So it looks like there's a new financial bomb waiting to explode in the form of subprime auto loans. People taking on progressively larger loans for vehicles they can afford less and less. On the hand while i think its terrible that auto lenders are preying on poor folk to squeeze more out of them than what the cars are worth, i have to say these people are incredibly stupid for making the decisions that they did buying unnecessarily expensive vehicles one after the other. Where do our resident pardians stand on this issue?

https://www.wsj.com/articles/a-45-000-loan-for-a-27-000-ride-more-borrowers-are-going-underwater-on-car-loans-11573295400

Some 33% of people who traded in cars to buy new ones in the first nine months of 2019 had negative equity, compared with 28% five years ago and 19% a decade ago, according to car-shopping site Edmunds. Those borrowers owed about $5,000 on average after they traded in their cars, before taking on new loans. Five years ago the average was about $4,000.

Rising car prices have exacerbated an affordability gap that is increasingly getting filled with auto debt. Easy lending standards are perpetuating the cycle, with lenders routinely making car loans with low or no down payments that can last seven years or longer

People are dumb and make bad financial decisions. Nobodies fault but their own.

Its on the lender to do their due dilligence on the borrower. If they cant afford to pay the loan back and default I have no sympathy for the institution taking on the risk.

These people also vote, we should stop letting these people vote. If you don't own property you shouldn't be allowed to vote. That would solve 80% of society's problems in the long term.

On a side note never buy a car new, you can get it half price if its only a year old used.

This post was edited by EndlessSky on Nov 9 2019 07:14pm

Weird, we don't have this kind of problem [ here in civilized countries, there's even 2 layers of protection against "abusive" loans; national & EU]
... You know... "Regulations" are so bad ...

They deserve it

Capitalism runs on debt and the whole system will collapse if anyone ever tries to fix it. Marx predicted exactly this in 1800s, before the American Civil War; it's just that obvious.

This post was edited by inkanddagger on Nov 9 2019 09:53pm

Good luck with that.



Now. It wasn't always like that. Progressives went and fucked things up for everyone.

This post was edited by Santara on Nov 9 2019 11:10pm

As a moderate measure, I'd support raising punishment on white collar crime/excessive predatory lending.

So here [EU, Fra] it's based on two main axis:

- Law itself forbidding various tricks to the lenders: presents offered once the loans starts are not allowed, information have to be properly presented, minimal financial conditions on the borrower side, time to retract for the borrower, etc... Equity.
- The borrower have much more possibilities in court. Justice.

Here's how citizen are really defended. Facts, proof: reality.