In this short clip, Patrick Bet-David, Adam Sosnick, Tom Ellsworth and Vincent Oshan react to sky-rocket car prices.
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A rising number of Americans are Struggling to keep up their car payments Hello indicating Financial stress amid High car prices and persistent inflation The percentage of auto borrowers who Were at least 60 days behind on their Bills Rose two percent from December at 20.4 percent a year ago while loan Defaults increased 6.2 percent over January and we're up 33 and a half Percent over a year ago although the High level of severe delinquencies has Not led to equivalent growth and Defaults reposition rates have climbed The number of repossessed cars increased 11 percent in 2022 compared to the Previous year the rapid increase in auto Loans rates to 6.9 percent in January up From 4.3 percent a year ago that's a 50 Increase by the way a little over 50 Increase and High car prices averaging Nearly 50 000 have made it harder for Americans to make car payments with many Monthly payments above what did we talk About last time a thousand dollars Rising interest rates and High car Prices threaten the Auto industry should More consumer defaults on their loans It's coming it's just a matter of time Go ahead Tom it's it's basically here I Mean this is we talk about Upstream Problems and downstream problems Downstream as you look about a bunch of Things Downstream the pond is polluted
And the Democrats say let's make a one Billion dollar filter and drop it into The lake Republicans say let's go Upstream find out what the hell is in The river that's filling up the lake Well this is an upstream Downstream Problem Upstream interest rates have Been going up since March of 22 that's Was that's when uh Powell first met the Cheerleader and and so now those are up And then we saw last week that the Average car had gone from 40 to 50 000 On average price on a on a basic low end You know good solid good mileage good Safe basic car with nice features and This is basically Downstream it's coming Home to roost the repossessed cars is up 11 but the loan defaults have only come Up six percent but they're increasing This is accelerating and if inflation is Not under control this is going to get Worse and as inflation comes down Unfortunately you're going to see Unemployment come up the people that are In that unemployment in a low line it's Going to come up so basically let me Translate this for you if you want to Buy a car you know hang on for a few Months because the price of used cars Are going to come down because the Supply of used cars has to go up with What's happening oh my God go ahead Adam Well we talked a lot about how like College is a scam you know is college
Outdated you know the government got Involved student loans we I mean we can Go on for days the Alternatives rather Than going to college I would argue that the car industry and Car loans and car debt is by far a Greater scam than College People are still in the 1980s mindset That you need a car it's like there are So many Alternatives these days to Driving yourself into debt I mean look At the numbers two out of three Americans are paycheck to paycheck Housing prices are skyrocketing foods Are uh inflation you know you want to Buy an egg the other day it was like uh 12 bucks for a dozen done the the the Car situation is I've been saying this For years everyone knows I haven't had a Car for over a decade What a shame Adam yeah go have a family Bro hurry up please hurry up and have Kids back you imagine that and then Ironically twist of fate by the time That happens I'll have a lot of money in The bank and I'll get whatever car I Want can you imagine this and it's all Good Adam right now with kids like kids You want to go to soccer practice hold On I gotta get an Uber yeah at that Point I actually uh Florida rainstorms It comes up in 30 seconds but I I will Give you I'll get obviously it's a Single guy single guy you have a car
It's easy to when you don't have a Family you don't have to to discuss the Certain things but for the people with Families out there I'll give I'll give a Case example a guy was working he was Like the handyman in my building where I Lived in Miami he was struggling he Didn't like where he lived he was living Out in Kendall which is like an outside Of Miami driving handyman what was that Pronoun [Laughter] And what he did was he said you know What these car prices are insane I got two cars I got kids I got this I Had that I said you're living a hot You're 45 minutes an hour from work Because you're you're way outside of Miami I says where do you want to be He's like I'd love to live downtown what Did he do he sold one of his cars to him And his him and his wife and kid sold One of the cars and got it out of his Life moved downtown now he lived five Minutes from work he would just Uber to Work okay his wife had the car all day If they needed a car for the kid they Had it but the point is they figured it Out they weren't like well we're a two Family uh two kid person and now we have Two cars that's just cookie cutter they They they realize that there's things They could do but we saw them were all In secret dude I agree they did that for
A long time they did that with one car Both of them and they crushed it it was And they had two kids so there's there's Ways to do that but Adam the day You Have a family triplets and the content's Gonna Change when you're talking on the Podcast and you're gonna say Adam how Was your night ah not good Junior didn't Let me sleep I'm on an hour and a half And you're complaining and grouchy and All that's this that's what the Content's gonna get juicy I agree yeah But we may not wear yet so if you like This clip and you want to watch another One click right here and if you want to Watch the entire podcast click right Here Yeah foreign [Music]
