JUST IN.
Automotive Credit Corp, a subprime lender, has begun cutting off select car dealers due to “ongoing concerns regarding adverse market conditions”
JUST IN.
Automotive Credit Corp, a subprime lender, has begun cutting off select car dealers due to “ongoing concerns regarding adverse market conditions”
It’s taken longer than expected but the marginal consumer is priced out of the market at these interest rates
At how many points has it been said “and so it begins.”
I think we’re much further along than near any beginning. Everything just gets worse.
The AVERAGE automobile price is something like $47,500.00!! Well … the eco zealots have repeatedly screamed they want to get you OUT of your car!! Mission accomplished.
One wonders what they will eat when farmers can’t get diesel.
Except what it will do is keep older less efficient cars on the road longer.
So there is a lot to unpack there, it’s probably safe to assume that those dealerships are having the highest rate of default and repo, or are selling vehicles with a high rate of depreciation and/or low residual values.
This would indicate that even at 12 to 14% the risk exceeds the relative performance of those dealerships, and they aren’t finding buyers for the bundled junk bonds.
I draw from my line of credit with a good cash down payment.. Then I aggressively pay it off ASAP.. The bank moans and groans but they can pound salt.. I’m good for it 10 times over..
Nobody wants to loan money for cars.. They make next to nothing off of people like me and nothing off of people who default.. Not exactly sure who is keeping the lights on.. High risk, low return..
Waiting on the housing market and its 60 year mortgages to crash.. Imagine losing your house 25 years in :).. High risk, no return..