Once upon a time, if you fell behind on your car loan, the repo guy came out in the middle of the night and took your collateral-on-wheels back. These days, there are small GPS devices that can remotely disable the ignition until the borrower pays up. However, one auto lender is currently facing a federal investigation for its use of this technology. [More]
subprime loans
John Oliver, Keegan-Michael Key Explain Why Subprime Car Loans Are So Awful
By 8.15.16
Subprime car loans are pretty much terrible. They’re exploitative of lower-income borrowers, financially risky for lenders, and frankly the only thing that keeps them from being every inch as disastrous for everyone as subprime mortgages — so far — is that their dollar values are lower. [More]
![Like my new wheels? I got it through an 8-year loan with a 22% APR. What a steal! [Note: Not actually my car] (photo Axion23)](../../consumermediallc.files.wordpress.com/2015/01/mynewcar.png?w=300&h=225&crop=1)
Why Are So Many Recent Car Loan Borrowers Missing Payments?
By 1.9.15
In 2014, new car sales increased to 16.5 million, the highest level since 2006, but did too many car buyers take on more than they could afford? [More]
Banks Can’t Get Away With Horrible Mortgage Practices Anymore, So Now They’re Doing It With Car Loans
By 7.21.14
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
By 11.1.11
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
By 10.31.11
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
By 12.7.09
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]
