We know many people are overleveraged with their truck, boat, side-by-side, sled, camper loans. With all of these layoffs people will likely start selling off their toys. I wasn’t paying attention to this during the 2008 recession, but I assumed it happened. This is likely to be even worse. Just the oil field guys alone with the price of oil right now will be offloading their toys I would think.
What do you think?
Interesting question. If a guy still owes on it and can’t sell it for what the loan is why not just let em take it back, rather be indebted?
But with all those paid off, I could see a huge amount of used stuff coming to market. Could be a great time to buy middle of summer, the fall could be even better!
In the past, guys tend to try and hide them at friends house or just let the bank come get them from the repo man.
I don’t know about toys but I see that some US Senators have off-loaded some of their stocks for thousands of dollars and are getting questioned about it.
I believe it will happen. I went to scrap yard the other day to take in misc metals from my buddies auto repair shop that I help at. Usually on a Saturday 3-5 people taking in cans and what not. This past Saturday there must’ve been 30 people there scrapping whatever they could. With as much debt as people are willing to go into to constantly upgrade what they have is insane. We all know people who if they are out of work even for a couple weeks would be in serious financial trouble.
I’ll be looking to see if anything catches my eye on Facebook Market and Craigslist. I think snowmobiles and campers will be deeply discounted. Boats I think people will hold onto as long as possible in hope that it gets better sooner rather than later. Campers with National Parks closing and not allowing camping could be going real cheap. Plus a lot of people have to pay some sort of storage for them. Snow machines aren’t usable for another 8 months so they are cheap this time of year anyways. Now there may be a fire sale.
I don’t think you will see much of a sell-off, or at least not a noticeable enough surge that the average person will see.
Lenders are smart. They have no interest in “owning” foreclosed on toys, houses, vehicles, etc. Foreclosing on things other than homes is such a losing proposition for them. Most lenders are willing to work with people to adjust payments, accept late payments, etc. as this is far more profitable in the long run. Banks didn’t get rich selling foreclosed used vehicles and toys. That is not where the money is at.
For Example:
John owes $28k on his 3.5 year old truck. Lenders know that foregoing a couple of John’s payments to keep that account open is worth more than trying to offload a used truck – which they are not in the business of handling. If John was willing to take out that size loan on a truck and stretch it out over quite a few years, what is the difference to a lender if it is paid now or 3 months from now? John’s ego to have the newest truck that he cannot afford isn’t going away despite the economic downturn. John keeps his truck. The lender still gets paid. John is issued another loan with interest on another new truck to show to his buddies the second his old one is paid off. The process repeats itself.
There are far more people living paycheck to paycheck or who are behind on their toy payments than any of us will ever realize.
I don’t know about toys but I see that some US Senators have off-loaded some of their stocks for thousands of dollars and are getting questioned about it.
As they should be.
My opinion is no. There needs to be a non-definitive ending date on the virus thing and seeing the country plunging into a recession / depression first. Also they will need to see if they can ride things out with the bailout money the government is talking about. Lastly, just about all of the lending institutions are saying the will extend time rather than send loans into default.
Also to the guys looking to pounce on a deal. You may want to save your cash until you see the upside coming again. You don’t want to get caught without cash on a long drawn out recession / depression. The deals will always be there when the time is right.
My opinion anyway, yours may vary. 
Actually I think some will hang on to there boats and campers. Reasoning is your outside away from people less socializing going on some will sell but a vast majority look at it as their hobby pastime. For me I would rather lose my cars and keep the boat you can always find a clunker to drive. Thankfully with taxes and overtime I just paid mine off a month ago for the simple fact I did not want that payment. Some will now think of fishing as getting food.
Easy here boys…..this isn’t Mad Max where we are roving packs looking to kill for food and gas.
Depends on the longevity and impact of the shut downs. If anyone has a newish full windshield Pro-V 1875 and needs some help please reach out!
Tom Sawvell wrote:
I don’t know about toys but I see that some US Senators have off-loaded some of their stocks for thousands of dollars and are getting questioned about it.
As they should be.
Yeah the stories on this are pretty bad. Seems like some of congress got briefed way early on about the virus. Then some of them went out and told people things would be under control and fine while they dumped 6-figures or more in stocks so they wouldn’t be affected.
I also wonder if some sort of cash for clunker-like program will be tossed around to get the auto industry going again. Even though many of us hated it because it decimated the used car supply, it did get new cars sold again. Many of those traded in where perfectly good vehicles that were just destroyed. Hard to even think about.
Or remember back in the early 2000s GM had that special pricing where got the employee price? That must’ve been out of the recession caused by 9/11 and the wars that started. I just remember looking hard at the GM website then for what were some pretty good prices on trucks.
Again, it will depend on how long this thing lasts and how bad it gets.
I don’t know about toys but I see that some US Senators have off-loaded some of their stocks for thousands of dollars and are getting questioned about it.
I think you mean millions. Lock those ****** up, I don’t care who they are. Any senator, republican, democrat, independent. Tells the public/constituents it’s no big deal, everything’s going to be fine, then behind closed doors tells his rich buddies/business owners to prepare for something worse than the Spanish flu of 1918, so adjust your investments accordingly.
Beyond despicable. Transparent, blatant, evil.
On the flip side, im looking for a new boat. But I’ll also never have to worry about losing my job or income.
DT
BTW-never finance something that depreciate,& almost everything depreciates.
BTW-never finance something that depreciate,& almost everything depreciates.
Solid theoretical advice, but for 99% of Americans that is almost impossible to follow.
I will be taking out a loan. Not worried about it.
DT
I think there will be a lot of things for sale in time, many are living above their means, and so many are not going to be able to work that they’ll have to prioritize and I’m guessing the bigger recreational items, as well as vehicles will drop dramatically in price, hopefully things rebound sooner than later. Just an opinion and hope I’m wrong
<div class=”d4p-bbt-quote-title”>tim hurley wrote:</div>
BTW-never finance something that depreciate,& almost everything depreciates.Solid theoretical advice, but for 99% of Americans that is almost impossible to follow.
I am pretty conservative and also do not believe in financing depreciating assets, but I am not going to judge anyone here who makes the personal choice to finance a boat, truck, etc.
I will say though, the vast majority of people CAN save up cash for their toys, they just don’t WANT to.
At the risk of sounding callous, I do think we will see some good deals on boats and snowmobiles this summer.
Get a personal loan, get a good price on a used boat and it will not depreciate
(not many things you can say that about)
I was making about 10 bucks an hour when I bought my first boat, was small, and ugly, but it floated, I caught fish, did I see the ugliness when I was reeling in a nice fish?
BTW, I would not judge anyone for finding a way to get out and fish, and yep if you have kids you can’t always wait to have the dollars saved up.
600 died in Italy today. Just reinforces that tomorrow isn’t promised to any of us.
600 died in Italy today. Just reinforces that tomorrow isn’t promised to any of us.
Especially if you are over 80
NBC News showed a story on one of their sound guys who passed away from the virus. He was 62.
Don’t bite into the theory that the virus only kills old people.
Depends on the longevity and impact of the shut downs. If anyone has a newish full windshield Pro-V 1875 and needs some help please reach out!
Here I will borrow you the payment as long as you pay me back.
Charmin-2.jpg
Good thread here. Strong points for both sides of the “fun spending” issue. I think it’s important to do everything you can to pay down or pay cash/not finance “fun” items, but also like Dutch said about life having no guarantees, you’ve gotta enjoy it.
I say have a reasonable amount of fun while reasonably planning for the future. If you’re smart and do your research you should be able to enjoy today while hopefully solidifying tomorrow. A finance guy (can’t remember his name) who I’ve read a lot from in columns makes a person feel like an idiot for taking out a 30-year mortgage; I had a college math class say the same thing. Yeah, great advice and all, but not practical for a lot of people.
Be reasonable, plan and make some sacrifices for your future, but be happy folks.
Heres the catch…. if you are a single guy, married with no kids, divorced then it’s on you to spend / borrow what you want. My opinion is if you are responsible for kids, either married or divorced you have a obligation to secure their future before yours. Just because that beer fueled hook up resulted in a kid doesn’t mean you are off the hook. 
I say have a reasonable amount of fun while reasonably planning for the future. If you’re smart and do your research you should be able to enjoy today while hopefully solidifying tomorrow. A finance guy (can’t remember his name) who I’ve read a lot from in columns makes a person feel like an idiot for taking out a 30-year mortgage; I had a college math class say the same thing. Yeah, great advice and all, but not practical for a lot of people.
Was it Dave Ramsey? Sounds great on paper just like most college curriculum, but real life doesn’t live in an air bubble perfect world. Certainly some great ideas you can learn from but not the only way to go.
Someone already hinted at it but bank repos are high in a good economy. The bank doesn’t want your boat in a recession when they can’t sell it. On the other side of it if you miss a payment in a good economy the bank may not be as forgiving. I talked with a repo guy and the technology in his truck was amazing, he just has to drive around and his computer will scan the plates and tell him which vehicles to tow.
I don’t know about toys but I see that some US Senators have off-loaded some of their stocks for thousands of dollars and are getting questioned about it.
When the eventual bailout for the corporate sector look for stock by back again.
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