4 ms·
> I think this is what happens when its all funny money. Uber loses hundreds of million of dollars a quarter and yet big banks have no problem writing them a ch
by whatok 9y ago
> I think this is what happens when its all funny money. Uber loses hundreds of million of dollars a quarter and yet big banks have no problem writing them a check for another billion. I'm guessing none of the banks asked what the credit facility was for or even any details about the leasing plan it was intended to fund?
Details were disclosed in this article. I'd imagine the banks underwriting the loan had those details and more at the time.
https://www.cnbc.com/2016/06/07/uber-wants-to-disrupt-the-auto-leasing-industry.html https://www.cnbc.com/2016/06/07/uber-wants-to-disrupt-the-au...
- bogomipz 9y agoThat certainly would be par for the course. There's been much speculation that auto leasing might be a bubble. See: http://www.zerohedge.com/news/2017-03-29/signs-auto-bubble-soaring-delinquencies-these-266-subprime-abs-deals-cant-be-good http://www.zerohedge.com/news/2017-03-29/signs-auto-bubble-s... and http://usa.streetsblog.org/2017/05/01/what-comes-after-the-auto-bubble/ http://usa.streetsblog.org/2017/05/01/what-comes-after-the-a...
- Spooky23 9y agoTotally. Auto financing is really scary. One of my dopey co-workers bought a BMW 5-series with an 84 month loan at 2%. $600/mo for 7 years for a car that will be upside down from day one.
- Neliquat 9y agoWhy they would loan longer than the warranty always puzzled me. There is a chance it may be not worth repairing by then.