Auto Loan Defaults Newest Financial Meltdown
:iagree:
she signed the papers, knew that her income was inflated, and drove off with the car. She deserves whatever comes her way that results from her stupid decisions. Good Lord! It's embarrassing to admit that she cannot afford the car after what happened, but go on TV and tell the world? She's not gonna get much sympathy from the viewers for sure.
she signed the papers, knew that her income was inflated, and drove off with the car. She deserves whatever comes her way that results from her stupid decisions. Good Lord! It's embarrassing to admit that she cannot afford the car after what happened, but go on TV and tell the world? She's not gonna get much sympathy from the viewers for sure.
Lexus Champion
Joined: Sep 2006
Posts: 3,102
Likes: 8
From: Hill Country, TX
Another example of selling goods with no verification of income. Too much lending is done using FICO scores as the main source of credit worthiness. When I bought my Lexus two years ago I never even had to put my income down, they just pulled my FICO score up and said 'ok'. Of course I was putting $30,000 down, but how would they know I could afford the 36 monthly payments?
Lending is going to have to go back to basics: 1) Verify income, 2) Verify credit score, 3) Verify outstanding debts, 4) Decide whether customer can pay back the loan.
Lending is going to have to go back to basics: 1) Verify income, 2) Verify credit score, 3) Verify outstanding debts, 4) Decide whether customer can pay back the loan.
Last edited by Evitzee; Feb 12, 2008 at 06:49 PM.
Lexus Champion
Joined: Apr 2007
Posts: 11,065
Likes: 105
From: Southeastern PA
There is a huge thread on VWVortex about it. Seems the lady was on disability and we think she assumed she was going to get a HUGE settlement, so she splurged on a 650 convert. Seems the settlement didn't pan out and now she's broke.
Awful decision by her, the dealer was a typical dealer and you have a mess. Her story is out the norm.
The NORMAL story is lenders got people in all sorts of cars with all sorts of interest rates and now its becoming an issue with people making payments on time.
Awful decision by her, the dealer was a typical dealer and you have a mess. Her story is out the norm.
The NORMAL story is lenders got people in all sorts of cars with all sorts of interest rates and now its becoming an issue with people making payments on time.
All in all--not too surprising that car defaults have kicked up. I'd do the same thing if it meant transferring those $$ to my mortgage payment to make sure I kept my house.
Lexus Champion
Joined: Apr 2007
Posts: 11,065
Likes: 105
From: Southeastern PA
Another example of selling goods with no verification of income. Too much lending is done using FICO scores as the main source of credit worthiness. When I bought my Lexus two years ago I never even had to put my income down, they just pulled my FICO score up and said 'ok'. Of course I was putting $30,000 down, but how would they know I could afford the 36 monthly payments?
Advanced
Joined: Jan 2006
Posts: 677
Likes: 1
From: US
There is a huge thread on VWVortex about it. Seems the lady was on disability and we think she assumed she was going to get a HUGE settlement, so she splurged on a 650 convert. Seems the settlement didn't pan out and now she's broke.
Awful decision by her, the dealer was a typical dealer and you have a mess. Her story is out the norm.
The NORMAL story is lenders got people in all sorts of cars with all sorts of interest rates and now its becoming an issue with people making payments on time.
Awful decision by her, the dealer was a typical dealer and you have a mess. Her story is out the norm.
The NORMAL story is lenders got people in all sorts of cars with all sorts of interest rates and now its becoming an issue with people making payments on time.
She's just stupid. No other way to put this.
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