The repo market is hot right now but lenders are smart and not just selling them for what’s owed or even doing bidding anymore. Now they give dealers first shot at buying them for market value before they even consider an auction format.
I’ve been watching NPA auctions like a hawk all summer and shit is getting RIDICULOUS money. 894 units tomorrow at Cinci auction and there will probably be another 200 added before bidding starts in the morning.
Lenders don’t give AF if you get repo’d because they’re going to make way more selling your vehicle than they’d ever make on loan interest and fees.
Lenders never sold cars for what’s owed. They brought/bring them to auction. What’s been different the last two years is all the people being repo’d from loans 3-5 years ago weren’t as upside down as in the past. Some actually had equity. The lenders have been making out like bandits for two years by their repo loses being so much lower than forecast. And I’m sure they have been quicker to snatch up cars than in the past when they know they are going to make $ instead of lose $ at the auction.
For the people they let their cars get repo’d when they had equity… can you be any stupider?
For the lenders - $$$
The auction brings market value. It’s dealers and used car lots buying.
Maybe some small lenders have sold by some other means. But the larger banks run thousands of cars a week through large auctions. It’s always been a source of cars for dealers. But when someone drops a car at the dealer to repo. The dealer is not able to buy it. The lender picks it up and brings it to auction. Even for franchise dealers.
I was the same way until recently…I had been driving my 04 f-150 until last year, when the engine gave out…had it fixed , but just wasn’t the same …I make around 150k a year, and decided to spurge a bit, as you get older you want to enjoy some of the money you’ve worked hard for …bought a new truck at $52k , gave 12k down, and have a 600 monthly payment…love my new truck….enjoy life a bit , it’s not always about “saving” for retirement …you need to reward yourself as well , as long as you do it in a smart way
I get it man…all things in moderation including moderation. If you are comfortable, why not? Cars just don’t excite me much. Not my thing. But if I feel like dropping $2K or more on an electric guitar on a whim, I do. We all have our “vices” we like to spend money on.
I was happy to pay off my car loan last year. I already chose my next aim. But unfortunately, after that last loan, my credit score has gone down, so the only option I can count on is one of those quick loans. However, after having read the https://bnlfinance.com/best-payday-loans-for-bad-credit/article, I doubt if it’s a good decision.
a lot of this thread is mind bottling to me. I make 200k and couldn’t afford a $1500 car payment. I also live in NY which is stupid expensive and have 3 kids. I drive a 2014 Ram 1500 with 134k miles.
Sometimes I want to go buy myself a ‘fancy’ car because I work hard but can’t fathom paying $600-700/month for a car note. I do think about getting a fuel efficient car for work/local driving because a truck is expensive to fill up (but I wouldn’t get rid of the truck, it’s good to have and I will drive it into the ground)
I make more than that and still can’t bring myself to spend $1500 a month on a car.
Could I? Yes, but I’d rather invest it and hope my next business venture pays out big. Then maybe I’d feel ok spending that once I know I’m set for life.