Tsitsikovas posted:

literacy was a mistake

Tsitsikovas posted:

literacy was a mistake

Jon Irenicus posted:

please - if I was a billionaire I would do Outer Heaven but correct this time

gradenko_2000 posted:

but another generation of intellectual rot has set in such that even MBAs are also ideologically poisoned

Tsitsikovas posted:

We already had academic fields for economics, philosophy, sociology, and mathematics. The MBA is just capitalism trade school.

RadiRoot posted:

the solution is undo 40000 years of society and live off land as nomads

stumblebum posted:

you first tamerlane

shrike82 posted:

https://twitter.com/GuyDealership/status/1686754232123129856?s=20

BornAPoorBlkChild posted:

https://twitter.com/RichardHeartWin/status/1686859691316609028?t=odrJB_2jNlFGqj4vBzW9GQ&s=19

sex is like...

a computer

ScrubLeague posted:

an MBA is basically a worthless degree that serves to extract wealth from middle managers

BornAPoorBlkChild posted:

shrike82 posted:

https://twitter.com/GuyDealership/status/1686754232123129856?s=20

quote:

More Americans Are Getting Auto Loans That Exceed the Worth of Their Cars

Loans hit 125% of vehicle value in first quarter: TransUnion
The trend may foreshadow higher delinquencies, study finds

Used car loan-to-value ratios increased to 125 in the first three months of this year.Photographer: David Paul Morris/Bloomberg

More Americans are entering into auto loans that exceed the worth of their cars after vehicle values declined in the wake of dramatic increases during the pandemic, a report has found.

Used car loan-to-value ratios increased to 125 in the first three months of this year from 104 for the same period in 2021, according to the study released Tuesday by credit reporting firm TransUnion and market researcher J.D. Power. A ratio of 125 means that the borrower’s loan is worth 125% of the vehicle’s value.

The loan-to-value ratios, or LTVs, could be foreshadowing higher delinquencies ahead, the study found. Negative equity, or the amount that debt exceeds a vehicle’s value, has ballooned in recent years, with some consumers stepping into car dealerships $10,000 underwater.

“As vehicle prices have risen and overall inflation remains elevated, consumers are increasingly starting in higher than average LTV positions to afford used vehicles,” Satyan Merchant, a senior vice president at TransUnion, and its auto business lead, said in a statement.

Read more: Car Debt Piling Up With More Buyers $10,000 Underwater on Loans

Vehicle values are expected to decline further, according to a report. That’s a red flag for lenders.

quote:

Car repossessions are on the rise in warning sign for the economy
After auto repossessions tumbled during the pandemic, they are now approaching their pre-pandemic levels with industry analysts worried the trend will continue

WASHINGTON — A growing number of consumers are falling behind on their car payments, a trend financial analysts fear will continue, in a sign of the strain soaring car prices and prolonged inflation are having on household budgets.

Repossessions tumbled at the start of the pandemic when Americans got a boost from stimulus checks and lenders were more willing to accommodate those behind on their payments. But in recent months, the number of people behind on their car payments has been approaching prepandemic levels, and for the lowest-income consumers, the rate of loan defaults is now exceeding where it was in 2019, according to data from ratings agency Fitch.

Industry analysts worry the trend is only going to continue into 2023 with economists expecting unemployment to rise, inflation to remain relatively high and household savings set to dwindle. At the same time, a growing number of consumers are having to stretch their budgets to afford a vehicle; the average monthly payment for a new car is up 26% since 2019 to $718 a month, and nearly one in six new car buyers is spending more than $1,000 a month on vehicles. Other costs associated with owning a car have also shot up, including insurance, gas and repairs.
Recession fears remain high after markets drop over Fed's new rate hikes
Dec. 16, 202203:01

“These repossessions are occurring on people who could afford that $500 or $600 a month payment two years ago, but now everything else in their life is more expensive,” said Ivan Drury, director of insights at car buying website Edmunds. “That’s where we’re starting to see the repossessions happen because it’s just everything else starting to pin you down.”
'Recipe for disaster'

For those in the repossession business, it’s been difficult to keep up. Jeremy Cross, the president of International Recovery Systems in Pennsylvania, said he can’t find enough repo men to meet the demand or space to hold all the cars his company has been tasked with repossessing. With the holidays approaching, he’s been particularly busy as people prioritize spending elsewhere, and he’s expecting business to keep up throughout next year and 2024.

“Right now, it’s really the perfect storm,” said Cross. “Over the last two years, vehicle prices were inflated because there was no new car supply, people were still buying like crazy because they had a lot of stay-at-home cash, they had inflated credit scores, so it was like a recipe for disaster.”

At the same time, the number of repossession companies has shrunk by 30% as many firms closed up shop and the workers found jobs in other industries when repossessions tumbled during 2020, Cross said. Now, he said, lenders are paying him premiums to repossess their cars first in anticipation of a continued increase in loan defaults.

“The volume is picking up, and the remaining companies that are still performing repossessions are very busy,” Cross said. “The overall numbers are still not prepandemic numbers, but we will see a big change coming in ‘23 and ‘24 that I think the lenders are starting to recognize because they are offering financial incentives that they never had to do in the past. They’re jockeying for position knowing that there’s only a certain amount of bandwidth available.”

It’s an issue that’s raised concern among officials at the Consumer Financial Protection Bureau, who say they are seeing troubling signs in the auto market, particularly among so-called subprime borrowers, who have below-average credit scores, and those with loans taken out in 2021 and 2022 when auto prices were particularly high.

“Loans taken out in those years are performing worse than prior years just because those consumers had to finance cars once the supply chains were jammed and the prices started to go up,” said Ryan Kelly, acting auto finance program manager for the CFPB. “Those consumers got hit with inflation twice. First, when they had to finance a car after the prices went up, and then when they had to put gas in the car after the Russia-Ukraine conflict started. So there’s just a lot of consumer stress.”

If the economy deteriorates as many economists are predicting in 2023, the number of those falling behind on their car payments should continue to rise, even as consumers tend to give priority to their car payment ahead of most bills because of the importance a car plays in getting to work or potentially providing shelter, industry analysts said.

Still, the rate of defaults and repossessions isn’t expected to reach 2008 and 2009 levels, when there was a spike caused by the financial crisis. The percentage of auto loans that were 30 days delinquent was at 2.2% in the third quarter compared with 2.35% delinquent over the same period in 2019, according to data from Experian. By contrast, just over 4% of auto loans went into default in 2009.

“We’re expecting it to continue to increase and maybe even breach prepandemic levels because of the macroeconomic headwinds of higher interest rates, higher cost of borrowing and expectations for unemployment to continue to increase,” said Margaret Rowe, the lead auto analyst at Fitch. “I think our expectation is that we’re going to continue to see it go up, but it’s just been so low that even going up isn’t like what we saw in the Great Financial Crisis.”
'A lot of stress'

Cox Automotive analysts forecast that while loan defaults and repossessions will increase from their pandemic lows, long-term through 2025 they predict overall defaults and repossessions will remain at or below historic norms.

Still, the financial squeeze has been particularly difficult for lower-income consumers looking for budget vehicles, which have been particularly hard to find. While in the past, those car buyers would have purchased a used car for $7,000 to $15,000 they are now having to spend $20,000 to $25,000 for the same type of vehicle. Among dealers that cater to subprime and deep subprime consumers, the average listing price on their cars has almost doubled since the beginning of the pandemic, according to the CFPB.

“That near prime and subprime group of consumers, they’re getting hit very, very hard by inflation. That group of people did not have much disposable income. They had to finance a more expensive car and then they got hit with prices going up overall. There’s just a lot of stress,” said Kelly.

Ally Financial, which has a significant share of loans to subprime borrowers, said in its October earnings report that it expects delinquencies to increase to as much as 3.8% compared with 3.1% in 2019.

Another risk to car buyers’ finances is the growing length of auto loans, many of which now exceed seven years. While those longer term loans can lower the monthly payments amid higher prices, consumers risk paying off the loan much more slowly than the car is depreciating, leaving them underwater if they need to sell the vehicle. It can also mean higher interest costs over the life of the loan on top of already inflated vehicle prices.

For consumers, there is unlikely to be any relief over the next year. Interest rates are expected to remain high for those needing to borrow to buy a vehicle, and Covid-related plant closures and material shortages are continuing to ripple through the car manufacturing supply chain, limiting the number of new vehicles.

“I dare think what happens to people who are signing up for new loans today,” said Drury. “It’s not going to be better when we see these payments so high.”
.

quote:

Car Shoppers Feel the Heat from Scorching Financing Costs in Q2, According to Edmunds
Analysts say elevated interest rates continue to drive up costs, leading to yet another record share of consumers taking on $1,000+ monthly payments
Santa Monica, Calif., July 03, 2023 (GLOBE NEWSWIRE) -- The cost of financing a new vehicle remains at an all-time high as car shoppers search for a new ride this summer, according to the car shopping experts at Edmunds.

New vehicle transaction data from Edmunds reveals that the record-breaking financing figures from Q1 were unyielding in the second quarter:

The share of consumers who financed a vehicle with a monthly payment of $1,000 or more reached a new all-time peak of 17.1% in Q2, up from 16.8% in Q1 2023 and 4.3% in Q2 of 2019.
Average monthly payments also reached a new record high of $733 in Q2, up from $730 in Q1 and $678 in Q2 2022.
The average annual percentage rate (APR) ticked up a tenth of a percentage point to 7.1% in Q2, compared to 7.0% in Q1 and 5.0% in Q2 2022.
7.1% is the highest APR since Q4 2007.
The average amount financed remained above $40,000 for the fifth straight quarter, settling at $40,356 in Q2, slightly below Q1 2023’s mark of $40,468 and $40,602 in Q2 2022.

“The double whammy of relentlessly high vehicle pricing and daunting borrowing costs is presenting significant challenges for shoppers in today’s car market,” said Ivan Drury, Edmunds’ director of insights. “The Federal Reserve’s recent pause in interest rate hikes unfortunately didn’t offer much relief for consumers, and hints at further raises later this year mean auto loan rates could even continue to increase.”

Edmunds analysts conducted a deeper dive into the makeup of $1,000+ new-vehicle monthly payments and discovered that not all four-figure auto loans look the same. Of the consumers who agreed to a $1,000+ monthly payment in Q2, there are two distinct subgroups:

64.5% signed up for an average loan-term range of between 67 and 84 months and an average APR of between 8.5% and 9.6%. Edmunds analysts say this group is made up of consumers who are paying thousands of dollars toward interest vs. principle and could find themselves upside down on their auto loans down the road.
15.6% signed up for loan term lengths between 31 and 48 months and a 2% to 4.8% APR. Edmunds analysts note this latter group is likely made up of savvy consumers who are taking advantage of subsidized finance offers, which typically consist of lower-rate but shorter-term loans. On a typical $40,000 loan, consumers with a 2.9% APR over 36 months can expect to save $8,500 in finance charges compared to those with a 7.9% APR over 72 months.

“There are better ways and worse ways to spend $1,000 per month on a car note,” said Drury. “Consumers who are paying large amounts of finance charges could be in jeopardy of falling into a negative equity trap, so it’s critical to come to the table with a comprehensive budget and a feel for the financing elements of a car purchase beyond the monthly payment, including the APR. For those with plans to replace their vehicle over the next few months, you may have to reset any expectations of the summer discounts of old. But, on a positive note, trade-in values remain elevated compared to prepandemic times, so shop around to ensure you get top dollar for the asset you own.”

Thoguh posted:

Non Ivy League MBAs exist mostly because of employer tuition reimbursement benefits. I’ve got a state school MBA purely because my employer paid for the entire thing. It is mostly worthless but also cost me $0 so many sides.

H.P. Hovercraft posted:

i just wanted a third row for car seat and grandma carrying capacity and i was fortunate enough in jan 22 to pay $10k over msrp for a sienna, the people across the street from us can't get one for love or money after their oops 3rd

but yeah obviously the people with real money are all olds who can't bend over so they need giant suvs (our neighbors are a doctor couple lol they are sol)

net work error posted:

Even if an employer pays for it I'm never going back to school

Xaris posted:

college kicked rear end. so much fun i'd go back if someone paid for it

besides finals but otherwise learning stuff rules

Xaris posted:

college kicked rear end. so much fun i'd go back if someone paid for it

besides finals but otherwise learning stuff rules

Truniht posted:

what are they teaching over at business school these days that makes modern MBAs ruin even well established companies

Xaris posted:

college kicked rear end. so much fun i'd go back if someone paid for it

besides finals but otherwise learning stuff rules

Tsitsikovas posted:

Which are all just ways of teaching morons how to do basic management things, giving an appearance of productive labor while you really are just following the irrational incoherent whims of someone above you, or someones above yous.

If youre going to have a firm that is hellbent on chasing profit and burning out scores of wholly alienated people who just want a chance at the sweet life, you need to design all these auto-pilot management tools and implement them. Then people will feel like they're productive and "working," meanwhile all they're really doing is the equivalent of making some Betty Crocker boxed cake, while being told and convinced they're artisan patissiers.

I'm repeating myself here but, yeah MBA's are fundamentally useless, mostly a church for Big Corpo. Join the church, become an alcolyte, work your way up the priesthood and maybe you too can be a bishop one day you gets to diddle I mean get paid a lot of money (and diddle)

nomad2020 posted:

Lean, agile, sigma 6, JIT, etc...

shrike82 posted:

https://twitter.com/GuyDealership/status/1686754232123129856?s=20

Xaris posted:

remember in the early 2000s when everyone was trying to one-up-keeping-up-over-the-jones with increasingly giant SUVs from Excursions to hummer suvs to exploder mega LE sport to jeep grand cherokee laredo?

i guess we are just back to that with SUV dozer arms-race

Xaris posted:

Ally Financial, which has a significant share of loans to subprime borrowers, said in its October earnings report that it expects delinquencies to increase to as much as 3.8% compared with 3.1% in 2019.

Egg Moron posted:

Just fire everyone who works remote and see if society can take the hit

I bet it will be fine as people with real jobs are out there keeping the wheels turning