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A comment on U.S. Subprime Auto Loan Losses Reach Highest Level Since the Financial Crisis. Parent comment

Re:U.S. Subprime Auto Loan Losses Reach Highest Level Since ... by TheSpiceIsLife on Monday March 13, 2017 @09:54PM (#13864342)
I'm guessing here, but considering how much value is lost just driving a car out of the show room, even a six month old repo'ed car is going to go for, what, maybe 50% it's original sale price at auction.

Whoever reposses the cars isn't interested in sitting on them for weeks to wait for the right buyer at the right price.

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Re:U.S. Subprime Auto Loan Losses Reach Highest Level Since ... by acchow on Monday March 13, 2017 @10:53PM (#13864567)
Used cars retain a lot more value than they used to. According to Edmunds, it retains 49% after 4 years

https://www.edmunds.com/car-buying/how-fast-does-my-new-car-...

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Re:U.S. Subprime Auto Loan Losses Reach Highest Level Since ... by brigade on Tuesday March 14, 2017 @12:11AM (#13864923)
That's trade-in value. Auction value is lower. Additionally, being repo'd is a hefty detractor to the auction price; plenty of dealerships categorically don't buy repo cars. Plenty of customers, too.

Plus the repo fee coming out of the auction price...

[ Parent | on HN ]