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Gave Up Clunker, Now Losing New Car.

by James Denison / November 30, 2009 11:00 PM PST

The second phase of "Cash for Clunkers"? Starting to sound like the Subprime Mortgage mess.
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LINK

More people were late with their auto loan payments in the third quarter as job losses continued,....The auto delinquency rate -- the rate at which payments fell behind 60 days or more -- edged up in the July-to-September quarter to 0.81 percent, from 0.80 in the same period last year, according to credit reporting agency TransUnion.

The increase from the second quarter to the third quarter of this year was far greater, reflecting both the weak economy and seasonal trends, said Peter Turek, automotive vice president in TransUnion's financial services group

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Starting to sound like the Subprime Mortgage mess
by JP Bill / November 30, 2009 11:46 PM PST

just sounds like people trying to live beyond their means.

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Gee, who predicted this would happen?
by EdHannigan / November 30, 2009 11:56 PM PST

Hmmmm?

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JP Bill?
by James Denison / December 1, 2009 12:02 AM PST

Or was it you?

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I did, amongst others...
by EdHannigan / December 1, 2009 12:07 AM PST
In reply to: JP Bill?

Easy to predict. Just like the sub-prime scam, this program encouraged people to live beyond their means.

Stuck on stupid.

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encouraged people to live beyond their means.
by JP Bill / December 1, 2009 12:49 AM PST

Didn't you participate in "Cash For Clunkers"?

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so what?
by oldie and goody / December 1, 2009 1:41 AM PST

obviously Ed could afford the new car, I haven't heard him complain about losing it, have you?

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So what?
by JP Bill / December 1, 2009 2:46 AM PST
In reply to: so what?

Ed said

this program encouraged people to live beyond their means.

AND he'll NEVER say it also encouraged people that could afford a car to buy a car.

AND if he did make that statement, it would be an endorsement of a program which he has spoken out against.

THAT'S what.

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So,
by MarkFlax Forum moderator / December 1, 2009 3:50 AM PST
In reply to: So what?

are you saying ordinary people, (non sub-prime), should not have participated in the deal?

Or are you saying that they could, but they shouldn't say anything detrimental about it if they do?

Mark

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Response
by JP Bill / December 1, 2009 4:57 AM PST
In reply to: So,
are you saying ordinary people, (non sub-prime), should not have participated in the deal?

If they meet the qualifications...go for it.

Or are you saying that they could, but they shouldn't say anything detrimental about it if they do?

I think there is a difference between saying something detrimental about a program, and railing on about how they told us so.

I would give the poster more street creds if they posted a disclaimer in their post stating they partook of the program.

Would that make the person look like a hypocrit?

or perhaps an facilitator? (I know this program will fail...I'll help it fail)

I think this possibility is more likely....Free money(my piece of the pie)
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Gee, who didn't read the article carefully?
by Josh K / December 1, 2009 12:15 AM PST

You? Hmmmmmm?

Loans taken out as part of this summer's Cash for Clunkers program had not started to appear on most credit reports when the quarter ended.

IOW, cars purchased through the program do not figure into the report.

You'll have to wait another quarter to start crowing about how brilliant you are, Ed.

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-chuckle-
by EdHannigan / December 1, 2009 12:31 AM PST

I was responding to James's original post.

I didn't claim to be brilliant, only not stupid.

Just wait.

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One hopes the CARS loans were more prudently made...
by EdHannigan / December 1, 2009 12:44 AM PST
In reply to: -chuckle-

than those in the housing bubble.

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Then James didn't read it either....
by Josh K / December 1, 2009 2:26 AM PST
In reply to: -chuckle-

....and you responded without reading it yourself. Same thing, really.

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Whatever you say, Josh...
by EdHannigan / December 1, 2009 3:01 AM PST

He gave an opinion and I responded. Sorry it bothers you so.

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Doesn't bother me
by Josh K / December 1, 2009 4:02 AM PST

You started clucking about something that the article specifically said was not even factored in, because you didn't read it. The only thing funnier is your unwillingness to admit to premature clucking.

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LOL, what's a premature cluck sound like?
by James Denison / December 1, 2009 5:02 AM PST
In reply to: Doesn't bother me

"k-k-k-k-k-k-k"?

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As I said....
by EdHannigan / December 1, 2009 6:29 AM PST
In reply to: Doesn't bother me

I responded to another person's post. You don't like it, tough.

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I read it, but we still await....
by James Denison / December 1, 2009 3:56 AM PST

...the actual report of clunkers for cars. I'm basing my assessment on the increase among those who were prior to that. I suspect if they are failing at a greater rate, then same will hold true for the clunker cash car buyers too, and may be higher. I disagree with the author's unqualified comment where he expects it to be less, that's just his opinion. I don't think the statistics leading into the next quarter support his wishful opinion.

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we still await....
by JP Bill / December 1, 2009 5:44 AM PST

.the actual report of clunkers for cars.

not everyone

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Actually some of it sounds pretty good
by Diana Forum moderator / December 1, 2009 12:42 AM PST
While average delinquency rates rose nationwide in the third quarter, the rate fell in Washington D.C. and six states: Colorado, Louisiana, Maryland, North Dakota, South Dakota and Vermont.

The Dakotas nearly always have among the lowest delinquency rates for all types of loans, but improvement in a state like Louisiana can be seen as a positive sign, Turek said. Year-over-year, Louisiana's auto delinquency rate fell more than 14 percent. "That was very good news for that part of the country," he said, suggesting it indicates the state is beginning to show signs of recovering from the economic damage of Hurricane Katrina.

The small increase in auto delinquencies compared with 2008 also reflects the fact that loans are harder to get, because banks and finance companies have raised their lending standards, and consumers are looking for fewer loans as they tighten their belts.

Those factors led to a drop in average auto debt in the third quarter. Nationally, the amount outstanding on the average car loan dipped 2.5 percent to $12,542, from $12,861 last year.


Diana

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