USA Today: Repo lots overflow with reclaimed cars

[El Pinko]

http://www.usatoday.com/money/autos/2008-02-13-repo-man_N.htm

Repo lots overflow with reclaimed cars

By Chris Woodyard, USA TODAY
Car and truck repossessions this year are headed for the highest level in at least a decade, thanks to easy credit and a faltering economy, says an economist for one of the largest wholesale auto auction services.
So many vehicles are being snatched from owners who stop making payments that some repo operators and auto auctioneers say lots are overflowing.

This year's predicted 10% rise in vehicle repos to 1.6 million would be a third higher than 10 years ago, says Thomas Webb, chief economist for a unit of Atlanta-based Manheim, which sells cars to dealers worldwide. The increase comes atop a 10% rise in repos last year.

Webb blames overly "generous" auto loans in the past couple of years as a key factor in driving up defaults that lead to repossessions.

[hobbit709]

1. blames overly "generous" auto loans

Yeah, right. How about the fact that people are having a hard time making payments because the cost of gas, groceries, etc. has shot up like a rocket. Most people's disposable income has vanished into the rising prices.

[dysfunctional press]

2. i used to do repos for a bank where i worked as a bill collector.

overall, it was an incredibly shitty job, but some of the repos made it worthwhile.
we always had to clean out the vehicle, and put all of the stuff into a box, which the owner could come down to the bank and claim. in one pick-up truck, the cab was filthy with garbage and clothes and an assortment of itmes including two dildos. we made sure to put those on top of the box when the owner came to pick up her stuff.
as for the collections side of the job- it was mostly collecting on delinquent visa card accounts on cards that had been issued by the bank. this was in the early 80's, and a lot of the customers happened to be striking caterpillar workers around peoria...it was horrible doing the collections, because they had no money, and the bank had no heart. i lasted less than 6 months before i just couldn't do it anymore, and quit.

[htuttle]

4. Is it true -- what they say about these?

[dysfunctional press]

7. nope.

there wasn't one in every car.

[htuttle]

3. "In a sluggish economy -- Inflation, recession hits the land of the free..."

It's gettin' all retro-80's out there.

Just hope it don't get all retro-30's...

[flashl]

5. Really? Greedy consumers wanting easy credit?

How about 100,000s of layoffs and 1,000s of businesses closing?

[JPZenger]

6. 6 and 7 Year Car Loans Partly to Blame

With a 6 or 7 Year car loan, it is highly likely that the car will be worth less than is owed on the loan. In that situation, some people don't mind their car being repossessed.

[dysfunctional press]

8. a lot of cars are worse less than what is owed on the loan...

as soon as you drive it off the lot.

[EnviroBat]

9. "Generous" auto loans?

How about auto loans with 19% interest rates made to people with less than stellar credit who are desperately in need of a car that is reliable. One with a warranty. People who are working to try to rebuild their credit, and who are being set up for failure. Generous my ass. It's a struggle for a person to make that $410.00/mo car payment on a $15,000.00 car, but that's often what people are faced with when the choice is go without a car and lose the job, or sign on the devils dotted line. Oh, I hear you out there, "Well, they should just buy a used car". Yeah that's a great argument given how reliable used cars are these days. You spend a couple grand for a car to get you around, and you're going to end up deeper in a hole with car repairs, and missing work. The credit game is for suckers, and they see you coming a mile away. Perhaps if they made fair loans in the first place they wouldn't be faced with all these repos.

[msongs]

10. then there's all those people buying cars they KNOW they cannot afford - but are trendy or

need to keep up with their joneses. plenty of people are victims of circumstances beyond their control and a lot of people are just idiots when it comes to spending money the do not have or have no prospect of having due to their own behavioral choices.

Msongs

[Trajan]

11. WRONG WRONG WRONG ..

It is overly STINGY wage hikes for the last 2 decades that have fueled this .... NOT 'overly generous' loans ... Wages PAY THE BILLS ....

Fucking assholes ...

[mvccd1000]

12. Some of this blame does lie with consumers...

We may argue about the percentage, but consumers are to blame in some cases.

My roommate just got her state certification as a beautician, and started her first job in that field a month ago. She's determined to buy a $35,000 Infiniti I35 before the month is out. Payments? $750/mo.

That is WAAAAY over her head, but she doesn't care. If she ends up buying it, it will end up getting repossessed. That will be her own damn fault.

[htuttle]

13. Those car payments are more than I pay for rent

:eyes:

[distantearlywarning]

17. It's more than I pay for my mortgage!

We got a Scion XB. Payments are supposed to be about $250 a month. We pay between 400-500 every month because we want to get it paid off sooner. It's working for us, and we love the car. No reason to have an Infiniti or a BMW or a whatever car is high status this month.

[Lance_Boyle]

15. omigawd

can you take pictures so we can all point and laugh when it happens?

As to the loans - generous, schmenerous. At what point can we expect people to take responsibility for their own finances? Borrow more than you can afford to repay, and suffer the consequences. It's not a difficult concept, but for various reasons, lots of people refuse to learn it.

[wuushew]

19. Has your roommate considered leasing instead of buying?

n/t

[SoCalDem]

22. My son & daughter-in-law pay $1200 a month for their cars

BUT they each make over 200K a year, so they can afford it....but still :eyes:

[ileus]

14. Maybe I can finally find that Jeep Rubicon I've been wanting.

[DemoTex]

16. Repo Man!

[Javaman]

18. RepoMan Iggy Pop...

i was riding on a concrete slab, down a river of useless flab it was such a beautiful day i heard a witchdoctor say, "i'll turn you into a toadstool" i'm looking for the joke with a microscope my muscle's twitching on your words if you're on the streets you lose your nerves divinity throws you a curve sticks you and then you go beserk abhoaring no inspiration. i'm looking for the joke with a microscope page out of a comic book a chicken hanging on a hook a river and a babbling brook a sermon and a teenage hook shaking my hand at your fake face a suicide a certain look a microphone a loose guitar people feeling near and far stupidity a mental scar put cruel into cruelty as life goes by you in a blurr an achoholic has gone far everything just goes to far i was pissing on the desert sands, when the desert whispered to me, "damn! isn't this a shame? things will never be the same..." i run this gas and oasis now i'm looking for the joke with a microscope i was a teenage dinosaur, stoned and obsolete i didn't get fucked and i didn't get kissed i got so fucking dense using my head for an ashtray now i'll tell you who i am i'm the repo-man and i'm looking for the joke looking for the joke i'm looking for the joke with a microscope

[williesgirl]

20. The life of these loans outlives the car and they wonder?

[SoCalDem]

21. 1965 corvette..new ..cost $4,106

Comments: 1965 saw several changes to the Corvette. The big news was the addition of standard four-wheel disc brakes. Styling changes were at a minimum, with functional front fender louvers, new wheel covers, and a restyled grille. The hood had no depressions or trim, and thus was not interchangeable with the '63 or '64 Corvettes. Inside, newly styled bucket seats were offered and genuine leather seating surfaces were optional. Options few European cars could match included power steering, power brakes, power windows, air conditioning, AM-FM radio, telescopic steering column, and a wood-rimmed steering wheel. Under the hood, the Corvette offered a wide range of engines. Standard was Chevy's tried-and-true 327 cid Turbo Fire V8 rated at 250 bhp. Next up was a 300 bhp version of the 327 and new for 1965 was the precursor to the famous LT1, a 327 rated at 350 bhp. At the top, was the most powerful carbureted 327, rated at 365 bhp. For true performance buyers, the Ram-Jet Fuel-Injected 327 made its last appearance in 1965. At $538, fuel injection was an expensive option, but it made 327 a 375 bhp stormer. It was the ultimate small block V8. But the introduction in April 1965, of the 396 cid big block MK IV V8 marked the beginning of a new era for the Corvette. Rated at 425 bhp and priced at only $292.70, the 396 V8 big block was a direct descendant of the 427 cid MK II engine that dominated NASCAR in 1963, and made the 327 "fuelie" seem superfluous in an era of cheap, high octane gasoline. A special bulging hood was included when the 396 was ordered. Interestingly, this would be the only year for the 396 V8. Although the 327 "fuelie" was still available through the 1965 model year, it was quietly dropped when the 1966 Corvettes was introduced. Introduced at the same time as the 396 were new side-mounted exhausts, a $134.50 option. 1965 was a unique and mememorable year for the Corvette. It was the only year that you could buy a fuel-injected, disc-braked Sting Ray. It was the first year for the big block and side-mounted exhausts. And with prices starting at $4,106, the 1965 Corvette Sting Ray was quite a bargin. No wonder that sales reached a record 23,652 units.

..............................
http://www2.census.gov/prod2/popscan/p60-056.pdf

follow down a bit for the graphs


mean income 1966 for a college grad aged 25 ...vwas upwards of 11400...


.......


You could buy the "primo" car available on the market for less than half of a year's income...and back then you could deduct the INTEREST on the car loan...

That's why so many young people (mostly men) and young families were able to afford new cars every few years..