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Yeah, post #5, first link...graph on the left hand side shows that subprime AUTO loans are increasing after sinking to historically low levels. However, even today, subprime AUTO loans are at 1/2 the level they were at prior to the 2008 financial crisis.
There is news that GM is in crises mode. 93% of General Motors' 2012 profits were based on subprime loans. GM auto increased loans to customers with FICO scores below 660 rose from 87% to 93%. This is risky lending practices again. Exactly what happened with the housing crash, now GM is taking a failed approach to increase sales. Stock prices are $19.70. For the taxpayers to get their money back the stock price would have to sell for around $50 - $54
It's a recovery goosed by government fiat under the static condition of a bad (jobless) economy. The GM subprime auto loans puts a damper on President Obama's claims to have rescued the automaker and restored it to financial health.
President stole the ownership from stockholders for almost nothing and gifted it to the union workers who already had been compensated in the past.
IMO, bill all their retirement pension savings to begin with and sell the company off in bits.
That was the same higher rates of the sub prime housig loans ;nothing new. just has rates have always been higher for what is seen as higher risk.The reason for rating credit.But I think what is being said here is that just not long ago the manufactuers where not lending and that was what the "well quailfied buyers" statemnnt in those loans rates advertised.The ctizism that have been made on all subprime is it sells thigns to people they really can't afford ;homes;cars or anything else which is why the congress passed tightened credit standards. They alos sadi that lenders where leaning to too high risk borrowers that were likle y56o default harm not just the ledner but the entire lending system by those defaults.IU think perhaps the critisim of a compnay that needed bailout is that they are taking high risk with taxpayers investment ;do you think?Alos the sudden shiuft to the fiancial arm of the compoay is a sign of takig more risk from lack of sales o normal risk loans.
The predictive value of FICO scores has been decreasing in recent years.
One of the big reasons why is how many people have vastly lowered FICO scores because they chose to walk away from an underwater mortgage or got caught up in other financial crisis wreckage.
For example, Bob the pharmacist bought a house in AZ had a 770 FICO score but walked away from the house when it went wayyyy underwater. He now has a 550 FICO score but has the same job, income etc. and is the same risk of default on a car loan as before. Except now he has to pay 8% instead of getting the 0% financing offers.
There are just more people out there with damaged credit but the macro-economic forces that caused this are the real reason.
So, sub-prime auto loans TODAY are going to generally be less risky than the pre-2008 sub-prime loans....yet carry with them the imputed interest rate risk margin of default and recovery costs. So if anything, sub-prime loans on autos should be fairly lucrative in the coming years.
You posts on this matter can't even be called literate. It clearly says those are about mortgage loans, not cars, and that the finance company hasn't been part of GM since the reorganization several years ago. It's not difficult to follow if you actually read what it says. Like so many right wingers you seem to be ignoring facts due to your blind hatred.
The problem here is that he was listening to Hannity. Hannity was talking about it on his show the other day. I was waiting for someone to post on it and then get shredded. Just some free advice. Don't listen to Hannity...he is full of crap.
The problem here is that he was listening to Hannity. Hannity was talking about it on his show the other day. I was waiting for someone to post on it and then get shredded. Just some free advice. Don't listen to Hannity...he is full of crap.
Whats the matter? The left wing tv doesn't want to talk about it? I'll bet they don't want to talk about the "sequestration" either.
Sounds to me like its letting people out to dry if this issue is not resolved.
The White House is clearly starting to worry. In a sign of panic, it appears that the Obama administration this week moved to hide the coming job losses. The Labor Department directed defense contractors to ignore the law and skip layoff notices, since sequester remains "uncertain." (Companies may well send them out anyway, since Labor can't protect them from lawsuits for failing to give due warning.)
I'll call Liberal TV "Keeping your mind off the economy TV"
Let the bullets fly from the left. Or this post will be deleted like the last one.
Sounds to me like its letting people out to dry if this issue is not resolved.
The White House is clearly starting to worry. In a sign of panic, it appears that the Obama administration this week moved to hide the coming job losses. The Labor Department directed defense contractors to ignore the law and skip layoff notices, since sequester remains "uncertain." (Companies may well send them out anyway, since Labor can't protect them from lawsuits for failing to give due warning.)
I'll call Liberal TV "Keeping your mind off the economy TV"
Let the bullets fly from the left. Or this post will be deleted like the last one.
Talk about what? I thought this thread was about GM. YOu post cites that are completely unrelated. You have a problem staying on topic. That is probably why your posts get deleted.
The topic is GM, what do you have to say about it, or more precisely what did Hannity say about it.
There is no way 3 year old Volts are going to be worth anywhere near $26k.
I actually warned about this in an earlier post in the thread.
Back in 2008 the home mortgage market crashed the economy and the banks stopped lending and people stopped buying cars.
The New car inventory HAD to be sold so they started deeeeeep discounting which lowered prices in the used car market by about 25%.
EVERY SINGLE car manufacturer lost a ton of money on their leases as the situation you described above happened on virtually every vehicle. (Billions).
The specific example you are making about the volt is a little confusing since the price new is 43k but then 30k...but without knowing the lease payment and other factors it's impossible to say it's a bad move or not.
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