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Originally Posted by serper3
I think some manufacturers and/or dealers do it more than others.
You said that FCA should be congratulated on this, and that is what i disagreed with. I think when you are upside down for the duration of your loan it is borderline greedy and predatory.
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I didn't say they should be congratulated. I said "congrats" to them. It's a figure of speech. Meaning I agree with what they're doing and I think it is a good idea. And it is not greedy or predatory. It is an open market. And the consumers are coming to them, not the other way around. So if someone comes to them who makes a lot of money, has little expenses, a favorable DTI ratio, can easily afford an $80K car and a $1200 monthly payment, but bad credit from a divorce or something stupid, then I should not sell them the car? That makes no sense. Because then conversely that means that someone who make little money but has great credit should be able to get an $80K car with a $1200 payment. We all know shit doesn't work that way. If a person has shown that they can easily make the payment then credit score means very little. They'll get hit with a higher interest rate for sure. But if they can afford it then WTF cares??
Quote:
Originally Posted by serper3
I am all for free market but it has to go in all directions... no bailouts for anyone, but that will never happen. if for example post covid, after the loan forbearance ends, a high level of defaults eventually require more bailouts.. yes that is of concern to me. Remember this happened with housing in 2008? The government deemed it was time to tighten up requirements to get a mortgage. with how expensive cars have become over the last even ten years, people's car payments and property values are getting kinda close to each other but pretty much anyone can get a $1k+ car payment, and unlike a house, a car is a depreciating (often quickly) asset.
So anyway, yea kind of a concern to me, and pretty easy to see why this is a bad idea in general.
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Well first off this was just a dump thread with no actual bearing on reality anyway. So before you go off a cliff thinking it's all doom and gloom, just remember, these companies are doing screens and giving people cars they can afford. Credit has no impact on what you can afford. Same with income alone. Some who makes $75K a year might have more money to spend than someone who makes $300K a year. And someone with a crappy credit score might be able to afford a more expensive car than someone with an 800+ score. So it means nothing. It all boils down to who can afford what.