![[Valid Atom 1.0]](valid-atom.png "Validate my Atom 1.0 feed")
* USA - ... Another Subprime Problem !!
* Alabama - Shotguns for auto-loan downpayments?
Jasper,ALA,USA -The Car Connection, by Richard Read -Apr 5, 2013: -- Earlier this week, we offered a rundown on auto sales for March. While we were very happy to see a number of manufacturers set new records, we were a little concerned that some of the market's strength might be due to an easing of credit restrictions. After all, we remember where that got us last time... Most analysts don't think we're in danger of another subprime snafu. However, this story of an Alabama auto dealership that accepted a shotgun as downpayment from a man with poor credit isn't helping us sleep better at night... But there are always a group of folks willing to make a buck -- or several million of them -- by taking advantage of good policies and using them for not-so-good things. Subprime lenders are an excellent example of this principle in action: there are now 6.6 million subprime loans on the books, and that number jumped 18% between 2011 and 2012 alone... Of course, subprime borrowers (generally speaking, those with FICO scores below 640) represent significant risks for lenders, and those lenders charge accordingly. The interest rate on Nelson's loan, for example, was a staggering 21.95% at a time when most other rates were in the low single digits... When Nelson divorced his wife and moved out of his home, he could no longer afford the loan payment to Exeter (a subprime lender that seems to be a division of AmericCredit, which is now owned by General Motors). Thankfully, his wife was able to take the car note -- and the car -- but Nelson was left to file for bankruptcy.
Labels: trucks markets
posted by Unknown @ 3:22 PM
0 Comments:
Post a Comment
<< Home