Subprime Auto Loans Crushed Worse than in 2009, Auto Industry Bleeds, Knock-on Effects Commence

Wolf Street ^ | 24 March 2017 | Wolf Richter

[stylin19a]

As a lawyer, Obama sued and won and forced financial institutions to make sub prime mortgage loans.

http://www.thegatewaypundit.com/2013/04/unbelievable-obama-pushing-billions-of-taxpayer-dollars-into-risky-subprime-auto-loans/

As President, Obama sued those same financial institutions for making those same loans.

Pres. Obama turns around and requires sub-prime auto loans, as they are not like mortgages.
Obama’s favorite rag’s subdued notice of said sub-prime loans with no mention of Obama being huckster in chief for them.

https://www.nytimes.com/2015/06/14/opinion/sunday/putting-an-end-to-abusive-car-loans.html

Now the sky is falling ?

[Rinnwald]

And I also have approx. $23,500 currently remaining in my bank account that I otherwise would not have had. So, they are really lending me that money for free (considering the loan and bank interests basically cancel out).

And yes, I am on the hook for the remainder on a vehicle. That’s what’s called a “loan”, in this case for free.

[Rinnwald]

Buying a new car is DUMB. My wife and I clear over $175k a year. Not trying to brag. I drive a 2001 Toyota Tacoma that I bought used. The family car is a 2013 Honda Pilot we bought in 2016. It had about 34k miles on it. Paid cash, vehicle is basically as good as new. Haven’t had a car payment since 1997.

Sounds a little braggy. As long as we're pulling out and measuring, I'm in the same tax bracket and my daily driver is a 1997 Plymouth Neon. Our cars are from 1967, 1992, 1997, 1997, 2002, 2007, 2008, and the aforementioned 2016 Honda CR-V. Not counting the motorcycles.

So, with me, my wife,and four kids, we have six drivers in the household. Add two fun cars, and a Ford Expedition that has proven invaluable for crossing mountain passes, and I, uh...need to buy another car.

[TexasGator]

I made an offer of 15% below the sticker ($25.5K sticker).

Depends ...

http://greenwayford.com/new-car-specials

[Thibodeaux]

buy a new car, pay less than $200 per months for 100 months

by 60 months, the loan is upside down

[right way right]

Enjoy life, buy a beater.
I did the stupid loan thing on the house.
Never again.
I live in a van by the river!
Simple bliss.
Well, not really but, it is my retirement plan.

[AppyPappy]

Make the payment on the first day it is due and check it. They make all their money on people who pay as late as possible. If they delay a payment, they can screw those last-minute payers. Fixing their mistake is next to impossible.

[Rinnwald]

Fair enough. That’s sound advice.

[SamAdams76]

You have a lot to learn.

[AppyPappy]

If you keep that .9% throughout the life of the loan, you are one of the people they HATE. You just used their money.

My father was a car dealer(Lincoln/Mercury) and his father(Ford) was a car dealer. In the 60’s, my dad and his WW2 buddies started doing something called “car leasing” by partnering with a bank.

[TexasGator]

Lol. Please then

[TexasGator]

Lol. Please then