The ECONOMY - This is Fine 🤪

NPC 6060⁸42 said:
This article gotta love it. The reason cars are so unaffordable right now? Yup Trumps tariffs. No mention of all the nanny bullshit that’s been mandated over the years or the insistence on unobtainable fuel mileage standards which means automakers have to resort to lightweight materials and more complex engine management systems. Hope the only reason is tariffs. That and the auto giant they talk in the headline is a schlop house bank that does subprime auto loans. Well gee the reason the folks that need subprime loans is because they already have bad credit. Damn man. Ok rant off.Sorry
www.dailymail.co.uk

Auto giant's collapse sparks recession fears in parallel to 2008 crash

Experts are warning that yet another auto industry bankruptcy is a worrying sign for the US economy.
www.dailymail.co.uk www.dailymail.co.uk
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car prices begin to increase in 2019 and really took off from 2020-now, hmmm... wonder what policies made that happen

Found the 2023 article:
Working Families Priced Out Of Car Ownership Under Biden’s Proposals
 
Not to mention inflation of basic items and food during the exact same time frame. In 2019-2020, if you were able to make a 700 per month car payment, but barely, imagine what the last 5 years would do to that with massive inflation in food costs and living expenses. Tariffs have hardly anything to do with it in my opinion.
 
WJCO said:
Not to mention inflation of basic items and food during the exact same time frame. In 2019-2020, if you were able to make a 700 per month car payment, but barely, imagine what the last 5 years would do to that with massive inflation in food costs and living expenses. Tariffs have hardly anything to do with it in my opinion.
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Just read elsewhere a lot of “subprime” auto loans are to non citizens. Oops it’s no wonder they can’t pay them back they are getting booted out.
 
NPC 6060⁸42 said:
This article gotta love it. The reason cars are so unaffordable right now? Yup Trumps tariffs. No mention of all the nanny bullshit that’s been mandated over the years or the insistence on unobtainable fuel mileage standards which means automakers have to resort to lightweight materials and more complex engine management systems. Hope the only reason is tariffs. That and the auto giant they talk in the headline is a schlop house bank that does subprime auto loans. Well gee the reason the folks that need subprime loans is because they already have bad credit. Damn man. Ok rant off.Sorry
www.dailymail.co.uk

Auto giant's collapse sparks recession fears in parallel to 2008 crash

Experts are warning that yet another auto industry bankruptcy is a worrying sign for the US economy.
www.dailymail.co.uk www.dailymail.co.uk
Click to expand...
Tariffs are surely going to be entirely passed on to the customer to pay, but we have watched this auto industry problem grow for at least ten years already.
 
bobfriesenhahn said:
Tariffs are surely going to be entirely passed on to the customer to pay, but we have watched this auto industry problem grow for at least ten years already.
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Glad to see you read the article especially the part that said the automakers have not passed the tariffs on to the consumers.
“
GM estimates it will pay between $4billion and $5billion this year, while Ford expects a $2billion hit.

But instead of raising sticker prices, they've absorbed the costs or cut jobs — even as vehicle prices have already soared 30 percent since 2019. ”
 
NPC 6060⁸42 said:
Glad to see you read the article especially the part that said the automakers have not passed the tariffs on to the consumers.
“
GM estimates it will pay between $4billion and $5billion this year, while Ford expects a $2billion hit.

But instead of raising sticker prices, they've absorbed the costs or cut jobs — even as vehicle prices have already soared 30 percent since 2019. ”
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Thanks for repeating the text. I did read it. I am not such a short term thinker. The auto makers can not continue filling in the gap forever if they are actually covering the tarrif (45%???!!!) for some sales. They likely hope that Trump will discontinue some tarrifs once he makes a deal.

Just like a huge Thanksgiving meal, something will eventually come through the economic digestive tract.

The other factor is that auto makers already had lots of excess inventory (cars and trucks were not selling well) and they will not charge the increased tarrif price on cars they already had in inventory.
 
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WJCO said:
Not to mention inflation of basic items and food during the exact same time frame. In 2019-2020, if you were able to make a 700 per month car payment, but barely, imagine what the last 5 years would do to that with massive inflation in food costs and living expenses. Tariffs have hardly anything to do with it in my opinion.
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Dafuq is someone doing taking on a $700 payment they can barely make in the first place? It’s hard for me to feel bad for people who make stupid economic choices (like what happened to the tens of thousands of people who signed up for ridiculous home loans on houses they clearly could not afford). I’m all for accountability…but that also includes personal accountability.
 
Sharkey said:
Dafuq is someone doing taking on a $700 payment they can barely make in the first place? It’s hard for me to feel bad for people who make stupid economic choices (like what happened to the tens of thousands of people who signed up for ridiculous home loans on houses they clearly could not afford). I’m all for accountability…but that also includes personal accountability.
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I'm with you. I was just pointing out how much harder it would be to make the payment now with everything else higher.
 
DirtHeadDavis said:
Literally my exact reaction.

This guy has close to as many posts as me but each and every one of them is incoherent or plainly incorrect.
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At least for Japanese auto imports I found this recent article:

www.bbc.com

Trump tariffs: US president signs order to cut levies on Japanese cars to 15%

The formalisation of a deal that was announced in July eases uncertainty for Japan's motor industry giants.
www.bbc.com www.bbc.com

So Trump reduced the tarrif on Japanese cars to just 15% in September. Much less than a possible 45% (had been 27% after it had temporarily been a higher number).

Thanks for the helpful feedback.
 
bobfriesenhahn said:
What part was "incorrect"?
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My rant was more about the article stating the reason people were defaulting on risky loans was because of Trump tariffs with scant mention of the fact that vehicle prices have gone up prior to the Trump tariffs and they even admit further down in the article the automakers are eating the tariffs for now. Hint most people under forty only read the headline and MAYBE the first paragraph.
You are correct tariffs (taxes) in general create higher prices or lower profits.
 
NPC 6060⁸42 said:
My rant was more about the article stating the reason people were defaulting on risky loans was because of Trump tariffs with scant mention of the fact that vehicle prices have gone up prior to the Trump tariffs and they even admit further down in the article the automakers are eating the tariffs for now. Hint most people under forty only read the headline and MAYBE the first paragraph.
You are correct tariffs (taxes) in general create higher prices or lower profits.
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It is best to not forget that an economic downturn started under Biden and has continued under Trump. Trump was surprised when the previously reported jobs number were updated to really bad numbers. The employment numbers still look really bad. When people are feeling insecure about their job they are less likely to invest in a new house, or new car. People who lose their jobs default on their loans. Even the used car market is drying up. I saw a video yesterday about how CarMax sales are way down.
 
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