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hegemony

Auto loans hit record high, sending borrowers with the best credit to the used market

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14 hours ago, hdporter said:

I'll resist the urge to rattle on again about my delight with my 2006 Zephy ...  :yahoo:

I bragged too much about my 06 never having any issues and jinxed myself. Now everything hit at once and I might have to scrap the thing.

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5 hours ago, oldblue said:

I bragged too much about my 06 never having any issues and jinxed myself. Now everything hit at once and I might have to scrap the thing.

I choose to crow even in the face of a jinx threat ...  in my experience, if shit’s going to happen there’s little to hold it back ;)  

 

As I become more and more envious of all the bells & whistles avail on a fully loaded vehicle these days, I may just do a modest happy jig should I decide a needed repair is too costly to justify!

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I refuse to buy new, I'll grab a cheap auction car or something. I figure if I would of bought a brand new car in 13 when I got the 06 it'd be paid off by now but I'd have about 25k less in the bank. I'll take 25k over bells and whistles. Plus I'd have to worry about the mutt making a mess in the car after going hiking and hopping in the creek then aholes dinging doors. Who needs the worry brand new cars ruin all the fun.

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Well, I’m a huge proponent of buying new.  A car that’s not well-cared for in it’s first 30k mi (on-schedule oil changes most important, driven with care second) isn’t going to go the distance I’m looking for.

 

Even if you can find a gem, I’d ideally prefer to order to spec with a factory order.  But yeah, if you expect to have a “well lived in” vehicle, I can see the appeal of reaping the value of something “broken in” ;)

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I buy used if the car is older than I am. otherwise I'm not buying used as I don't want to drive around in someone's ashtray.

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0% chance this is statement is true:

 

Experian says 61.8% of those with a prime credit rating and 44.7% of those with a super prime credit rating took out loans to buy a used vehicle in the first quarter. 

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Posted (edited)
1 hour ago, cv91915 said:

0% chance this is statement is true:

 

Experian says 61.8% of those with a prime credit rating and 44.7% of those with a super prime credit rating took out loans to buy a used vehicle in the first quarter. 

Why not?  I can see this being the case for 2 reasons.  With auto loan rates are still quite low, in fact not much higher than savings rates, and certainly lower than what the expected return on a balanced portfolio would earn I can see some choosing to borrow rather than liquidate.  Not to mention retaining the flexibility to put the money to work in other ways.

The second case is that having super prime credit doesn't equate to having cash on hand for a major purchase.  I'd bet at least half of those people financed because they don't have the cash to buy outright.  

Edited by CTSoxFan

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1 hour ago, cv91915 said:

0% chance this is statement is true:

 

Experian says 61.8% of those with a prime credit rating and 44.7% of those with a super prime credit rating took out loans to buy a used vehicle in the first quarter. 

Lease buyouts?

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21 minutes ago, CTSoxFan said:

Why not?  I can see this being the case for 2 reasons.  With auto loan rates are still quite low, in fact not much higher than savings rates, and certainly lower than what the expected return on a balanced portfolio would earn I can see some choosing to borrow rather than liquidate.  Not to mention retaining the flexibility to put the money to work in other ways.

The second case is that having super prime credit doesn't equate to having cash on hand for a major purchase.  I'd bet at least half of those people financed because they don't have the cash to buy outright.  

USED

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16 minutes ago, hdporter said:

USED

I know.  Everything I said applies to used or new.

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1 hour ago, cv91915 said:

0% chance this is statement is true:

 

Experian says 61.8% of those with a prime credit rating and 44.7% of those with a super prime credit rating took out loans to buy a used vehicle in the first quarter. 

 

23 minutes ago, CTSoxFan said:

Why not?  I can see this being the case for 2 reasons.  With auto loan rates are still quite low, in fact not much higher than savings rates, and certainly lower than what the expected return on a balanced portfolio would earn I can see some choosing to borrow rather than liquidate.  Not to mention retaining the flexibility to put the money to work in other ways.

The second case is that having super prime credit doesn't equate to having cash on hand for a major purchase.  I'd bet at least half of those people financed because they don't have the cash to buy outright.  

 

19 minutes ago, hdporter said:

Lease buyouts?

Read the quote again.

 

I guarantee you that 61.8% of people with prime credit didn't even buy a vehicle in the first quarter, much less take out a loan for a used one.

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18 minutes ago, cv91915 said:

 

 

Read the quote again.

 

I guarantee you that 61.8% of people with prime credit didn't even buy a vehicle in the first quarter, much less take out a loan for a used one.

Was just doing that (a little slow on the uptake this am).  I made the assumption that we were talking about the universe of those who took a car loan.  Assume that's not clear from the actual statement though.

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20 minutes ago, cv91915 said:

 

 

Read the quote again.

 

I guarantee you that 61.8% of people with prime credit didn't even buy a vehicle in the first quarter, much less take out a loan for a used one.

In my mind I skipped past the poor grammar to comment on what they were trying to say rather than what they actually did say.

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Posted (edited)

Even then 44.7 + 61.8 is over 100% of buyers and what about sub prime buyers.

 

Maybe it was supposed to be 4.47% and 6.18%. 1 in 20 people taking out an auto loan is a little more reasonable.

Edited by oldblue

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Posted (edited)

In general I am skeptical of statistics because they're used to deceive as well as inform, so I try to carefully read sentences which contain them.

 

I'm equally cautious about statements that seem to imply causality, because

 

njUebAk.png

 

Source / More Spurious Correlations here.

Edited by cv91915

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3 hours ago, oldblue said:

Even then 44.7 + 61.8 is over 100% of buyers and what about sub prime buyers.

 

Maybe it was supposed to be 4.47% and 6.18%. 1 in 20 people taking out an auto loan is a little more reasonable.

The 44.7% is a subset of the 61.8%, as anyone who is superprime would be prime by default. The sentence should've been written something like this (Note, I am not a writer by any stretch, but I do understand how to convey a point, even if not according to all the rules of grammar)

 

44.7% of used car buyers who had super prime credit financed their purchase and when expanded to include those purchasers who have prime credit, the number increases to 61.8%.

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