[quote=UCGal]So wait… let me see if I have this right…
Consumers who fall behind on their mortgage payment…. still qualify to get newly issued car loans and newly issued credit cards?
Looks like there were no lessons learned in the past decade… We’ll still give credit to anyone with a pulse… regardless of their track record.[/quote]
No no no. you got it all wrong.
People that fell behind on their mortgage payments got to stay in their homes for months…no wait years… rent free..Which allowed them to spend $4 for ever $1 they didn’t have to make a mortgage payment to, and then pay the minimum balance on their CC and auto/crap loans and/or leases.
What??? You actually think most people that drive around in those luxury cars (even if preowned) actually paid cash for it??? Really? The image man…Just the image…
You do realize we’re that we’re back to pre-recession sub-prime lending in the auto industry, don’t you? I mean, how do you think Chrysler’s pulling their great sales numbers…Clearly, it isn’t because folks on Rodeo Drive or folks on Long Island are ditching their Euro/Italian luxo’s for a 200m/300m in masses..
Can’t wait for this one to blow up and get bailed out………..again…..
Automotive News reports Chrysler owes some of its recent sales success to a resurgence of subprime loans. Chrysler has a history of working with customers burdened with questionable finance histories, and lenders have begun to loosen credit restrictions. As a result, 29 out of every 100 auto loans for new Chrysler models went to buyers with a credit score under 680 in the first quarter of this year. Experian Automotive classifies loans tied to that credit score as subprime. What’s more, nearly 21 percent of Dodge sales through May went to buyers with annual interest rates of 10 percent or more on an average term of 71 months.
The report says that on the whole, just eight percent of all new car loans have interest rates of 10 percent or more. Even so, Chrysler’s sales are up 33 percent through the first five months of 2012, besting the industry average by around 20 percent. On the whole, Automotive News reports subprime lending in the new car market has returned to its pre-recession levels.
