by "404 - User No Longer Available" (toni-cipriani)
Published 03/28/2017 at 14:52
by "404 - User No Longer Available" (toni-cipriani)
Published 03/28/2017 at 14:52
Tags: Economics
; Finance
STARS: 1
Highlight here is that it has been surging since 2010.
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Something tells me that this is a direct cause of Cash For Clunkers: “Hey, let’s get a new car, tie ourselves into this 4-5 year loan we cannot afford, but hey, free 3 grands from the government!!”
So we lost a bunch of perfectly usable cars in the name of the “environment”, which is questionable since the recycling of the said cars does harm as well, cut supply to used cars driving prices up and out of reach for some, and some people tied onto delinquent loans.
Seems like lose-lose for everyone end of the day.
And of course the link got Kinja’d: ‘Deep Subprime’ Auto Loans Are Surging
"Ash78, voting early and often" (ash78)
03/28/2017 at 14:59, STARS: 2
I’ve been out of this business for a while, but have a buddy who manages a team of underwriters for a big bank that might have opened 5 credit cards in your name. Apparently the biggest surge in subprime is actually coming not from the banks, but from the manufacturers’ own finance arms. They don’t make objective decisions, they have to help move the metal and are much more inclined to take a loss (at least in the short run) to help their parent company. It sure makes trends hard to spot since everyone is playing with different motives.
"MasterMario - Keeper of the V8s" (mastermario)
03/28/2017 at 15:03, STARS: 0
Except for the people who bought cars through the cash for clunkers program, it really didn’t help anyone. My dad took advantage of it though, bought a Subaru Outback and ended up paying like $16k out the door from a combination of the cash for clunkers, a dealer match offer, and another discount my parents were eligible for.
"404 - User No Longer Available" (toni-cipriani)
03/28/2017 at 15:09, STARS: 1
Yeah, I had a friend who took advantage of a similar offer in Canada to get rid of their rusting LeSabre, end up with a Wave.
I’m saying here though, some who are qualified for the rebate, but shouldn’t have took it given their own personal financial situation. Not directly the fault of the program, but it contributed into enticing these people to make a poor decision, and put them in trouble.
"facw" (facw)
03/28/2017 at 15:46, STARS: 0
Helped the auto industry. Not the most effective way to do so, but it’s hard to get everyone on board.