmmyPierz-ek7hi]

salesWOMEN, Right??? They themselves can’t even get their “ WOMAN” part right!Dammn Fooolz. CB

[@rockin870]

At the beginning of the the year I bought a 2008 mazda 3 for $1800 with 120k miles. After replacing the motor mounts and a bunch of suspension parts, its a fantastic car, and I'm in for $2300-$2500 total. Can probably drive for the next 10 years. Just replaced an alternator in my 2002 Ford Escape. That has a book time of an 8hr job(billed hours). If you figure $100-150 an hour(average in my area), you are at $800 to $1200 just for labor. Add parts and you are at $1100-1500 for the full job. I have done the job before and it did take 8hrs. I did it myself in like 5hrs as i decided to lift motor to get alternator out on suspension side, instead of removing top of motor like the book says....saved hours. So instead of $1100-1500, I'm in for $110 and the ford is back on the road. I can go out and buy a new car cash, but I don't see the value in it. Plus most of the year, I ride "classic" motorcycles that I got non-running and fixed for pennies on the dollar. Self-sufficiency doesn't seem very common place anymore. Lastest thing is the "coming" ammo crisis.....I'm just gonna sit here making ammo better than the factory stuff(at less than 10% cost of factory )...just like anything else smart people prepared. lol

[@engineeringoyster6243]

Over 3 decades ago, a young woman who sat across the aisle from me at work purchased a Pontiac Ferro a few months after they came out. They saw her coming and took full advantage of her ignorance. It was financed by GMAC with a Rule of 78 loan with a jacked up interest rate. There was a significant dealer add on and they sold her an extended warranty that time showed didn’t cover many of required repairs. After 3 years, the car was in the shop every few months and she couldn’t afford to get it out until the next payday or 2. So, she investigated trading the car in for something less expensive but was so far under water, particularly since it was a Rule of 78 loan. Never did find out how it worked out for her because our group moved to another building. But it made a big impression on me: Pay attention to the details when buying a car and walk away if you are confused.

[@EmmyPierz-ek7hi]

Pontiac FIERRO Was designed in 1968 Featured on Popular Science magazine. 1984 introduction with inferior engines and proper outside cooling issues. First recall to replace 4 cylinder engines, Second recall for V-6 engines. When they finally got it right, they discontinue it! A 20 year financial program Scrapped All that lost $$$ GM Garbage Motors Or Generally Morons. CB

[@EmmyPierz-ek7hi]

rule of “ 72” money??? Man, you are 2 for 2 On the WRONG end. CB

[@EmmyPierz-ek7hi]

FIERO Sorry Didn’t catch SPELCHEK in tyme! LOL CB

[@dennissvitak5475]

I had a 2017 Subaru Outback 3.6R. I held clear title in April 2022, and sold it to a dealer, outright, for $28k. I have never had that amount of equity. I am fully retired, and wanted a car with a good warranty. I rolled that 28k, and I added about 10k cash, and paid for a new 2022 Hyundai Tucson. I have owned seven other Hyundai's, and love them. Now? I don't have a car payment, my car only has 13k miles on it, and I am banking BIG monthly, every month. In about 4 years, I will have saved 30-40k, and have a vehicle with about 15k equity. Sounds like a new Lexus for me then...cash.

[@jimandersen3003]

FYI: Laws have changed on what the banks legally have to do. The ' have to be fair' government elected by the flakes is a lot to blame.

[@almadeunrebel]

gov’t? the market regulates itself

[@kellingtonlink956]

So if that KIA owner trades it in 2 years later (bigger/smaller/better make…) and buys a $25,000 Honda Civic, for example…he’s gonna upside down $30K. So that $25K Honda is gonna be around $30K (with the min taxes, paperwork etc.) + $30 outstanding on the KIA (the trade-in)… so around $60,000 for his new, now deprecating base load Honda Civic. Wow!!! Thanks for the video.

[@EmmyPierz-ek7hi]

HyundaiKiaKrap. CB

[@frankieosf]

Everyone talks about greed of dealers and banks, but…..NO ONE forced those foolish customers to buy a vehicle with a STUPID dealer markup!!!

[@EmmyPierz-ek7hi]

it’s the old... “ Ah Gotz Tew Hav Itt” Lustful mentality. CB

[@richardg8651]

Financing a car for a longer period then the standard warranty is a mistake but a finance period multiple times the warranty is insane .

[@sproaticus3]

They are guilty of price gouging..every dealership management and owners should face jail time

[@briangasser973]

Why? No one is forcing you to buy their product. Real estate has gone up significantly too, should home sellers also go to jail?

[@sproaticus3]

@@briangasser973 yes

[@gregorybarnes5642]

I just have to smile when people ask me why I would sink a couple of thousand dollars to keep my 1992 F-250 rolling and running like a top.

[@KPHVAC]

Banks and our government have increased the price of everything! Banks let people borrow way more than what they can really afford. If you make $100,000 a year you can realistically afford to buy a $33,000 vehicle, out the door price. 1/3 of 1 years salary for the total vehicle price is a good budget.

[@Poopster4U]

I cant believe people paid over MSRP and banks lended that much money.

[@davidbeppler3032]

Imagine all the new cars that will be collected for auction after dealerships can not pay for the floor plans. The auctions are already flush with vehicles they can't sell.

[@EmmyPierz-ek7hi]

Po Foke Americans ( since 01/20/21 ) Need housing utilities food meds. To #€££ with used/ new cars. CB

[@genesotdorus413]

Had a cousin that had a ford escape that was $15,000 over value & she retired couldn’t pay the $550 payment because she kept trading in cars upside down on to get newer cars . Only had it for 1 year . Dealers don’t help people out when the ask what payment they want to stay in & never realize there screwed . I have multiple vehicles so I laugh when the salesman gets upset when I don’t get the price I leave .

[@EmmyPierz-ek7hi]

Cousin Crazy? CB

[@Scottsmusiccave]

People that refused to pay these prices and just saved their money are patiently waiting for the market to turn.

[@kclefthanded427]

Almost every vehicle is a diminishing asset. Failure to maintain them makes it even more so when you trade in. I would finance 60 months max

[@gordonliddy9418]

The bank I bought my snowmobile through went up .75% in just 2 months so I'm gonna call BS on the rates coming down.

[@markd5067]

This is flat-out consumer predation, and these legal unethical crimes against consumers are pervasive throughout America everywhere...

[@jimandersen3003]

Are they holding a gun to your head forcing you to overpay for a car you can't afford msrp and then financing the whole inflated price at newer high interest doubling the amount you can afford to pay?

[@stephanarizona9094]

The mistake alot of people made was if you ever pay over MSRP, then negotiate the trade in price, "If I trade this vehicle back in at your dealership, you will give me $xxxxxx above trade in value," most dealerships will agree to that, so when you trade it in, you are not getting burned.

[@azandy77]

I'm seeing prices on used cars and some SUV's going down. Trucks, new and used are still at all-time highs.

[@michaeld5770]

Another thought is if a person is under water and wreck the vehicle totaling it. The insurance company is not going to pay off the loan. They will pay current value. The consumer now owes the balance of the loan and has to find another vehicle. Even Gap Insurance doesnt pay off the loan if they are that much upside down. It should be criminal to sell or lend that much money on a depreciating asset.

[@sokratzmmf]

It made no sense ever for banks to lend over MSRP. Too much risk

[@TheBuckeyeFarm]

I walked into a dealer, and said I was going to pay cash. They told me to get the loan, and then pay it off. I walked out, because I have all the power. The dealer is going to do what I want, because it is my money, and trucks are all over for sale. TAKE BACK YOUR POWER FOLKS, because they have been screwing over the consumer for far too long!

[@dennissvitak5475]

When you give 100% loans for a 45 thousand dollar car, that then depreciates by 20k in two years, you're screwed.

[@stockae74]

I'm so thankful I don't have these problems.

[@nobodyimportant7804]

This is one reason why you keep your car 15-20+ years. Depreciation becomes irrelevant. Of course, a Kia can't last that long. Anyone who buys a Kia - at any price - made a very poor decision. Decisions have consequences and the decision to buy a Kia only brings pain. This applies to Hyundai, Nissan, Ford, Chevy, Jeep, Ram, etc etc etc

[@Lousybarber]

I would hate to be driving something knowing that if it gets totaled I am on the hook for several thousand dollars. Or if the thing starts having mechanical issues I cannot trade it in without incurring more debt because the loan is upside down.

[@EmmyPierz-ek7hi]

HyundaiKiaKrap. CB

[@rhoodj]

So many local dealers have closed their doors... only bushes in the yards.

[@EmmyPierz-ek7hi]

Brink back drive in movie theaters Asphalt jungle parking lots. Show movie from “ show”room Service dept. snax & drinks Parts dept. popcorn storage Body shop- exercise equipment for all those “ not so great “ bodies. CB

[@EmmyPierz-ek7hi]

Sorry I’m insomnia Cra-Z!!!😳😬. CB

[@keithhernandez4319]

I try to get a car loan through my bank to replace the car. That got totaled back in January. They wouldn’t give me a car loan now they’re the one to finance the car they got totaled, but I don’t make enough income, even though my credit is almost 800 smh

[@davidpetersen7091]

Most people who buy new cars should really buy $5,000 used cars.

[@Papito617]

I’m glad i sold my car earlier this year. I was a victim of AMV(Adjusted Market Value). I bought a new Lexus IS500 back in 2022 that MSRP was just over 70k and bought it at just a bit over 80. Owed 53 on the loan and got it sold for 64 at a dealership. Still at a lost but dealerships now would be buying that same car at 45k used. If I had stayed with the loan at 5.6 percent I would have owed even more and been more upside down. Lesson learned as that was on Me.

[@dennissvitak5475]

Banks are completely OK with taking back a car, and re-selling them.

[@The_Temple]

Banks screwed? Nope. There is vastly far more to the industry than just auto loans.

[@briangasser973]

Chase, Citibank, Wells Fargo, would find this video foolish. They have trillions in business on their books via investment banking, commercial lending, and real estate lending. It is way too simplistic to claim that a 2% auto delinquency rate is a systemic risk to banks. They are bennifiting much more from the decline of the 10 year treasuries over the last 2 months. Rather than just claim doom and gloom, make a prediction on how many banks are going under from delinquent auto loans. Mine is 0.

[@jamesfronte8318]

I don't understand how any consumer could think it's OK to buy anything with credit with less than 20% down plus all taxes and fees (probably closer to 30%). Any lender that has FDIC insurance on the deposit side (Bank liabilities) should not be allowed by the US government to make such loans (Bank assets). Only private lenders with no FDIC insurance expsosure or Buy Here Pay Here lenders should be able to make loans with small or no collateral. The same for home buying. It's not government overreach, it's the government making sure that responsible people don't pay the price by stupid and selfish people who tank the economy (i.e. 2008 sub-prime home lending). If a private lender wants to make the risk with no impact to the banking system, then have it with zero down loans. Sorry for the rant!

[@TheJrschaefer]

Banks get yelled at for not enough credit, then get yelled at for over financing. When does the consumer absorb any blame. Most people have no control and can’t be responsible to make their own choices.

[@wespotter6985]

Kia and hyundai are still back of a pack vehicles. My brother's sonata was burning oil like crazy at sixty five thousand miles.

[@EmmyPierz-ek7hi]

HyundaiKiaKrap. CB

[@jimandersen3003]

In Ca, 9% sales tax and $500+ registration. $50,000 car is $5000+ state fees.

[@dougallen4675]

I buy a new vehicle about every 5 years. I don't pay "Market Adjustments" or "Doc Fees" I don't shop dealer vs. dealer. I do my homework and make an offer. I've walked from a deal a number of times. I usually receive a telephone call from the successful dealer.

[@ArthurvanH0udt]

EU person here. If you get say a 130% loan wouldn’t the interest also not be CRAZY high? Combined with (compared to EU) being relatively unprotected in US against USURY and the sh#tstorm is complete. Why not buy a 2nd hand car of 5y old for way less than 50% of MSRP? And pay it from some savings. IMHO that is MUCH MUCH cheaper!

[@JohnSmith-ug5ci]

Both the banks and the buyers are responsible for these irresponsible purchases.

[@5dc61]

Yes, and our tax dollars will pay for bank bailouts again.

[@jimandersen3003]

@@5dc61 Tax dollars bail out stupid consumers too.

[@nickvilla6651]

This exact scenario happened to me. Was looking at a car and I knew ahead of deal I would roll $8k in negative equity into the car and they wanted me to put $12k down I was like are you out of your mind 😂

[@jorgemoro5476]

Not sure who’s dumber. The bankers or the customers. Both are def to blame and should be held accountable.

[@loukatzerman4517]

Bankers knew exactly that they were doing. I guess they figure governmental bail them out. But the consumer? What a dumbbell. Who would pay $10,000 over a list for a Kia a car known for problems in depreciation in the first place? Lot of stupid to go around here

[@azothdrogo9373]

This is why I lease. If it makes sense at the end, I can buy it. If not, I just ride the market on a brand new car for 3 more years

[@joshuadavis1770]

The total market value of auto debt is $1.595 trillion. That is nothing for banks in 2023.

[@gregorysagegreene]

Any car over $25k is criminal. But if you were walking out of Walmart with a new TV during the lockdowns, then you deserve everything you get. Cars are made as worthless.

[@dougallen4675]

Banks usually have recourse financing agreements with the dealerships. If the reprobate defaults on the loan, the dealer must pay the bank.

[@bobrovsergey]

Banks are being banks, nothing new. Does anybody expect banks to think or care about you? People that paid thousands over msrp did it to themselves, if you just needed a form of transportation and not specifically a Telluride then you could find one without market adjustment. On the other side banks should be held accountable too, I hate to see them bail out with tax payers money.

[@TheJrschaefer]

Consumers so quick to point the blame elsewhere, it’s never their fault. Dealer wants it sold, consumer needs the best car they can’t afford and it’s the banks fault?

[@stu4181]

Dealers definitely preyed on people who have limited understanding of cars and finance. Watching prices on auto trader has always been a pastime and watching used cars 3 years old costing what a 6 month old one used to cost And the ridiculous price of new cars for the last few years it was clear that the bottom had to fall out, even before cost of living crisis went in. The pandemic meant alot of people worked from home and couldn’t spend money on holidays and going out so had the extra cash lying around to blow on an overpriced car. Now normal service is resumed with increased cost of living its a perfect storm. The market must have a way to go yet in this correction.

[@AnthonyFransella]

Two years ago we looked at the Kia and the dealer up the road has a $15k markup. I decided that I would never do business with them, ever. Bought a used Pilot instead, never regretted it.

[@EmmyPierz-ek7hi]

HyundaiKiaKrap. CB

[@JohnnyLightningV10]

Banks, dealers, and manufacturers are about to eat an ugly time where people let them go and go buy cash cars under 5k.

[@DollarBill01984]

The banks should’ve never loaned no more than 120%. With great credit. Mayber the dealership should co-sign the loan!

[@tommak6516]

The reason cars are so expensive is because they are bought from high overhead fancy glitzy dealerships located in rich neighborhoods. Perhaps it might be cheaper to buy a car in a back alley in skid row, after hours, from a private party, bringing a substantial cash downpayment.

[@petereinert7581]

I know 2 (TWO) guys who bought Tellurides at $60-70k back in 2021. They were tough to get. Here's the punchline: One was a banker, and one was a bank manager!

[@EmmyPierz-ek7hi]

Damnn Crookz!!😳😬😠. CB

[@loukatzerman4517]

Is the key word there was?

[@rossferguson5786]

Great video ! A comparison was made to 2006 delinquencies. Back then cars were much cheaper. Particularly used cars. You could buy a nice used car for only $10-15K. I think the storm is much worse today.

[@flkayak5613]

Happy my 06 and 15 are running strong still.