The 60-day auto delinquency rate continued to climb through the third quarter of 2017. Driven primarily by “relaxed” underwriting standards from years past and increasing subprime originations, TransUnion’s senior vice president and automotive business head, Brian Landau, said two-month payment lapses rose 7 basis points to 1.4 percent.

At the same time, the average balance of outstanding auto loans increased by around 5.9 percent, resulting in the lowest year-over-year growth rate since the third quarter of 2012. The group’s Industry Insights Report cited this quarter’s serious auto loan delinquency rate as the highest observed since Q3 2009 — you know, when nobody had any money to pay their bills. (Read More…)

Every last one of us remembers sitting in a restaurant, wondering if we’d made a horrible mistake by choosing salad over the potentially superior soup of the day. Soup is unpredictable; salad is a safe choice. But what if the soup, as it sometimes is, was actually the more satisfying choice?

You missed out, and time only makes the doubts and regrets grow stronger.

Out in your driveway, or perhaps stashed in a nearby parking garage, is a car you bought or leased based on the assumption it was the best choice of all available options in your price range. Has the passage of months or years revealed your present vehicle as a safe salad to someone else’s weak-at-the-knees, far more satisfying soup? Did you make a mistake this time around? (Read More…)

Snow has already touched Minneapolis pavement, meaning it’s time for automakers to hurry up and clear out 2017 models. Special offers, like the coming winter, are rolling in fast.

Not surprisingly, many of the end-of-year incentives target the increasingly unloved passenger car segment. If two or four doors and a trunk is your bag, you’re in luck, though crossover shoppers aren’t being ignored in the rush to unload old inventory. However, if you’re a fan of the Big H, and especially its sportier offerings, Christmas might have just arrived early. (Read More…)

From the Texas coast to Georgia, the southern U.S. took a long-delayed pounding this summer after years of hurricane “drought.” Hurricane Harvey struck, then lingered for days, over the Corpus Christi-Houston area in late August, sending hundreds of thousands of vehicles to the salvage yard. Hurricane Irma followed shortly thereafter, striking Florida before moving up into the southeastern states.

Perhaps aware of Texas’ reputation, Harvey cut the largest swath through the country’s rolling stock, with roughly 422,000 insured vehicles now awaiting salvage auctions. Irma’s wrath adds a further 215,000 to the flood-damaged mix. For the National Insurance Crime Bureau, it’s not necessarily those vehicles that are leading to restless nights — it’s ones with owners unable to make an insurance claim. (Read More…)

Speed costs money; how fast do you want to go? It’s the kind of thing you see on the back of T-shirts worn by grey-haired men at “Cars and Coffee,” but that don’t make it not true.

With that said, there are a million different ways to spend your speed-seeking dollar, some of them better than others. Which brings us to this week’s $10,000 question…
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At new car dealerships, coupes are thin on the ground. The demise of the Honda Accord coupe at the end of the 2017 model year shutters the mainstream midsize coupe segment, a category long since diminished by the disappearance of two-door Camrys, Altimas, and the Avengers.

Compact coupes are rare, too. You won’t find two-door versions of the Chevrolet Cruze, Ford Focus, Hyundai Elantra, Nissan Sentra, Subaru Impreza, Toyota Corolla, or Volkswagen Jetta, although their predecessors all offered coupe variants.

Chevrolet Monte Carlo, Chrysler Cordoba, Ford Thunderbird? Long gone. But coupes — genuine two-doors such as the pillarless Mercedes-Benz E400 4Matic I’m driving (and being massaged by) this week, or the Honda Civic, or the Infiniti Q60, or the Rolls-Royce Wraith — are still available.

Would you buy one? (Read More…)

Last week, we told you that Americans are paying more for new cars than they’ve ever paid before while enjoying record-high incentives. Car buyers are able to spend more in large part because the payment terms are longer than ever before.

The average new vehicle purchase now requires a $32,900 expenditure, made possible by incentives of $3,550 per car and a loan term of 69.3 months. The average payment is now $517 per month.

But how much would you pay? What’s your maximum price, your maximum payment, your maximum term length? (Read More…)

Years back, after the desire to purchase one particularly fetching model became too great, you walked into the dealership, marched right over to the salesman’s cubbyhole, and signed over several years’ worth of payments on your ride du jour. Bliss ensued.

Unfortunately, come trade-in time, your once-desirable ride isn’t even worth the amount left owing. You’re in negative equity, pardner. Still, buyers faced with this situation have a number of options at their disposal.

Thanks to a recent study of new car buyers, we now know exactly how owners of low-value trade-ins chose to deal with their unexpected debt. (Read More…)

There has been plenty of doomsday prophecies surrounding the automotive industry in the last year, based largely upon the assumption that younger drivers are less willing to support it or simply cannot afford to. Stupid, right? Not really. While the direness of the situation is often exaggerated, plenty of evidence exists to underscore the impending troubles of the new car market. Whether it’s because those in their salad days don’t care as much about cars as their elders or simply have less disposable income (hint: it’s the second one), real change is coming for OEMs.

Younger shoppers are noticeably more likely to purchase used vehicles than their more venerable contemporaries are, but “young” is a relative term — especially in this instance. According to a recent study, 53.7 percent of prospective buyers under forty plan on getting a used car the next time they need wheels. For those over forty, that number is 49.7 percent. As you’d expect older people to buy more new cars, this much of a disparity at mid-life is significant.  (Read More…)

The low, low monthly payments offered by spreading the cost of a new or used vehicle across a vast gulf of time is certainly an attractive one, even though the practice is fraught with hidden danger.

For U.S. car buyers, it has also become a very popular one, with data showing just how many people have decided to embrace a 73- to 84-month payment plan. Not only are their spending habits changing, they’re also changing their lender. (Read More…)

Intending to ask your advice before I actually made a purchase, I was left alone with no family to entertain me last Friday night and, well, something happened. To go along with our long-term 2015 Honda Odyssey EX, I exchanged a large sum of cash for a new vehicle.

Tell people what you’re going to name your baby, and they will tell you what they really think. Tell people what you named your baby, and they’re more likely to say, “Oh, how nice,” even if you named him Dwayne.

Similarly, tell people what car you’re planning to buy, and they’ll be forthright with their opinions. Tell them what you’ve already bought, and they’ll be more likely to say, “Oh, how nice,” even if you bought a Outlander.

So we’re going back in time to last Thursday. The automotive universe is littered with options. My choices are limitless. Major life changes have presented our family with new opportunities, but also new challenges. Regardless, it’s time to double the size of our fleet. (Read More…)

I am the unfrozen cave man of car buyers. Every decade or so, a machine shaman whispers the magic words in my ear — You’re gonna need a new engine — and I leave my cave, shaking my fist at the great ball of fire in the sky, and go looking for one, always packaged in a new steed.

This habit has several interesting side effects. There are crazed leaps in technology when you only go car shopping once a decade or so. In 2001, I turned down a $1,500 option to add a hard wired Motorola Razr to my BMW X5; in 2016, Bluetooth, Android Auto and Apple CarPlay were standard on my base 2016 Chevrolet Camaro Convertible.

Another is that I’ve just purchased my fourth car, despite being well into my fifth decade driving.

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Most readers are aware of my unbridled enthusiasm for base model cars. Sure, there are a few luxury models that spring to mind where it’s imperative buyers select the top trim, lest they run the risk of an arch nemesis pulling alongside them in an Escalade Platinum when they are piloting a lowly Escalade Luxury.

Thing is, it behooves the frugal customer to pay attention before they sign the note on a set of base wheels. For years, commercials told us “America Runs on Dunkin” when we all know that America Runs on Monthly Payments. Most shoppers have a monthly or biweekly figure in mind and, examined through that lens, base cars aren’t always the best deal.

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A couple of weeks ago, I told the tale of an extremely profitable Soul sale. Some of you criticized me for implying that the “doc fee” was negotiable. I don’t know what kind of mindset you would have to possess in this world to think that a doc fee is not negotiable. Even if you can’t get the actual line item off your deal, you should be able to obtain a similar savings elsewhere. It’s such a scam that lately a few state courts have gotten involved in the discussion. The actual costs of “documenting” a sale don’t come close to what dealerships are trying to charge. It’s pure, raw profit.

Still, I wouldn’t expect my readers to do something I’m personally unwilling to do. So I will tell you the story of how I walked out of a dealership over a $300 doc fee. Normally, this wouldn’t be a big deal — but, in this case, the dealership was six hundred miles from my house, and I had no way to get home.

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In terms of unpleasantness, buying a new vehicle often ranks up there with visiting a passive-aggressive dentist, or perhaps meeting with your child’s teacher to discuss his or her “performance.”

Overzealous salespeople who stereotype customers, high-pressure them into buying the vehicle and package the seller wants, and generally lack knowledge about their own product likely sour more people on a brand than recalls and scandals. If only there was an easy way to avoid turning customers away while boosting sales.

It turns out, the solution could be very simple. (Read More…)