Auto Loan Crisis is affecting small Banks

Auto Loan Crisis is affecting small Banks

[EndoExcision]

Help me understand. You’re telling me the bankers overstretched themselves to give bad loans to people who couldn’t afford cars, and I’m supposed to feel… what?

[jdub]

Bigger credit unions are gobbling up smaller ones here in NE Florida.
Not just happening with banks.

[wendellmontgomery]

Very informative, Lucky. You always deliver great work !

[collectornick]

I feel this. I just got denied an auto loan today. I'm full-time, in no debt, 690 for credit, and own my house. I'm trying to get a loan for $6, 900 for a 2011 that costs $10, 900, and I was planning on putting down $4, 000. They said they denied it for "lack of credit history" and "not being with my current employer long enough" despite being a member for well over 15 years. Makes me want to just leave the credit union. It's BS.

[FrankAllanWright]

commercial-property landlords/brokers never lower the rent and cry why there are no potential-tenants available; lower rent 8% below what the computer tells you (rental software or website) and put power/HVAC/Internet/etc. you will have 100% tenant-occupancy of the new commercial buildings have no power (wired through out)/phone/internet or HVAC and they want the new rental tenant to pay 100k-250k to add it to the building before moving in so it can be used for business otherwise it is a big storage room (useless)....🤣🤣🤣🤣🤣

[fishhuntadventure]

There are no small banks- they are all fed reserve charters, and fed reserve is a private bank.
It’s all a sham.

Buying new cars at interest is stupid anyways.

[wespotter]

Too much bad debt will sink any bank. Lending.
Money to people who buy Dodge chargers.And challengers was a bad business model. These dead beats are bottom of the barrel.

[luckymanindeed]

Lucky, the problem is not the economy when talking about the auto industry. The problem is the cars are too damn expensive (ridiculously so during the pandemic) and thus many people bought way above what they could realistically afford. I’m not saying the economy is as good as it could be, but it is not awful either and it continues on the right path as we move into his transition from one party to the other. I hope you’re right that things continue to progress but only time will tell in that regard. However, when it comes to cars, the auto makers need to start making good, reasonably priced transportation, not the blinged out statements of needless excess they’ve been peddling of late. Most people need transportation; they do not need an overpriced status symbol.

[jdaddy]

Wells Fargo forgave the last $4k of my auto loan and sent me the title a few months before it was due to be paid in full. I called to ask why and they said it was because they were exiting the direct auto loan business. They said they were only going to do indirect auto loans through dealers going forward. I was happy to save the money but it was very odd. I had never heard of banks doing that.

[PassportBrosBusinessClass]

I recommend that stock investors building their portfolios buy Banks that pay Dividends and CREDIT CARDS.

Don't buy small bank stock. Only the big boys. They know how to treat your money. Their risk assessment teams are larger than most small banks all on their own.

[richyrich]

Lucky - I live in Vegas and have noticed all the cars without license plates... what's up with that! I assume people not paying on their car.

[cpcreit]

I honestly think the old model of many things will go thru some drastic changes, don't be on the wrong side of history....

[johnanderson]

I have started looking at banks and how they do business as a form of gambling in the financial sector in terms of loans. Some will just refuse to loan if your credit score is not a certain number, some, sub prime, take a bigger risk taking on those with lower than great credit scores, in some cases the borrower knows they won’t be making the payments as you have pointed out before!

[tuy]

Have Chase bank account that started as a Washington Mutual Bank account. Changed after they were taken over during the S&L crisis. Things go in cycles.

[operationretribution]

Sounds like Huntington Bank, based out of Columbus. They went heavy into commercial real estate, and everyone knows how much of those properties are setting empty.

[kiLLinEmSoFTly]

I worked at a small Community Bank from 08-10.
We got absolutely slaughtered by Delinquent SBA Loans.
Loan Loss Provisions/Reserves got out of control.

FDIC walked in on a Friday afternoon and shut it down and put it into receivership.

It's not just huge mortgage loans that can leave financial institutions in crisis.

New President taking office in 40 + Days...2025 could be a wild ride.

[StefanMarquardt-uy]

Savings Bank of Danbury changed their name to the Founder's name, George Ives. The bank is 175 years old and is in great shape. They are expanding to New York, Mass and Rhode Island. They need a more common name instead of a long name where most people in other states don't know where Danbury CT is. It is a smart move.

[jcsc]

actually is because the Basel III regulation that began last June. With that Bank of America is having problems with the Capital ratio. That's the main reason small bank are merging with larger banks. In april 2020 FOMC remove the minimum reserve to support the Repo bond market. Now the International regulator want to set a new standard for capital vs standing liabilities for all Banks.

[MrJuanete]

Inflation is always a monetary phenomenon... less loans in the system (debt = currency), the less inflation in the system... this isn't only about cars....

[robertallan]

And, since the Fed has stopped cutting interest rates expecting Trump's policies to be inflationary the REPO crisis will continue and freeze sales in the consumer car industry.