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Post by blueneck on Jul 4, 2007 17:22:27 GMT -6
Was just reading an article in the local paper today that a spin off of the housing bust and subprime lending is that auto repossions are increasing at rapid rates.
Between again predatory lending, and people using deficit spending to maintain a lifestyle banking on ever growing home values the rates of auto loan default have skyrocketed.
A side effect of this will be a further glut of late model vehicles flooding the market further eroding slumping domestic auto sales.
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Post by unlawflcombatnt on Jul 5, 2007 5:04:20 GMT -6
Apparently a lot of auto purchases are also financed with subprime loans. Add to that the increase in mortgage payments many are home owners are experiencing, and the decreased ability to extract home equity from homes, and auto purchasers are left with less money to make payments. It's not surprising that auto loans would also start defaulting at higher rates.
With inflation on consumer goods increasing much faster than wages, consumer purchasing power is only going to get worse.
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Post by Ken on Jul 5, 2007 7:52:41 GMT -6
The ones that amaze me are the legal loansharks. the payday loan fly by nights. I would never have believed there would be such a business made legitimate in america. and one of their best customers are the armed forces.
All that is left is debtors prisons.
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Post by Grapple on Jul 6, 2007 5:00:18 GMT -6
There is an Ad on TV where I live where one of those payday loan places shows a couple giving over the title to their car so they can get money for a vacation. Every time I see it, I wonder who in their right mind would risk losing their car just so they can get money for a luxury. But I guess there are a lot of people doing it since those payday loan places seem to be everywhere.
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