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> People owing more on their cars then they are worth, then defaulting. I read somewhere that car loans are some of the safest secured loans for lenders. Peopl
by aianus 9y ago
> People owing more on their cars then they are worth, then defaulting.
I read somewhere that car loans are some of the safest secured loans for lenders. People will skimp on food, rent, and everything else before they default on their car.
- Infinitesimus 9y agoHouse loans were also pretty secure at some point and we all know how that story went
- nradov 9y agoIt's not really comparable. Most people need a car to get to work, or even look for work. You can sleep in your car but you can't drive your house. So they really will default on the car payment last.
- justin66 9y agoCar loans are safe for lenders (and therefore pretty cheap) largely because repossession is simple and easy, in both a practical and legal sense.