Auto Loan Bubble Bursting, And Lenders Know Where Your Car Is At All Times
But don't worry, economists are already coming out of the wood works to tell us that the idea there is an auto loan bubble is "a litte overblown." Good thing economists have a great track record, and CDS contracts exist. But what most people didn't know, especially these buyers, who have credit scores of less than 600 and are driving a new car with little to no money down, is that they have a gps tracker in their new/used car.
Then this past Sunday, the New York Times had an Article titled "Federal Agency Begins Inquiry Into Auto Lenders' Use of GPS Tracking" where the article went into detail explaining that with the use of GPS trackers, financing companies are now more willing to lend to the lowest income Americans because if things go south, they'll know immediately where the car is and repo it. Using GPS trackers also allows lenders to find out exactly where the car is after customers/deadbeats miss their payments.But, the federal regulators are interested because they realized that these GPS devices ufairly violate a borrower's privacy, which only the federal government is allowed to do.