The used-car market’s hot streak may be ending as borrowers struggle to make payments and regulators say some auto lenders are “setting up consumers to fail.”

  • Aidinthel@reddthat.com
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    1 year ago

    Anyone else getting deja vu? It feels like this is exactly the same thing we’ve been through before, but with cars instead of houses.

      • Bernie Ecclestoned
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        1 year ago

        Not really, a higher default risk has to pay a higher return because of higher defaults. It’s priced in.

        • KoboldCoterie@pawb.social
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          1 year ago

          Sure, and why wouldn’t they assume higher risk? The government will just bail them out if they lose those bets.

        • AttackBunny@lemmy.world
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          1 year ago

          And then they default, and the loan holder is surprise pikachu face because who could have ever anticipated a subprime loan defaulting. Or worse who could have ever anticipated many of them doing it when the economy takes a minor downturn? It’s a gamble that they aren’t required to prepare for, and then they turn and stick their hand out for a bailout once the inevitable happens

  • Sir_Kevin@lemmy.dbzer0.com
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    1 year ago

    lenders are “setting up consumers to fail.”

    No way! They wouldn’t do that! Oh no, they certainly wouldn’t structure their entire empire around intentionally seeking out those who won’t be able to pay off their loan, repo their car to “sell” it to the next person they pray on and repeat the whole cycle again! Never!