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mahatmakanejeeves

(60,969 posts)
Thu Jun 16, 2022, 12:45 PM Jun 2022

More and More People Are Falling Behind On Their Car Loans

More and More People Are Falling Behind On Their Car Loans

John Lawler, CFO of Ford, says delinquencies are "maybe a leading indicator."

By Steve DaSilva
Today 10:30AM

People are falling behind on their car loans, Toyota is idling production lines, and Audi is suing NIO over copyright infringement. All that and more in The Morning Shift for June 16, 2022.

1st Gear: Surely This Bodes Well For The Economy At Large

Ford’s CFO, John Lawler, said on Wednesday costs to make the Mustang Mach-E were going up, and also that loan delinquencies are creeping upwards thanks to “economic pressures.” With interest rates from the Fed on the rise, and the hashtag #StockMarketCrash continually trending on Twitter, those delinquencies could be yet another sign of economic turmoil to come. From Automotive News:

Ford Motor Co. CFO John Lawler on Wednesday said auto loan delinquencies are beginning to rise in what he called a “dynamic” economic environment.

...

“We’re looking for every data point we can to get a read on where the consumer is and where they’re headed, given the inflationary issues, economic pressures,” Lawler said at the Deutsche Bank Global Auto Industry Conference. “We are seeing some headwinds when it comes to delinquencies as maybe a leading indicator.”

Still, he said the uptick was not yet a concern because delinquency rates have been at historic lows for about the past year.

{snip}

2nd Gear: Toyota Is Idling More Production In Japan

Toyota has been on a production-cutting tear as of late, and it seems there’s no end in sight. The company is suspending yet another production line in Japan for the next few weeks. From Reuters:


Toyota Motor Corp (7203.T) said on Thursday it plans an additional domestic factory line production suspension in June and July due to semiconductor shortages and a COVID-19 outbreak at one of its suppliers.

{snip}
11 replies = new reply since forum marked as read
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More and More People Are Falling Behind On Their Car Loans (Original Post) mahatmakanejeeves Jun 2022 OP
Maybe they should make vehicles that people want, not full of tech junk SheltieLover Jun 2022 #1
Yes! Quakerfriend Jun 2022 #2
Everything is too expensive! SheltieLover Jun 2022 #3
With airbags, emergency braking, rear camera, TPMS, and meeting all crash standards ? MichMan Jun 2022 #7
Consumers want well equipped vehicles and ignore base models YorkRd Jun 2022 #4
But the average American worker cannot afford $30k, much less $50k SheltieLover Jun 2022 #5
The poster you replied to has been selling cars for decades MichMan Jun 2022 #8
I do not. SheltieLover Jun 2022 #10
For a century now car makers have had the slickest advertizing of any PoindexterOglethorpe Jun 2022 #11
No suprize CentralMass Jun 2022 #6
Why? People are working and wages are up. MichMan Jun 2022 #9

SheltieLover

(59,617 posts)
1. Maybe they should make vehicles that people want, not full of tech junk
Thu Jun 16, 2022, 12:48 PM
Jun 2022

And that don't cost half as much as a house.



SheltieLover

(59,617 posts)
3. Everything is too expensive!
Thu Jun 16, 2022, 01:10 PM
Jun 2022

What if Ford remade the old Mustang with appropriate emissions stuff FOR A REASONABLE PRICE?

I recall distinctly high school kids workinh part time at burger joints buying new Mustangs.

Many people simply cannot afford to exist any longer.

YorkRd

(353 posts)
4. Consumers want well equipped vehicles and ignore base models
Thu Jun 16, 2022, 01:20 PM
Jun 2022

I have sold cars for almost 40 years, ordered thousands of cars and bought thousands of used cars at the auctions and I have found consumers overwhelmingly want well equipped cars with all the gadgets. This most obvious in the full size truck market where consumers can buy a base model for under $30,000 but retail customer won’t buy that “fleet” truck. When they see that basic truck they soon want 4 doors, 4 wheel drive, power equipment, more powerful engine, navigation, bigger back up camera, chrome wheels, metallic paint, blind spot, active braking, satellite radio, etc. Customers have driven the price up to a $50,000+ Average price for full size trucks. Dealers have found that more expensive trucks have a quicker “turn” rate so when you go to the lot that’s what dealers offer. Customers want more and more “bells and whistles” and therefore more semiconductors. The car industry is actually one of the more competitive marketplaces in our economy.

SheltieLover

(59,617 posts)
5. But the average American worker cannot afford $30k, much less $50k
Thu Jun 16, 2022, 01:30 PM
Jun 2022

Seriously, why would anyone need entertainment system while driving?

Thx for sharing!

In my experience, it has been just the opposite. Customers want well made, reliable vehicles for a great price. Vehicles that are built to last.

SheltieLover

(59,617 posts)
10. I do not.
Thu Jun 16, 2022, 02:04 PM
Jun 2022

Speaking from experience from the consumer side.

"Can't keep moderately priced models on the lot" uttered by many salespeople speaks volumes to me.

Likely not as much profit in lower priced models though...

PoindexterOglethorpe

(26,727 posts)
11. For a century now car makers have had the slickest advertizing of any
Thu Jun 16, 2022, 03:24 PM
Jun 2022

industry or product. Car ads are everywhere, and the manufacturers are very good at convincing many people that there core identity depends on the car they drive, and it's best if that car is not more than a year or two old.

Of course it's not just cars. Our entire culture of consumerism is in place because of advertising.


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