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There's two statistics I really want to see when it comes to car sales that never get posted. 1. Average income of buyer vs car price 2. Average loan totals v

There's two statistics I really want to see when it comes to car sales that never get posted. 1. Average income of buyer vs car price 2. Average loan totals vs car price Because, I can tell you that those statistics will probably be absurdly horrifying. Best example is I was sitting in a dealer and the sales guy was guiding a buyer through getting 3 separate loans for a Honda minivan because the credit union and Honda Fiance deemed him uncreditworthy for one direct loan. And that was one of the many really disturbing things I've directly listened in to. Next recession is going to result in a complete implosion of the auto lending industry.

cheschire 7y ago
Don't forget average length of loans too. A lot of people are using up to 8 year loans to spread the cost even longer. Incomes haven't kept up with car prices so the only way people have been affording the same types of cars is with extending the loan payback period and paying a lot more in interest. Great for banks though.
bonestamp2 7y ago
> I can tell you that those statistics will probably be absurdly horrifying. Absolutely. I know a guy who runs a few dealerships and they don't even sell cheap cars yet they buy tons of leads each month for people with bad credit who want new cars. The leads cost $50-$150/each depending on how bad their credit is. So you know that those buyers are still buying brand new cars or they wouldn't keep buying these leads. Sure, there are people with bad credit who can afford these cars, but extenuating circumstances are not the majority. I know it's another anecdote, but from spending a lot of time on car forums, I can't count the number of discussions I've seen around what kind of car people think they can afford. There are people making $35k/yr buying $80k pickup trucks. I don't even know how that's mathematically possible unless they still live with their parents. Car loans are absolutely horrifying.

cheschire 7y ago

Don't forget average length of loans too. A lot of people are using up to 8 year loans to spread the cost even longer. Incomes haven't kept up with car prices so the only way people have been affording the same types of cars is with extending the loan payback period and paying a lot more in interest. Great for banks though.

bonestamp2 7y ago

> I can tell you that those statistics will probably be absurdly horrifying. Absolutely. I know a guy who runs a few dealerships and they don't even sell cheap cars yet they buy tons of leads each month for people with bad credit who want new cars. The leads cost $50-$150/each depending on how bad their credit is. So you know that those buyers are still buying brand new cars or they wouldn't keep buying these leads. Sure, there are people with bad credit who can afford these cars, but extenuating circumstances are not the majority. I know it's another anecdote, but from spending a lot of time on car forums, I can't count the number of discussions I've seen around what kind of car people think they can afford. There are people making $35k/yr buying $80k pickup trucks. I don't even know how that's mathematically possible unless they still live with their parents. Car loans are absolutely horrifying.