Car loan market

So I keep hearing ads on the radio

>get approved before you shop
>no credit checks and no proof of income!
>get the cash you deserve today!
>take your family on the vacation that they deserve!

Is there a bubble in the car loan market? Are there any vehicle loan backed bonds out there?

Other urls found in this thread:

sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001477336&owner=exclude&count=40&hidefilings=0
usatoday.com/story/money/cars/2015/05/04/new-car-transaction-price-3-kbb-kelley-blue-book/26690191/
twitter.com/SFWRedditVideos

Also what about credit card debt? Its the same story. Comenity and Synchrony banks are handing out massive credit limits to subprime borrowers to stores like Walmart, Lowes, etc.

The entire US economy is literally a supermassive bubble lad. It's supposed to go through cycles of inflation and solidification (return to the mean with a slight gain)

The competition strategy of the country is to inflate every single possible bubble as much as possible if the need arises so their economy remains the world leader, while (most of) everyone else is based on a well-grounded long-term investment of stability and shorter and smaller cycles, like the EU for an example. DB is just a matter of bad luck that wont be repeated if you're going to throw that at me

That way of operating an economy isn't necessarily bad, but it pretty much bases its entire existence on the fact that most other leading economies will either collapse with it, or before it. If that fails to happen (as in the case of WW2 and Germany/Japan), well, you know what happens.
Capital would want to flee to the safer places (like the EU or China if neither collapse), therefor the US will undertake offensive measures against that and fabricate wars they don't even have a single claim to fight (like abusing NATO as an offensive front towards irrelevant non-existent threats), or straight up end up dragging the rest of the world with it.

I personally think that it will indeed go through a massive crash, the biggest one so far, and that the first choice of capital flight would be the EU, which is exactly why they're trying to behave as passive and beta as possible and not seem aggressive, rather calm and stable. That attempt at stability has recently been disrupted by too many terror attacks, which will force them to seriously increase internal security so as to preserve stability and democracy (and therefor capital attraction in case of a crash).

Expect a unified European police force soon, and I'm not even memeing. You heard it here first. Dump all your money in EU stocks right after the EU market "crashes" for a brief moment

here's all of Ally Financials ABS
sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001477336&owner=exclude&count=40&hidefilings=0

it will have the data for each of ABS pools - how many loans in each pool, how many are delinquent/charged off, etc.

each of the auto lenders reports data like that. if you have a car loan, you can usually figure out which pool your loan is in.

Ruski?

Well said, user.

>the first choice of capital flight would be the EU

This is the most ridiculous thing I've read all day

t. globalist retard

Except the US has the tightest labor market of the world, dipping low in unemploymemt and drawing record amounts of people back into the labor market.

The US does have a debt issue though. People rarely save, spending most of their money on consumption which inflates the economy due to how banks utilize money. Its why the poor are only making marginal gains while the wealthy people that can invest are making a killing. The US is the only stable market in the world right now as well, which is why the S&P hit record highs. Money was pulled out of China and other developing markets, and the EU through its numerious crisis and invested back into the US.

>Except the US has the tightest labor market of the world, dipping low in unemploymemt and drawing record amounts of people back into the labor market.

(Citation needed)

>legitimate question thread
>first reply is "muh happening"
Stay poor Veeky Forums.

If you're looking for a big short scenario there just isn't one. And you can tell because poor people aren't driving nice cars. That's insensitive, but it's true.

With the housing market, unqualified borrowers were getting approved for massively inflated credit scores and entering into loan obligations that were extremely attractive in the beginning and impossibly dangerous towards the end of the loan's life.

In the auto loan market, the vast majority of loans are fixed rate (I have no source on this so I could be wrong) and MSRPs have remained relatively stable (at least compared to home values during the bubble).

What they're doing with auto loans instead of fucking with the rates, is extending the TERM of the loan, so now people are taking out 6-, 7-, 8-year auto loans. This isn't a recipe for financial disaster, but it will handcuff consumers to a big debt obligation for a much longer period, limiting their purchasing power and just generally shitting up the rest of their finances. So that's that, I think.

tl;dr it's not a bubble until poor people start buying not-poor people shit

This more or less.

Define nice. The average price of a vehicle has increased to over $33,000 recently and wages have been stagnant.

usatoday.com/story/money/cars/2015/05/04/new-car-transaction-price-3-kbb-kelley-blue-book/26690191/

Automakers have little means of incentivizing new car purchases aside from feature rich cars with expensive mechanical pieces like turbocharged engines, dual-clutch automatic transmissions, and all-wheel drive systems. You can leave a dealership with a compact economy car that cost well north of $20,000. When you see a Corolla on the road, remember that it is most likely jam packed full of sensors and GPS screens. Gone are the days of $10,000 for a manual with roll-up windows. They simply aren't on offer.

tldr A fully loaded Kia costs as much as an entry level Lexus.

I hear a lot on this bubble coming, but unlike a housing loan bubble, it is easy to seize a vehicle that has missed payment. Failure to pay insurance, which must be full coverage, is often enough to take back the car. No squatters rights or all that bs you have to go through to kick someone out of a home, and either they cash out an insurance policy for a devalued/wrecked car, or resell it. Could become a car dealer, or invest in one, cars are also transportable, and a broad customer market for international export is always a possibility, allowing them to be pawned off to Africa, the middle east, etc.
I don't think it's happening

While this is true I think anons point was people were already defaulting on their loans, and the bond prices were still sky high in the 2008 situation, that's how he found put about the indian street style loan contracts and picked out the bubble. This would be a confirmed bubble if auto and credit fraud started to jump up, and not enough people were paying their bills for the credit company's to stay afloat yet the value of the bonds were still as high as they are and or climbing

>hunderds of thousand of cars get siezed
>banks try to sell them, there's no demand for so many used cars
>bank can only sell them for a fraction of the price, milions of people still in debt
>car industry breaks down because the unlimited supply of undervalued used cars makes the manufacture of new cars quite pointless

So how exactly is "easy to seize" a benefit?

It isn't the best benefit but it sure is better than difficult/impossible to seize.

houses are just as easy to seize, this is like saying that if someone takes a loan on a pile of snow and defaults,
then since it will be easy for the bank to seize the snow they will somehow retain their investment

...

Houses are super easy to seize if the ""owner"" fails to repay his loan. It was even part of the whole point as to why these subprime mortgages were shilled so much. The ""owners"" were just supposed to sit on the house for a few years while the price went up, then when the house was seized and liquidated the banks actually made a profit.