Subprime car loan crisis

jalopnik.com/how-subprime-car-loans-are-ruining-lives-and-repeating-1796893288

Americans keep buying cars they can't afford to make payments on, and we a repeating the mistakes of the housing crisis
Why are Americans making this mistake?

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Americans are dumb.

Because the jew bankers prooved they own oure politicans.

this is not a joke.

They are prepparing for a repeat. 2008 was the year the we all lost faith in goverment by the people.

>2008 killed the EU just by showing how incompitent the cultrual marxsists in charge have become


The year everyone realised we are greedy by nature and we defend oure bankers.

>they do these things to test us

t. Child that doesn't understand how important a reliable vehicle

I make my payments but it's hard to find cheap used reliable cars bruh

To keep up with the Jones.
Have to keep that new, good looking car in the driveway or you are a less of a person than your neighbor.
Heard stories a few years back about some people who bought/leased new cars but couldnt afford to heat their house in the winter.

Getting a car with a 25% interest rate on the loan is always a shit idea. You can get a Honda Civic that's only a few years old for 10 grand or one that's 10 years old for less than half that.

Why don't more young people buy motorcycles. They're cheap and reliable.

what do you suppose will happen when the Auto bubble pops?

Another auto industry collapse?

Suburbiazation of the middle class was designed specifically to shackle them to car payments.

Because "muh danger" meme.

Which is accurate to be fair, if you fuck up on a motorcycle, (or someone else does) you CAN kill yourself. was an accident near me where a retard pulling out of a gas station hit a motorcycle and killed the rider, despite the guy wearing a helmet

but in general, its a practicality thing. you want something that CAN seat more than 1-2 people, and carry something in the back.

they are great as a toy. i'd love an indian myself. I discovered the vintage Chief is a thing and I fucking want it

>Why are Americans making this mistake?
Lack of education. They will take anything they can get without considering the consequences.

how the fuq do I get groceries on this japanese trash

I wouldn't say so

Every car company has 10s of billions in reserves just in case another crash happens

Congestion is increasing, average commute time is increasing, testosterone is decreasing. So less open road and less sperm.

I would but it's not feasible in the Midwest. Cars are better in the snow.

Seats 1-2 people

I worked as a repo man for a year and a half. The problem is Obama and the Cash for Clunkers program. The program took all the beater cars off the road and drove up used car prices basically overnight. Now poor people who need a cheap car can't afford one, and now they must seek financing that can't afford because they can't get to work without a car. Cash for clunkers only benefited (((lenders)))

>non-white Americans are dumb.

FTFY.

I wondered why people don't do this more in big cities last time I was in nyc. Much cheaper, easier to navigate small streets, easier to park, etc. Could still use public transport when the weather is bad. I know there are large asian cities where it is a thing to have a cheap bike but didn't seem very popular in nyc.

cash for clunkers was a stupid idea for a stimulus program. all it did was make people buy a new car sooner rather than later, and then we have the same issue later, where nobody is buying cars, because they already bought a new car

Boomers are dumb as shit too and if you take them away America is basically Brazil on demographics.

High insurance rates negate the benefit of a cheap vehicle.

Yup. (((Someone))) decided individual owner sales were too high. It was wholesale asset destruction in exchange for corporate asset value.

what? my insurance is $100 every 6 months, $200 a year.

a new bike would be more, but most people I talk to the insurance us low af

>Why are Americans making this mistake?

Huge amounts of money is pushed into the market and we've had years and years of near 0% interest rates or even NEGATIVE interest rates in Europe. These are extreme measures designed to keep the market going, but they're also incredibly distorting and builds a new bubble.

The elites profit, the goyim get overloaded with debt. It's all golden until the crash comes.

...

Not always your fault as a biker, if not more often it's the other drivers at fault.

Some dipshit ran a stop sign on me, I went ejecter pilot on my bike. I just luckily happen to be wearing my uniform as I took off from Base and had my helmet on as I was going on the highway too. I had wicked road rash on my left shoulder but my uniform and helmet saved my life.

The retard (a woman, of course, in a SUV way too big for her) said she didn't see me when she looked left and did a rolling stop essentially. Thankfully I didn't die but I've not had a bike since that one got totaled. Wife won't allow me to die, I'm too valuable as head of this household.

Plus they're far less viable in places that actually have winters. Windchill at highway speeds is a bitch when it gets below freezing.

The banks are going to get fucked again.

You mean the banks will get free government money called a "bail out" and they'll set it on fire like last time?

>gets his girl behind him
>fucks that ghost-bitch up
>makes sure his girl gets out safe and first.

MUH PATRIARCHY DRUMPH!!!

funny thing is cash for clunkers killed a lot of working vehicles, making those that survived and were well maintained much rarer. Thanks Obama.

I pay $112 a year for a 2006 SV650S

So i read a bit of the article, and already something jumps out at me.

Why the fuck would you ever finance a vehicle already over half a decade old?

the guy was an absolute tard for EVER thinking it was a good idea to take out a loan for a car of that price and age. If he had enough money for a 4k down payment, he could easily have bought a used car off the private used car market, or even a cheap car from a used car dealer.

last summer I bought my first car.

2003 Grand Marquis I found on craigslist. Sure, I ended up paying a bit over time for fixes, (almost 1k for a full brake job, and recently had to replace AC blower and now the wiper motor) but I budgeted for that. I had almost 5k budgeted and set aside for a new car. I paid about just over 2k for the car, and the rest went to repairs on the car. So all things considered, for a first car, I didn’t do too badly. I’m only just now starting to pay for stuff beyond the budget money I initially set aside. and I can afford it so it’s not that big a deal. I dont spend much, and my insurance cost is low.

it's fucking scary how financially ignorant so many Americans are. This is something that always surprised me back in high school, when I wondered about college and how expensive it is, and my classmates would just nonchalantly tell me “oh, just get a loan!” like it’s no big deal.

I have never been good with numbers. I always avoided retail jobs because of fear of mucking it up under pressure at the register. But even I could understand the risks of loans, and how interest works. I thought that kind of thing was sort of obvious. Guess I was wrong

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Because most people can make the payments at first but then something happens are you actually autistic. No one willfully buys something that they know they can't afford.

Buy here pay here lots are the worst, and they prey on the most vulnerable people and ghetto trash. I can't go for a 30 minute drive here in SE Michigan and not see at least 10 of these fucking lots. They will get people with no credit on a 2012 base model C class that has never seen a mechanic at 25%apr. Other vehicles become repo queens, where they get "sold" and repossessed repeatedly throughout the vehicles life at great profit to the owner.
if you search the /o/ archives for "long post guy" or "lpg" he has some greentexts detailing his experiences with these places.
his greentexts are also great insight into the mind of some of the people purchasing these vehicles, although he's at a reputable dealer.

I'd say the market has recovered by now. The cars cash for clunkers killed would be on their way out by now anyway unless they were particularly valuable models that had been well maintained. Those cars are likely being sold with the intent of them being purchased by an enthusiast and are priced accordingly.

yeah I frequent /o/. ive seen a few lpg threads.

>valuable models that had been well maintained
A good chunk of them where from 2005 onwards. They would still be good vehicles today. /o/ had a breakdown with numbers of every single make and model that the program took from us. Most of them were reasonable vehicles. 10 years and 150k is really nothing for a car, particularly trucks which were the main casualty of C4C.

>actually spending time and money on a passat.
You fucking ape.

Because half the year there's snow

Because most Americans are Plastic-Fantastic and refuse to live below their means.

>The sales price of his truck was about $21,000. Woodrum purchased a service contract for $2,500, and the dealer worked out a loan that carried an annual percentage rate of 25 percent. The terms required him to pay $573 per month for the next six years.

How crazy do you have to be to sign that contract??

Who /2002 honda accord/ here?

>A good chunk of them where from 2005 onwards
I kinda doubt that since even trucks were getting better than 18mpg combined in 2005 and no commuter car got anything close to that.

2012 audi a5 here

They picked the wrong guy to do a sob story on. had 4k saved up as a down payment buys a ten year old DODGE with 25% interest. what a moron much better options than this.
However the subprime auto loan wont fuck up the economy as bad as the housing crisis did. They housing crisis had like 9.1 Trillion while the auto bubble has maybe 1.7 Trillion so they're really not comparable. Its more likely to just fuck up some poor consumers credit report for the next 7 years.

I've grown attached to it. It got me through college, and because of it I have the time and money to keep it going. Even though I have two other cars(2001b5 s4 and 2014 Civic Si), I still find myself driving it daily. It responds well to maintenance.

>he believes the sticker window MPG figure
I have some beachfront property in denver to sell you....

Niggers. You might notice that dealerships are often opened in shitty urban areas.

They used the EPA estimate in deciding eligibility of the car for the program dumbass.

Close...I'm 2006 Honda Accord, with almost 104K miles on it and still runs smooth. I've only had to change oil, tires, brakes once and car battery once in the 11 years I've had it.

>honda owners master race

>Taking out a long term loan at 25% per annum.

How is America not like africa yet?

I only just realized that when you mentioned it. I always wondered why all the dealerships here were in the red light district

The point is the EPA estimate is heavily fucked with and real world returns on fuel mileage are never that good, dumbass.
Also it produces more pollution to produce new cars than to just keep older ones on the road. Obama did the cash for clunkers program for one reason and one reason only, because he was being lobbied by the US automotive industry.

What a stupid car.

Some parts are.
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>The point is the EPA estimate is heavily fucked with and real world returns on fuel mileage are never that good, dumbass.
Protip: that isn't relevant to the discussion because the real MPG wasn't used to determine which cars would be crushed.

ass hurt?

lmaoing @ you're lyfe

Because niggers keep thinking they can afford BMW's

yet another abhorrent post

every

time

Right. That's the point I'm making.
The whole program was a disaster.

It's his way of letting you know that he is suffering on the inside.

I'm not arguing it wasn't. I'm saying that it's no longer driving prices of used cars up because the cars that were crushed would be dead now anyway baring a really dedicated owner that plans to drive theirs into the ground and they aren't selling.

> because the cars that were crushed would be dead now anyway
No. They crushed a lot of good cars that would still be on the road today.
There are lots of stories of ex-wives or grandchildren taking in classic cars that would be collectors items to be destroyed. Thankfully a lot of the guys doing the crushing took pity on a lot of them and brought them home for themselves.

>he doesn't drive a Renault kangoo trekka.
Get on my level, feggit.

youtu.be/gzA1uSZ5WBc

Nothing scares me more than women in huge cars and niggers in beaters.

Those cars would have gone on the market for geo metro prices. All it did was push towards more people purchasing more new cars.
youtube.com/watch?v=iD0Pv6yyGek

I got 187k on my jeep and according to consumer reports it's the most unreliable vehicle on the market.

FUCK THAT NOISE

'why do black people love Chrysler products so much? Because they finance ANYONE

I have a 2002 Accord with a V6

It has give me carbon monoxide poisoning three times

>There are lots of stories of ex-wives or grandchildren taking in classic cars that would be collectors items to be destroyed.
>stories
You can go look up what was crushed. It's all fairly mundane with a handful of notable exceptions that made the automotive news. They couldn't take anything older than 25 years anyway so it's not like they crushed any real classics.

The majority of those cars would definitely be scrapped out in any state that salts the roads and probably scrapped out in any state that doesn't because they'd be hitting the point where everything is starting to go and no one wants to sink several grand into a 1995 Ford Explorer.

Problem is consumer reports charts (the one with the empty/half/filled/red circles, right?) is what they consider to be a reported issue. Could be the engine ate a valve, or it could be a rattle on the dashboard. That being said, chrysler does have a history of issues. Gf has a Caliber with the horrible world engine and CVT combo. Currently on it's second CVT and it feels like it's on it's way out at 100k miles.
>galvanized vehicles
>issues with rust
You're a special kind of retarded aren't you?
There weren't enough good people here's what was lost, according to /o/

Buying a new car is a scam

If you want a new car buy one that's 2-3 years old

Pic related, almost 50% off

...

That's a sad list to read

>galvanized vehicles
>issues with rust
>You're a special kind of retarded aren't you?
I can see you've never lived in the salt belt.

South east Michigan. We throw salt on everything. All it takes is driving through a car wash every now and then.
2001 Audi s4 (winter beater/summer toy)
2000 Passat same as above.
Both cars have lived in Michigan for 17 years or more, without any rust.
Most manufacturers have had recalls regarding rust after ~10 ish years. Toyota comes to mind. There is a certain expectation of the life of a vehicle, and it's longer than the vehicles that were taken in C4C.

my insurance is insanely cheap, $94 a year for my 2003 klr 250

>2001 Audi s4
Audi is the one company that actually puts some effort into rust proofing so that isn't surprising.

>All it takes is driving through a car wash every now and then.
Every now and then? Maybe for preventing body rust but the running gear is going to look like the car was parked in the ocean if you don't hose it off every single day which is something few people are willing to do.

>Toyota comes to mind.
Mazda was also particularly terrible although all the Japanese brands were pretty bad when it comes to rust for that era.

>Mazda
Fuck, I sometimes forget Mazda exists. Fair point on the Japanese vehicle rust debacle.