Massive Layoffs At UPS A Big Win For The Union!

One of my newer predictions is that you will soon see the length of auto and car loans get extended. You'll start seeing 8 - 10-year auto financing and 35 - 40-year mortgages

Brett, I am home this week taking care of some farm business. I was talking to my banker 2 days ago. Our conversation steered into auto financing and he said, "One of the next things we are implementing is ten year auto loans." My jaw dropped, and I asked, "What happens to the guy who needs to sell his car in three years?"

His response was that they were going to be in a difficult situation. Most of the money they've paid at that point was applied to interest. They are married to the car and the bank. There's not a good way to get loose from either one of them.

It seems like the plan for those interested in short term ownership will have to lease. It works out for the dealer because the car gets off of their floor plan and they don't have to pay interest on it. Then when the vehicle gets brought back they can sit on it with some asinine price because it's a used vehicle that doesn't cost them anything extra by being on the lot.

Since dealers use programs like Vauto to price cars (price fixing in my opinion), the consumer is at their mercy. If banks are willing to extend loans for 120 months, skys the limit on these vehicle prices.

The car industry is the next 08 crash. It's not surprising to me about the 10 year notes. For one thing, it's the only way most borrowers can afford the monthly payments.

Added to the list of things that state propaganda (the media and news outlets on the net) won't discuss is the default rate and repo rate on vehicles. It's the highest It's ever been in history. Auction yards are flooded.

If you have the money, its a great time to get a specialty vehicle, like a last call challenger or shelby or mach 1. I got my mach 1 for 24k less than they wanted. It was holding up their allotment of the s650. C8 vettes can be had for 20 to 30k less than msrp. They won't tell you that, their in denial of the crash, but the reality is that they are so overstocked, no ones buying, especially the high end stuff.

I have seen ads running like crazy for 0 % interest for 84 months on new vehicles. That is crazy too me.

Mine are paid off and those ads and this thread make me think these will have to last.

I have heard, not seen myself that new trucks are also getting creative with financing. My truck is getting ready to hit 1 million miles. I’ll in frame it and just keep it. Guess I won’t be doing my part of clean up the air, lol.

My point in this is that the issue is not caused by huge exec pay

Now, talk about corporate cash reserves and stock buybacks. How do you feel about those?

stock markets aren’t much better. The stock market is broken in my opinion. Passive investments are a sham way to base an economy in the first place, it places a “blind” trust on the company that is implemented with no way for the investor to ensure compliance with laws, or even basic human decency. It comes with the implicit expectation that the company generates even more money, which turns into scamming the customers. As for cash reserves, those aren’t as deep as I think you give them credit for. Most blue label (like S&P 500) are only sitting on a few tens of billions. They don’t have much of a reason not to sit on that amount. In fact it would be rather reckless not to, since a downturn in the economy would result in the business crashing. How would you think about your (trucking) company if they had let’s say less than a million in reserves? Let’s say there’s two crashes resulting in the totality of a truck within a month. And freight slows down of course. The half million (approx) to replace 2 tractor-trailers could easily dry things up, resulting in selling assets (maybe your truck) not to mention increased insurance costs

Last you mentioned stock buybacks. I’m not really sure what I think about that, since I’m not a huge fan of the stock market to begin with my default opinion has to be that it’s a necessary evil at some point to make the companies private, but of course that’s not what the companies are buying back stock for.