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Old 04-04-2020, 06:01 AM
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Car Payments during the pandemic


I've seen a lot about student loans, rent, and mortgage payment relief during this pandemic. I have not seen anything about car payments. Are they collecting as usual? Is repossession of cars an "essential service" which will go on during the pandemic?
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Old 04-04-2020, 06:53 AM
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I own a Honda Civic outright but just yesterday I got a generic spam email from Honda. One of the things that the email mentioned is that they will work with people who have car loans through their financing.
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Old 04-04-2020, 07:10 AM
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I own a Honda Civic outright but just yesterday I got a generic spam email from Honda. One of the things that the email mentioned is that they will work with people who have car loans through their financing.
Yes, I have noticed several "no payments for 90 days" advertisements as inducements to buy new cars which I have not seen prior to this pandemic. However, I was asking more about what people with existing car loans who have lost their jobs are going to do. Is Joey the repo guy going to drive off with their car at 3am or is there anything in the stimulus bill or something else in the pipeline to help them out?
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Old 04-04-2020, 07:12 AM
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Both my car financing company (I have a Kia) and my credit union have set up deferral programs for loans.
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Old 04-04-2020, 08:15 AM
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I have seen commercials from Ford and GM offering to negotiate payment plans for car owners whose jobs are affected by Covid-19.
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Old 04-04-2020, 08:28 AM
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I don't know if it's in the law, but smart lenders will prefer to work out deals with their out-of-work customers rather than take possession of a bunch of cars they can't sell now anyway.
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Old 04-04-2020, 10:34 AM
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I don't know if it's in the law, but smart lenders will prefer to work out deals with their out-of-work customers rather than take possession of a bunch of cars they can't sell now anyway.
You would think so. But I remember in the 2009 downturn, banks were saying that they HAD to foreclose on houses so as not to put up the image that they would put up with widespread non-payment such that more people would not pay thereby creating a vicious cycle.

IOW, if banks holding car notes decide to say fuck it we aren't going to repossess, then people who are able to pay might save a few bucks by not paying for a couple of months.

In any event, I appreciate the responses, but I guess there is nothing in the law that protects car loans in the stimulus law?

Last edited by UltraVires; 04-04-2020 at 10:34 AM.
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Old 04-04-2020, 11:12 AM
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You would think so. But I remember in the 2009 downturn, banks were saying that they HAD to foreclose on houses so as not to put up the image that they would put up with widespread non-payment such that more people would not pay thereby creating a vicious cycle.

IOW, if banks holding car notes decide to say fuck it we aren't going to repossess, then people who are able to pay might save a few bucks by not paying for a couple of months.

In any event, I appreciate the responses, but I guess there is nothing in the law that protects car loans in the stimulus law?
They arenít going to save by not paying for a few months. Any of these programs, cars or mortgages or whatever, will still accrue interest and will add the missed payments to what would have been the best end of the loan. Every one or them will cost the consumer more money.
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Old 04-04-2020, 12:04 PM
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You would think so. But I remember in the 2009 downturn, banks were saying that they HAD to foreclose on houses so as not to put up the image that they would put up with widespread non-payment such that more people would not pay thereby creating a vicious cycle...
But they could mostly sell those properties. And the issues weren't as wide-spread.
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Old 04-04-2020, 02:30 PM
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You would think so. But I remember in the 2009 downturn, banks were saying that they HAD to foreclose on houses so as not to put up the image that they would put up with widespread non-payment such that more people would not pay thereby creating a vicious cycle.

IOW, if banks holding car notes decide to say fuck it we aren't going to repossess, then people who are able to pay might save a few bucks by not paying for a couple of months.

In any event, I appreciate the responses, but I guess there is nothing in the law that protects car loans in the stimulus law?
In the case of the previous recession, there was no reason to believe that people would be able to pay later. In this downturn, there is. There are plenty of jobs that people will return to once the crisis phase is over and they'll be able to continue to make payments as usual. Someone laid off during the previous recession had no realistic expectation of being able to find the exact same job a few months later like they do now, for the most part. Sure, there are some businesses that will collapse because demand doesn't start back up again fast enough, but the previous recession's lack of demand was caused by things intrinsic to the economy, while this downturn's lack of demand is caused by something extrinsic to the economy.
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Old 04-04-2020, 04:20 PM
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In any event, I appreciate the responses, but I guess there is nothing in the law that protects car loans in the stimulus law?
Did you think there was? Was that something you would support? What's your stance on the student loan or mortgage forbearance? Do you think it would behoove banks and other financial institutions to strictly enforce their car loans and start massive repossessions during this time?

I'm sure your concern over car loans is sincere, and not some idiotic attempt to "slippery slope" student loan and mortgage forbearance, so I'm really interested in your position on this issue.

Last edited by Hamlet; 04-04-2020 at 04:20 PM.
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Old 04-04-2020, 04:31 PM
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I don't know if it's in the law, but smart lenders will prefer to work out deals with their out-of-work customers rather than take possession of a bunch of cars they can't sell now anyway.
Holding onto repossessed land, with houses on it is a different thing from holding onto cars.

During a downturn, there is not much of a market for either, but the property with the houses sits where it is, and yes, there is property tax, but you have to store the cars somewhere, and the cost of storing a car might actually be more than the tax on a property with a house, and even if it is less in total, it will still be a much larger proportion of it.

Not to mention, when the downturn ends, the value of the property is likely to go up, but the value of the cars will not go up. There are always newer cars being made, and cars depreciate with age, even if they are not being driven-- they depreciate because they don't have the newest safety features, fuel economy features, etc. No one is making new property. And a 20-yr.-old house is worth a much greater percentage of its original value than a 20-yr.-old car. Might even be worth more, because there are a lot of people with ideas about buying houses older than age n, because they have "outgassed."
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Old 04-05-2020, 03:21 AM
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Originally Posted by Hamlet View Post
Did you think there was? Was that something you would support? What's your stance on the student loan or mortgage forbearance? Do you think it would behoove banks and other financial institutions to strictly enforce their car loans and start massive repossessions during this time?

I'm sure your concern over car loans is sincere, and not some idiotic attempt to "slippery slope" student loan and mortgage forbearance, so I'm really interested in your position on this issue.
Can I respectfully ask you to quit following me around the board and PMing me and commenting on my contribution to this board personally?

I'll be glad to respond to any of your debate points. What I will not do is confess some error in my whole life view.

These threads are self contained. Car loans can be different than home loans and if they are the same, then you can start your own fucking thread and stop shitting in mine. Or you can at least, if I may ask, that you start a different thread (a Pit thread if you like) to debate my motives?

I'm not here as a plastic monkey at a table in a roadside diner to respond to queries as you see fit to pose and eject a paper ticket. Debate your fucking point and stop being personal, if you would.
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Old 04-05-2020, 06:48 AM
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My car was totaled almost 2 months ago and I'm having a heck of a time just trying to get the loan paid off. I had the money; it's just moving slow. If I don't buy a replacement car in the next 12 days i'll lose around a thousand bucks, too. Plus there's no registration until Dec. last I checked so this is all going to be a fun time for me. As an "essential" I'm making about double the bucks I've been making so I fortunately don't need any payment extensions with anything.
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Old 04-05-2020, 07:44 AM
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Can I respectfully ask you to quit following me around the board and PMing me and commenting on my contribution to this board personally?
Sure. Can I ask that you actually respond to my questions, that you stop lying about "refuting" posters who coherently respond to your blather, actually change your posting habits so you do actually "contribute" to the board instead of spouting inane talking points and refusing to actually support your opinion?

I PM'ed you ONCE, before I knew that you're posts are worthless. I am definitely not "following you around".

Quote:
Originally Posted by UltaVires
I'll be glad to respond to any of your debate points.
Bullshit. One thing you've shown over and over is that you clearly don't want to. Hell, even in this thread, you didn't answer a single question I asked. That's what you do.

Last edited by Hamlet; 04-05-2020 at 07:46 AM.
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