Across the US, people are increasingly defaulting on their car loans — a dire economic indicator because these loans are usually the last payment Americans are willing to miss. Meanwhile, auto insurers are raking in record profits after hiking rates.
So, anecdotally, I had to go vehicle shopping for work, I was talking to a guy who doesn’t have good credit. I go, “how was buying a car for you? I’m nervous cause I don’t really have credit.”
Dude goes “yeah, honestly, I was told they stopped doing credit checks, I put down my companies gross income as my gross income and they just ran with it.”
“That sounds like the car version of 2008?”
“Hahaha yeah, I guess it is.”
Now, when I had to buy a truck, they did run a credit check, and I ended up needing a co-signer, but, none the less, interesting to hear that, then see this article.
Edit: I should also note, I needed a co-signer for a not insane interest rate. The bank would still loan to me personally, just at 17.5%. So, I mean, he’s probably right. I’m not sure you get actually turned down. Dude has 2 judgements against him.
That’s how banks tell you they’re not interested.
You’d think there’d be a threshold where they just say “no” though?
I’m not shocked I got approved, even with that interest rate, my credit isn’t bad, just non existent.
I’m shocked my friend got approved with 2 judgements. What’s the point of a judgment? I suppose I don’t know the details, they could be old, etc. just seems irresponsible.
Good to see banks learned nothing from sub prime mortgages and derivatives in 2008.
They learned that, as long as DC is corrupt, they’ll always get bailed out.