2022 Loan to truck value not great.

[Robo165]

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[Robo165]

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[Lawforza]

All car values will be crashing. Analysts say it will be like '08 accept for cars. Recent reports indicate 25% of car loans are at or near default.

Cars sold for over MSRP when supplies were low and now that supplies have increased and sales are down. This will cause huge resale value loss. This will result in consumers walking away from their cars/loans.

https://www.schroders.com/sv/insights/economics/are-car-loans-a-slow-motion-car-crash/

 

[Count Orlok]

All car values will be crashing. Analysts say it will be like '08 accept for cars. Recent reports indicate 25% of car loans are at or near default.

Cars sold for over MSRP when supplies were low and now that supplies have increased and sales are down. This will cause huge resale value loss. This will result in consumers walking away from their cars/loans.

https://www.schroders.com/sv/insights/economics/are-car-loans-a-slow-motion-car-crash/

that "story" is over 5 years old... I'm not saying there isn't going to be resale loss as you state but I hope you are not citing that linked story as the "analysts say"

 

[Lawforza]

All car values will be crashing. Analysts say it will be like '08 accept for cars. Recent reports indicate 25% of car loans are at or near default.

Cars sold for over MSRP when supplies were low and now that supplies have increased and sales are down. This will cause huge resale value loss. This will result in consumers walking away from their cars/loans.

https://www.schroders.com/sv/insights/economics/are-car-loans-a-slow-motion-car-crash/


https://www.automoblog.net/negative-equity-surge-auto-loans/

 

[Lawforza]

https://finance.yahoo.com/news/tip-negative-equity-iceberg-record-173000474.html

 

[Lawforza]

https://www.autoweek.com/news/industry-news/a43141284/auto-loans-unpaid-gen-z/

 

[Lawforza]

that "story" is over 5 years old... I'm not saying there isn't going to be resale loss as you state but I hope you are not citing that linked story as the "analysts say"

It has NOT been going on for five years. This is a recent trend post "chip shortage" of 2020 and thereafter. $8 billion of $23 billion in outstanding car loans/debt are in default.

Manheim Auto Auction sales trends speak volumes. They have been selling at above retail at wholesale auctions. Dealers have been making more money per car than on volume. This is unprecedented. I say this as both a lawyer for auto dealers for over 2 decades and as a former domestic dealer brand franchise owner.

Theres is going to be a huge drop in resale value.

Hope the other sources help Count Sherlock

 

[Flashy McLightning]

It has NOT been going on for five years. This is a recent trend post "chip shortage" of 2020 and thereafter. $8 billion of $23 billion in outstanding car loans/debt are in default.

Manheim Auto Auction sales trends speak volumes. They have been selling at above retail at wholesale auctions. Dealers have been making more money per car than on volume. This is unprecedented. I say this as both a lawyer for auto dealers for over 2 decades and as a former domestic dealer brand franchise owner.

Theres is going to be a huge drop in resale value.

Hope the other sources help Count Sherlock

I don’t see the huge resale value drop. There are a lack of three year old vehicles. Production was low for 2020-2022. Lots are just getting back in form, and many manufacturers are still running under a 20 day supply. There is a bunch of pent up fleet demand as well.

 

[Amps]

It has NOT been going on for five years. This is a recent trend post "chip shortage" of 2020 and thereafter. $8 billion of $23 billion in outstanding car loans/debt are in default.

No reason to be so defensive. The poster wasn't disagreeing, just pointing out that the source you used in your original "analysts say" post is dated June 26, 2017. It would have been helpful to include that fact with the 'Are car loans a slow-motion car crash?' link since the fourth paragraph contains the Q4 2016 newly delinquent "$8 billion of $23 billion in outstanding car loans/debt are in default" data you seem to be citing.

 

[Count Orlok]

No reason to be so defensive. The poster wasn't disagreeing, just pointing out that the source you used in your original "analysts say" post is dated June 26, 2017. It would have been helpful to include that fact with the 'Are car loans a slow-motion car crash?' link since the fourth paragraph contains the Q4 2016 newly delinquent "$8 billion of $23 billion in outstanding car loans/debt are in default" data you seem to be citing.

^^exactly^^

I didn't mean to trigger the poster. I just was confused why such old data was being cited. Reading the linked stories reminded me of the old saying: economists have predicted 12 of the last 5 recessions.

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