Banks Can’t Get Away With Horrible Mortgage Practices Anymore, So Now They’re Doing It With Car Loans

Banks Can’t Get Away With Horrible Mortgage Practices Anymore, So Now They’re Doing It With Car Loans

Subprime loans: they aren’t just for mortgages anymore. The next big bubble of ill-advised loans to borrowers who can’t pay is coming due. This time, it’s used car dealers reaping the interest and repossessing the cars. [More]

Private Equity Bets Big Bucks On "Buy Here Pay Here" Dealerships

Private Equity Bets Big Bucks On "Buy Here Pay Here" Dealerships

In the second of a three-part series on “Buy Here Pay Here” dealerships, used car lots that target subprime borrowers with easy credit and triple the national average interest rates, the Los Angeles Times looks at how private equity firms have flocked towards the growing industry, lured by 38% margins. [More]

"Buy Here Pay Here" Dealerships Investigated

"Buy Here Pay Here" Dealerships Investigated

The Los Angeles Times has an excellent investigation into the national “Buy Here Pay Here” auto dealership phenomenon. These used car sellers purposefully target bad credit borrowers and offer them what no one else will: the chance to buy a car on credit. All they have to do is agree to 20-30% interest rates, a price well above the car’s Blue Book Value, and aggressive repo practices if they fail to pay up. But it’s not a big deal if they don’t. Borrower failure is baked into the business plan. [More]

Consumerist Videodrome #2: The "New Moon" Felons

Consumerist Videodrome #2: The "New Moon" Felons

Is loving New Moon a crime? It is, if you accidentally tape it during your sister’s surprise birthday party at the movie theater. Plus, how you will end up paying for Hulu after the Comcast/NBC merger, Oscar Meyer shaved meat, subprime loan gangstas, and a pacifier you might choke on. Now that we have a video show, what should my signoff be? Leave your thoughts in the comments. [More]