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Post Info TOPIC: More than 7 million Americans over 90 days late on car payment!


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More than 7 million Americans over 90 days late on car payment!


Sure glad I dont have an auto loan! But anymore cars are so expensive that many can only afford to lease, and the ones that are buying are nearly mortgaging the cost of a home in only 72 months! Add on the crazy cost of insurance and its really no wonder! For awhile there if you could fog a mirror they would give you a car loan.

https://www.yahoo.com/finance/news/car-payments-missed-credit-scores-171533526.html

It would appear in Minnesota they have the lowest rate of delinquency, but that may be because they repo them the moment they go past due? Who knows. 



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Well...

If these folks aren't paying the banks their money & interest, I guess the car isn't seeing any servicing either...

(Maybe like PowerStroker, these folks had to delay payments, because a greedy & selfish Mr.Trump, decided he wanted more tax money from the middle-class) ?...

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You make a good point Rastus (except your partisan dig at Trump), as I don't recon anyone late on their car payment is going to be visiting the dealership for any reason. Most people who lease skip 2-3 oil changes, and they don't care... I once dated a chick who leased a car and she never once changed the oil the entire two years she owned the car! Them Vulcan engines were pretty tough! lol

But really, think about this for awhile... Most cars now days are $40k-$60 for a regular car that is not an absolute econo-box. That is a whole lot of cash - even for 2019 dollars! A new Cadillac Escalade is almost $100k! 

Back in 1991 the 560 SEL was an 80k car in 1991 dollars! And look how much they depreciated since then! You could pick up a pretty nice example for 20% of retail, less than 10% of retail if you wanted to do some work yourself!

And back in the early 1970's you could walk off the lot with a brand new Camaro for $3,000! 

Going back you 1991 you could buy a brand new 5.0 Mustang for $14,000! That seemed like a lot, but still doable for the younger crowd... Now days that 5.0 Mustang could set you back almost $45k! And that is just your plain Jane 5.0 Mustang! 

How is some kid EVER going to afford that? 



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Yo,

The banks will typically loan 2.8 to 3.1 times your gross annual income...So if the kid wants a new Mustang, & is earning his 30-K per year average, he "could" buy 2-of-them if he wanted...

Then they wouldn't get serviced either...And after 5-years ownership, he'd be luck to get 20-K for both cars, & likely still owe around 60-K...

But then if he ran his own business, he could under Democrat policy & tax concessions, claim the depreciation of the said vehicles against his taxes owed, as the cars were / are company vehicles...

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Under the Republican tax code he would fare better if they were business cars since he could write off the entire amount that year rather than having to depreciate. 

Didn't you get the memo Rastus?



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SELLC wrote:

Sure glad I don't have an auto loan! But anymore cars are so expensive that many can only afford to lease, and the ones that are buying are nearly mortgaging the cost of a home in only 72 months! Add on the crazy cost of insurance and its really no wonder! For awhile there if you could fog a mirror they would give you a car loan.


 

Yes my friend, I got the memo !



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Rastus wrote:
SELLC wrote:

Sure glad I don't have an auto loan! But anymore cars are so expensive that many can only afford to lease, and the ones that are buying are nearly mortgaging the cost of a home in only 72 months! Add on the crazy cost of insurance and its really no wonder! For awhile there if you could fog a mirror they would give you a car loan.


 

Yes my friend, I got the memo !


 

Yes you have Rastus, on many occasion too! Yet you still choose to be foolish!?

Remember back in 2014-2015 (when Obama was President) and banks were more than willing to give me an auto loan for a 20+ year old Corvette at 100% loan to value, but would not give me a mortgage for my home @ 25% loan to value?

Yes, you have gotten the memo a great many times, you just never bothered to read them!



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SELLC wrote:
Rastus wrote:
SELLC wrote:

Sure glad I don't have an auto loan! But anymore cars are so expensive that many can only afford to lease, and the ones that are buying are nearly mortgaging the cost of a home in only 72 months! Add on the crazy cost of insurance and its really no wonder! For awhile there if you could fog a mirror they would give you a car loan.


 

Yes my friend, I got the memo !


 

Yes you have Rastus, on many occasion too! Yet you still choose to be foolish!?

Remember back in 2014-2015 (when Obama was President) and banks were more than willing to give me an auto loan for a 20+ year old Corvette at 100% loan to value, but would not give me a mortgage for my home @ 25% loan to value?

Yes, you have gotten the memo a great many times, you just never bothered to read them!


 LOL,

Yes I do remember that one, & how happy Mr.Obama made you, so that you could acquire that awesome Corvette. But the stupidity of banks is just that, & it's up to the person seeking a loan to flesh-out the best available for them.

I don't know much about this stuff, except to say that if you can't pay for it with your own cash, you can't afford it, & a bank will make it cost you at least twice-as-much.



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I don't know many homeowners who can afford to buy their homes outright cash... Nor do I know many people who can buy a new higher end vehicle outright cash, even a lower end one could be well out of reach for many.

That being said, people either have to rent or own. There is a big difference but I do know a lot of people who own outright their homes... doesn't mean they don't have to pay propriety taxes every year, but just the taxes is a hell of a lot cheaper than a massive mortgage to boot. I personally like being at about 35-40% LTV, which is where I am at now. My interest and principal is actually less than my escrow for taxes and insurance! 

My cars, well they are all paid off and none have any bank liens, so I could insure them for no fault - but for $10-$20 more a month, why not go the full coverage? Point is, I feel lucky not having to pay that car payment, until them days I have to fix my car! LOL, but even still.. It is like I am making a car payment on that Cadillac Escalade that I got shystered out of... in a way..



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Yes,

I own my little place, & all my junk...I was lucky to save my ass-off when the work-at-sea was happening, & some say smart-enough to buy my little unit too, & sit-out the lean times...So in a certain way, I've done it really hard & gone without for many years, simply because I refused to get my ass-reamed by a bank, so lucky there I guess.

What I did learn however, is that once you have 100K + in the bank as savings, the interest earned pays for a lot of the vampires that suck your wallet dry...Meaning rent is cheaper, insurances are completely covered, & all those other sneaky bills that pop-up, are all covered without you opening your wallet, & you still make a little money too.

This is why I have NO problems with slinging more tax on the Billionaires of this world. They're already living-it-up, & won't notice the missing $$$, as they're well & beyond suffering on the scales-of-financial-society, since their money-in-the-bank means they can have their money, pay-all-their-bills, earn a weekly wage & live-it-up better than anyone without ever having to go to work...All because of the money they have in the bank...So taxing them is irrelevant, & it doesn't make sense to me to have a President that taxes the wrong "class" of people.

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Eh, Rastus you better check your compound interest rates pal! 

$100,000 in the bank for one year would only net you $2,275.43 @ 2.25% interest which is almost 1.25% higher than the interest rates when Obama was President...

So if you can live on $2,275.43 for a year, more power to you!



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SELLC wrote:

Eh, Rastus you better check your compound interest rates pal! 

$100,000 in the bank for one year would only net you $2,275.43 @ 2.25% interest which is almost 1.25% higher than the interest rates when Obama was President...

So if you can live on $2,275.43 for a year, more power to you!


 

Ah my dear friend...

Just add a few more zero's to make a Billion dollars, & see how much now you can live on....And should you have a couple or more Billion dollars in the bank....

 

Yes, my poultry 100-K netted only $2,275.43...But it did pay all of my insurances, car & bike registrations for the year & other stuff...But most importantly, it taught me the point-of-view that capitalists have, & how they don't have to work, since the interest on their money gives them a permanent holiday year-round, & forever...Without losing a cent...



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Basically Rastus, at an interest rate of two percent,

$100,000 = $2000 per year

$1 Million = $20,000 per year

$1 Billion = $20,000,000 per year (20 million)

In either case, there is a much higher propensity to generate a return much greater than 2%, not that making money on money sitting around in a savings is bad - but most accounts are only FDIC insured to $100k-$300k and it would be a serious undertaking to maintain all the accounts if you had a billion dollars deposited across many banks and accounts. It would be a job in of itself to maintain.

So if you're sitting on a BILLION dollars @ 2% interest, then yes! You would be living quite well off the interest alone! I assume a great many business people do not have billions in accounts, rather their assets are being considered also... perhaps very large companies, banks and such have this kind of money in accounts but they are massive companies run by usually thousands of people, not just some dude living off the interest of a billion dollars!

 



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SELLC wrote:

Basically Rastus, at an interest rate of two percent,

$100,000 = $2000 per year

$1 Million = $20,000 per year

$1 Billion = $20,000,000 per year (20 million)

In either case, there is a much higher propensity to generate a return much greater than 2%, not that making money on money sitting around in a savings is bad - but most accounts are only FDIC insured to $100k-$300k and it would be a serious undertaking to maintain all the accounts if you had a billion dollars deposited across many banks and accounts. It would be a job in of itself to maintain.

So if you're sitting on a BILLION dollars @ 2% interest, then yes! You would be living quite well off the interest alone! I assume a great many business people do not have billions in accounts, rather their assets are being considered also... perhaps very large companies, banks and such have this kind of money in accounts but they are massive companies run by usually thousands of people, not just some dude living off the interest of a billion dollars!

 


 Good points SELLC,

And that's why IMO taxing these "elite" people more $$$ for investment back into infrastructure of a country, rather that re-investments in stock ( or other) helps out the lesser folks out there, like us, by creating more jobs.

They still get their money, hell, they likely even make more $$$ by reinvesting in the country. And people will like them too.



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In my most recent thread about the rising cost of car payments I never included extra fees like late payments and repo cost into the equation. Given these 2017 statistics its clear to see that them cost are actually much higher if people are consistently late on their payments!

https://autotrend.activeboard.com/t66027874/average-new-car-payment-hits-554-per-month-in-the-usa-and-th/

 



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Fuh dat

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