Drudge Retort: The Other Side of the News
Wednesday, February 13, 2019

A record 7 million Americans are 90 days or more behind on their auto loan payments, the Federal Reserve Bank of New York reported Tuesday, even more than during the wake of the financial crisis. Economists warn that this is a red flag. Despite the strong economy and low unemployment rate, many Americans are struggling to pay their bills. ... A car loan is typically the first payment people make because a vehicle is critical to getting to work, and someone can live in a car if all else fails. When car loan delinquencies rise, it is usually a sign of significant duress among low-income and working-class Americans.

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"The New York Fed said that there were over a million more "troubled borrowers" at the end of 2018 than there were in 2010, when unemployment hit 10 percent and the auto loan delinquency rate peaked. Today, unemployment is 4 percent and job openings are at an all-time high, yet a significant number of people cannot pay their car loan."

Thanks, Trumpism!

"job openings are at an all-time high"

Lies! Fake news! No More Brown People Needed! - Nulliphobian

#1 | Posted by Corky at 2019-02-13 01:15 AM | Reply | Funny: 1

So much winning!

The Trump economy is starting to show.

Massive corporate profits and income for the 1%.

Everyone else is ------.

$1 TRILLION deficits during a boom will make a stimulus impossible to get out of the coming depression.

The GOP pain train is coming.

#2 | Posted by Nixon at 2019-02-13 09:01 AM | Reply | Newsworthy 2

"yet a significant number of people cannot pay their car loan."

#1 Car prices are irrationally high. $30,000 for a small SUV. $20,000 for a compact car.

"The Bureau of Labor Statistics reported a median personal income of $865 weekly for all full-time workers in 2017"

70% of the US make less than $50,000 a year.

Wait till Tariffmans 25% gets added onto prices.

You ain't seen nothing yet.

The GOP is the enemy of the middle class.

#3 | Posted by Nixon at 2019-02-13 09:07 AM | Reply | Newsworthy 2

A Yaris L is $15,450 before incentives. If that's irrational, what do you think a rational price for a 4d, 40mpg new car should be?

#4 | Posted by sitzkrieg at 2019-02-13 09:42 AM | Reply

-#1 Car prices are irrationally high. $30,000 for a small SUV. $20,000 for a compact car.

I would argue that prices are not irrational. People are irrational with their decisions to buy cars they can't afford.

Since we don't have folks losing their jobs causing these delinquencies, it means folks just can't make a good buying decision.

Buying new cars when they cannot afford them. This is America.

#5 | Posted by eberly at 2019-02-13 09:44 AM | Reply | Newsworthy 4

Looks like there are going to be some good deals on cars soon... ... ..

#6 | Posted by eberly at 2019-02-13 09:46 AM | Reply | Newsworthy 1

"A Yaris L is $15,450 before incentives."

They also make you give up your chances of ever getting laid again.

#7 | Posted by BruceBanner at 2019-02-13 09:54 AM | Reply | Funny: 2

People are crazy to buy new cars. Living beyond your means could be unhealthy to your financial health, to put it mildly.

#8 | Posted by nullifidian at 2019-02-13 09:56 AM | Reply

Buying new cars when they cannot afford them. This is America.

#5 | POSTED BY EBERLY AT 2019-02-13 09:44 AM | REPLY | FLAG:

In America you need a car.

People are worried about their car breaking down, so they buy up.

They're just uneducated.

#9 | Posted by BruceBanner at 2019-02-13 09:56 AM | Reply

I bought a 97 Honda for 1500 and drove it straight to Honda to have every wearable part replaced for 2k. I've been driving it for 2 years now and had to put nothing into it since.

I bet 0.5 percent of people do the same.

#10 | Posted by BruceBanner at 2019-02-13 09:58 AM | Reply

First 3 posts blame Trump for people's irrational purchasing decisions. Party of personal irresponsibility.

#11 | Posted by nullifidian at 2019-02-13 10:00 AM | Reply | Newsworthy 3

10

You're right, I'm sure.

#12 | Posted by eberly at 2019-02-13 10:05 AM | Reply

Looks like there are going to be some good deals on cars soon... ... ..

#6 | Posted by eberly at 2019-02-13 09:46 AMFlag: (Choose)FunnyNewsworthyOffensiveAbusive

There already are. I just picked up an Toyota Tundra crew cab with 111K miles for $13.5K in excellent condition.. started out at 19K but I just waited them out. Banks will finance it but with 100K miles you have to have spotless credit so it continued to sit on the lot.

The wife and I decided way back to save and pay cash for our vehicles. I did a little figuring, with the upfront costs of the type of vehicles I buy and the required maintenance, I end up paying around $150 dollars a month on average over the life of the vehicle. I don't think you can do this with any vehicle but there a definitely a few brands/models that will.

#13 | Posted by lfthndthrds at 2019-02-13 10:07 AM | Reply | Newsworthy 1

I also have an "01 4-runner SR5 that is bullet proof. $7000 investment years ago and I've put 100K on it since I got it. I do all required servicing fluid/filters and drive it sensibly. I plan on getting another 100K out of it.

#14 | Posted by lfthndthrds at 2019-02-13 10:11 AM | Reply | Newsworthy 1

I bet 0.5 percent of people do the same.

#10 | Posted by BruceBanner at 2019-02-13 09:58 AM | Reply | Flag
You are probably correct.

With a little discipline, you absolutely can beat the game on the auto industry. You just wont have the flashy, shiny new stuff.

#15 | Posted by lfthndthrds at 2019-02-13 10:14 AM | Reply

Lft ... .good stuff.

I continue to preach that after revolving CC debt....the biggest mortal sin of personal finance is buying a new car. I'm qualifying that as some folks can easily afford a new car so it's no big deal....but most Americans buying new cars have no business doing that.

#16 | Posted by eberly at 2019-02-13 10:24 AM | Reply

I view the cost of a car like this... ... .

person A buys a new car for $25K....drives it 100K miles and trades it off for $8K. That's 100K miles that cost $17K in depreciation, or $.17 a mile in depreciation. Plus, the additional costs of property taxes and insurance for buying a new car.

person B buys a used car for $12K (same car above with 80K miles on it)...drives it 100K miles and sells it for $5K. Only $7K in depreciation. This car costs only $.07 a mile in depreciation. Yes, you are looking at tires, timing chain, etc....so you have to consider that to offset the other cost savings of depreciation, insurance, and taxes on the new car person A bought.

This represents a difference of $10K in less depreciation over say....4-5 years. or however long it takes someone to drive 100K miles. Person A is spending $200-$250 more a month on 1 car. most households have 2 cars....that's $5K to $6K a year more for this extra expense.....that's real money to most Americans...10% or more a year in income.

and they're unaware of it....they wont' do the math or it's just too hard.

#17 | Posted by eberly at 2019-02-13 10:34 AM | Reply | Newsworthy 1

They also make you give up your chances of ever getting laid again.

#7 | POSTED BY BRUCEBANNER AT 2019-02-13 09:54 AM | FLAG:

If your game is that weak, it's a personal problem, not a car problem.

#18 | Posted by sitzkrieg at 2019-02-13 10:38 AM | Reply | Funny: 4

and they're unaware of it....they wont' do the math or it's just too hard.

#17 | Posted by eberly at 2019-02-13 10:34 AMFlag: ReceivedFunnyNewsworthy

Cash is king. save the money then look for another ride. You'll be a lot more frugal when you're unloading your own money.

#19 | Posted by lfthndthrds at 2019-02-13 10:51 AM | Reply

You trump apologists remind me a cartoon i saw. There was a regular American standing there with a small coin at the foot of a mountain of money. A 1%-er was standing on top of the mountain of money, accusing the poor man of being greedy.

Maybe when the economy crashes again, you trump apologists (who are mostly on public assistance) will realize that a person cannot live above the poverty line on $9/hr.

#20 | Posted by kudzu at 2019-02-13 10:59 AM | Reply | Newsworthy 1

"Cash is King"

needs to be repeated over and over to my kids... ... ..

#21 | Posted by eberly at 2019-02-13 11:00 AM | Reply

2013, and I doubt it changed, automobile manufactures and used car dealers were giving the housing equivalent of NINJA loans away to move inventory.

Bloomberg reports on an issue we have been reporting for over a year, namely the 'stringent' credit-check requirements for new car purchasers by recounting the story of Alan Helfman, a car dealer in Houston, who served a woman in his showroom last month with a credit score lower than 500 and a desire for a new Dodge Dart for her daily commute. She drove away with a new car.

So there you have it: No Car, no FICO score, no problem. The NINJAs have once again taken over the subprime asylum.
www.zerohedge.com

Most of the people probably defaulting on these loans were part of that surge, and the industry isn't really recovering from the car glut. What is interesting is what happens to our trade-ins....

#22 | Posted by AndreaMackris at 2019-02-13 11:30 AM | Reply | Newsworthy 1

a person cannot live above the poverty line on $9/hr.
#20 | POSTED BY KUDZU

That all you getting paid Kudzu?

#23 | Posted by AndreaMackris at 2019-02-13 11:32 AM | Reply

#23

Mattress doesn't grok Kudz having concerns for people other than himself.

It's not in his DNA because it wasn't included in the Trust Fund.

#24 | Posted by Corky at 2019-02-13 11:45 AM | Reply


I wonder how many of those 7 million were planning to use their tax refund to help catch up with payments?


#25 | Posted by LampLighter at 2019-02-13 07:42 PM | Reply

Trumps fault that these folks didn't pay their car payment!

wow, you dems love these stories

you love when folks are doing bad. shame on you

#26 | Posted by Maverick at 2019-02-13 07:53 PM | Reply

Maybe it should have read: 7 Million Americans Bought Vehicles That Were Too Expensive For Their Income. [... has happened with mortgages also, as we well know].

#27 | Posted by MSgt at 2019-02-13 08:10 PM | Reply | Newsworthy 1


@#27 ... Trumps fault that these folks didn't pay their car payment! ...

Why not?

Pres Trump claims credit for anything good that happens, even if he had little or nothing to do with making it happen.

So why shouldn't the same criterion apply when what happens is less than good?

#28 | Posted by LampLighter at 2019-02-13 08:18 PM | Reply | Newsworthy 1

The orange diaper sniper is making bankruptcy great again.

#29 | Posted by reinheitsgebot at 2019-02-13 08:21 PM | Reply

Maybe it should have read: 7 Million Americans Bought Vehicles That Were Too Expensive For Their Income. [... has happened with mortgages also, as we well know].

Or maybe it should read predatory lenders deliberately issue loans they know the lendee can't repay, because saddling people with lifelong insurmountable debt is profitable for them, but it's zero-sum game, because those profits are simply losses that come at great expense to the lendees, and by extension society.

Has happened with mortgages also, and caused the Great Recession.

#30 | Posted by snoofy at 2019-02-13 08:39 PM | Reply | Newsworthy 2

The car I've owned for 15 of its 22 years was recently totaled.

So I'm shopping.

Would prefer AWD, probably as a result of the incident that totaled my car, and can't go back to a four banger after driving a V6 for the past 15 years.

Thinking about replacing it with a used Honda Pilot or Lexus RX 300 or 330, or Ford Edge, etc.

#31 | Posted by snoofy at 2019-02-13 08:46 PM | Reply

There are going to be a lot of used repo cars on the market, soon.

#32 | Posted by Whatsleft at 2019-02-13 09:26 PM | Reply | Newsworthy 1

I wouldn't want a repo car, if the previous owner can't maintain a car payment they probably can't maintain a car.

#33 | Posted by snoofy at 2019-02-13 09:29 PM | Reply

Just pay $500 bucks and get your used car dealer's license, buy cars at auction, and sell them every couple months. Zero payments, no depreciation, and maybe even a little profit if you're wise with your purchases. Plus you get to "trade up" every few months!

#34 | Posted by gavaster at 2019-02-13 10:14 PM | Reply

I wouldn't want a repo car, if the previous owner can't maintain a car payment they probably can't maintain a car.

#33 | Posted by snoofy

Depends on how much warranty is left.

#35 | Posted by Whatsleft at 2019-02-13 10:35 PM | Reply

Unless I'm mistaken, the glut of low mileage, recently off lease stock of cars is still rather large.

You're stupid if you buy a brand new car with the market what it is for quality used cars.

#36 | Posted by jpw at 2019-02-13 11:40 PM | Reply | Newsworthy 1

"Depends on how much warranty is left."

Hmm. Hadn't thought of that. Car warranties always seemed like they'd be hard to actually put to use, like getting your money back when returning a mattresses after 89 days in your home.

My car had some secret repair work done, probably to avoid the dreaded Salvage title in California, or maybe just to avoid a blip on the CarFax altogether. Still, I can't complain about a car that lasted 15 years with only routine and often neglected maintenance.

I was actually going to just keep driving it despite the insurance totaling it, since the damage is cosmetic. But then the battery light came on, so I'll take the settlement and walk away.

Humans have been building cars for 100 years now. We're really effing good at it. Nowadays, you're really buying the creature comforts; pretty much any car is going to be reliable.

#37 | Posted by snoofy at 2019-02-14 12:18 AM | Reply

"You're stupid if you buy a brand new car with the market what it is for quality used cars."

I get an "if?"

I get an "if!"

Barring a lottery win, I can't imagine ever buying a new car. The car I bought that was 7 years old with 120,000 miles on it was, well, it wasn't good as new, but it was much more than 20% good as new, which is what I paid compared to new price.

#38 | Posted by snoofy at 2019-02-14 12:23 AM | Reply

#10 | Posted by BruceBanner

I did that with the car I gave to my son. '96 Toyota Corolla with 150K miles on it. My mother drove it for years. I took it to Toyota, put on new tires, changed the belts, brakes (rotors and all) and oil. It runs perfectly. But he barely drives it. It's the family's kick around car, we drive it for short trips.

I'm going to buy a Truck in Dec, probably a Toyota Tacoma crew cab 4X4. Yes it will be new, I just want a new one with all the technology. I've had enough fun in the 2017 Mustang GT, time for me to grow up...

#39 | Posted by boaz at 2019-02-14 08:09 AM | Reply

I'm going to buy a Truck in Dec, probably a Toyota Tacoma crew cab 4X4. Yes it will be new, I just want a new one with all the technology. I've had enough fun in the 2017 Mustang GT, time for me to grow up...

#39 | Posted by boaz

Be honest! You want the higher profile back window so you have enough room for a confederate flag, a gun rack, and several Trump/White Power bumper stickers. :-)

#40 | Posted by AMERICANUNITY at 2019-02-14 08:23 AM | Reply | Newsworthy 1

First 3 posts blame Trump for people's irrational purchasing decisions. Party of personal irresponsibility.

#11 | POSTED BY NULLIFIDIAN

And when has this REPUBLICAN administration EVER taken responsibility for ANYTHING?

Your deflection just points out your hypocrisy.

So, answer me this... The point of the article is that MORE people are behind on their car payments now than before. Why are people more irresponsible now? What about this REPUBLICAN administration is making people make more IRRESPONSIBLE buying decisions (since that is what you are claiming is the cause)?

Leadership comes from the top and flows down. So does bad leadership.

#41 | Posted by gtbritishskull at 2019-02-14 08:27 AM | Reply

Mattress doesn't grok Kudz having concerns for people other than himself.
#24 | POSTED BY CORKY

He is a Republican. They have no empathy. And cannot understand people that do.

So they make up wild conspiracies (that they see as more likely based upon their own morality than someone actually caring about others) to explain these "bizarre" behaviors they see.

#42 | Posted by gtbritishskull at 2019-02-14 08:35 AM | Reply

Car warranties always seemed like they'd be hard to actually put to use

#37 | POSTED BY SNOOFY AT 2019-02-14 12:18 AM | FLAG:

The only people that really have issues with warranties are young males. They destroy their car then come in saying "it just blew up". News flash youngin', the mechanic knows what you need when he looks into your transmission.

When Fast & Furious 1 came out, there was a huge influx of blown up motors in Celicas and Civics. They'd put NOS on a high compression engine and blow the side panels off, remove the NOS, then claim "It just blew up!" .. yeah, no. Toyota was very generous, first time offenders got a new engine for free. After that, it was on you.

#43 | Posted by sitzkrieg at 2019-02-14 09:09 AM | Reply


Pres Trump has been systematically dismantling the consumer protections from predatory lenders.

Siding With 'Loan Sharks' Over Consumers, Trump CFPB Moves to Gut Payday Lender Regulations
www.commondreams.org

..."This administration has moved the CFPB away from protecting consumers to protecting the very companies abusing them."

In what progressive lawmakers and advocacy groups decried as the Trump administration's latest "shameful" attack on vulnerable families, the Consumer Financial Protection Bureau (CFPB) unveiled a plan on Wednesday that would gut regulations protecting consumers from predatory payday lenders....


The payday lender disaster is only the latest in a series of moves to undermine and gut the Consumer Finance Protection Board.

Why is Pres Trump making it easier for predatory lenders to take advantage of consumers?


#44 | Posted by LampLighter at 2019-02-14 09:59 AM | Reply

Too much is made of the stock market. 70 percent of the economy is consumer spending. 53 percent of the US population invests in the stock market. 47 percent have no such stake. Worse of the 53 percent that do participate 90 percent LOSE MONEY.

#45 | Posted by bayviking at 2019-02-14 12:53 PM | Reply

Why buy a new car when certified used cars are thousands of dollars cheaper?

#46 | Posted by moder8 at 2019-02-14 02:57 PM | Reply | Newsworthy 1

"Worse of the 53 percent that do participate 90 percent LOSE MONEY."

Citation?

#47 | Posted by eberly at 2019-02-14 03:34 PM | Reply

#47,

I can believe that. Another reason I got out of the stock market. Whenever the market was up, my account never seemed to appreciate at a good rate. But let it go down and you would really notice..

#48 | Posted by boaz at 2019-02-15 10:39 AM | Reply

"The GOP is the enemy of the middle class."

Yeah, it's almost like the Dems never forced people to pay for something they weren't paying before because they love the middle class.

Anyways, I can only speak for my geographical metro area but I see so many higher end cars throughout the entire state when I drive that one would almost think people are purchasing cars that cost more than they should be spending. But, I'm sure Dems would say that is not true. I mean, it is their right to overspend on everything. That way, the Dems can point the fingers at the GOP instead of this thing called "personal responsibility".

Sorry, but if that many people are delinquent, personal responsibility HAS to be part of the problem. Not all of the problem, of course, but enough of the problem that it MUST be considered when deciding what to do about it...instead of just pointing the finger and using partisan hate as your root cause analysis.

#49 | Posted by humtake at 2019-02-15 12:23 PM | Reply

#49 | POSTED BY HUMTAKE AT 2019-02-15 12:23 PM | FLAG: I agree with you and add the following info from a FoxBusinessNews article on the subject:

"One factor the New York Fed found particularly surprising from the data – given the strength of the economy and the labor market – is that borrowers with credit scores less than 620 saw their transitions into delinquency rise above 8 percent in the fourth quarter."

www.foxbusiness.com

#50 | Posted by MSgt at 2019-02-15 03:53 PM | Reply

I can believe that. Another reason I got out of the stock market. Whenever the market was up, my account never seemed to appreciate at a good rate. But let it go down and you would really notice..

#48 | POSTED BY BOAZ AT 2019-02-15 10:39 AM | FLAG:

Wait. What? You are pumping bitcoin on the nooner.

#51 | Posted by BruceBanner at 2019-02-15 04:33 PM | Reply

Damn, they must be driving cars they can't afford.

#52 | Posted by Sniper at 2019-02-15 04:51 PM | Reply

Don't buy a $30K car on a $25K salary .

#53 | Posted by Spork at 2019-02-15 05:16 PM | Reply

Don't buy anything on a $25k salary.

You can't afford anything more than food, rent and taxes.

Your life is worthless.

You're nothing more than a means for someone else's wealth.

#54 | Posted by ClownShack at 2019-02-15 05:20 PM | Reply

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