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US car repossessions surge as more Americans default on auto loans

theguardian.com

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Re: US car repossessions surge as more Americans default on auto loans

#161

Post by potato3732842 »

Ccecil wrote: post #103
MegaDeKay wrote: post #54

Earlier quoted context omitted.

Plus balancing the new tires on those rims, and next to nobody has the gear to do that.

When I last priced the equipment it wasn't that bad costwise. In my case though it was only worth it to get rid of the whole "dealing with tire shops" issue. A close friend owns a used car dealership and they bought the mounter and balancer. IIRC...it just needed a 240v line. I have also lost days waiting for tire shops and alignment...as those are the only 2 things I don't do myself.

A tire machine is life changing in a good way if you have a lot of cars you're responsible for. China is starting to make mid-market ones (simple pneumatic ones that are powered bug geared to home use rather than professional like the ~$1k electric machines) for ~$400ish that I'd take seriously if I was in the market

Once you have a tire machine you'll spend more time at the tire shop (outside business hours, lol) because their trash pile will be your best source for reasonably new used tires. They sell a lot of sets of 4 when 2 would do.

Re: US car repossessions surge as more Americans default on auto loans

#162

Post by kulahan »

hamdingers wrote: post #109
kulahan wrote: post #80

Earlier quoted context omitted.

Does anyone else hate busses, and the only response you ever get after mentioning this is "NUH UH BUSSES CAN BE GREAT"? A bus will pretty much always be inferior to a car. Mathematically impossible to run on time. It never gets you where you want to go, just kinda close usually. If one doesn't show up, there is no real feedback without an extensive background metadata system. Never as clean as your own car (unless yo…

> A bus will pretty much always be inferior to a car. I never have to clean a bus, or put gas in it, or change its oil. I don't even have to drive it. I don't have to dedicate a big portion of my property to storing it, just to pay to park it somewhere else when I go out. I'll never get a ticket for leaving it in the wrong place, and I'll never have to go to court because I used it wrong. I don't have to worry about…

[flagged]

Re: US car repossessions surge as more Americans default on auto loans

#163

Post by pseudo0 »

linguae wrote: post #121
ryandrake wrote: post #64

Earlier quoted context omitted.

Or just do it yourself. At least oil changes can be done entirely oneself with a very small number of non-specialized tools. You don't even need a house with a garage, you can do it in your driveway or even on the street if you only have street parking. As others have pointed out, tires are somewhat more complicated, but not entirely out of the realm of the home shade tree mechanic, if you're willing to invest in a f…

Unfortunately, there are some apartment complexes, HOAs, and city ordinances that prohibit people from working on their cars, which means either needing to find a legal place to do your own repairs or paying a mechanic. I’ve lived in apartments my entire adult life thus far, and every lease I’ve signed has prohibited me from repairing my cars on apartment grounds. I have no choice but to either find a friend with a g…

Those rules are usually intended to prevent people from having a derelict car up on blocks "under repairs" for weeks or months at a time. No one will notice or care if you do a quick oil change.

Re: US car repossessions surge as more Americans default on auto loans

#164

Post by hamdingers »

kulahan wrote: post #162
hamdingers wrote: post #109

Earlier quoted context omitted.

> A bus will pretty much always be inferior to a car. I never have to clean a bus, or put gas in it, or change its oil. I don't even have to drive it. I don't have to dedicate a big portion of my property to storing it, just to pay to park it somewhere else when I go out. I'll never get a ticket for leaving it in the wrong place, and I'll never have to go to court because I used it wrong. I don't have to worry about…

[flagged]

You have severe misanthropy you need to work out in therapy. The possibility of encountering elderly people or children on your commute should not invoke this kind of reaction and it's weird that's the first place your mind went.

The answer is no, I do not mind people coming and going on the bus because I am a normal human. Not that your example is realistic anyway, I can't think of a time in the last few years any passenger has delayed my bus for 10 minutes (drivers, on the other hand...).

FWIW "some mediocre experience every single day" could just as easily describe sitting in traffic. At least on the bus I can play with my phone.

You find these arguments convincing because you're starting from "I hate the bus" and working backwards. That's not an honest way to have a conversation.

Re: US car repossessions surge as more Americans default on auto loans

#165

Post by conception »

technion wrote: post #77
conception wrote: post #13

Earlier quoted context omitted.

This is my favorite thing about getting an EV; effectively zero maintenance except for tires.

I keep seeing this argument but I think about whats broken in my ice over the years: brakes, control arms, struts, suspension springs. You get a pass on gearbox but as a genuine question, do these usual mechanical problems that have nothing to do with the engine jist not happen on EVs?

If you look at an evs maintenance schedule it’s basically inspect stuff from time to time until 150k+ miles. Brakes don’t get changed as you almost never use them. Parts might break but not really anything maintenance wise.

Re: US car repossessions surge as more Americans default on auto loans

#166

Post by tzs »

micromacrofoot wrote: post #43

Also worth noting the average new car is now $50k and the average new car loan is $40k+ https://www.washingtonpost.com/business/2025/10/17/50000-new... Starting to find out the risks of a car-centric society in a slow-burn economic crisis.

The average has just gone past $50l but it is not clear it will stay there. There are a few things that drove it up recently.

One contributor was a surge in EV sales to beat the expiration of the tax credits. EVs on average cost more than non-EVs so that pushed the average up. EVs were almost 12% of September sales with an average price of $58k.

There are plenty of EVs a lot lower that than that, so why was the average EV so high? That brings is to another contribution: in general it was upper-end buyers who currently dominate the market (the potential lower end buyers are probably too worried about the economy and maybe the likely big increases in health insurance for 2026 to buy a car now). Upper end buyers tend to go for the more luxurious cars, whether they are buying an ICE or EV.

Remember though, just because the average is about $50k doesn't mean that there aren't plenty of good new cars for a lot less. A 2026 Toyota Corolla has a base MSRP of $22 725. For $24 575 you can get the hybrid which increases the MPG from 32 city/41 highway to 53 city/46 highway.

Re: US car repossessions surge as more Americans default on auto loans

#167

Post by _heimdall »

master_crab wrote: post #139
_heimdall wrote: post #116

Earlier quoted context omitted.

Right. I buy old cars, but I'm picky as hell and buy ones that have been taken care of, still have parts availability, and are models with proven reliability. I still recommend anyone buy a later model Buick Lesabre if you find one in good shape. They're very cheap, the 3800 motor is excellent, and are still very comfortable rides that get around 30mpg on the highway.

3800 is in a lot of things. Chevy impala, Monte Carlo, etc. lots of cars benefit from that reliable and easy to maintain engine. Also gets decent gas mileage (not earth shattering but mid-high 20s is friendly to most bank accounts).

Yeah I'll keep an eye out for all of them when I'm in the market. I generally find the best results with the Buicks though, its more common to find one in good shape with a good service history.

The one I drive now was a one owner, it was literally a little old lady's Sunday church car that she sold because she decided to give up her keys. Its not perfect, and the AC compressor needed to be replaced, but they were the kind of owners that took it in ever 3k miles to a mechanic they trusted and fixed whatever the shop recommended.

Re: US car repossessions surge as more Americans default on auto loans

#168

Post by keeda »

hamdingers wrote: post #109
kulahan wrote: post #80

Earlier quoted context omitted.

Does anyone else hate busses, and the only response you ever get after mentioning this is "NUH UH BUSSES CAN BE GREAT"? A bus will pretty much always be inferior to a car. Mathematically impossible to run on time. It never gets you where you want to go, just kinda close usually. If one doesn't show up, there is no real feedback without an extensive background metadata system. Never as clean as your own car (unless yo…

> A bus will pretty much always be inferior to a car. I never have to clean a bus, or put gas in it, or change its oil. I don't even have to drive it. I don't have to dedicate a big portion of my property to storing it, just to pay to park it somewhere else when I go out. I'll never get a ticket for leaving it in the wrong place, and I'll never have to go to court because I used it wrong. I don't have to worry about…

Also:

- Not having to perform the repetitive, mind-numbingly-dull-yet-somehow-simultaneously-stressful cognitive task of driving.

- Instead, having the freedom to engage in more relaxing, productive or creative pursuits in this era of smartphones; do work, watch videos, read books, sleep, or even just look out the window.

- Never having to deal with traffic jams. Or road rage.

- Getting a chance to walk places for free instead of paying to do the same thing on a treadmill in a gym.

Re: US car repossessions surge as more Americans default on auto loans

#169

Post by tzs »

kotaKat wrote: post #144
olyjohn wrote: post #76

Earlier quoted context omitted.

Yeah the average is high, that means there are cars cheaper than that. People are spending big because they either are doing no researchand getting suckered, or they are buying nicer cars for vanity reasons.

No, the average is high because we've lost a lot of our cheap 'new' cars. 10 years ago you could go onto a lot and buy a brand new Dodge Dart for around $17,000. Today, the cheapest Dodge is a Hornet SUV/CUV for $31,000+; the cheapest Jeep is $27,000. We just don't have new car choices under $20k -- we're all forced into extremely high loans for 'new', or extremely screwed rates for 'used'.

> 10 years ago you could go onto a lot and buy a brand new Dodge Dart for around $17,000.

$17k 10 years ago is $23k today. That's under the MSRP of a 2026 Toyota Corolla.

In constant dollars car prices for comparable trim levels of similar styles of car have actually been have been pretty steady for the last 40 years or so. The average car is a lot more expensive now in constant dollars because the mix of cars bought has shifted significantly toward larger and more luxurious cars.

For example when I was looking for a new car earlier this year I looked at the Honda Civic. When I compared the price to my last Civic, which I bought in 1989, it was about the same after correcting for inflation since 1989. I also looked at the CR-V, and when comparing to my 2006 CR-V today's CR-V after correction for inflation since 2006 is actually about 5-10% cheaper.

Re: US car repossessions surge as more Americans default on auto loans

#170

Post by supertrope »

_heimdall wrote: post #94
ryandrake wrote: post #60

Earlier quoted context omitted.

Exactly. This is going to come off as incredibly privileged, but I'm not a huge fan of car loans. In fact, I'm not a huge fan of leveraging to afford any asset unless it's appreciating in value or generating income. I buy and drive old, nearly junker cars because I can't afford a $40K new car. I can "afford" the monthly payments on a $40K car, but it's just a terrible financial idea. Totally nutty. A $750 monthly pay…

The standard recommendation of taking out sent so you can invest your money and "make it work for you" frustrates me to no end. Yes, on paper I can accrue more wealth if I mortgage my house and invest that same amount elsewhere. No, I would not trade owning a house outright for having a house that will be taken from me if I can no longer pay, strict insurance requirements, and a pile of someone else's debt that I cal…

I don't think gp comment is advocating doing a cash out re-finance, but to exploit leverage when first financing the purchase.

I used to be very debt averse. Owing a six figure sum seemed like a huge burden. Now I understand that mortgagees are non-callable. If you put 20% down that removes a lot of risk of being underwater. Fannie Mae is eating inflation risk for you. It's a way of smoothing expenses over multiple life stages. With a 30 year mortgage you can get a smaller payment when you're younger, earning less, and paying for daycare. When you're older you're earning more, might be an empty nester, and inflation has made each payment easier. By not rushing to pay off low interest debt you've effectively transferred money from 50 year old you to 30 year old you.

If you stayed employed, locked in a 3% mortgage, and contributed to your 401k, you won the wealth re-distribution game of 2020-2022.

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