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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (2125)	10/16/2014 10:12:26 AM
From: Jerome	Read Replies (2) \| Respond to of 26437

Morning Kirk,.....Do you think that excessive auto loans, and excessive student loans will create a new financial crisis? My thinking on auto loans for a new car. 1)Some money will be saved on gas because of better fuel efficiency. 2) But this will be offset by higher insurance premiums and much higher registration fees. 3) Month to month gas purchases may vary greatly. Necessity driving is a given, but recreational driving is optional. 4) But the payment for a new vehicle comes due every month, rain or shine, for many months to come. And this creates a drag on family lifestyle. 5) New cars and new relationships often prove to be more expensive than anticipated.

To: Kirk © who wrote (2125)	10/16/2014 10:14:58 AM
From: robert b furman	Read Replies (1) \| Respond to of 26437

Hi Kirk, Most hated the program but cash for clunkers really did have an impact. It took a lot of gas guzzlers off the road. After that program we as a country began a new trend of less gasoline consumption. If there is ever talk of an automotive bubble - it is from fear mongers who do not know the auto business. Terms of auto loans have extended true. Quality and life duration of autos has also extended. Prices of auto are up and extended terms help affordability - I don't like financing a car to start with but one has to do what they have to do. Used auto's right now are in very high demand and the price of used vehicles have gone up with the price of new vehicles - just as they decline when big rebates were used before 2008. The auction system for used vehicles is now internet based and extremely competitive. Unlike housing - cars can be turned into money on a weekly or bi weekly basis depending on how far away an auction is from the loan originator. The car loan have a provision with the dealer (loan originator) that if the money down or income claimed on the credit request was fraudulent the repo goes against the dealer. Mortgage originators would never have submitted all the fraudulent crap they did - if they had skin in the game like that. Fannie and freddie should go to that process - IT WORKS. Any bubble in used car financing will be gladly greated by dealers making strong bids for low milage repos. If any one says there is a bubble in car sub prime financing - they do NOT understand the auto business as it is today. Fear Mongers are all they are. Bob