2019 TRD Pro’s collecting dust at dealerships

Most dealers list stock that hasn't arrived yet or that is on order. They usually don't have it all as stock on hand. However Longo Toyota actually seems to have all that stock on hand, which I agree is totally insane!

Here is an article on what this means for the auto industry and economy. The delinquency rates are not something that should just be ignored.
https://www.bankrate.com/loans/auto-loans/auto-loan-delinquencies-rise/

 

Yeah from 7 years ago
Brand image isn’t even an issue anymore with dealers, they have seen what it will do for them

Sub prime auto loans are the new 2006 home loans. It’s 7m and rising. Repos are at record highs

Longo Toyota is the largest sqft dealership in the country.
That they have that many pros means nothing.
They are the hub for the whole LA region, and could dealer trade them all out

 

Really??

 

I live in Austin TX and it is ridiculous how many cars have paper plates.

Some are clearly new, others seem like genuine used, and still others are dirty with paper plates and no dealer logo frames which makes me think there is an epidemic of fake paper plates.

 

Do a quick google search and there are a lot of articles being written on this over the past couple of months. Here is one such example.
https://seekingalpha.com/article/4174806-subprime-chaos-auto-bubbles-bursting-worse-2008

 

Wow, hope my 401K and 403B don't take a hit!

Yea it will......

 

I'm in ABQ and got mine at Karl Malone in Salt Lake because Larry Miller was so despicable and overpriced.

 

The snorkel looks ridiculous unless it's off pavement. Especially the blue. So bright

 

A few things... total outstanding auto loans probably will be higher than ever going forward considering population growth and the cost of cars going up. Thats simple math so when I see a total of over $1.1 trillion in auto loans, I can't really care unless its qualified some other way. Such as average loan to value or average balance per person or something to that affect. Then compare this to other points in time. You can't compare total numbers and get anything real from it. Wouldn't you expect total credit card debt to be higher in 2019 than in 1999? More people, more expensive shit.

The highest delinquencies is a valid argument.

And to compare subprime auto loans to subprime housing issue form 2008? The subprime housing issue went far deeper than just the people taking out loans. Those loans were packaged up as securities and graded AAA and sold to investors. This causes a ripple affect when they default. It didn't just hurt the banks and the debtors. Pension funds can only invest in AAA rated investments. See where this is going? Didn't turn out well for them. I don't think subprime auto loans can cause the same damage. They will cause different economic damage for sure, but unless a large portion of the economy is riding on the premise of future cash flows from subprime auto loans, it won't have the same reach. Not to mention its much easier to repo a car and resell it. And with the high ass interest rates being charged, its probable the bank won't lose anything overall even if the car is upside down.

Its definitely something to keep an eye on. I'm not sure what the specific affect will be. Best you can do is keep your own financial house in order.

 

I'm in agreement with you, an auto loan is far different from a home mortgage. Great points.

I live in an area that was especially hit hard in 2008-09, one of the worst. Was unscathed since I bought our home in 95 and never took out a second mortgage.

 

Dealer by me has $10k markup. For $60k, I'd be looking at a Lexus GX, not a 4Runner.

 

People have been saying that for years yet the car market marches on....

 

Tesla is out of gas...

 

No, they’re just trying to sell more trucks.

 

Not in Commifornia.

 

1st Q average new car price was over $37k, avg loan was over $32k, avg loan length is now ~69 months (all up year over year). Total value of subprime auto loans is valid if only to demonstrate that we/they are lending money to people who cant afford the debt. Subprime auto loan defaults are also up. We are swimming in debt.

 

I'd agree on total of subprime loans. Your numbers are useful.

I looked at the seeking alpha article someone linked and it used total auto debt, not just subprime. Thats not useful at face value. My intention wasn't to provide numbers, but a pet peeve of mine is when people use numbers inappropriately to tell a story or fear-monger. You can use stats to make any story you want. Sort of like saying one president created more jobs than another, but one started with highest unemployment ever and the other started with near lowest unemployment. Statistically impossible to compare in any meaningful way.

 

Gotta keep up with the Jones.... and Smiths.

 

You guys mean all those people buying the big and new $60k F150s and Silverados, and $90k Super Duties, can’t afford their 72 month loans??

 

The one from the first link actually has dust all over it, and the second link, they want you to call for the prices, which should be an automatic disqualifier. If it's to expensive to list the price, then its not worth my while to call anyway.