Idiots never learn: Guess what's behind the boom in auto sales last year?

Detroit is crowing that the auto industry is back, but so far, at least, it is a success story built as much on a revival in lending as on the development of desirable cars.

After radically scaling back auto lending during the financial crisis, banks and the lending arms of the automakers have started to issue loans more aggressively. Borrowers of all types are now finding it much easier to obtain a loan compared with a few months ago.

Even car buyers with tarnished credit histories are getting financing, in some cases without making a down payment.

www.nytimes.com...

This is going to cause another scenario where people will have trouble meeting their bills ala subprime event of 2007. And don't look now, gas is going up again. I guess people are really stupid.

Part 1 of the Idiot's saga: www.abovetopsecret.com...

www.nytimes.com...

Originally posted by eldard
This is going to cause another scenario where people will have trouble meeting their bills ala subprime event of 2007.

From the article:

Nobody is suggesting an imminent return to the heady, reckless days of the housing boom

If you look at the chart that is next to the article, the subprime loans are still below the 3 years before '07.

They pulled off one of the biggest scams in U.S. history and we call them idiots?
The people of the U.S. are the idiots, and most don't even know it.

Anyway, a few snippets from the article just have me shaking my head in disbelief.

Even car buyers with tarnished credit histories are getting financing, in some cases without making a down payment. More than 859,000 new cars were sold to consumers with a so-called subprime credit rating in 2010, a nearly 60 percent increase from the year before

So, nothing ever changed.

“We had people coming to our showrooms that wanted to buy, but we couldn’t get them financed,” Mr. Maroone said in an interview. “We are now getting them the financing.”

To rephrase: "We had people coming here that could only afford a 1999 Honda Accord, but wanted a 2011 Escalade, and damn, we wanted to sell them that Escalade no matter what. Thank God everyone's paying attention to that Sheen guy right now.

Several factors contributed to the quick recovery of auto lending. Both banks and auto lenders can reap large profits on new loans, since interest rates near zero have kept the cost of their funds extremely low. Auto lending was also largely unaffected by the Dodd-Frank Act and other regulations,

So because the banks were getting antsy, not reaping large profits, they figured
"Eff it, we got bailed out last time, and we've only gotten bigger.
What are they gonna do, let us fail? (evil mwuhahaha laughter)

Now let's go make (print) some money!

Well the morons taking those loans well they will deserve the hole to bury themselves in that is imminent!
WTF Didn't any one of these morons buying these cars learn anything from the housing bubble?
No, what's happening here is fully deserved. Those who don't learn from the past are doomed to repeat it.

reply to post by eldard


Two words come to mind:

Hurp durp!

There is an entire group who wanted the entire US Auto industry to die and it will not ever die.

I love how we are coming back and really don't care what's driving it the fact it is happening is amazing.

2012 Chrysler 200 Featuring Eminem - "Imported From Detroit"
www.youtube.com...

2011 Chevrolet Volt - "Chevy Runs Deep"
www.youtube.com...

2011 Chevrolet Corvette C6 - "America Still Builds Rockets"
www.youtube.com...

2011 Fisker Karma - "Debut"
www.youtube.com...

2008 Tesla Roadster
www.youtube.com...

Whoever does not like the fact that The American automobile industry is coming back needs to go away and are Nazi Terrorists.

I'm waiting for the "Buy a car now and pay only $3.00/gal gas for a year compliments of us!" campaigns. Idiots who cant do math dont realize that on average that would only save them around $1200 for the year. dealerships are no better than banks imo.

reply to post by Oaktree


Does it say how many of those people with crappy credit histories were able to make their payments?

Don't judge a book by its' cover. I'd gladly make payments if I could just find a bank willing to loan.

Originally posted by TheImmaculateD1
There is an entire group who wanted the entire US Auto industry to die and it will not ever die.

I love how we are coming back and really don't care what's driving it the fact it is happening is amazing.

2012 Chrysler 200 Featuring Eminem - "Imported From Detroit"
www.youtube.com...

2011 Chevrolet Volt - "Chevy Runs Deep"
www.youtube.com...

2011 Chevrolet Corvette C6 - "America Still Builds Rockets"
www.youtube.com...

2011 Fisker Karma - "Debut"
www.youtube.com...

2008 Tesla Roadster
www.youtube.com...

Whoever does not like the fact that The American automobile industry is coming back needs to go away and are Nazi Terrorists.

edit on 5-3-2011 by TheImmaculateD1 because: (no reason given)

Coming back? Are you joking?

The Chrysler 200 is nothing more than a Sebring. The only person proud of that car was 'Michael Scott' of 'The Office'.

Chevy sold 281 Volts in February, 321 in January.
green.autoblog.com...

Corvette, is not a comeback car, it's always been tops. Except if you watch Top Gear where the fat man pokes at the bumpers.

Fisker was a taxpayer ripoff where that scammer Gore stole/loaned $529 Million from the US to start a carmaker in Finland. WTF? online.wsj.com...

Tesla is an electrified Lotus. Nothing ground breaking there. Due to battery materials and manufacturing, just shifting more manufacturing (batteries) and mining (rare earths) to Asia. seekingalpha.com...

Ford was the only car maker who recovered without bailout money (though Ford of Europe got a $230Million bailout from Germany). Failed business models should've failed, killed off by their labor unions, inability to create robotic factories, regulation and bureaucracies that demand 'green' and 'electric', and their inability to get out of their huge pension plan debt.

So there must be a catch. 8 year payback or 10 year ?

“To me, it feels like it’s returning to normal,” said Ted Yarbrough, Citigroup’s head of global securitized products.
What ? is this guy nuts ? ('') it's happening all over again. no wonder he feels that this is normal.

They even have down payment assistance for auto loans.('') go figure, sounds just like the house market failure.

I loved it when The Uncle Sam was giving out the 4000 bucks if you buy a new car.

I did not buy one. I went over to the local recycle-junk yard. I purchased me a complete interior for my truck. Bought some slightly used 140 Amp Alternators, some nice clarion and MB quart amplifiers. All for less than $150 bucks. I got lucky the next day with some used but very nice image dynamic speakers for $ 14.00 and a lift kit I removed for an additional $75.00 I now have a like new looking truck with a lift kit and a great sound system all for under $250.00 . Also got some spare parts to boot for free.

the cars and truck were nice too, but the engines were toast.

There is now way I would buy a new car,now that there is sub-prime auto loan defaults coming up soon. what a good way to save even more cash. I will be looking at auto auctions 6 month from now when shf for a slightly used 4x4 GM
:

Originally posted by dbriefed

Originally posted by TheImmaculateD1
There is an entire group who wanted the entire US Auto industry to die and it will not ever die.

I love how we are coming back and really don't care what's driving it the fact it is happening is amazing.

2012 Chrysler 200 Featuring Eminem - "Imported From Detroit"
www.youtube.com...

2011 Chevrolet Volt - "Chevy Runs Deep"
www.youtube.com...

2011 Chevrolet Corvette C6 - "America Still Builds Rockets"
www.youtube.com...

2011 Fisker Karma - "Debut"
www.youtube.com...

2008 Tesla Roadster
www.youtube.com...

Whoever does not like the fact that The American automobile industry is coming back needs to go away and are Nazi Terrorists.

edit on 5-3-2011 by TheImmaculateD1 because: (no reason given)

Coming back? Are you joking?

The Chrysler 200 is nothing more than a Sebring. The only person proud of that car was 'Michael Scott' of 'The Office'.

Chevy sold 281 Volts in February, 321 in January.
green.autoblog.com... - Curretly avaiable in 6 states and DC and will go national by Q4 2011.

Corvette, is not a comeback car, it's always been tops. Except if you watch Top Gear where the fat man pokes at the bumpers.-The Corvette, like the Mustang and Viper was almost killed off because it allowed us to complete internationally.

Fisker was a taxpayer ripoff where that scammer Gore stole/loaned $529 Million from the US to start a carmaker in Finland. WTF? online.wsj.com... - Fisker is based out of California. Al Gore has nothing to do with Fisker. Partial assembly may be in Finland but Final Assembly is stateside.

Tesla is an electrified Lotus. Nothing ground breaking there. Due to battery materials and manufacturing, just shifting more manufacturing (batteries) and mining (rare earths) to Asia. seekingalpha.com... Panasonic has a major US office based in Secaucus, NJ who is looking to move to Jersey City, NJ which serves as the US hq for Panasonic North America. Panasonic is also Seacaucus' like 3rd or 4th largest employer behind The Township Of Seacaucus and Hartz Mountain (of Hartz pet food fame).

Ford was the only car maker who recovered without bailout money (though Ford of Europe got a $230Million bailout from Germany). Failed business models should've failed, killed off by their labor unions, inability to create robotic factories, regulation and bureaucracies that demand 'green' and 'electric', and their inability to get out of their huge pension plan debt.

Yet again another braindead GOP idiot who uses this opportunity to trash the American auto industry.

Anti American slime, you avatar says it all.