Subprime Auto Bubble Bursts As "Buyers Are Suddenly Missing From Showrooms"

I agree with your first paragraph, people have become dumber with finances as a whole.

However, a 1-2 year old car is a hell of a lot cheaper then it’s original sticker price, while still under the manufacturer’s warranty. My wife and I never buy brand new cars, and the used ones we do buy are kept until they are no longer practical to rely on. Which is way past what most people keep their cars for.

 

Cars are a depreciating asset, so should NEVER be financed. Obviously.

If you can't afford to pay cash for a car, you definitely can't afford a financed car. A financed car is much more expensive than a cash-bought car. Obviously.

I don't understand how so many people have such a poor grasp of the economics.

 

We buy cars with a saleable value of $10k max, so they don't need to be insured (other than compulsory third party). We keep them for as long as they are reliable.

 

It will be interesting to see what keeps fueling the economy when the middle class consumer gets pushed to the curb and becomes MIA.

So far, we see families having less money to buy a first home, less money to buy a car. These are the big ticket items that are the mainstay of the conventional economy.

 

The majority of ANY population should not be buying new cars. It's an utter waste of money.

 

Bingo! The only way to fly

 

Because you don't want large sums of your capital tied up in a depreciating asset?

 

Crazy that this needs to be spelled out, but there it is.

 

Humans seem to have a natural proclivity to acquire today when presented with the option to pay for it in the future. It's been going on for thousands of years. I don't have any thought to regulate that issue through police powers, nor shift blame from the debtors. I don't think I indicated any prescription for this fact of nature.

The government makes it easier to acquire debt is something the government does so that it, too, may borrow from the future to pay for current obligations. This is exacerbating a side of human nature which doesn't no longer serves humans well. In a free market, credit would be much tighter, would create far less long term misery, and the economy would not be subject such enormous bubbles that threaten that economy

 

It's a lack of personal responsibility and a desire to blame everyone else.

If someone has a lot of consumer debt, they have no one to blame but themselves.

The rest of that is just chaff and flares.

 

And what are the rest of us to do when that bubble bursts and takes down the entire banking system with it, thus entailing another massive bailout and depression? Will you blame the borrowers still, or the creditors, or will you point the finger at yourself for voting for the types of politicians who create and enable such a monstrous system? I sincerely doubt it will be the latter as it is always the fault of the "other side" of the political aisle.

 

People lease not only for a lower payment than financing, but for not having to worry about fixing anything and knowing they can get a new car in 3ish yrs. I bought my first car for college, than leased 3 in my 20s, until I got married. As a single guy I had the freedom to get whatever I wanted so why not take advantage Changes after you get married, hehe.

 

The rest of us will be buying cars and houses really cheap.

 

Not everyone who is in debt also has savings, or access to good employment. You might, at your age. Those kids in their 20's who are debt fre may be in a very precarious position, especially as your generation has sought to tax them to death in order to line your own retirement wallets. That's not to mention the debt you've saddled future generations with to pay for that social security and have all your government goodies at the same time.

 

You've said a lot, but you forgot one thing...

Still their fault for going into consumer debt.

You can twist around and blame the patriarchy all you want.

Still 100% their fault.

My side just lowered taxes. It's democrats that want high taxes. Go complain to them.

 

I never disagreed with you on that. I thought I made that clear. I just don't believe that, in principle, you believe in self-accountability. You only do so when it's convenient and doesn't undermine your particular ideology.

And raises spending 13% in the last year, increased totalitarian surveillance, made it possible to sue people for what other people say on the internet, and will likely raise social security taxes soon to pay for more infrastructure. Your side is just one half of the Big Government Party and despite your claim to be against blaming others, you have no problem doing so when convenient.

 

Why should I, as someone who mails letters to people within my region, be forced to subsidize the cost of others mailing their coast to coast?

 

Some people like new cars every two years. There’s a significant percentage of those people who have no business doing that.

 

It was dems that voted for the Omnibus spending bill. More than half republicans voted against the bill or did not vote at all.

Here is a list of the 32 Senators who voted against the Omnibus spending bill:
Barrasso (R-Wyo.)
Booker (D-N.J.)
Cassidy (R-La.)
Corker (R-Tenn.)
Cotton (R-Ark.)
Crapo (R-Idaho)
Cruz (R-Tex)
Daines (R-Mont.)
Enzi (R-Wyo.)
Ernst (R-Iowa)
Feinstein (D-Calif.)
Fischer (R-Neb.)
Flake (R-Ariz.)
Gardner (R-Colo.)
Gillibrand (D-N.Y.)
Grassley (R-Iowa)
Harris (D-Calif.)
Johnson (R-Wisc.)
Kennedy (R-La.)
Lankford (R-Okla.)
Lee (R-Utah)
Markey (D-Mass.)
McCaskill (D-Mo.)
Merkley (D-Ore.)
Paul (R-Ky.)
Perdue (R-Ga.)
Risch (R-Idaho)
Sanders (I-Vt.)
Sasse (R-Neb.)
Sullivan (R-Alaska)
Tillis (R-N.C.)
Warren (D-Mass.)

Senators Not Voting:
Burr (R-N.C.)
McCain (R-Ariz.)
Toomey (R-Pa.)

Steve

 

It doesn't matter what you believe, I'm not in debt.

You haven't shown that I don't believe in self-accountability but you're welcome to give it a shot.

Again, suing people is the hate speech crowd. Not my people.

Social security is being abused by people who don't work and kids who've never worked a day in their lives. Again, not my people.

Who created social security again?

Was it a conservative or someone who wanted to blame everyone else for the reason people didn't save anything for retirement?

 

Sure. Just ask Amazon to send a letter from Florida to Aunt Annie in Colorado. How much do you think that would cost? Even if they provided the service.

Amazon is a retailer, not a post carrier.

Fact is you have it completely wrong. In reality, no private company would be able to compete with a government business on price. And, of course, that's one of the reasons why we don't want the government to compete in everything. But if that's your argument, I'm afraid you are holding the losing hand.

 

Unfortunately, most 1-2 year old used cars are of the loaded variety. They are no cheaper than a new base model. We buy base model new, because we don't need all the extra junk that has a 500% markup and starts breaking after 5 years. Since most people don't buy base models, they are hard to come by used.

 

Socialists are so funny.

USPS cost taxpayers, on average, $18 billion per year.

How much does UPS cost us in taxes every year?

Even the frickin government is using UPS instead of USPS. Oh man you guys are funny.

https://www.washingtontimes.com/news/2013/jun/11/federal-agencies-choosing-ups-fed-ex-over-usps/

 

If cars were not financed, only 10% people could actually buy one (that's an educated guess).

I am always astounded when I buy something that most other people finance and the sales people start their finance spiel, only to be surprised when I tell them we pay cash.

Interestingly, the savings rate is rapidly approaching 0 again since Trump took office. it looks like the average guy is spending all they have, and some. So, people buying large items with cash will become even less likely.

Welcome to the beautiful Trump economy based on debt. What else would you expect from the king of debt?

 

Well, just try to mail a letter within your region using a private company and see who will do that for 50 cents.

There are many reasons why the Government should not be engaged in businesses that belong to the private sector. Price is not one of them.