WISHED you hadn't signed up for a 5 to 8-year auto loan but had to do so out of necessity?
Here's an amusing NSFW video explainer from 'Last Week Tonight host', John Oliver:
Whether or not this will be anything close to the housing crisis from 2007, it doesn't matter. There is a TRIGGER EVENT that's taking place and will have a domino effect around the globe.
This week, a growing numbers of small subprime auto lenders are closing or shutting down after loan losses and slim margins spur banks and private equity owners to cut off funding as described by 'The Money GPS' at:
Automakers that used zero-percent financing offers to increase sales at the height of the Canadian (and American) auto boom are starting to ABANDON them as rising interest rates lift their own borrowing costs here: https://www.bloomberg.com/news/articles/2018-04-06/smaller-u-s-subprime-auto-lenders-are-folding-as-losses-pile-up
“It’s hard to support zero financing in this type of environment,” Henio Arcangeli Jr., Honda Motor Co.’s top U.S. sales executive, said last week in an interview at Bloomberg News headquarters in New York. “It’s very expensive.”
#subprime #autoloan #triggerevent #BloombergNews
I have worked with the likes of Chevrolet (who'd been touting 0% Financing to customers for years), Nissan, Honda dealerships in the Southern Alberta area were ONCE resistant as many were quite devout in their faith and principles in their business when it comes to "predatory" lending. However the margins are tight, competition is fierce, and volume targets need to be met or exceeded, they have ALL succumbed to subprime lending to those who cannot possibly afford a new vehicle by offering as much as 29% interest rates with monthly payments at more than DOUBLE and terms up to a 1/3rd longer — to pay for their staff, cover their expenses and keep their lights on at the risk of their customer's financial freedom and credit history.