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Thread: Subprime Auto Loans

  1. #11
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    Re: Subprime Auto Loans

    Quote Originally Posted by chevydriver1123 View Post
    Another reason why you take out a personal loan from the bank to buy a car instead of a car loan.
    or keep your vehicle for as long as its not a money pit, make payments to yourself and pay cash when you need a new vehicle. Other option is to be in good standing and take advantage of 0% loans from the car companies, but still put money away in savings.
    Has worked for me for years.
    "I can explain it to you but, I can't understand it for you"

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    Re: Subprime Auto Loans

    I was raised to never buy something you couldn't pay for it with cash right then and there. One cannot succeed in life if everything is built on debt.

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    Re: Subprime Auto Loans

    Quote Originally Posted by washunut View Post
    Not sure what this has to do with banks, perhaps you could explain.
    My point is that it becomes SOP in these companies that continually get bailed out to start relying on bailouts to save them from their poor choices.

    Also does anyone get tired of saying that there is no real risk with banks. ninety banks have already gone out of business this year.

    If you mean the mega banks, Bear Sterns was sold for essentially nothing, Lehman went broke, Merill was sold for a song, Citi stock is still down 90% even after the government has been repaid with interest and are selling off 7.7 billion shares at a profit.
    Yes, some banks are going under, as they should, but the big ones are mostly not. Bear Sterns was essentially bailed out before being given away, Citi was given billions in assurances so they were not in any real danger, the only bank (or investment house I guess) that really had to face the music so to speak was Lehman, and they certainly are not the only ones that should have failed.

    It seems so easy to use the trite lines that the administration has sold to so many that do not know much about business.

    As they say, the public gets the government they deserve!
    I agree, our current government is acting horribly in my opinion. That said, TARP is still on pace to lose over $100 billion, GM should never have been saved, neither should the banks.. any bank.

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    Re: Subprime Auto Loans

    Quote Originally Posted by Harry Guerrilla View Post
    Hopefully if this goes sour, we won't break Obama's claim that there will be no more bailouts again.
    You should not hold your breath on that!

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    Re: Subprime Auto Loans

    Quote Originally Posted by The_Patriot View Post
    I was raised to never buy something you couldn't pay for it with cash right then and there. One cannot succeed in life if everything is built on debt.
    Unfortunately very few people have the immediate wherewithall to be able to put down all the cash for eitjher a vehicle or a residence, thus unfortunate though it is, there is a need for credit.

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    Re: Subprime Auto Loans

    Quote Originally Posted by jujuman13 View Post
    Unfortunately very few people have the immediate wherewithall to be able to put down all the cash for eitjher a vehicle or a residence, thus unfortunate though it is, there is a need for credit.
    That's what happens when you have the instant gratification mindset. I save up my money until I can afford to buy what I want, including cars. Of course, this means that I haven't owned a new car, but a used one is just as good.

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    Re: Subprime Auto Loans

    Well, there's another issue at hand here: even people with poor credit or no job need transportation in this country. In urban areas, for the most part they can either just walk to where they need to go or use the city's public transportation.

    However, in suburban and rural areas, there's usually no public transportation to rely on. That means they need a car to get around - they have no choice.

    So many people who get subprime auto loans don't do so because they want to - they do so because they have to in order to get around.

    So those who are against subprime auto lending should either 1) call for the auto industry to manufacture cars cheap enough for those who are poor or have bad credit can afford or 2) call for better public transportation infrastructure to be built in urban and suburban areas to allow the poor to have access to transportation opportunities.

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    Re: Subprime Auto Loans

    Quote Originally Posted by samsmart View Post
    Well, there's another issue at hand here: even people with poor credit or no job need transportation in this country. In urban areas, for the most part they can either just walk to where they need to go or use the city's public transportation.

    However, in suburban and rural areas, there's usually no public transportation to rely on. That means they need a car to get around - they have no choice.

    So many people who get subprime auto loans don't do so because they want to - they do so because they have to in order to get around.

    So those who are against subprime auto lending should either 1) call for the auto industry to manufacture cars cheap enough for those who are poor or have bad credit can afford or 2) call for better public transportation infrastructure to be built in urban and suburban areas to allow the poor to have access to transportation opportunities.
    The people you are talking about do not have to purchase a new car. Also the sub prime market as you well know is there is for all sorts of people that want more than they can afford.

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    Re: Subprime Auto Loans

    Quote Originally Posted by lizzie View Post
    Will we never learn?

    I guess since GM is now too big to fail, we can have a car bubble, and the taxpayer can pay for auto loans.
    Sub prime auto loans are already a major aspect of used car markets. Sub prime does not equal adjustable rate lending and only reflects risk. GM's appetite for risk is growing, I don't see this as an absolute negative.
    It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion.
    "Wealth of Nations," Book V, Chapter II, Part II, Article I, pg.911

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    Re: Subprime Auto Loans

    Quote Originally Posted by The Giant Noodle View Post
    This is just HORRIBLE!!!!!!!!!
    Subprime loans are evil. I was dumb enough to get into one 4 years ago and it was 3 years of HELL!
    No need to be a drama king. I don't mind at all that finance companies loan to whomever they wish. I do mind when they ask the taxpayers to bail them out over their risky choices. As long as they take their own risks and take their own losses, everything's fine with me, but we have seen how that works out over the past couple of years.
    "God is the name by which I designate all things which cross my path violently and recklessly, all things which alter my plans and intentions, and change the course of my life, for better or for worse."
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