Is GM headed for another subprime loan crisis?

[BMR Sales]

Originally Posted by shine2013

IMHO people know if they can comfortably afford something when they enter the agreement. It's on them to make the judgement call.

I disagree! Most Car Buyers are Sheep when they get to the Dealership and just sign the deal!

[BMR Sales]

Originally Posted by Royal Tiger

One of the guys I work with has fairly bad credit due to a divorce (what killed mine as well) and somehow just bought a Challenger Hellcat. I heard some of the guys talking and apparently his payments are around $800/month for 7 years!!!!

That goes with my last comment!

[BMR Sales]

Originally Posted by motorhead

The other factor here is the outrageous cost of new and used vehicles these days. It nothing to see a 10 year old truck with over 100,000 miles still listing for over 25K. That's nuts. Pile that on with crazy interest rates and long terms, and you set someone up to fail. The big problem is that many of the folks entering into these kind of deals don't understand the numbers and just what they are signing up for. That's what needs to change.

And that leads to New Car (or) Truck Sales because most Banks won't loan anything on a 10 Year Old Car. Customer goes to a New Car Dealership and they drive off the Lot in an Hour!

[Angrybird 12]

Originally Posted by BMR Sales

I disagree! Most Car Buyers are Sheep when they get to the Dealership and just sign the deal!

What is funny many people just know what payment they want, they don't care what the car costs or for how long or what the interest rate is just what the monthly payment will be.
I was in a dealer one time and the salesman asked what payment I was looking for. I said it does not matter because you won't be financing it anyway. Just give me your out the door price and let me decide if its low enough.

[SpeedIsLife]

$800 a month for 7 years....that makes me sick just thinking about it.

[BMR Sales]

Originally Posted by 2010-1SS-IBM

More people have bad credit now than before the recession.

I agree, I know a lot of Kids the age of my Son that are so deeply in debt, it is ridiculous. Credit Cards, Student Loans, Cars, etc.

My Son & his Wife were living in a Free Apartment in Seattle. They wanted to live in a House, so they are renting a 4,000 sf House with a 3 car Garage. He wanted to ship his Motorcycle out there but didn't have the Money - I paid for it just to get it out of my way.

[BMR Sales]

Originally Posted by LostPony

I don't think that is true. There are lots of stories in the media that lead one to this conclusion, but my own score tells a different story. My score is comfortably higher than 660. According to the credit monitoring service I use, my score isn't even in the top 50%.

A 660 is just average. Mine is over 800 and my Bank wouldn't even refinance my House!

[PDXSSCE]

Originally Posted by BMR Sales

I disagree! Most Car Buyers are Sheep when they get to the Dealership and just sign the deal!

I agree. The recent housing crash confirmed that many people aren't aware or are careless about what they can comfortably afford.

Originally Posted by Angrybird 12

What is funny many people just know what payment they want, they don't care what the car costs or for how long or what the interest rate is just what the monthly payment will be.
I was in a dealer one time and the salesman asked what payment I was looking for. I said it does not matter because you won't be financing it anyway. Just give me your out the door price and let me decide if its low enough.

I walk in pre-approved from my credit union, but don't mention it until the price is agreed. When I'm asked the payment that I want, I respond, "Whatever it is for (enter purchase amount I'm willing to pay) ."

[PDXSSCE]

Originally Posted by BMR Sales

A 660 is just average. Mine is over 800 and my Bank wouldn't even refinance my House!

Why won't they refinance? I'm slightly over 800 & I can't stop the refinance offers.

[dreyesforeal]

This is a good thread.

[sherob]

Originally Posted by BMR Sales

A 660 is just average. Mine is over 800 and my Bank wouldn't even refinance my House!

FICO scores aren't everything that are considered, and there are different FICO scores too.

[sherob]

Originally Posted by PDXSSCE

Why won't they refinance? I'm slightly over 800 & I can't stop the refinance offers.

You're just getting Pre-Screened offers... what we used to call ReadyScreen product at Equifax.

A company will ask for 10,000 names in these zipcode ranges, with this criteria, with these FICO score ranges.

[Royal Tiger]

Originally Posted by SpeedIsLife

$800 a month for 7 years....that makes me sick just thinking about it.

I took the Camaro to work today and we were talking about "Hellcat guy". Apparently he is upside down on both cars and he supposedly put money down on the Hellcat. That monthly payment is insane.

My credit is coming back now that I'm 3 years free of the dead weight ex. My girlfriend has obscenely good credit. Lady at the credit union said she never saw a number that high before (well into the 800's).

[jrhagen]

800+ FICO here. This 3rd world issue is not mine.