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Car loans are actually getting featured on Bloomberg for having similar risk last month. Though there were assurances that the same thing wouldn't happen sinc
by lithos 9y ago
Car loans are actually getting featured on Bloomberg for having similar risk last month.
Though there were assurances that the same thing wouldn't happen since loan issuers were reining themselves in, that cars were far more liquid than a house, and easier to seize on a failed loan. Of course if it's already in the news, it's too late to act.
- valuearb 9y agoCar loans also aren't federally insured and guaranteed, and unlike the housing bubble, the federal government isn't pressuring car loan companies to make shaky loans to bad credit risk customers. This is almost entirely a free market, and so it's bubble will be smaller and the consequences will be visited almost exclusively to those who made the bad loans.