Repo rates are quite high, apparently, so borrowers DO “turn in their old cars and walk” all of the time.[/quote]
Yeah, but at 25% interest on a 5 year loan, you’ve got all your money back at year 2.5, everything after that is just profit. I imagine there are also all sorts of fees and tricky stuff that probably shortens this recovery time a lot.
That said, I did some minor IT stuff for one of these places that services these loans way back in the 90s and the repos they did get back were pretty much worthless. They said the people tended to not do any care on the car at all and wouldn’t even let me consider buying a repo from them.
