Car Repos Are Exploding. That’s a Bad Omen

#1

Post by jbonniwell » Mon, Jul 11, 2022, 1:00 AM UTC

Car Repos Are Exploding. That’s a Bad Omen
barrons.com

Re: Car Repos Are Exploding. That’s a Bad Omen

#2

Post by trenning » Mon, Jul 11, 2022, 1:41 AM UTC

https://archive.ph/13pYR

Re: Car Repos Are Exploding. That’s a Bad Omen

#3

Post by urn_piqoq » Mon, Jul 11, 2022, 1:53 AM UTC

Here I was imagining actual explosives hampering repo efforts, when they merely speak of a rising rate of auto repos. OK. I fell for it.

Re: Car Repos Are Exploding. That’s a Bad Omen

#4

Post by shakezula » Mon, Jul 11, 2022, 2:03 AM UTC

That’s an interesting data point. makes me wonder what other unconventional metrics could be considered to get a temperature on our economy.

Re: Car Repos Are Exploding. That’s a Bad Omen

#5

Post by toomuchtodo » Mon, Jul 11, 2022, 2:18 AM UTC

Stimulus money papered over a weaker underlying economy, and the bill is coming due (no pun intended).

My note: even though employment and wages are strong, the aggregate consumer is not as strong as your usual indicators appear to be.

Re: Car Repos Are Exploding. That’s a Bad Omen

#6

Post by UncleEntity » Mon, Jul 11, 2022, 2:21 AM UTC

At some point it doesn’t make a whole lot of sense to pay for a car you can’t afford to put gas in to actually drive.

Back during the last pre-recession gas hike people couldn’t even give away their monster SUVs that they also couldn’t afford to put gas in. I was going to buy one for super-cheap but ‘cash for clunkers’ took care of that problem before I got around to it.

Re: Car Repos Are Exploding. That’s a Bad Omen

#7

Post by mr_toad » Mon, Jul 11, 2022, 2:22 AM UTC

shakezula wrote: post #4

That’s an interesting data point. makes me wonder what other unconventional metrics could be considered to get a temperature on our economy.

Garbage/refuse volumes are sometimes used as a leading indicator of GDP.

Re: Car Repos Are Exploding. That’s a Bad Omen

#8

Post by javajosh » Mon, Jul 11, 2022, 2:25 AM UTC

Why do people borrow money to buy a car? Why not save money, maybe invest in something safe(ish), and buy your car in cash, preferably used?

I get it that people get emotional about cars, but good heavens, this impulse puts you in the hole for years. It's almost as bad as cheating on your wife (and far, far worse than cheating on a gf).

Re: Car Repos Are Exploding. That’s a Bad Omen

#9

Post by providedotemacs » Mon, Jul 11, 2022, 2:27 AM UTC

javajosh wrote: post #8

Why do people borrow money to buy a car? Why not save money, maybe invest in something safe(ish), and buy your car in cash, preferably used? I get it that people get emotional about cars, but good heavens, this impulse puts you in the hole for years. It's almost as bad as cheating on your wife (and far, far worse than cheating on a gf).

People cannot forgo having a car for the time it would take to save up the cash.

Re: Car Repos Are Exploding. That’s a Bad Omen

#10

Post by pbuzbee » Mon, Jul 11, 2022, 2:30 AM UTC

javajosh wrote: post #8

Why do people borrow money to buy a car? Why not save money, maybe invest in something safe(ish), and buy your car in cash, preferably used? I get it that people get emotional about cars, but good heavens, this impulse puts you in the hole for years. It's almost as bad as cheating on your wife (and far, far worse than cheating on a gf).

If you finance the car and invest your money in something with a rate of return higher than the interest rate, you'd end up with more money than paying cash.

...though of course many who finance cars aren't choosing to do that. The car you drive is both a status symbol and a personal luxury. I think many people would rather take on debt than get a vehicle they could only pay cash for.