I remember in the auto industry on the secondry market they had huge amounts of money. When buying a 'used' or "preowned' car they had rates up to 28%, then added (on the top) $1,500-2000, then the dealer took them for the downpayment, plus other add ons. When I loked at this deal I discussed it with one of the financial brokers and even though they had billions I told them that most of these people would "punt" or not make the payments. Added to that was tthe fact that they "trusted" the dealer and required no warrenty on the vehicles.
My pont was without a warrenty and if the car broke down, they the people would have no menoney as they had already throw most of that into the downpaymet.. I was told not to wrong. Repo rate was voer 70%. Same with housing. I read an article where folks bought a house in cal for over $500,000 and now it is not worth tha and "upside down.
Financial friend mentioned this and mentioned the housing market over a year ago, plus the dollar.
2007-12-14 04:31:39 · 4 answers · asked by R J 7 in Business & Finance ➔ Other - Business & Finance
steve never saw them again, but did get an outfit to put a warrenty on them and head guy had a fit, but then I told him he got $200 and happy, didnn't understand that it cost $700, people happy, got out of that asap.
2007-12-14 18:56:56 · update #1
I doubt we will ever get to a depression. The fed keeps such a tight reign on things that I don't think things will get that bad. All their current actions are to prevent a Recession and a Depression would be much worst and beyond a Recession.
2007-12-14 08:47:05 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Re: used autos - I bet they were happy to see the same car sold dozens of times ..
Each time around they collect the down payment, stitch up the punter for finance & when he defaults, the car is re-possessed, bodged up (if broken) and sold onto the next punter ...
Must have been like selling homing pigeons :-)
Houses are no different .. fact is, a house is usually worth something (unless its on Miami Beach or downtown New Orleans ..) .. and once repossessed can be sold onto the next mug ..
2007-12-14 04:53:42 · answer #2 · answered by Steve B 7 · 0⤊ 0⤋
it'll be worse as i believe it will cause a lifetime of poverty for some folks due to the change in bankruptcy laws. i don't think most people paid attention and won't know of the law change until they look into filing. it's going to be a mess.
2007-12-14 06:46:08 · answer #3 · answered by T 4 · 0⤊ 1⤋
nope
2007-12-14 16:17:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋