$1,000,000,000,000 in Auto DEBT

2015vwgolfdiesel

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Joined
Jan 1, 2016
Location
Oklahoma
TDI
2015 VW Golf S DSG Silver
According to Elliottwave ~~~ We have a Trillion dollars in car loans. ~~ highest ever in 'merica

Only a guess ~~ many (most?) car loans are upside down.:eek:

If our ECON goes south ~~ investing in a REPO business might be profitable

Question: I do not think a REPO is reported on a CARFAX. Are they???

Personally I do not care to own a REPO
 

Tdijarhead

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Joined
Nov 10, 2013
Location
Lawrenceville PA
TDI
2003 TDI Jetta Daughters Car, 2001 TDI Beetle, Wife’s car, 2005 Golf TDI Mine, all 5 spds
Unfortunately you are probably right, many people are upside down. They go buy a new car without fully paying off the old one and just roll the balance onto the new loan. My thought is this happens over and over again.

Buying something that's more than 2 years old, rebuilt, repossessed or outright wrecked or some other issue is absolutely taboo. Each one of those options can save a car buyer thousands. Because lets face it if it wasn't for financing most people couldn't afford the car they drive.

Ive bought 3 rebuilt/wrecked, vehicles 1 flooded (91) vehicle and each of them has served me well over the years with few issues relating to the event. I probably wouldn't buy a flooded vehicle today my strong suit is not figuring out electrical gremlins.

My newest vehicle is an 2011 (rebuilt), I wouldn't have a problem with a repo I'd just decide if I thought I could handle whatever had been neglected or intentionally done to the vehicle and go from there. Of course the price has to be attractive.

And no car loans to worry about each and every month.
 

2015vwgolfdiesel

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Jan 1, 2016
Location
Oklahoma
TDI
2015 VW Golf S DSG Silver
Unfortunately you are probably right, many people are upside down. They go buy a new car without fully paying off the old one and just roll the balance onto the new loan. My thought is this happens over and over again.
Buying something that's more than 2 years old, rebuilt, repossessed or outright wrecked or some other issue is absolutely taboo. Each one of those options can save a car buyer thousands. Because lets face it if it wasn't for financing most people couldn't afford the car they drive.
Ive bought 3 rebuilt/wrecked, vehicles 1 flooded (91) vehicle and each of them has served me well over the years with few issues relating to the event. I probably wouldn't buy a flooded vehicle today my strong suit is not figuring out electrical gremlins.
My newest vehicle is an 2011 (rebuilt), I wouldn't have a problem with a repo I'd just decide if I thought I could handle whatever had been neglected or intentionally done to the vehicle and go from there. Of course the price has to be attractive.
And no car loans to worry about each and every month.


You are da man
 

Ol'Rattler

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Jul 3, 2007
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PNA
TDI
2006 BRM Jetta
A lot of folks don't know or care about what a car actually costs as long as they can make the payments. One of the stupidest thing I have ever seen is an Internet app that helps you find the "right" credit card for you.

The answer is pretty simple. One if you always pay the balance off within the billing cycle or none. With a FICAL score of 840, I must be doing something right.
 
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Powder Hound

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Under a Bridge, Crestview, FL, USA
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'00 Golf 4dr White 5sp, '02 Jettachero 5sp, Wife's '03 NB Platinum Gray auto(!)
... With a FICAL score of 840, I must be doing something right.
An admirable score indeed, for a FICO score.

All the car companies have been doing this for years. It is essential to keep the assembly lines running: provide artificially loose financing for new car sales. You can see this in the fact that someone can finance a new car for 25-30k, but can't qualify for a 125k home. And the reasons are numerous: insufficient cash for a down, too much unsecured debt (credit card balances), too much overall debt (that new car payment can be a killer here), just to name a few.

It will be interesting to see what happens during the next downturn. Although, I must admit that since the current conditions I see can hardly be called a great running economy, a 'downturn' from here will get scary right quick. Cash will be king, so if you keep your powder dry, there will be bargains to be had at pennies on the dollar if you are patient.

Cheers,

PH
 

aja8888

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Texas..RETIRED 12/31/17
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Out of TDI's
A You can see this in the fact that someone can finance a new car for 25-30k, but can't qualify for a 125k home. And the reasons are numerous: insufficient cash for a down, too much unsecured debt (credit card balances), too much overall debt (that new car payment can be a killer here), just to name a few.

PH
Banks will repossess cars as they are easy to sell at auction. Homes, not so easy, and banks have more into a home loan.
 

Jetta SS

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Oct 30, 2006
Location
Grand Bay, AL
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'98 Jetta
I've seen a couple reports of automakers cutting production. Even with the loose financing things are slowing. Maybe it's time for cash for clunkers part 2.
 

2015vwgolfdiesel

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Location
Oklahoma
TDI
2015 VW Golf S DSG Silver
I've seen a couple reports of automakers cutting production. Even with the loose financing things are slowing. Maybe it's time for cash for clunkers part 2.
Is it possible things are slowing, because we have a $1,000,000,000,000 car debt situation. -- :p
 

oilhammer

Certified Volkswagen Nut & Vendor
Joined
Dec 11, 2001
Location
outside St Louis, MO
TDI
There are just too many to list....
No car loan debt here. Cash is king. Although I do think that if you have security somewhere else that can earn interest that is more than the interest you'd pay on a car loan then it would make more sense to have a loan.

Then that way, if you DO have some situation where you cannot make that payment, you have an avenue to pay the car off.

It seems a lot of Americans just think it is necessary to live up to their eyeballs in debt. I don't get it. I really don't.
 
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Mike_04GolfTDI

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Location
Richmond, BC, Canada
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Mine: 2019 Golf R DSG, Wife's: 2015 Golf Comfortline TDI
Most people are not mechanics, so they buy a new car every time the slightest thing goes wrong.

Wheel bearing is squeaking...new car
Timing belt is 50,000 miles overdue....new car
Transmission problem...new car

Cost of fuel increased 10%? Better spend $30,000 to get the latest hybrid that saves $500 per year in gas. LOL
 

El Dobro

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Feb 21, 2006
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NJ
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2017 Bolt EV Premier, 2023 Bolt EUV Premier
I took out a loan to buy the Volt, but why not. The loan was for 72 months at 0% interest, so I could use my money in the bank for other things.
 

2015vwgolfdiesel

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Location
Oklahoma
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2015 VW Golf S DSG Silver
Fico ~ Fico ~ Fico ~ Fico

The Bottom Line?

[FONT=&quot]Of course we all want the best, but the highest possible credit score — the 850 FICO — is almost unattainable. In fact, there are many loan officers that have been in the business for years who have said they’ve never seen a perfect 850 credit score before. Furthermore, a credit score in the high-700’s will usually get you the best rates anyway. Ultimately, instead of focusing on reaching the highest credit score possible, concentrate your efforts on having: ~~~~~~~~~~~~~~~~~~~~
[/FONT]
 

RabbitGTI

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Jul 20, 1997
Location
Wisconsin
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B4 Passat Sedan
As far as car loans go, if you can scribble your name and sit up you will get a pretty good rate. Gotta keep moving those cars off the lot.
 

oilhammer

Certified Volkswagen Nut & Vendor
Joined
Dec 11, 2001
Location
outside St Louis, MO
TDI
There are just too many to list....
As far as car loans go, if you can scribble your name and sit up you will get a pretty good rate. Gotta keep moving those cars off the lot.

Well not so much anymore. That got a lot of the financiers in trouble, and made the repo business pretty lucrative, and has saturated the used car market with repos.

We do repo reconditioning work for three different companies. They send us a lot of cars, and with a very small bit of observation you can see a lot of poor life choices' results floating around in these cars.

One recently had easily $1000 worth of dud lottery tickets laying strewn around the interior of the car. I may not be a financial wiz, but perhaps if one was not pissing his or her money away on lotto he or she could have made the payments on the car. :rolleyes:
 

2015vwgolfdiesel

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Location
Oklahoma
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2015 VW Golf S DSG Silver
Well not so much anymore. That got a lot of the financiers in trouble, and made the repo business pretty lucrative, and has saturated the used car market with repos.

We do repo reconditioning work for three different companies. They send us a lot of cars, and with a very small bit of observation you can see a lot of poor life choices' results floating around in these cars.

One recently had easily $1000 worth of dud lottery tickets laying strewn around the interior of the car.

I may not be a financial wiz, but perhaps if one was not pissing his or her money away on lotto he or she could have made the payments on the car. :rolleyes:
Not to mention smokers with a pack a day habit, would make 'bout $2,000 to $4,000 in car payments per year:D:rolleyes::mad::eek:
 

TomJD

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Jul 9, 2010
Location
St. Louis
TDI
2000 Jetta TDI GLS, 2015 Golf TDI
The Bottom Line?

[FONT=&quot]Of course we all want the best, but the highest possible credit score — the 850 FICO — is almost unattainable. In fact, there are many loan officers that have been in the business for years who have said they’ve never seen a perfect 850 credit score before. Furthermore, a credit score in the high-700’s will usually get you the best rates anyway. Ultimately, instead of focusing on reaching the highest credit score possible, concentrate your efforts on having: ~~~~~~~~~~~~~~~~~~~~
[/FONT]
The most financially responsible person I know does not have a credit score. He literally was denied a credit card from Lowes. But he is all cash and invests well so I doubt he cares. If it weren't for my mortgage, I wouldn't need a credit score at all.

I also know people who rent houses and always check the credit score of their tenants. To them no credit score is equal to 850. It's a sign you don't have any outstanding debt obligations. So if you have a decent job and no debt, you're just as likely to pay as the guy who has an 850 and is balancing a couple credit cards and auto loans.

Nothing wrong with credit cards and loans, it's just that the score isn't as necessary as people think.

Credit scores are debt scores. Just a rating of how well some algorithm thinks you can manage debt. You only need a good credit score if you need debt.
 

greengeeker

Vendor
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Feb 8, 2006
Location
Cambridge, MN
TDI
2002 Jetta GLS
If you're buying a car every few years why would you take on the debt? Why not lease?

Who can afford a loan payment on a $65k F150...even if it is spread out over 84months(!) it is still $800 (!!). And most I know have TWO car payments.
 

jhax

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Jan 24, 2012
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Golden, CO
TDI
96 Passat B4V, ALH engine out of a 2002 Jetta, some IE Rods and ASV Pistons. Nothing drivable yet though
Why cant the student loan debt be on the verge of teetering, I could do without paying over $1k/mo. Then I would be much happier.
 

jhax

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Golden, CO
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96 Passat B4V, ALH engine out of a 2002 Jetta, some IE Rods and ASV Pistons. Nothing drivable yet though
You can try, sometimes it works, sometimes it doesn't, but as far as I know doesn't bankruptcy just screw things up even more?
 

TomJD

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St. Louis
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2000 Jetta TDI GLS, 2015 Golf TDI
You won't be able to get rid of student loans with a traditional bankruptcy.
 

2015vwgolfdiesel

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Oklahoma
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2015 VW Golf S DSG Silver
You can try, sometimes it works, sometimes it doesn't, but as far as I know doesn't bankruptcy just screw things up even more?
IMO

Bankruptcy screws the debt holders.

Matters not if it is the tax payer, or other parties like banks, CORPs, individuals, large and small Businesses etc.

Some folks live a life of screwing others. And they know who they are.

Have one in-law (once removed) who knows all the ropes. She has done it twice in the past ~~ and is now in debt AGAIN, way over her head ~~ number three BK ~~ here we come.

Her weakness is gambling. :mad: ~ One of her own self inflicted punishments, is her car. 10 years old, leaks everywhere, tires shot, 175,000 miles, stinks like rotten eggs, filthy seats.
 

jhax

Veteran Member
Joined
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Location
Golden, CO
TDI
96 Passat B4V, ALH engine out of a 2002 Jetta, some IE Rods and ASV Pistons. Nothing drivable yet though
So you're saying don't rule it out?
 
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