Friday, 4 December 2015
Cars. Americans used to love owning cars. They still do, actually.
- Except, today their cars own them and what's to love about that?
This smells very much like the "housing bubble" it does.
- Positively reeks of it, in fact.
Of course, after buying a house the second largest purchase a consumer makes is a vehicle.
- Saddle-up for this buckaroos!
US auto sales are at a record 10-yr high. Record credit, Record loan terms. Record stupid.
- Avg new car loan terms are 67 months - a record.
- Avg used car loan terms are 62 months - a record.
- Loans with 74-84 month terms are 30% of all financed new vehicles - a record.
- Avg amount financed for new vehicles is $28,711 - a record.
- Avg monthly payment new vehicles +$497 - a record.
Coming next. Interest-only car loans?
- Pay your "vig" or "go long" bicycles, happy consumer. Welcome to wealth destruction.
Oh, for consumers: A vehicle loan of 84 months = 7 years.
- Do you know how fast cars depreciate, and how much faster they wear out?
From Theo Spark at 10:45