Economy
Related: About this forumIn a Subprime Bubble for Used Cars, Borrowers Pay Sky-High Rates
By JESSICA SILVER-GREENBERG and MICHAEL CORKERY
JULY 19, 2014
Rodney Durham stopped working in 1991, declared bankruptcy and lives on Social Security. Nonetheless, Wells Fargo lent him $15,197 to buy a used Mitsubishi sedan.
I am not sure how I got the loan, Mr. Durham, age 60, said.
Mr. Durhams application said that he made $35,000 as a technician at Lourdes Hospital in Binghamton, N.Y., according to a copy of the loan document. But he says he told the dealer he hadnt worked at the hospital for more than three decades. Now, after months of Wells Fargo pressing him over missed payments, the bank has repossessed his car.
This is the face of the new subprime boom. Mr. Durham is one of millions of Americans with shoddy credit who are easily obtaining auto loans from used-car dealers, including some who fabricate or ignore borrowers abilities to repay. The loans often come with terms that take advantage of the most desperate, least financially sophisticated customers. The surge in lending and the lack of caution resemble the frenzied subprime mortgage market before its implosion set off the 2008 financial crisis.
http://mobile.nytimes.com/blogs/dealbook/2014/07/19/in-a-subprime-bubble-for-used-cars-unfit-borrowers-pay-sky-high-rates/?smid=tw-share
upaloopa
(11,417 posts)Only social security must be $2,000 or less. So what is the car payment? Maybe $300 a month.
Can we say this is his ballpark in come and car payment? If so it doesn't leave much for living expenses.
If we can figure this out why can't he? Why did he take the loan?
mahatmakanejeeves
(57,612 posts)mahatmakanejeeves
(57,612 posts)IronLionZion
(45,530 posts)assholes. What do they think they're going to do with a whole bunch of reposessed used cars that no one wants?
When this crashes, hopefully it will be fairly small and the banks won't get bailed out. Better check retirement funds to see if any of them have this nonsense.