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It's common sense. You don't give someone with poor credit 20k on credit. It's how we were able to stay away from things like the recent crash for years.
Cars are quickly repossessed if payments are not made, sometimes after one missed payment and always after the second missed payment.
It's common sense. You don't give someone with poor credit 20k on credit. It's how we were able to stay away from things like the recent crash for years.
Auto companies have been making a business out selling to people with bad credit for as long as I've been driving. A friend, who used to be a auto dealer explained, if the normal interest rate is 7% for someone with good credit, you charge the ones with bad credit 14% and require $3,000 down. If they default in a year, you already made $2,800 on a $20,000 car and you got $3,000. You then repossess the car. Even if the car is now only worth $15,000, you still get to sue them for the difference.
If they never default, you make a higher interest rate.
I find your lack of faith in the free market..... disturbing.
So lower credit people could never buy a new car. So much for free markets.
Oh really?
They're idiots if they do. If you have low credit, it means you're having financial difficultires, you've proven you have trouble paying your loans. About the last thing you should do is buy a new car. New cars make absolutely no sense for those who cannot afford them. For one, it's common knowledge that they lose thousands of dollars in value the moment you drive them off the lot.
If your credit is bad, you're stupid to go on borrowing money.
However both GM and the people who think they have to have nothing but the newest and most luxurious items pretty much figure they can count on this government bailing them out yet again.
They're idiots if they do. If you have low credit, it means you're having financial difficultires, you've proven you have trouble paying your loans. About the last thing you should do is buy a new car.
So much for conservatives believing that individuals should have free choice. You want to dictate that low income people shouldn't own new cars.
In many situations new is a better choice than used for the low income buyer. They can be small and inexpensive and since they are more reliable than used cars, they won't have surprise repairs and they won't miss work because of a down car.
I think that the buyer should make these decisions and if businesses are willing to cater to their needs, it's none of our business.
They're idiots if they do. If you have low credit, it means you're having financial difficultires, you've proven you have trouble paying your loans. About the last thing you should do is buy a new car. New cars make absolutely no sense for those who cannot afford them. For one, it's common knowledge that they lose thousands of dollars in value the moment you drive them off the lot.
If your credit is bad, you're stupid to go on borrowing money.
However both GM and the people who think they have to have nothing but the newest and most luxurious items pretty much figure they can count on this government bailing them out yet again.
I am glad you see the need for more regulation of banks and businesses.
Auto companies have been making a business out selling to people with bad credit for as long as I've been driving.
Incredibly marked up used cars.
Quote:
A friend, who used to be a auto dealer explained, if the normal interest rate is 7% for someone with good credit, you charge the ones with bad credit 14% and require $3,000 down. If they default in a year, you already made $2,800 on a $20,000 car and you got $3,000. You then repossess the car. Even if the car is now only worth $15,000, you still get to sue them for the difference.
If they never default, you make a higher interest rate.
I find your lack of faith in the free market..... disturbing.
Again, absolutely nothing in the story about how large down payments are required. You can't just make things up to try and defend things.
I am glad you see the need for more regulation of banks and businesses.
A huge government bailout is even worse than regulation.
If we had a government that would let fools fail, then it would be all fine. Since GM wants to make risky loans, let them fail if their risky borrowers can't pay. No bailouts with tax dollars. That's what promotes this.
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