Recent Topics
Can someone do a UOA on AmazonBasics oil?
by ThunderOne. 01/22/19 04:03 PM
Any analysis on the Mobil 1 0W-40 ESP Dexos 2?
by fnbrowning. 01/22/19 04:02 PM
Cat sick
by Eddie. 01/22/19 03:49 PM
Lubeguard
by hardheaded. 01/22/19 02:10 PM
OEM Cap & Rotor when changing spark plugs?
by paulri. 01/22/19 01:50 PM
A young boy...
by JLTD. 01/22/19 01:34 PM
Oil weight and FM
by Brian553. 01/22/19 01:07 PM
New Bridgestone Blizzak WS90
by SubLGT. 01/22/19 12:59 PM
Southwest Airlines slides off runway
by JustN89. 01/22/19 12:55 PM
phenolic caliper pistons
by bionictony. 01/22/19 12:31 PM
SS snowblower auger to scraper gap?
by dwcopple. 01/22/19 11:47 AM
PP HM 10W-30 at Walmart for $15
by 28oz. 01/22/19 11:30 AM
2012 Camry ATF change- now or later?
by TmanP. 01/22/19 11:20 AM
Oil sampling tube
by kevmor99. 01/22/19 10:00 AM
Gas trimmers
by weeksjake. 01/22/19 09:11 AM
Supertech Heavy Duty 15W40 ...$9.64
by dblshock. 01/22/19 08:53 AM
Newest Members
73guna, Tedee, JayF, Sam002, Binco
67013 Registered Users
Who's Online Now
110 registered members (2strokeNorthstar, AdditiveOCD, 2015_PSD, 28oz, 8 invisible), 2,287 guests, and 37 spiders.
Key: Admin, Global Mod, Mod
Forum Statistics
Forums67
Topics296,986
Posts4,963,016
Members67,013
Most Online2,821
Jan 21st, 2019
Donate to BITOG
Previous Thread
Next Thread
Print Thread
Hop To
Page 1 of 9 1 2 9
32% of used car trade ins are underwater #4648727
01/28/18 08:19 AM
01/28/18 08:19 AM
Joined: Sep 2004
Posts: 22,130
Orlando, FL
Mr Nice Offline OP
Mr Nice  Offline OP
Joined: Sep 2004
Posts: 22,130
Orlando, FL
32% of used car trade ins are underwater in recent Edmunds report.

https://www.zerohedge.com/news/2018-01-2...-are-underwater


Re: 32% of used car trade ins are underwater [Re: Mr Nice] #4648730
01/28/18 08:22 AM
01/28/18 08:22 AM
Joined: Oct 2002
Posts: 36,777
Great Lakes
Quattro Pete Offline
Quattro Pete  Offline
Joined: Oct 2002
Posts: 36,777
Great Lakes
I'm surprised it's only 32%.


'02 530i (Edge 0W-40)
'15 Q5 3.0T (Edge 5W-40)
'18 Charger SRT (PUP 0W-40 SRT)
Re: 32% of used car trade ins are underwater [Re: Mr Nice] #4648732
01/28/18 08:24 AM
01/28/18 08:24 AM
Joined: Mar 2008
Posts: 6,178
Michigan
ZZman Offline
ZZman  Offline
Joined: Mar 2008
Posts: 6,178
Michigan
No surprise there. Cars are super expensive and they depreciate a lot. Most people get tired of their vehicles in 4-5 years.
Many also don't have big down payments or car equity to trade in so it is a vicious cycle.

Last edited by ZZman; 01/28/18 08:26 AM.

2003 Mercury Grand Marquis. PP HM 5w-30 and Fram Ultra
2008 Sebring Hardtop convertible. PP HM 5w-30 and Fram Ultra
2006 Kawasaki Vulcan 900 LT. Motul 7100 10w-40 and K&N
Re: 32% of used car trade ins are underwater [Re: Quattro Pete] #4648733
01/28/18 08:24 AM
01/28/18 08:24 AM
Joined: May 2010
Posts: 9,628
out there
spasm3 Offline
spasm3  Offline
Joined: May 2010
Posts: 9,628
out there
Originally Posted By: Quattro Pete
I'm surprised it's only 32%.


So am i!


13 elantra 72k 5w30 QSUD
03 chevy avalanche 80k synpwr 5w30
17 mazda cx-5 7300 miles m1 0w30
Re: 32% of used car trade ins are underwater [Re: Mr Nice] #4648736
01/28/18 08:25 AM
01/28/18 08:25 AM
Joined: Mar 2014
Posts: 3,597
NJ
Leo99 Offline
Leo99  Offline
Joined: Mar 2014
Posts: 3,597
NJ
I don't understand this:

which means that dealers lenders are willing to accept an immediate loss for new transactions

Any negative equity is rolled into the new loan so how are the lenders taking a loss?

Last edited by Leo99; 01/28/18 08:26 AM.

Without data you're just another person with an opinion. W. E. Deming

2003 Corolla 250,000 miles (RIP)
2004 Corolla 125,000 miles
2004 Rav4 370,000 miles
2015 Camry 70,000 miles
Re: 32% of used car trade ins are underwater [Re: Mr Nice] #4648739
01/28/18 08:28 AM
01/28/18 08:28 AM
Joined: Jul 2015
Posts: 4,156
New England
madRiver Offline
madRiver  Offline
Joined: Jul 2015
Posts: 4,156
New England
*If people stuck to paying for new vehicles in 4 years or less this would not occur.

Re: 32% of used car trade ins are underwater [Re: Leo99] #4648747
01/28/18 08:31 AM
01/28/18 08:31 AM
Joined: Dec 2014
Posts: 850
pennsylvania, usa
dlayman Offline
dlayman  Offline
Joined: Dec 2014
Posts: 850
pennsylvania, usa
I didn't understand that either, buy from further reading it sounds like they expect a large number of these loans to go into default with the lenders not getting their money back

Re: 32% of used car trade ins are underwater [Re: Leo99] #4648751
01/28/18 08:35 AM
01/28/18 08:35 AM
Joined: Mar 2004
Posts: 21,372
Upstate NY
Donald Online content
Donald  Online Content
Joined: Mar 2004
Posts: 21,372
Upstate NY
Originally Posted By: Leo99
I don't understand this:

which means that dealers lenders are willing to accept an immediate loss for new transactions

Any negative equity is rolled into the new loan so how are the lenders taking a loss?


In reading the article the consumer can get into an unsustainable cycle.

Owe $15k on car worth $10k, they roll $5k onto the new loan. You buy a $25k car with a trade in and no down payment and driving off the lot you owe $30k.


2015 Subaru Forester 2.5 engine/CVT
2015 Ford F250 w/Powerstroke
2016 Subaru Crosstrek CVT (wife's)
Re: 32% of used car trade ins are underwater [Re: Mr Nice] #4648760
01/28/18 08:46 AM
01/28/18 08:46 AM
Joined: May 2016
Posts: 293
New England
NibbanaBanana Offline
NibbanaBanana  Offline
Joined: May 2016
Posts: 293
New England
It's insanity. There's perfectly good new cars available for less than $15K. An excellent job of marketing by auto manufacturers.


1993 Ford E350 5.8L, 68K
2002 Ford E150 4.2L, 85K
2006 Chevy Aveo 1.6L 215K
2013 Kia Reo 1.4L, 101K
7500 OCI, M1 5-30 winter, M1 10-30 summer
Re: 32% of used car trade ins are underwater [Re: Mr Nice] #4648765
01/28/18 08:50 AM
01/28/18 08:50 AM
Joined: Jul 2015
Posts: 4,156
New England
madRiver Offline
madRiver  Offline
Joined: Jul 2015
Posts: 4,156
New England
It still is consumer thinking paying now in 5-8 year loan terms. Depreciation out paces the payment and surprise you are upside down.

Re: 32% of used car trade ins are underwater [Re: NibbanaBanana] #4648781
01/28/18 09:02 AM
01/28/18 09:02 AM
Joined: Jan 2011
Posts: 3,333
PV Az
AZjeff Offline
AZjeff  Offline
Joined: Jan 2011
Posts: 3,333
PV Az
Originally Posted By: NibbanaBanana
It's insanity. There's perfectly good new cars available for less than $15K. An excellent job of marketing by auto manufacturers.


These are good cars?

10 Best New Cars Under $15,000
2016 Hyundai Accent - MSRP $14,745.
2016 Nissan Versa Note - $14,230.
2016 Chevrolet Spark - MSRP $12,660.
2015 Mitsubishi Mirage - MSRP $12,995.
2016 Toyota Yaris - MSRP $14,895.
2016 Chevrolet Sonic - MSRP $14,345.
2016 Ford Fiesta - MSRP $14,580.
2016 Kia Rio - MSRP $14,165.


86 Samurai 1.3 leftovers
14 RAV4 2.5 5W-20 PP
16 Silverado 1500 4.3, DI, AFM 5W-30 PP

The most important thing to do in your life is to not interfere with someone else's life. - Frank Zappa

Re: 32% of used car trade ins are underwater [Re: Leo99] #4648783
01/28/18 09:03 AM
01/28/18 09:03 AM
Joined: Feb 2013
Posts: 534
Louisiana
SuzukiGoat Offline
SuzukiGoat  Offline
Joined: Feb 2013
Posts: 534
Louisiana
Quote:
which means that dealers lenders are willing to accept an immediate loss for new transactions

Any negative equity is rolled into the new loan so how are the lenders taking a loss?


Given that 625 credit score and up can finance over 100% of the value of the car plus and hard adds, it isn't hard.

They then charge interest on the greater amount and make money, not lose it.


2003 Nissan Xterra 4x4 M1 HM 10w40
2001 Toyota 4runner 4x4 M1 0w40
2016 Yamaha YXZ1000R VR1 20w50

Re: 32% of used car trade ins are underwater [Re: Mr Nice] #4648784
01/28/18 09:03 AM
01/28/18 09:03 AM
Joined: Oct 2010
Posts: 5,454
Florida
Artem Offline
Artem  Offline
Joined: Oct 2010
Posts: 5,454
Florida
People need to keep their cars for longer, until it's paid off, AND THEN you're free to go trade it in if you want. Use that 2-3k car value as your down payment on the next one, of you want.

I have a low APR on my Mazda 3 and have been paying $50 extra each month. Once it's paid off this year, it will have maybe 70-80k on it and is in MINT CONDITION. I plan to use it for an additional 5 years PAYMENT FREE before I even begin to think about getting another car payment.

People these days just can't manage their money nor their desires.


2014 Mazda 3 Hatch 2.0L & 6spd - Idemitsu 0w20 Synthetic @ $0.75 a quart. (thanks Advance Auto Parts for the awesome deal)
Re: 32% of used car trade ins are underwater [Re: AZjeff] #4648785
01/28/18 09:04 AM
01/28/18 09:04 AM
Joined: Feb 2013
Posts: 534
Louisiana
SuzukiGoat Offline
SuzukiGoat  Offline
Joined: Feb 2013
Posts: 534
Louisiana
One of those cars will hit 300k with just maintenance


2003 Nissan Xterra 4x4 M1 HM 10w40
2001 Toyota 4runner 4x4 M1 0w40
2016 Yamaha YXZ1000R VR1 20w50

Re: 32% of used car trade ins are underwater [Re: AZjeff] #4648787
01/28/18 09:07 AM
01/28/18 09:07 AM
Joined: Oct 2010
Posts: 5,454
Florida
Artem Offline
Artem  Offline
Joined: Oct 2010
Posts: 5,454
Florida
Originally Posted By: AZjeff
Originally Posted By: NibbanaBanana
It's insanity. There's perfectly good new cars available for less than $15K. An excellent job of marketing by auto manufacturers.


These are good cars?

10 Best New Cars Under $15,000
2016 Hyundai Accent - MSRP $14,745.
2016 Nissan Versa Note - $14,230.
2016 Chevrolet Spark - MSRP $12,660.
2015 Mitsubishi Mirage - MSRP $12,995.
2016 Toyota Yaris - MSRP $14,895.
2016 Chevrolet Sonic - MSRP $14,345.
2016 Ford Fiesta - MSRP $14,580.
2016 Kia Rio - MSRP $14,165.



crackmeup

The reality is, the people who technically NEED to buy those cars because it's in their budget, end up buying some $32,000 Benz instead and then struggle with the $800 monthly payment. But hey, at least they look good driving to work... to McDonalds.


2014 Mazda 3 Hatch 2.0L & 6spd - Idemitsu 0w20 Synthetic @ $0.75 a quart. (thanks Advance Auto Parts for the awesome deal)
Page 1 of 9 1 2 9

BOB IS THE OIL GUY® Powered by UBB.threads™