Americans are REFUSING to Make Their INSANE Car Payments | Episode 964
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Term
buy here, pay here
'Buy here, pay here' means you can buy a car and get a loan from the same dealership. This is helpful for people who might not qualify for loans from banks because of their credit history.
Concept
15 year auto loan
A 15 year auto loan means you can take a long time to pay off a car, which can make monthly payments smaller. However, it might cost more in the end because of interest.
Car
Mazda Mazda 3
The Mazda 3 is a small car that is fun to drive and looks good. The 2018 version has good fuel economy and comes with modern tech features.
Car
Mazda 3
The Mazda 3 is a small car that many people like because it looks good and is fun to drive. It's known for being reliable and having good fuel economy, which means it doesn't use too much gas. People talk about it because it's a great choice for anyone looking for a compact car.
Term
30% interest rate
A 30% interest rate means you pay a lot more money on top of the price of the car when you borrow to buy it. It's a very high rate and can make it hard to keep up with payments.
Car
Honda Civic
The Honda Civic is a small car that many people like because it's dependable and gets good gas mileage. It's been around for a long time and comes in different styles and features.
Car
Honda Civic Hatchback
The Honda Civic Hatchback is a small car that has a back door that opens up, making it easy to load things inside. It's popular because it's reliable, saves gas, and has a sporty feel when driving. People like to talk about it because it's a good option for those who need a practical yet fun car.
Car
Honda CR-V
The Honda CR-V is a small SUV that offers a lot of space for passengers and cargo. It's known for being reliable and good for everyday use.
Term
cost to own
Cost to own is how much money you will spend on a car over time. This includes things like insurance, gas, and repairs. It's good to know this before buying a car.
Term
total cost of ownership
Total cost of ownership means looking at all the expenses you'll have when you own a car, not just the monthly payment. It includes things like insurance, gas, and repairs.
Term
car payment
A car payment is the amount of money you pay each month to own or lease a car. It's usually based on how much the car costs and how long you take to pay it off.
Term
insurance
Insurance for a car is a way to protect yourself financially if your car gets damaged or if you cause an accident. You pay a monthly fee for this protection.
Term
maintenance
Maintenance is the work you need to do on your car to keep it in good shape. It includes things like changing the oil and checking the brakes.
Term
deficiency balance
If a car is sold for less money than what you owe on it, the leftover amount is called a deficiency balance. You still have to pay that leftover amount even after the car is sold.
Term
pre-purchase inspection
A pre-purchase inspection is when a mechanic checks a used car to make sure it's in good condition before you buy it. It helps find problems that you might not see just by looking at the car.
Term
15-year car loan
A 15-year car loan means you have 15 years to pay back the money you borrowed to buy a car. It can make monthly payments smaller, but you end up paying a lot more in interest, which isn't usually a good sign for the economy.
Term
84 month car loan
An 84-month car loan means you have 7 years to pay off the money you borrowed for the car. It can make your monthly payments lower, but you might end up paying more in interest overall, which isn't ideal.
Term
96 month car loan
A 96-month car loan means you have 8 years to pay back the money you borrowed for the car. It can help keep monthly payments low, but you might pay a lot more in interest in the long run, which isn't usually a good sign.
Car
Buick Le Sabre
The Buick LeSabre is a large car that was made for many years and is known for being very comfortable to ride in. It was popular because it had a lot of space inside and was designed to be a smooth drive. The 1951 version is special because it looked very modern for its time and had some cool features.
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It's noon here in Veteran City, New Jersey
and 9 a.m. in Los Angeles, California.
And this is Car Edge Live for Monday, November 17th
with your host, me, Ray here in Venter
and well, Zach there in LA.
And may I say, you know, I read a lot of comments
in our comment section
and people comment often
that what we're doing is God's work.
Now, what we're doing is just trying to help people.
What you did yesterday is God's work.
And what do I mean by that?
My son is in LA because he attended a fundraiser
for the Lung Cancer Foundation of America yesterday.
And I lost my wife, his mother to lung cancer
eight years ago, eight and a half years ago.
And for you to do what you do,
that's God's work.
What we do, this is just abject BS, okay?
We are helping people, but not to the same degree
that what you're doing out there in California today
is that's real work.
Thank you, dad.
Good to say that.
Proud dad moment, which I appreciate.
For those of you that are unfamiliar earlier this year,
fortunate to join the board
of Lung Cancer Foundation of America.
So working with that team really closely.
If you know anyone who's been impacted by lung cancer,
if you yourself have been impacted with lung cancer,
or quite frankly, if you have,
even if you haven't smoked in your lifetime,
you should just contemplate getting a screening.
One cancer dad, the incidence rate actually happens
as significantly to non-smokers as it does to smokers.
So please, I actually, dad,
one of the things I wanted to talk to you about
is you should get a screening.
You're of age, you were a smoker earlier in your life.
You absolutely should get a lung cancer screening.
And yes, it was really fun out there yesterday
doing this fundraiser.
So I appreciate it, dad.
Today's show, we'll get on to the car talk
in just a moment here, is brought to you by caredge.com.
So if we can help you out folks,
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It's a company my dad and I started six dog on years ago.
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Now, the big story this morning, dad,
that I wanted to spend time on,
thanks again for shining that bright light on me.
I really appreciate it,
is we have record setting number of Americans.
We have a record setting number of Americans
who are choosing to stop paying their car loans.
The latest and greatest data shows
that we have the highest incidence rate
of auto loan delinquency,
especially among subprime borrowers.
And as far as the data set goes back, dad.
So let's start the conversation here.
Subprime auto delinquencies climb again
as financial strain deepens for many borrowers.
What's going on when it comes to auto loans
and those who have borrowed money to buy vehicles
here in the United States?
Well, let me first say this.
I don't think more Americans are refusing
to make their insane car payments.
I think they are unable to make
their insane car payments.
If suddenly you have to make a choice
between food and a car payment,
I'm just guessing, I'm spitballing here,
but I'm guessing food wins out over car payment.
And so, what we're seeing
is the highest delinquency rates on subprime loans.
Now, what are subprime loans?
People with credit scores below 600 or below 620?
People who have exhibited in their lifetime
an inability to handle their credit
in a manner in which the banks would like them to.
And so because of that, for them to get credit
that when they do, it's at rates
that are from say 19.99%, the 29.99%.
And if you look at this chart, dad,
then what becomes even more damning
is what we're looking at here is the incidence rate
of delinquency broken down by subprime versus prime credit.
The prime is the blue line, subprime is the red line.
The record-setting auto loan delinquencies
and ultimately what will yield repossessions
is disproportionately impacting those
that have poor credit to your point.
Look at that line, that subprime auto loan
delinquency rates are the highest we have ever seen.
This goes back to the early 90s.
Yet prime delinquency rates are actually quite low
relative to historic levels that we've been at.
So this is, to your point,
those that get stuck with the 19 plus percent interest rates.
Those are the people who, I said they are refusing
to make their insane car payments.
I think you could be on this line.
They just can't afford to make those car payments.
And then it exacerbates what we're seeing here
in the chat from Igor, 3 million repos
are expected when this year ends.
That's what financial institutions are saying,
more repossessed vehicles making their way back
into the market.
This chart is scary, all caps on that.
The fact that subprime delinquency rates are skyrocketing
the way they are is not a good sign.
It's not only is it scary, it's damning.
And what do I mean by that?
These subprime lenders who are praying
on these subprime customers
know that a bigger chunk of their loan portfolio
is not going to get paid.
They know that a higher percentage of their customers
are going to be unable to make those payments
that they just signed those people up for.
They know it and they know it
when they approve them for the loan.
So it's damning on a couple of levels.
One, it's almost predatory for some of these lenders
to approve loans that they're approving.
And it is a continuation of financial suicide
on behalf of people who have proven over the course of time
that they are unable to properly handle credit
when it is extended to them.
So it's damning in the sense that we failed these people.
We have failed to educate the vast majority
of people here in the United States.
Financial literacy is probably at the lowest levels
it's been in years.
And there's no reason for that
between the advent of the internet
and all the information that is available out there
for people to allow themselves to get into these situations
because they haven't been properly educated
as to the risks involved.
That's a shame on the customer.
That's a shame on the lenders.
That's a shame on our educational system.
It is just damning as an abject failure
on behalf of society to be able to control itself.
For sure, Dad, but we are starting to see
some of the ramifications
and it is damning what's happening
to some of these businesses.
Primal End, this comes from Reuters,
which serves the quote, buy here, pay here,
auto financing market where dealers sell
and directly finance vehicles for customers
with poor or limited credit,
filed for bankruptcy protection last month.
Tricolor, which sold cars and provided auto loans
most of the low income Hispanic communities
in the Southwestern United States
also filed for bankruptcy in September.
A further deterioration in credit quality
could weigh on lenders, especially at a time
when investors are highly sensitive
to signs of stress and loan portfolio.
So it seems like that.
It's like we're peeking our head out
from under the covers just a little bit
and saying, I don't know,
maybe we made some bad decisions
making all these auto loans.
And I do, once we get through the acknowledgement
that something bad, very bad,
is happening in the auto industry,
this does ultimately mean
there will be more used vehicles for sale
in the United States as repossessed vehicles
make their way to dealer auctions.
We've seen now for multiple weeks in a row
used car depreciation at the wholesale auctions,
unprecedented levels,
yet as supply builds up,
that should further decrease the price point
for used cars.
So there is a story here for those of you
that are in the market and contemplating shopping,
but obviously the bigger story right now
is we set ourselves up,
we being the foundation of American capital
is that we set ourselves up for failure here
by approving so many damn auto loans
that people can no longer make good on.
And we look at the percentage of delinquencies
continue to increase.
And we would say normally to ourselves
as we see that,
well, then my guess is that lenders
are going to cut back on the loans
that they're willing to make.
And the opposite of that is true.
Okay, lenders are loosening credit standards
once again to be able to keep the market going.
Okay, and one more.
This is my favorite example of it,
dad, the Wells Fargo one.
Yeah.
This is the most asinine thing we've probably ever seen.
Wells Fargo is pushing deeper into riskier auto loans
and internal memo obtained by car dealership Guy News
shows the bank's dealer pilot program
will now approve borrowers with FICO scores above
or equal to 540 at up to 150% of loan to value ratio,
borrowers with FICO's of 500 to 539 at 110%.
Explain why this is not backwards.
Well, okay, because these are people
that have already proven they can't handle
their credit obligations.
I mean, crap that,
even if you can handle your credit obligations
150% fast enough.
So what does that mean?
We've had this conversation before.
Let's say a car has a value of $10,000.
What Wells Fargo is saying is they will finance
150% of that, which means they finance $15,000.
So $10,000 of that $15,000 is collateralized
by the vehicle and the other $5,000
is collateralized by the air that we breathe.
And there is nothing there for them
to get their money back if the customer,
not if, when the customer goes bad.
So it is, we are perpetuating this house of cards
in the auto industry, okay?
Where we say, well, we need to extend terms
and we need to loosen credit standards
in order to keep enough people in the market to buy cars.
I don't know, somebody in the Trump administration
just floated the concept of a 15 year auto loan
in order to make automobiles more affordable.
Which we know-
What go wrong with a 15 year auto loan?
Which we know just to pull it up on the screen,
here's another example.
This was posted on X a while ago, 2018 Mazda Mazda 3.
Ultimately what ended up happening here
is you have a consumer agreeing to a 30% interest rate
for 75 months.
Yes.
And ultimately you're spending $42,217
to afford a 2018 Mazda 3
that was never worth $42,000 to begin with.
What's the downside to this, Dad?
It was 13,9 was the selling price.
Yes, you think about it.
This is the downfall.
The assumption is paying back, Zach,
is three times the value of the damn car ship on.
Think of that.
Oh, man.
And if-
It's affordable.
It's affordable on a monthly payment basis.
I'm just pulling your leg.
Yeah, no, no, absolutely.
And that is one of the contributors to this house
of cars.
You know, if a building is built on a flimsy foundation,
I believe there was this really expensive bridge
that was built in China recently that just collapsed
like three months after they opened it
after they built the damn thing.
So if something is built on a flimsy foundation,
the likelihood of that foundation holding is pretty slim.
And so when I talk about this house of cars in financing
at a certain point, it's all going to come tumbling down.
Now, when is that point?
I don't know.
When we start to consider a 20-year auto loan instead
of 15-year?
You know, we are committing more and more people
to financial suicide in this country
in an effort to keep the economy going
and selling goods and services that people just can't afford.
It's that simple.
Yeah.
Oh, man, Jerry hits an album ahead here.
Your payment is going towards interest
and not the principal.
You'll end up forever upside down,
which dad then exacerbates the need, quite frankly,
to keep the lights of the carousel going
or the lights of the, I guess, what the hell am I trying
to say, to keep the lights on.
Is that exasperates the need for Wells Fargo to do 150%
loan-to-value ratio for those who do not
deserve 150% loan-to-value?
Which to be clear here, no one
should take on 150% loan-to-value ratio
when financing anything, because to your point
earlier, it's a non-collateralized loan at that point.
I mean, you literally, you're buying a $10,000 car,
but you're financing $15,000 for it.
But to Jerry's point, it's because you're forever upside down.
This is a very dangerous cycle.
And yes, my dad did mention the 15-year car loan thing.
This is from cars.com.
15-year car loans aren't a thing,
but Americans are getting more comfortable with long loan
terms.
There is that rumor spreading online
that our current administration is interested in proposing
a 15-year auto loan.
And a 50-year mortgage.
I mean, we're going to be Japan with a 100-year mortgage.
This thing is, dad.
Just because you can afford it on a monthly basis
does not mean you can actually afford it.
You have a 10% bill.
Let's talk about that for a moment here.
Let's talk about how much car you can afford.
How much car can you afford?
What's your way of thinking about that?
Well, the way I've thought about it,
and if the world bought into the way I think about it,
the auto industry would collapse tomorrow.
Because the way I think about it is that no more than 10%
of your gross monthly income should go towards your automobile.
Not just the auto loan, your automobile.
So what do I mean by that?
Well, gas, insurance, maintenance,
that all gets wrapped in into the 10%.
So if you make $4,000 a month gross, $48,000 a year,
on my 10% rule, you can afford to spend $400 a month
towards your automobile.
And that has to include your automobile insurance,
your gas, your maintenance, and your car payment.
Now, $400 a month is not going to equate to a $40,000 or $50,000
or $60,000 automobile in today's world.
So that's where the dilemma is.
There's so many people out there that are trying to spend
20%, 25% of their gross monthly income
towards an automobile.
And that's what's getting everybody in trouble.
And so if the world revolved around that 10% rule,
maybe we'd be selling 12 million new cars a year instead
of 15 to 16 million.
Maybe we'd be selling, I don't know how many used cars a year,
but it would be less.
Because at that point, people would
be spending in the range that they can actually afford.
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Dad, you have a great guide back on caredge.com.
So go ahead, folks, please, Google search.
How much car can I afford space car edge?
And this guide will pop right up,
everything you just said as long,
as well as this OG video we created.
I mean, this is years old at this point.
I don't even recognize those two guys
and the thumbnail right there.
You gotta go check out this page
and learn more about the 10% rule.
And Dad, I see multiple people in the chat
asking questions when it comes to car insurance,
because we know car insurance has gone up
so much here in the United States.
And that obviously factors into how much car you can afford.
For those of you that are unfamiliar,
go to caredge.com.
And then in the top navigation,
click on insurance up there.
Not only can we help you research
when it comes to finding expected insurance costs
when you go to buy a vehicle,
we can also help you shop those insurance rates.
So please, please, please go here,
click on compare quotes.
And again, just to demonstrate,
if you're on the car edge,
so I'll click on shop new for a moment here.
And let's say you're in the market for that new Honda,
drum roll please.
We've got the Civic right here.
You can go ahead and you can scroll down,
scroll down, scroll down, scroll down, scroll down.
I'm doing a lot of scrolling there, buddy.
Dang, for some reason the Civic Hatchback,
I don't have it, let me find a different one.
I'll try the CRV, drum roll please.
There we go.
We've got the expected insurance costs right there.
So the expected, what is this?
Cost to own for this particular vehicle over five years
is $9,795 for insurance.
I can click on that and I can get even more data
about what it's gonna cost me per year,
broken down by my credit rating, by my age, et cetera.
All sorts of good resources.
So please, please, please look at the guide
and also think about the total cost of ownership,
not just the car payment.
The car payment's like,
in some cases then the insurance
might be more than the car payment.
Oh, absolutely, I have seen that.
And sales people are trained
to get the customer to just concentrate
on the monthly payment of the vehicle,
not on anything else.
Not on, well, what's it going to cost
to insure that vehicle
that you now have to have full coverage insurance on
because there's a loan
and one of the guarantees to the bank is
that you will carry full coverage insurance
and if you let your insurance lapse,
you have given the bank the freedom
to go ahead and obtain insurance coverage on your behalf.
I will assure you of one thing,
when the bank does that,
they ain't shopping rates to get you the best rate, okay?
They will pay the most
that you can possibly pay for that insurance,
but the whole concept for a salesperson
is to just get you to concentrate
on your monthly car payment.
Forget how much gas you might have to buy
in the course of a month or whatever fuel source.
Forget whatever maintenance might be
or that you should set aside on a monthly basis.
And certainly they don't want you to think
about what your monthly insurance bill is going to be
because if you were to add all that up,
well, when you were getting ready to sign,
if you solve that big number
as to what all that's gonna cost you on a monthly basis,
you would poop your pants, okay?
And it would just be,
maybe I should get up and get out of here.
Yeah, do the research before, do the research.
I don't know any other car search out there
that puts the total cost of ownership on the car.
Like you just need to have that info before you go.
Yes, absolutely.
Come here, we've got a thoughtful contribution
from Jewel On Demand.
Thank you.
Is it right that the Toyota dealership
is telling me I have to finance with them
to get the quote internet price seem shady?
We're gonna go solo shot to dad in three, two, one.
It is shady.
It's slim shady.
Hell yeah, you know it's,
the internet price should not be a price
that requires you to finance.
That is what's known as bait and switch, okay?
It's just that simple.
And I will say this, Jewel,
if that is what your Toyota dealership is doing,
then don't spend your money with them.
Okay, just don't.
Vote with your pocketbook
and do business elsewhere.
Why reward a business that's gonna lie to you
just to get you in the door?
I mean, we all have decisions to make in life.
One of the easiest decisions for me to make
is I'm not gonna reward the people that lie to me
to get me there.
And so yeah, slim shady lives at that dealership
and is seeing to it that well,
if you want that internet price,
you need to finance through them.
Shady indeed, this is obviously why we encourage
everyone to do things.
Virtually before you go to the dealership,
no need to waste your time.
Pops, thanks for helping, Jewel.
That's really, really good stuff.
Let's do one more comment
which with regards to what we were talking about earlier,
which is obviously the number of people who are refusing
and can no longer afford to make their hard time
and continues to go up.
What happens on the other side of that from Danielle?
What happens to those vehicles that get repossessed?
Are they sold back to big lots or smaller lots?
Where do repossessed vehicles end up that?
Can you talk a little bit about what happens
when the bank finally sends the repo man or woman
to take your vehicle?
What happens to that car?
Well, the bank has an obligation
to send that vehicle to an auction
and to auction it off for the highest amount
that they can get and whatever the difference
between what they get and what is still owed
on the vehicle that's known as a deficiency balance
and you as the original borrower,
that is your responsibility.
Whether they come after you or not is up to the bank
but in many cases they will come after you.
So as vehicles get repossessed,
the bank will get them cleaned up
and they will gather them all up
and they will send them to the various auctions.
There are still dealer auctions to be clear
because I think there's a lot of public auctions.
Yeah, there are a lot of people that are like,
I want to buy a repo vehicle.
I'm going to go, they sell these vehicles
at wholesale auctions.
They're not like a consignment that you can go
as a consumer buy.
They get sold at wholesale dealer auctions.
We see that in the Blackwood data
and the Cox Automotive data.
And if I remember correctly,
we received a comment last Friday from Igor
when he was at the auctions.
Normally the auction he attends
has three lanes for repossessions.
A couple of weeks ago they opened up a fourth lane
and this past Friday, according to Igor,
they opened up a fifth lane for repossessions.
So that gives you some idea
as to how many of these vehicles are out there.
And then ultimately these vehicles
that people could no longer afford
to make their payments on
and more than likely couldn't afford to maintain
will find their way back to independent use car dealers
sometimes franchise dealers as well.
And that'll just become part of the use car inventory
that is available for the general public to buy.
And if this was a vehicle from a subprime lender,
they're just looking for their next victim
to settle with another 29% interest rate loan
and thus circle continues.
Yeah, Pops, I want to take a second though
and stay just really laser focused
on these vehicles.
So there's not a way for me as a shopper
to know if a vehicle is repossessed
other than to ask the dealer that's selling it
or is that going to show up on a car fax
or an auto check?
Because we know a lot of people, Dad,
don't necessarily want to buy
a previously repossessed vehicle.
You know, I am trying to remember
and at my age that becomes harder and harder.
I can probably remember things from the mid 50s
better than things I can remember from three years ago.
But I don't recall on car fax
that they list when a vehicle has been repossessed.
So it would be hard to know,
which is another reason why it is imperative.
Whenever you're looking at any pre-owned car
to get a pre-purchase inspection done
by an outside independent source,
so that they might be able to see things
that the dealer missed
or that the dealer had no intentions of taking care of,
so you know what the hell it is that you're getting into.
Yeah, I think you're spot on.
I don't think there's a bulletproof way
to know if a vehicle was ever repossessed,
which reinforces the need
to get that pre-purchase inspection.
Again, folks, if you are in the market
to buy a used vehicle,
there is more inventory out there than ever before.
That being said, some of it are these repowed vehicles
that are making it back.
One other caveat to all this
is that we're talking about consumer repossessed vehicles.
There's actually an influx in dealer repossessed vehicles,
meaning car dealerships
are no longer making their payments on their inventory,
and banks are repossessing
and then selling their vehicles at auction as well.
So it's both ends of the spectrum.
We think of repos as primarily John and Jane Doe
stopped making their car payments.
The repo man shows up, takes the car away.
There's also repossessions
that happen at the dealership level
where you go out of trust with the bank.
You stop making your payments to the bank on your inventory
and they can repossess vehicles
and sell to that auction as well.
And so again, we're seeing an influx in inventory,
which is generally good news for those of you
that have been waiting for a moment to buy a used vehicle,
but it's also a scary moment
for how shaky the financial system is
for this part of the market.
The idea of a 15-year car loan come,
that's like, that's a sign that things are bad for sure.
Well, you know, we already,
we've already espoused
that 84 month, 96 month car loans
are death spirals for people.
Nobody should finance a vehicle, a regular vehicle.
I'm not talking about a specialized vehicle of some kind,
but a regular mode of transportation.
Nobody should finance that for seven or eight years
or 10 years or God forbid, 15 years.
Yeah, the average age of vehicles on the road today
is I think 12 and a half or 13 years old.
So yes, older cars can last longer than they have,
but the amount of expense in maintenance and repairs
over the life of a seven or eight-year loan,
imagine what it would be over the life of a 15-year loan.
So it is...
They're gonna force us to update our database, man.
We only go out 12 years right now.
You wanna know what the likelihood is
of a major repair on a vehicle 12 years from now.
We have the data back at caredge.com in the research center.
We don't have 15 years, we're gonna have to update.
No, it is like financial suicide
to even consider having to extend loan terms
out to 15 years so that we can continue
to allow people to be able to afford automobiles.
Can you hear that?
We can indeed.
Pops, I wanna remind everyone that back at caredge.com
right now we've got $150 off our car buying service.
So folks, if you wanna skip the stress,
have a dedicated car buying expert
and let them do all of the work for you, you can.
And it's currently $150 off.
Here's how it works.
We match with the concierge, they do the work,
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It really is that simple.
I encourage everyone who's interested
to have a free consultation with our team,
whether it be via live chat,
scheduling a time to talk with us
or having us call you back
and meet the team that works diligently
to secure savings on behalf of our community.
Members, you can click into everyone's profile,
learn more about their experience
and see their cumulative savings
and deals closed here with Car Edge.
So please, please, please take a moment,
head to caredge.com, click on Car Buying Service
and learn more.
For those of you that prefer to do things on your own,
check out Car Edge Pro,
currently 15% off as well.
Get an expert car buying co-pilot
and the data you need to get the best deal.
Check that out back at caredge.com
and then click on Car Edge Pro.
All right, Deb, the advertisement is out of the way.
Let's turn our attention here
from Rich, appreciate the kind of controversy with.
I found this concept card and it screams Ray,
the 1951 Buick Le Sabre.
Deb, what am I about to look up here?
Well, I can honestly tell you,
I don't remember what the 1951 Buick Le Sabre
looked like, but I would imagine
it was a big ass heavy vehicle
with giant fins in the rear, is my guess.
And the reason I can't remember,
well, that was the year I was born, you know?
And I just didn't pay attention.
I didn't know I would need to pay attention to the car.
Oh my God.
That's a thing.
That is a thing.
Yeah, yeah.
And I think the reason Rich thought I would,
that it screams me is,
well, it's all nose in the front.
All nose in the front and wide hips in the back, Deb.
Oh yeah, well, I don't know about the wide hips,
but I do know I got the big nose going for me.
Hey, we started today's show
talking a little bit about the work
that I was doing here in Los Angeles
on behalf of Lung Cancer.
America, a couple of members of our community
have lost loved ones recently to cancer.
I lost a friend here from Unknown Creature
to Geoblastoma and a brain tumor.
Andrew, you know, sending the positivity
to help find a cure to cancer.
I just want to share one thing on this,
y'all that really motivated me to take the leap
to join the board of directors.
It's this chart.
This is the Federal Cancer Research Funding
in 2025 as compared to 2024.
And I lost my mom to Lung Cancer,
stage four ALK positive lung cancer.
And you can see here,
the federal funding for lung cancer in 2024
was $25 million, not a huge number.
But you know, there's a huge stigma
around lung cancer.
So I can understand maybe why it doesn't get
as much love as breast cancer, for example,
or prostate cancer.
But the federal funding in 2025 for lung cancer
is $0.
And the organization that I chose to become a part of,
Lung Cancer Foundation of America,
funds early career lung cancer research.
So for example, yesterday here in Los Angeles,
I was with Dr. Alice Berger.
We were sitting next to each other at the fundraiser
and she works at Fred Hutch Cancer Research Center.
And dad, she's a tremendous fan of another Alice,
Dr. Alice Shaw, who you and I was,
was my mom's oncologist.
You know, so I was sitting with Dr. Berger
and you know, talking to her about the work that she does
to try and through genetic research,
genetic, genomic characterization of lung cancer
and never smokers.
I mean, she's literally at the forefront
being funded by LCFA, Lung Cancer Foundation of America
to try and find honestly,
just better treatment regimens
for those that have lung cancer.
So super proud of this.
We're in the season of giving now.
And again, for those of you,
if you've been touched by lung cancer,
if you know someone who's been touched by lung cancer,
and hell, if you're just like over the age of 50,
go get a screening, please, please, please.
It is actually lung cancer awareness month right now
as well.
Please, I cannot encourage you enough
to learn more about this disease,
learn more about the people that have to endure it.
The woman I was also with yesterday, Stephanie,
had ALK positive cancer, which is what my mom had.
So super emotional to be hanging out with her.
She was 37 when she was diagnosed.
She's never smoked in her life.
Yeah, well.
The lung cancer mom had, my mom had,
although my mom was a smoker earlier in life,
the lung cancer she had, because it was ALK positive,
insinuates and suggests it wasn't tied to her smoking.
Exactly.
You need to get a screening, dad.
It's covered by your insurance at your age
because you did previously smoke.
It's also ridiculous.
Lung cancer is like the only cancer
that has a behavior component
to actually have insurance cover it for screening.
Not only do you have to be a certain age,
you have to have previously smoked,
even though incidence rate of lung cancer
is equally as likely in non-smokers.
Wow.
Yeah, there's a lot of work to be done
to break the stigma around this.
I've got three years on the board here
and I got a lot of work to do.
Well, as I said at the beginning of the show,
you really are doing God's work.
We're having fun doing what we do here
and helping people when it comes to buying cars,
but that's nothing in comparison
to what you're trying to do.
And when we were told that your mother had lung cancer,
the doctor said,
hey, you got six months, get your affairs in order.
And it turned out that she had the ALK mutation
and it was two and a half years later that she passed away
because there were a regimen of experimental drugs
that allowed her to live an extra two years.
And to be clear, that ALK, that's DNA, that's genetic.
That is like you, we went to Johns Hopkins,
we were lucky.
We had access to healthcare that did that genomic testing.
If you're in a place that didn't have that,
you're screwed, you're dead six months later
and it's a very painful, sad death.
My mom ended up, my mom was a special ed teacher.
She ended up teaching for an extra year.
She was doing a good thing for humanity all the while,
you know, like to not fund research
in lung cancer.
And lung cancer kills 160,000 people a year
or 160,000 people get diagnosed per year.
Wow.
More people die from lung cancer each year
than breast, colon, prostate combined.
But it's stigmatized because of the smoking piece.
Yeah.
So anyway, yeah, I'm really, I'm fired up about it
and grateful to be able to be a part of this organization.
And Rich, thank you for this.
Thank you, Rich.
It's true.
It's how freaking lucky.
But you know what?
I don't get asked to join this work dad
if we don't have car edge.
We don't have car edge if we don't have a community
and we don't have a community
if we don't help people.
So it's a virtuous, it's like,
I get it.
Yeah.
I get it.
I do.
I get it.
Yeah.
I'm just proud of you.
That's all.
Thanks, Pops.
Okay.
Anyway, why don't we call it a show?
We'll come back and we'll do this all again too.
Oh no, I'm flying home tomorrow.
We're back Wednesday.
I guess so.
Yeah.
I have other media commitments tomorrow.
I had media commitments this morning
and another media commitment tomorrow morning.
But you know, I would love to have a noon show
with you, but I guess we'll have a noon show on Wednesday.
We're back on Wednesday, folks.
I'm traveling back to DC tomorrow.
Dad, enjoy your various other media commitments.
You're a busy man.
And you look good in your two-tone green.
We'll see you back here on Wednesday, folks.
If we can help you out, caredge.com.
Much love, Pops.
Love you, handsome.
Thank you.
See you, everybody.
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About this episode
A record number of Americans are struggling to make their car payments, particularly among subprime borrowers. The episode discusses the alarming rise in auto loan delinquencies and the implications for both consumers and lenders. With interest rates soaring and financial literacy declining, many borrowers are trapped in a cycle of debt. The hosts also touch on the potential for increased used car inventory as repossessions rise, and the dangers of extending loan terms to keep the market afloat. The conversation highlights the need for better financial education and responsible lending practices.
Original notes
Today on CarEdge Live, Ray and Zach discuss the latest auto loan delinquency rate data...Tune in to learn more! Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com
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CarEdge Live
Ray and Zach Shefska, Bleav
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36:59