Record 7 million are 3 months behind on their car payments

Discussion in 'Economics' started by jeb9999, Feb 13, 2019.

  1. destriero


    I don’t know too many 16yo with car loans.
    #31     Feb 14, 2019
  2. ironchef


    #32     Feb 14, 2019
  3. schweiz


    7 million molehills together are probably a (small) mountain...
    #33     Feb 15, 2019
  4. southall


    7million people say roughly $1000 behind in payments is just $7Billion.

    $7B out $1300B in total US auto loans.

    Lenders charge around $50B a year in auto loan interest.
    #34     Feb 16, 2019
    #35     Feb 16, 2019
  6. schweiz


    The question is: how big is the profit on these $50B? Because if 7B is not paid it means 7B losses. Losses that have to be recovered somewhere from PROFITS. So from that POV it can be a huge problem. You should not compare a loss with the turnover, you should take the net profit margin.

    Amazon had for 2018 a net profit that was 4% of the revenues they had. 7B on 50B revenues represents 14%! So 3.5 times the net profit margin of Amazon in losses! Or 3.5 years of profits that would be lost.

    And each year there can, or rather will be certainly, new problematic loans.
    #36     Feb 16, 2019
  7. Fiat Currency (even the Swiss Franc is now a Fiat Currency) only stays alive when debt is added, which is why virtually all Developed Nations have a huge debt load. At some point, it will come to a nasty end . . . and then start all over again. It's been happening for the last 3,000 + years.
    #37     Feb 16, 2019
  8. tiddlywinks


    That is a straw-man.

    AMZN is one company.

    The 7million delinquent people are spread among many (auto and/or financial) companies. The distribution of losses may not be equal, but it is also possible that no one company holds a significant majority. The article does not differentiate the aggregate.
    #38     Feb 16, 2019
    schweiz likes this.
  9. schweiz


    Indeed, I started from a 1 company point of view and that was wrong in this case. :)
    #39     Feb 16, 2019
  10. %%
    Most all car loans are LOL. NOT charged off; but underwater/depreciation.Plenty of money has been made buying that ''charge off paper/cheap paper'':cool::cool:I see your points, speedo; but i pay cash for cars.........
    #40     Feb 19, 2019