Fueling the next financial crisis with sign-&-stuff.

My .02.

salad days...I miss the old times.

I can see it in that market segment as well as the flat bill hat trims of the Rams.

But basic Tradesman Rams?

i lol'd

Sub prime crisis in the auto industry is a brewing........

Know one in GD with qualify. Everyone has an 850 credit score.

Sub prime car loans?

I'll just leave this here.......Subprime auto loans


"About a third of the risky car loans that are bundled into bonds are considered “deep subprime,” a level that has surged since 2010 and is translating to higher delinquencies on the loans, according to Morgan Stanley.

Consumers are falling behind on most subprime car loans, but deep subprime borrowers have deteriorated fastest, the analysts said. Sixty-day delinquencies for bonds backed by these loans have risen 3 percentage points since 2012, compared with just 0.89 percentage points on all other subprime auto securities, Morgan Stanley’s Vishwanath Tirupattur, James Egan and Jeen Ng said in a report dated March 24.

“The securitization market has become more heavily weighted towards issuers that we would consider deep subprime,” the strategists wrote. “Auto loan fundamental performance, especially within ABS pools, continues to deteriorate.”

The percentage of subprime auto-loan securitizations considered deep subprime has risen to 32.5 percent from 5.1 percent since 2010, Morgan Stanley said. The researchers define deep subprime as lenders with consumer credit grades known as FICO scores below 550. The scale from Fair Isaac Corp. ranges from 300 to 850 and while there’s no firm definition of subprime, borrower scores below 600 are in general considered high credit risks.

Who's buying that crap paper?

Seriously?.....jeez-o-pete you gotta default on your house payment, your school loans, your Aaron's Appliance rentals to get to 620.

And Chrysler wants to give'm $1500 AND a car/truck loan approval? .......Who's the fuckin' genius that came up with that idea?

Go ahead, good luck......for the rest of you , get ready for some killer deals on Rams.

Im guessing because of the products they are bundled with investors aren' as concerned ?

hot!    thats a nice fucking truck man! 

It's suicide & they know it.

I wonder what the % is on those compared to a prime rate buy.

I hear soooo many "Bad Credit, Zero down xxx/month" deals on the radio. Yeah cause that's what people need that are buried in debt, more debt.

right up to the point that those "Targeted Customers" stop paying their loans...

Mitsubishi was a giant in the auto business in the 90's and then nearly went bankrupt on their no payments for a year "special" they ran for bad credit customers who drove a new car for a year and then defaulted when the real payments were to begin...

The auto loan industry is the next mortgage meltdown waiting to happen.  Credit extended to those how have no business with those kind of loans and will default all over the place if the economy hits a rough patch...

Rebates are a killer of resale value down the road...

When a maker has to throw money at a buyer to get them to buy, it screams that they were greedy & didn't price their product right the first time

these loans securitized? Arfcom group deal and we all go short on 'em...no idea what I'm talking about but it sounds like fun

Just heard one a few minutes ago from a Ford dealer, they call it the "Debt Assistance Program".

Yeah it is.

They are actively seeking people who have a history of missing payments & having overall bad credit it seems.

As a group that type of buyer has a history of poor decisions, so they are the perfect candidate.

I don't think it will be a mortgage meltdown type of impact because the $$$ are not the same cars are a fraction of housing costs, but it will wreak havoc on the used car market. If I were betting man I would hedge to say truck prices may be first bubble to burst

Too bad all rams rust after 5 years after salt and snow.

Like I've always said-The big 3 pay you to buy their cars. I'm the only one in family that buys Toyota's regularly and it's great to not know what depreciation feels like.

Duh.

It's math.

And math is racist.

fify

Possibly, more than likely institutional folks, I know goldman is getting into the same space albeit unsecured lending.

They don't use salt here, but it does snow a lot LOL.
No rust on my 2007 Ram 1500. Didn't trade it in on the 2017 Ram...sold it to my Son. Oil change every 3k, just had the brakes done, and a Idler pull replaced. Was a pretty reliable truck. Was the reason I went with Dodge again, just bigger this time.