Subprime car lenders report a sharp drop in auto loan payments.
In a sign of upcoming trouble, Subprime Car Buyers Miss Loan Payments.
Credit Acceptance Corp., the lender to car buyers with subprime credit scores, warned it’s seeing a sharp drop-off in payments as people shift their financial priorities to get through the coronavirus pandemic.
As unemployment soars, borrowers are putting off payments or “reallocating resources,” Credit Acceptance said in a regulatory filing Monday, explaining that it needs more time to publish a quarterly report.
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13 comments:
Govt said they CANNOT do it during the Pandemic !!!
They dont repo your car after missing a payment or two. It takes a lot longer. My cousin bought a car a year ago and only made 5 out of 12 payments. He makes one every other month.
They still haven't repoed it but Debt collectors have been calling. I dont understand y the bank even gave him a loan. He has never had a job in his life and was already in debt.
Maybe they should lower the credit card rates they are charging and stop the predatory lending.
When did the repo man become an essential business?
If people cannot get their money thru this crap unemployment system, you damn right they are not going to be making payments. How do do make payments with no money, duh.
No doubt. Most people are over extended with credit. They spend every dollar they make to drive a nice car. I have not had a car payment in 15 yrs. Save your money and pay cash for a used car. I am not trying to impress nobody.
Nobody forces anyone to take out a loan. Don’t blame the bank.
You are wrong. Credit acceptance will repo a vehicle for one missed payment.
So, I guess there will not be that many Denali's with rims and tires costing thousands of dollars riding around town with 3 or 4 able bodied people in them during the middle of the day on route 13 business?
^ This.
813 - based on one's crap credit history, YES. Not for those who's credit is good.
C'mon man.
Cheap used cars. Bring em on!
Credit Acceptance is for people with bad credit. They use to charge 18-21% interest with 3 - 4K down. That is last chance finance. It is a scam company. People don’t think they find out they can get a fancy car and don’t read the contract terms. It is sad how ignorant some people are.
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