Banks Wrote BAD CAR LOANS: Now The Car Market Is IN CRISIS

WE WANT OUT! Car Dealers & Banks SCREWED BUYERS!
In this video, we're talking about how the negative equity crisis could destroy the economy. Dealers charged too much and banks allowed too many bad auto loans. Repos are spiking and people are looking for ways to get out of their car loans.
My name is Brandon and I am a used car dealer. I created Car Questions Answered to share the ins and outs of the used car market from my perspective. I share with you updates on car prices, what's happening at the dealer auctions, and what it's like being a dealer. My goal is to share information to help you make the best decisions while buying a car to save you money. I do not want car dealers taking advantage of you.
Thanks for watching and please feel free to leave any comments you may have in the section below!
And make sure you don't forget to LIKE, SHARE AND SUBSCRIBE FOR MORE!!
*None of this is meant to be construed as financial advice, it's for entertainment purposes only.
#UsedCarMarket #CarPrices #carmarket #usedcarprices

[@Enjoymentboy]

I have zero sympathy for someone who buys something they don't need, at a price they can't afford with money they don't have.

[@1968CudaGuy]

Karma is a muzzahphucker!!!

[@666dynomax]

too many people feel entitled to a new car... then blame the government, their employer, somebody else other than themself.

[@justinfowler2857]

I watch a lot of repo videos. I could afford a newer car, but I like the fact that I don't have a car payment. No repo man will be pulling into my driveway soon.

[@jimbobaggans1564]

Consumers fault. Forest Gump's momma said it. Stupid is what stupid does.

[@alvinprettyman1802]

"I used to do things I shouldn't do ... to get thing I didn't need ... to impress people I didn't like ..." "Now I try to do what I should do ... to get what I need to live a good life ...

[@user-df2mn5bx2q]

I dont feel sorry for anyone in the car biz, buyers, dealers , banks....all of them

[@gdbrojus]

How about ppl like me who are waiting lol

[@brettloo7588]

+1

[@vinnybagodoughnuts2817]

You will when the banks fail and they come looking for another bailout!

[@OGsuburbanite]

Me neither. Taking part in the American dream is the dumbest thing anyone can do

[@stephenpittman4291]

It’s ALL a Ponzi scheme- and I’m not just talking about the car market… American exceptionalism at its best - buckle up sheeple

[@damarcusgates6818]

Happened to me. Paid 83k for a 2021 gmc Sierra denali 2500 in August of 2022. Sold it in March of 2023 for the highest offer from 6 dealerships of $64k. I had to come out of pocket with 7k just to get out of the loan. I just wanted out. I take full responsibility for my bad decision. Wont happen again tho😎

[@timp3035]

Amen.. Wont happen again...

[@erickanter]

Respect man. You learned a lesson no judging.

[@lotsofthisandthat9791]

The Dealer did it to you! All kind of extra add-ons!

[@charlesjackson1700]

Live and learn...

[@toetag4u1day41]

Amen. Been there myself. Life lesson well learned

[@ericgibson4629]

As a Pre-Owned Manager, I appraised cars for thousands more than customers paid before the market went crazy just after COVID-19. One of our New Car Managers was complaining a short time ago that he can't trade his customers out of their current vehicles. I told him, it was his fault, He not only charged over the sticker price but then, Held money on the trade. Dealers did it to themselves

[@damirzanne]

reason those $120K pickup trucks are so stupidly expensive, is because suckers keep buying them .. we are all grown ass men here , buyers , dealers and banks … nobody can blame someone else for anything , we all know the rules of the game … 1st rule , don’t buy $120K truck if you make $15 per hour …

[@JustDItY]

Excuse me. $20 / hr now. I can afford it. Who else got a 33% pay increase? jk

[@user-tq5qu8sc5s]

Besides adding a backup camera that we don't need except by law. Auto on/off that I don't want. Sensors on mirrors, bumpers, windshields etc. 18 air bags. Lil

[@ronclements2002]

Don’t buy a 120,000 dollar truck no matter how much you make. It’s just irresponsible.

[@crazyspartan2991]

It's crazy to think 120,000 is just 40k less than my house when I first bought it

[@michaelrieser9928]

Rule no. 2 if you do get into a bad money situation like this for what ever reason. Learn as much as you can from it so you can be wiser moving forward.

[@wb1340]

Oct of 2021 I was in the market for a new F250 crew cab long bed 4wd pickup. EVERY dealer around me wanted msrp plus plus plus and they had a very "F' you take it or leave it" attitude. Someone referred me to Granger Ford in Iowa. I called, explained I had build a new truck on the Ford website and wanted a price. Girl said to email to her, hour later I had a price. MSRP was 63K, Granger price was 58K. Gave the dealer a 1K deposit, copy of my license and insurance, truck was ordered. Dealer took delivery five months later and I was in and out in thirty minutes. I would gladly drive five hours each way to Granger for another vehicle.

[@Greg_Chase]

That's a great story. There are TONS of good people out there. I've been in a consumer-facing business since 1993 and the vast majority of people are reasonable. Thanks for sharing, I bet that dealer has a fantastic reputation.

[@planobest8120]

You paid $58,000 for a vehicle and you thought you got a good deal? Buddy, you shouldn't pay more than $15,000 for a nice car. You got robbed blind. i hope you make $150,000 a year or more and can afford

[@Gldn1017]

Ngl if you drove 5hrs to the middle of nowhere you deserve it, those guys sell 30 trucks a month

[@tedmoss]

@@planobest8120 Some of us are in the real world and some of us are in a fantasy world of their own making.

[@FixItStupid]

No Good Warr Service ? Did Not Sell ? So Piss Off Dealer Service. ALL A RIPP OFF You Can't Fix IT Don't BUY IT

[@Boodieman72]

Just keep your old car until it's paid off and stop trying to get a new car every year until you can afford it in cash.

[@sues3218]

Yep, I have three cars I paid cash for and plenty of money in the bank to improve on them, fix them, or buy another one if I find a great deal. Debt is slavery.

[@jasonwillis4819]

Don't forget that Auto Insurance - full coverage has DOUBLED in my area (California)

[@boostedrex9460]

Well ya 75k+ is not something small to insure bud. That's crazy

[@boostedrex9460]

Even a tesla 20k is mandatory 1000k plus for 6 months on geico with high comp and collision. It's stupid.

[@rodneypennington1086]

Just bought a 2000 Corolla for $1200, 100,000 miles, perfect service history, small bumper crack for me to fix - $40, owned by a grandma. That's 2 months of loan repayments apparently. Car is in great condition, so I'll probably keep it for a while.

[@danielowen5889]

Great car,great price, drive it forever

[@cobeeble]

Give you $1500 for it.

[@reggiebuffat]

Install an espar heater, an electrically heated oil pan, and you’ll put 200.000 miles on it.

[@dennynisevic7848]

Chip bustard

[@rodneypennington1086]

@@cobeeble haha

[@motorcitymadman146]

People actually thought they were gonna get free rent free money and not have to work forever. Reality is a bitch.

[@joehartoon]

Many will, they'll live in apartments and not own anything and blame honest workers instead of printing money

[@jean-louislalonde6070]

Yup.

[@billycarr7446]

@@joehartoon Bingo! People vote for the 'free money' candidates. They get thrown some crumbs while the pols become mega millionaires while makiing what, $200k/yr? The excess gets sent off to biz friends and slush funds and special interst groups. There is no special free money fund, it is printed out of thin air pretend money. But Bidenomics be damned, the math must balance and inflation is the result you are seeing. Don't think I am picking on the Blue team, the Red side is equally guilty. This pattern has been repeated time and again thru recorded history. We are just lucky enough to get to live thru The Great Depression v 2.0. I wonder if the .gov will let one of the Big 3 auto makers go tits up? Nahh, they will print more money. Make sure you have a wheelbarrow before the rush.

[@user-tq5qu8sc5s]

​@@joehartoonI own nothing and live in an apartment. Been a building engineer for years. It's my fault that I'm allowing myself to be taxed.

[@RareGenXer]

But Bidenomics😂

[@RandomEvents_]

Paid off the acura and the ram last month. What a great feeling not having them payments anymore. Amazing to see extra in my accounts 😍 💪🏽👊🏼

[@seamusoreilly804]

“Car dealers & banks screwed buyers.” Every one of the buyers who signed the sales contract also signed a disclosure and agreed to pay the markup. There has to be some personal responsibility in this deal.

[@phillyfathead]

Ummm just like student loans!!!

[@dondavi5798]

@@phillyfathead Exactly....student loans, home loans, car loans etc. Short of identity theft people have to be held accountable for the promise to pay - loan- that they signed of their own volition. The only sympathy I have are for folks buried in health debt, even that is provided that they aren't in that debt due to lazy negligence that caused them to acquire it.

[@lvsqcsl]

So, people aren't responsible for their actions? Say it ain't so!

[@TheIronChainMaster]

"It takes 2 to tango"

[@IP0Monsturd]

Buyers got screwed and didn’t even get a reach around.

[@JohnDoe-wy2py]

There are still sleazy dealers here in North Carolina that are still adding “market adjustment “ to a freaking USED car price. The local Nissan dealer added $1000 for not having a trade in, another $1000 for not having the dealership arrange the financing, another $2900 for reconditioning, $999 Doc Fees, and other fees. The out the door price on a used vehicle that was listed for $27K was over $36K with all the fees. The dealers can choke on it!

[@weswest8666]

Buy private party get the same car before they trade it in.

[@IP0Monsturd]

How much did they charge for the e-z glide anal lube?

[@JohnDoe-wy2py]

@@IP0Monsturd haha. I ran out of there before it went that far. But at those prices there should be a free lifetime supply

[@Crazyarkansaslife]

1,000 because of no trade? I would get up and walk out laughing 😂

[@kdaddy100]

Yeah, that's definitely a sleazstax dealer. 😂😂😂

[@jamiematthew4986]

If history taught us anything the banks will not suffer or eat the cost.

[@loufher284]

Car Payments are $1,000 a month..... Something had to break....

[@philliphall5198]

It’s going to break and everything else very soon

[@mitchhedberg4415]

nothing compared to housing

[@shaggyofwv]

The banks knew that these vehicles weren’t worth thousands over MSRP. They deserve the losses that are coming their way.

[@DanA-nl5uo]

Remember money is loaned into existence. The fractional reserve means that the bank only had 10% of the loan value as assets when they wrote the loan. The other 90% was loaned into existence by the bank.

[@Theweouthereforrealclub-]

Not since Covid. The requirement is now 0.

[@ryanroberts7771]

Exactly. There is no deposit requirement for the banks anymore. They are making interest off of air. The actuaries factor in defaults. They are still making a killing with current interest rates.

[@carterlee8344]

When you have no investment any return at all is infinite. That’s the current system. It’s slavery and that’s human trafficking. Get ready…

[@rubyvolt]

this was done ON PURPOSE. First, DUMB the people down so they understand NOTHING about interest rates and payments. Then, let the corporations BEND THE CONSUMERS OVER and give it to them DEEP. Government in a fascist state protects business, NOT PEOPLE.

[@philliphall5198]

You are correct Sir It’s to hell with the people

[@AviatorGM]

At the rate things are going, we'll all be riding our old Scwinns and Huffys soon.

[@shermanNTKI]

I've never understood the need to be the first on the block to have the hot car and being willing to pay $25k+ premiums over MSRP. Lightnings, Broncos now Cybertrucks.

[@Cozydrone]

I am 57 years old,I never had a car payment higher than $220.00 a month😂🎉😊.never!!

[@Redacted-Information]

How is that 1986 Escort running?

[@diannemc3179]

@@Redacted-Information that’s not nice

[@morningbeachsunshine7496]

I am 58 years old and wanted a VW Jetta around 1993 - reviewed the paperwork at about $225 a month, dealer said he would mail the finance papers. Fast forward a week and the payment information came with $325 as the monthly. Drove the Jetta back to the dealer, took my plate and left a VM telling them where their car was on the lot. Never heard from them or VW finance company again. Since then - cash for cars, usually 5-6 years old. I have saved thousands thanks to the folks who are "keeping up with the Jones'es" 😂

[@brianp5244]

​​@@diannemc3179 Agreed 100 % Don't be judgmental. Be nice.

[@rodneypennington1086]

@@Redacted-Information Be worth good money now

[@lvsqcsl]

As far as I am concerned, a vehicle is a depreciable asset that will continue to lose value while you own it. Mine is now worth $350.00 according to the clerks office. I pay $7.35 in taxes and $20.00 to license it and $300.00/year in insurance. It gets me where I need to go. GREAT VIDEO!

[@MuahMan]

I had to take a repo earlier in my life. It dinged my credit like 200 points or something crazy but it was still worth it. It forced me to buy with cash and develop better habits. Built the credit back up after 4-5 years but still don't really buy anything I don't have the cash for. Screw the banks/dealers, they'll still try to nail you for the difference from the loan and auction but let them eat that in a charge off as well. What they do is predatory lending and just as bad as you ditching the loans.

[@multicyclist]

It is even worse than one might think. In addition to all the outrages dealer markups and ridiculous overpriced dealer add-ons, it was common for banks rolled over a car buyer's negative equity for the trade-in into the new car loan.

[@nomaam-br549]

Stupid people never should have bought those vehicles, BUT......... also, I'll NEVER shed a tear for a bank experiencing the consequences of their parasitic actions.

[@eastewoode9157]

Banks don't have consequences as long as the govt is there to bail them out with our money.

[@jkholley1118]

Awe, poor banks and dealers. Who could have seen this coming? FOMO and greed is a bitch.

[@Roman_4x5]

They have it figured out. Possibly the loans were repackaged and sold to government already...

[@gregh7457]

can't afford it? don't buy the damn thing. simple as that

[@jkholley1118]

@@gregh7457 So over pay to prove I can afford it? Lol. Brilliant financial planning.

[@eastewoode9157]

Don't worry, we are always there to bail them out.

[@TheLemart]

This is what happens when you vacuum money up to such an extent nobody can afford the products and goods you make .Corporations are out of control.

[@fermingarrick2120]

Blame greed....

[@bobbg9041]

I own my cars outright. The only way you make out on any car or truck is buy low drive it until the wheels fall off. You do not now or ever look at a car as an investment. Put your money in your home, they actually gain value. Ill drive my rust bucket until it go no more. Then drive it some more.

[@jean-louislalonde6070]

My five speed manual Toyota Yaris is now 18 years old. Bought it new in 2006. The exterior has several dings, it is rusting on one rear fender and the paint is losing its clear but the engine runs great. Hardly 180 000 km.

[@dennynisevic7848]

Chip bustard

[@user-ep9ht7ok6q]

You're right bout all parties being culpable, but I'd change that "at the end of the day" part to the banks. If people have cash and want to blow it, that's on them. If people need a loan to make a bad financial decision, that's on the banks.

[@iforgotmyscreenname1]

**Ouch** $800 - $1,000 a month for the next 84 months while rent, foods, insurance and cost of living rises. Eventually, something will break.

[@robertmatthews2009]

No problem. Minimum wage at my fast food job in California is going up to $20. Hey! What do you mean I'm laid off?

[@danielowen5889]

The American ppl are

[@mitchhedberg4415]

That is what they paid anyway.@@robertmatthews2009

[@ak1ranger]

I just bought a new Ram 1500 with my trade plus the rest in cash. The price of the RAM was discounted $23,000 because it was an unsold NEW 2022. 2022 RAM Classic Warlock 4x4 6'4 bed with navigation, towing, technology, cold weather and the big horn interior. MSRP $54k I bought it for $32k it had 54 miles on the odometer. So yes, the deals are there, pay cash if you can, don't become part of the equity debacle.

[@stevenj5839]

You can't stress enough that people who give up these cars are still on the hook for the balance after the auction. You mentioned it, but it needs to be stressed. If you still owe 10k and the auction gets 7k, you still owe 3k and the bank and collectors will still come after you until you file bankruptcy. Then for the next 7 years you will then have to rebuild your credit. You will lose job opportunities and pay more for your insurance, etc. you pay one way or the other. Yes you're right. If customers weren't ignorant enough to buy at those prices, and banks didn't finance it, the dealers wouldn't have been able to fleece Americans 🤷🏻‍♂️

[@ericl452]

Don't forget the fees that get added on top. In your example, you will owe the $3000 difference between your loan balance and what it auctioned for plus a bunch of fees. The auction proceeds would be the net of what is sold for minus auction fees. There can also be tow fees, storage fees, bank loan fees, lawyer processing fees, etc. You may owe $5000 or more. People would be much better off keeping their car in the best condition possible and selling it on their own. They probably would have to add some money to the deal, but losing $2000, for example, is a lot better than losing $5000 (or more). Your credit won't be destroyed either.

[@dawhike]

Sounds like a future class action lawsuit against those banks and dealers, who colluded to overinflate values and loan amts.

[@DonovanSexton]

And if the banks write it off.. The consumer pays taxes on the difference.

[@justinshaffer3419]

@stevenj5839 @ericl452 You are very correct. Brandon lightly mentions it but he doesn't say how much hell those debt collectors can cause in your life. Been fortunate that I personally haven't been there, but know people who have. Don't get yourself into way too much debt. Can't be emphasized enough!

[@jimbobaggans1564]

​@@ericl452 That is what people don't seem to understand.

[@lavernedofelmier6496]

Had a coworker ask me what I owed, after I listened to his tales of debt, told him I was completely debt free 🤷🏻‍♂️ he told me I was unamerican. Buyers purchasing these autos believe the money is being made while they are sleeping I guess.

[@kevinlafferty7647]

Ive had that un American comment for buying a Honda ..... made in Ohio..lol I said i hadn't had anyone paying my bills from Ford, or GM. Get a clue.

[@sues3218]

Unamerican? Weird analysis. I would say you are a very wise American, and not a foolish one that is in debt up to your eyeballs. He is in debt with inflation rising, and you are not. Doesn't take rocket science to figure out who will weather the storm better. I am also debt free and own three cars I paid cash for.

[@Runco990]

Congratulations! I am also COMPLETELY debt free. House is paid OFF. My 02 Civic is looong paid off and is in EXCELLENT shape. Only 47K on it... yes, 47K from when I bought it new. Call me un-American ANY day! 👍 I can ride out this BS going on. That was my plan.

[@ninjatvlv6101]

only debt i have is my house purchase. id rather walk up with cash. never doing a car loan again.

[@JimAllen-Persona]

Wait a minute, wasn’t it after 9/11 that Bush told people to go out and consume or the “terrorists win”?

[@CL-ok1gx]

Prices don't make sense 10 year old vehicles all of them only worth 10k max. Prices are up 200 to 400% like housing is up 400 to 600% it's not realistic

[@DanA-nl5uo]

I don't think you have bought a 10 year old pickup truck. Even up here in NH where they rust they are over $15,000

[@theashpilez]

Or sustainable.

[@tetriseffect711]

@@DanA-nl5uoyup and they are all at 175k-200k+ miles I see a lot of people trying to sell 2005 2006 2007 DURAMAX For 18-20k free rust included

[@solvend]

Theres a reason i put 40k down on my 54k 2500HD in 2021. I wanted low low low payments, which i had. Now its 2024 and i paid it off early.

[@timspath8980]

My motto is if I don't have the cash I don't deserve it. You brought cash to the table and most likely have the cash coming in so that's OK too, to back yourself up in a professional financial way

[@urieldiaz6093]

That's the way to do it. My 2022 Bronco Sport... paid it off in 17 months last December. Best feeling in the world to do it early, they made a whopping 290 bucks in interest.

[@jjrecon3024]

There's a reason you had 40k to put down; ...stop taking credit for what you inherited

[@jaygr306]

Did the same ,I ordered my 22 2500 HD AT4 Duramax msrp 81 and change financed through GM because they had 0%for 36 months for qualified buyers (good credit) financed 16,900 470 for 36 months. Waited 6 months for the dam thing . Usually 8 weeks when I order a truck . Crazy times ! And FJ B

[@jaygr306]

​@@jjrecon3024your the reason this country is what it is . Pathetic.

[@nnichols8358]

Banks can write-off all their bad loans with the carry forward losses. They will be just fine and the reason why they don’t care. Consumer not so much.

[@lot2196]

No kidding. People keep saying this will crash. Doesn't seem like it.

[@phillyflash43]

Right, heads they win, tails you lose....ugh!

[@roymoxley2587]

I’m sure the banks have some kind of hidden insurance policy in them if you don’t pay they good The banks do that on all home payments they never lose

[@bigernie9433]

lots of things to be learned (again, remember the home loan crisis 2008 ?): - whenever you buy, whatever you buy, have at least 30 % equity in it and possibly more in the case of cars. There are used car dealers selling nice old vehicles for less 5k in a place near you... - never trust the banks

[@WeknowhoUR]

The banks are the gubnent! Think on that. 🤔

[@aljebell]

Dropped my son's 2019 Mustang off at the dealer again. It spends as much time getting the same things repaired as it is on the road. Checked out a new 1 ton super duty Harley Davidson edition Ford truck on the lot. $135,000!!! WTF!

[@MazichMusic]

Found On Road Dead...no more Fords for me.

[@Dilberts_Dogbert]

That 135k is Wed Thurs and Fri... What is it on Mon and Tuesday?😳😳😳🤣🤣🤣🤣🤣🙄

[@OttoTheWeim]

Take those stupid HD decals off and it’ll be $35k less

[@aljebell]

Just got a call from the dealership about the Mustang. Engine blew up on a test drive. Now they are looking for a way to help me out. No More Fords.

[@timkis64]

a valuable lesson for alot of people.DONT PAY MORE THAN INVOICE.

[@georgetaylor8213]

Someone who takes out an auto loan for 1,000 a month for 84 months has a major problem with their thinking skills.

[@flaviuskern225]

Plus, factor in Arkansas State Police sent about 50% of the Chargers sold in their state spinning into the jersey barrier.

[@carvingboss7598]

I purchased a used Nissan armada for $6000 cash that needed a lot of work done on the suspension. I brought it in to three local mechanics and a dealership and they pretty much refused to do the work because they said the car wasn’t worth anything. So I paid $1000 for the parts and did the work myself over the weekend at a friends garage. Now I have a beautiful SUV with no payments. It was crazy seeing how much the dealership and the mechanics fought me. When I tried to tell them I wanted to fix this car, everyone of them said I should just go and buy new.

[@darrylk808]

I've been wanting to buy a new car for over 3 years. My friends are tired of hearing me talk about it. Them: "Just buy it already!" Me: "Time isn't right yet..." I'm biding my time... maybe later this year.😂

[@baileypuggle]

OMG you are me lol I have had cash for one since the start of 2020 still waiting.

[@alchemistx1]

This definitely will work on cars no one wants. Seems like all the popular vehicles get snatched up quickly

[@JimAllen-Persona]

@@alchemistx1Well, of course. Supply and demand. I bought an unpopular car because I could get it at a good price.

[@dennynisevic7848]

Chip bustard

[@mitchhedberg4415]

It is true though. Trade in values are down, but new car prices have not dropped yet here.

[@carlwemple6075]

The dealerships near me are stacking cars up on their lots and does not seem to be selling

[@actualfacts1055]

Borrowing money is always a risk.

[@kclefthanded427]

For a person who earns $50k should be buying a used car for under $25k, not a new car for $75k with 83 months in payments over $1k per month while resale value goes down the toilet at a alarming rate. Too much car for you

[@marquisstrongchild7535]

Unless you share bills, $25k is way too much for a car if you earn $50k

[@bronxtaskforce01]

This is why I have no pity for stealerships, banks, and finance companies. As always, the customer got screwed

[@mystyal]

The customer is the one that signed that over priced loan agreement

[@diannemc3179]

I have a 2007 dodge mega cab 2500 diesel 81,000 miles now. Bought it brand new. (Way back then) paid 50.000 for it out the door. Oh 4x4. And the 5.9 Cummins. I think I’ll keep it.

[@Amite-zg2ob]

4 more years What about ? Last 3 years "Median Household income" is actually Negative -3% St Louis Federal Reserve FRED

[@c.watkins6529]

Like my dad used to say.."a sucker is born everyday". For everyone who thought paying $1000 a month for 84 months, is just that. I hope there was a bag of suckers on the seat when it was purchased.

[@TomRoyce]

I have a couple friends who are Economics Professors. I am sending them this vehicle because you hit on so many consumer economic issues in a very understandable manner that the average student will understand. Great job!

[@needmoney666]

For folks who don't have a lot of disposable income the decision between the rent, food on the table or the car payment is an easy one. Unfortunately many did not think this way when signing for very expensive car loans.

[@DanA-nl5uo]

Most of them signed the loan before the inflation made housing and food eat their car payment

[@jeffforbus4810]

This reminds me of the housing crisis of 2008. Mortgage companies were approving all home mortgages despite people’s income and etc. We as a society need to be careful financing anything! I hope this doesn’t get out of hand to where the U.S. government has to save banks again. My vehicle has been paid off for many years, I’ll keep repairing it!

[@mitchhedberg4415]

Kind of a myth. The subprime loans did not increase in default percent. The high credit score loans jumped in defaults. Everyone tried to buy a 2nd home to flip.

[@bobk381]

Reminds me of the 2008 housing crisis. Dealers and banks know what they have created. So many people don’t pay attention to history.

[@richardthomas1743]

Reap what you sow banks and car dealers.

[@SBCBears]

The dealers will hurt the banks and the banks will hurt you and me.

[@ehole593]

They'll get bailouts. Only the customer suffers.

[@jaytome6023]

And stupid people who bought the cars they couldn’t afford.

[@TheGuruStud]

Banks will, dealers won't ​@@ehole593

[@whois3581]

Reap what you sow to all the buyers that singed on the dotted line to pay an insane price for a vehicle they didn't need and couldn't afford. But hey, at least the Jones' think you're super cool, right? Riiiiiight. Fun fact: The Jones' don't care. They're too worried about all their own debt that they can't afford to pay.

[@audhauwidh]

Great point I hadn't considered. We all know a new car gets devalued the moment you drive it off the lot. So a 50k car is worth 40k a day later. If you put $0 down then you are already 10k underwater. But when the dealer does a +10k market adjustment, you are 20k underwater on your loan a day after picking up your new car. Good luck trying to stretch an overly complicated turbo driven plastic box with 500 computers past the point of time where that 20k loss evens out. That's like owning and driving it for 20 years instead of 15. And not many of these new cars are even good enough for the 15.

[@CarolinaCarolina-ph9mx]

It is amazing that so many are willing to spend so much on these vehicles - of which most will begin to have significant problems by the time they reach 100k, and they only go downhill from there, so even more money would need to be thrown at them, or purchase another vehicle. Lots and lots of money spend, but there won't be a penny to show for it at the end, just the receipts from paying out a lot of money to have way to get from one place to another. Given the temporary nature of vehicles, a decent new car should cost no more than $15,000-20,000, and that is plenty for most of us.

[@Quake105]

The sauce on it is that you have to fork out extra to a mechanic who has subscribed to a carmakers diagonsis software. Guess how much a common fix is going to cost because of bloatware?

[@carlwinslow4175]

Banks knew full well that some of these loans were going south but took the business anyway.

[@mike3886]

If you absolutely need to buy a vehicle right not it doesn’t mean you have to buy a super high end vehicle. There are plenty brand new cheap cars out there to get you by until the market settles. You can get a brand new Nissan versa right now for 17,820 bucks but you don’t look cool so people have to buy super expensive cars to look cool for strangers. Makes no sense

[@dondavi5798]

True. And to all those worried about looking "cool" . Reality is- no one is looking. They are too busy watching Tik Tok while their own vehicle is playing bumper bowling between the lines.

[@mike3886]

@@dondavi5798 I agree. Don’t get me wrong I like nice things but only if I can afford them. It makes no since over paying and putting yourself in a bind just to say you have something.

[@ladonnaghareeb4609]

Dave Ramsey says Keeping up with the Jones' when the Jone are broke. Buying things you can't affore to impress people you don't know. Loose intrepretation sorry Mr. Ramsey.

[@mike3886]

@@ladonnaghareeb4609 exactly! I could care less what people think. I will admit I had to learn it the hard way though. I have nice things but I wait until I can afford them.

[@northmaineguy5896]

I was just cruising the FRED stats and it is clear the small banks and credit unions are getting and will continue to get hammered with losses. Consumer debt in default at these smaller banks is skyrocketing and is currently at 2008 levels. My gut tells me they will put a hard stop on lending and many will not make until the end of the year as they do not have the liquidity to absorb the losses.

[@Theweouthereforrealclub-]

Or we go full Weimar, heck we have the heshe / prostitution / deindustrialization problem already, why not hyperinflation?

[@raycebannon6374]

Banks pressed a computer key board and created $ out of thin air. It cost the Banks virtually nothing. They can simply press another button and make the debt go away?

[@theairstig9164]

They don’t want the debt to go away. That debt is their income. The money disappears when it’s paid back. Literally destroyed

[@speedy4829]

I still can’t get my head around these MSRP’s. Something has to give………

[@paulbunyon6324]

I still recall a few years ago a wise billionaire stating that one thing he was going make sure he had was a good bicycle. Talk about vision.

[@Livlifetaistdeth]

Ford Lightning: Loses 50% value Land Rover: Welcome to the club

[@giddysmiles2901]

And the taxpayer that bails out the banksters for bad loan practices. Bailout #1 was for irresponsible home loans, like countrywide in 2008. Bailout #2, commercial real estate and subprime auto loan. Socialize losses, privatize profits.

[@JA-zh5xi]

Never take out a loan for a car - great way to keep living paycheck to paycheck.

[@sues3218]

Correct. I own three cars and I paid cash for every single one. I simply make a car payment into my own savings account. When I need something fixed, I pay cash for the parts and we install them ourselves. If I want another car and find a great deal, I pay cash for it. It helps that we know how to work on cars, could drop in an engine ourselves too. Actually doing it with an LJ Jeep Wrangler at the moment, just cause we wanted a bigger motor. Debt makes you a slave to the lender. A lot easier to weather storms when you are debt free and have a good savings.

[@jerrylundegaard2592]

Smart folks never say never. For example, buy a $40,000 vehicle at 1.9 percent. Pay $1,962 interest over 60 months. Leave that $40,000 in a high interest savings account for those 60 months. Get $9,847 interest. So, being smart, earns you about $7,900 over 60 months.

[@mitchhedberg4415]

Never say never. A loan % that is less than inflation is positive income.

[@sovereign6445]

@@sues3218where you live I need help installing a supercharger😅

[@RK-de5wg]

During Covid I was helping my brother n law look for a used car because he didn’t want to buy a brand new car for his son. I literally asked the sales manager what is going to happen to car values after Covid ends? I asked him if he would take the car back on trade at the supposed new car value a year or two from now? He replied,”Do you want to buy the car or not?” We graciously had our exit plan to the front door. My brother n law literally waited until after Covid was over to buy and he saved a considerable amount. If he bought that car, he was going to have negative value by about 50%! Yikes! Lesson be learned people by my story!

[@michaelh370]

They will crush these vehicles before they give them away to you peasants. /s

[@JustDItY]

Biden is going to buy them for full price plus and give them to illegals.

[@bwilson948]

Teslas are throw away cars elon is in the computer mindset.

[@theairstig9164]

And yet the Tesla model 3 SR+ with the LFP battery has been $38,000 used where I live for the last 4 years. People are leading them and buying them used in increasing numbers. How does this fact compare with yours?

[@bobchamp3159]

The price of exclusivity, nobody forced these people to sign and buy a car... And as for Tesla actually hold their value better then most of the other EVs. Making them more affordable is actually a good thing is they ever want the ev revolution thay are pushing for.

[@philliphall5198]

Some churches are picking people up to go shopping because they can’t afford a vehicles I support this effort to help people

[@S.L.S-407]

Are you kidding? The REAL culprit in this auto mess is the MANUFACTURER ! Their MSRP is heavily padded (20%) PLUS they are including items as part of the basic car package that people don't want, but have to pay for bc it's the basic car price. Why do I NEED a screen sitting on my dashboard? Why do I NEED heated seats or a heated stirring wheel. Why do I NEED a leather wrapped heated steering wheel ? My fav is the leather wrapped gear knob ! I also love that we are supposed to NEED AWD. Why do I need AWD if I live and work in the city and don't go driving off road ? If you were dumb enough to buy a vehicle that has payments that equal a house payment, then look in the mirror for who else is to blame. Yah, that means you don't make enough or you should be buying beat up old used cars. NOW IS NOT THE TIME TO BUY ❗❗❗

[@kclefthanded427]

Domestic automakers don't even offer fuel efficient cars anymore as they lost to Toyota and Honda. They only sell trucks and SUVs

[@chiplangowski3298]

Federal law requires a backup cam. That is why your car has a screen on the dash.

[@S.L.S-407]

@@chiplangowski3298 - Since when ? I thought that's what the rear view mirror was for or you can simply turn your head and body around and look back to see what is behind you.

[@chiplangowski3298]

@@S.L.S-407 - The law was passed requiring backup cameras in all cars starting on May 1, 2018.

[@S.L.S-407]

@@chiplangowski3298 - Since I haven't bought a car since 2010 that certainly explains why I had no idea about this. I think it's STUPID ! Are ppl REALLY that bad at backing up?

[@JDBodine]

A buddy of mine just paid over a hundred grand for a Hellcat. He seems to think it’s going to go up in value. Maybe, but I don’t think so.

[@charleywade3185]

Millionaire CEOs can't understand why the working class can't afford thousand dollar monthly payments.

[@mitchhedberg4415]

The average 50 year old American man is a millionaire.

[@tims4832]

My bolt Ev has lost a lot of value. To the point that when I pay it off just use it till it dies.

[@djjmann]

The credit rating system of this country is gone to hell. Banks are too quick to put a ding on your credit report but then refuse to loan a realistic APR if you don't have a 780+ score. What banks are doing now is fixing the books to ONLY sell high interest rate loans again to the same population, so they are always ahead. These equity issues for the banks are non-issues. Their main honeypot is mortgage and corporate real estate. The auto loans are just a dime a dozen.

[@sunshine135]

$56K for a Dodge? They are worth half that.

[@johnhinant970]

Not even half.

[@fredh.1255]

Piles of junk. Chrysler has made poor quality for years. 😳

[@iowahank1]

Dealers were able to jack up the price because vehicles were scarce and money was cheap. Manufacturers saw this and wanted their slice of the pie so they made more expensive but more profitable vehicles. What they probably didn't factor in was that money became scarce and rates went thru the roof. It all became a circular firing squad. Those of us that continued to drive our older vehicles are laughing at other people's misery. Not at your misery Brandon. You're just a survivor of the firing squad.

[@russelbrown6275]

No it was because people are STUPID

[@taylorjackson7908]

Personal finance should be a required course in high school!

[@harrisonking4025]

Let’s get rid of dealerships and let us buy straight from the manufacturers. Time for consumers to stand together

[@jamestaylor7226]

What we need is a few million more immagrents & more deficit spending higher rent, more expensive energy & food, low wages & high inflation, that will fix it.

[@martinellis7156]

...and cheaper ammo...

[@JustDItY]

The potato is on it.

[@johnnyx9892]

Fact is, if you don't do at least 20% down on a new car, you are probably underwater the moment it's titled. How MUCH underwater is another story.

[@williamrose7818]

Paid 40,000 put down 1000. One year later and 9000 miles, sold it for 42,000… bought in 2019.. lucked out…

[@mitchhedberg4415]

That was just the covid price boom. Carvana paid 25% over new sticker for an 8 year old Honda Fit.@@williamrose7818

[@malcolmmarson]

Good show. Information that can save you money, plus the inside track on how dealers deal.

[@brianselt291]

I would almost bet that the part-out value of the Ford Lightening is less than it should be.

[@hondamojo1]

Sounds like the value of old mechanics are gonna be going up

[@KingCoopa17]

Lord help anyone that bought a wagoneer!

[@sprague49]

Everybody join in for a rousing chorus of "We Told You So!"

[@markokrasinski8033]

Pissed off even people who dont want/need a car. Thats what they dont umderstand. Now........

[@Lake7822]

You are a fool to take a car loan of $1k a month. Best decision I ever made was to back out of the lightning. It was way too expensive. Gotta buy what you can afford. That sometimes means you wait. Never pay MSRP or above.

[@ruthlessreid9172]

These dealerships did it to themselves charging people 20 k over market.

[@mikemyers1721]

Excellent video brother, I’m a dealer in Colorado (also cheap vehicles under 5k)I never miss your content

[@chuckschillingvideos]

Negative equity is just an accreting trail of idiocy.

[@stevep927]

Oh .................it's the housing bubble all over again. I don't feel sorry for any of these greedy fools

[@rmb1]

Blame The Consumer Joe Six Pack just cannot help himself.

[@chiplangowski3298]

You are 100% correct about us Tesla owners being mad at Elon. He doesn't realize that he has alienated many of his customers by dropping prices to try to make sales numbers. Those customers will never consider buying another Tesla. And there just aren't enough fanboys that will buy no matter how badly they were screwed-over.

[@johntapia-du3dj]

I love the videos man, long time watcher, finally got an account and got subscribed 👍

[@birdy1953]

What’s the over under on dealerships committing insurance fraud to get out of 23s?

[@darrelljohnson7832]

Praying for hail storms for sure.

[@brucebissell7626]

YOU'ER AWESOME. THANKS FOR INFO AND UP-DATES. GOD BLESS YA.

[@HAMILTONPROVIDEO]

You are a great educator Brandon. Thank you.

[@De-Centralized]

I'm gonna keep and drive my paid off '19 Rav4 with 31k miles for another 10 years minimum. My fellow countrymen need to chill on buying cars when they currently have a perfectly good car.

[@theairstig9164]

A ten year old RAV4 where I live is STILL more than the price was when new. It’s like waiting for the stock market to crash