The mortgage implosion will probably be felt in other areas. Presently it seems that it is affecting the credit card industry. Maybe because some of the big financial giants (Countrywide, Citigroup, Wachovia, BofA) who are feeling the mortage pinch so to speak, also offer credit cards. They also offer auto financing. This is already being felt worldwide. I check this link to keep updated:
http://ml-implode.com/
2007-08-26 13:21:41
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answer #1
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answered by Anonymous
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Not really because auto loans aren't plagued by the same issues surrounding mortgage loans. There really aren't any "stated income" or no documentation auto loans. It's way harder to get an auto loan than a home loan. It's always been that way. Cars can be in mexico or canada or your neighbors garage when people miss payments and the repo man shows up. It's hard to pick up your home and move it away.
These people bought cars with the "cash" from their low or no documentation mortgages they took out on their home. Auto financing standards have not gotten any more lenient or stricter since I've been out of that sector.
2007-08-27 02:02:34
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answer #2
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answered by Richard S. 3
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Auto finance is what I do for a living and several of my largest banks are also in the mortgage industry like Wells Fargo, Capital-One, H.S.B.C., Chase and Citifinancial.
When this all started I asked if this was going to happen and was told no it will not because the mortgage side is not connected to the auto side.
Now several months later, I can say that this has turned out to be true. I have seen no difference in the way they are buying deals now and the way they were several months ago.
2007-08-27 12:30:29
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answer #3
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answered by ? 7
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Personally, I do. But I am by no means a Financial advisor. IT all started with the mortgage industry, now it is trickling down to the general credit lending sector, so, yes, I think you are going to see tons more cars being repossessed and a lot more new cars sitting on full car lots with fewer buyers. It is a trickle down effect. So I think the whole credit industry is in trouble....no matter what the govt heads say.
Of course MIchigan is one of the top three states that is leading in a record number of foreclosures.....all tied to the big three in the auto industry in the Metro Detroit area in one way or another. So with Michigan's economy failing, the car industry failing here, it is all bound to happen unfortunately.
2007-08-26 19:50:49
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answer #4
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answered by Kris 3
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No, the auto loan industry has nothing to do with the mortgage loan industry.
Auto manufacturers make so much money off of the car or loan up front that there is little to no risk. Add to the fact that they can reposess your car and resell it to someone else for nearly the same amount at the same rate means there is little to no risk.
2007-08-26 22:45:19
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answer #5
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answered by The Smart One 4
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Unless the automotive industry starts offering interest only and negative amortization loans, I don't think so.
Yes, there are a lot of people driving around in more car than they can afford. But a $30K car isn't the same as a $500K house.
2007-08-26 19:47:57
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answer #6
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answered by bdancer222 7
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No. Credit extenders on auto loans have not been packaging such loans for resale as securities. Nor do auto loans typically have varying terms.
2007-08-26 19:48:37
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answer #7
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answered by Anonymous
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YES, people will not have the ching for a auto payment. BTW so many folks using there homes for the HELOC thing.
2007-08-26 19:51:03
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answer #8
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answered by Anonymous
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Yes ( A pun for a struggling UK CAr credit firm Yes Car Credit).
2007-08-26 19:43:10
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answer #9
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answered by madgooner 4
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