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So how exactly will they lose money? Do they think people will default on their car loans due to unemployment, then the lender won't be able to repo and sell t
by csense 6y ago
So how exactly will they lose money?
Do they think people will default on their car loans due to unemployment, then the lender won't be able to repo and sell the car for enough to recover their losses due to low demand for used cars?
Or do they still think they'll make money on their existing loan portfolio, but be unable to roll maturing loans into new loans, because people will put off buying cars?
- integrii 6y agoBecause they will sell less cars. That means they hold more cars. More cars that are depreciating. They will drop prices to move cars. That means less profits.