Auto Loan Bubble Bursting, And Lenders Know Where Your Car Is At All Times
Feb 21, 2017 7:47 PM
The story of the Car Loan subprime lending epidemic is nothing new (one of many, student loans etc).
Zerohedge has been writing about it for years, with the financial MSM
catching on not too long ago. Even John Oliver had a segment about it on
his popular show, Last Week Tonight. The new subprime lending epidemic,
in the $1.1 Trillion market, which the experts tell us is contianed and
won't have the same effect as in the previous crisis, is where all it
takes to buy a car at a dealership is the ability to fog a mirror.
Cracks have been rearing their heads over the last few months, but
nothing like we are seeing as of late. According to the latest data,
auto loan delinquencies are now at levels not seen since the last financial crisis.
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.
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.
About a year ago, a
friend who owns a car stereo shop outside of Sacramento told me that
almost every single car or truck they work on has a gps tracker in the
dash. What was even more disturbing, was when he said some of the cars
as old as a 1994 Honda Accord, or a 1991 Toyota Celica, which the owners
had just financed from a local dealership, had trackers in them. Up
until he told me about the use of trackers, no one had ever mentioned
this gps tracking that is being done without the owners consent, or
maybe they didn't read the 5 point font fine print when buying their
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.
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.
So
in the meantime, as long as the stock market bubble continues to make
new all time highs on a daily basis, this subprime lending bubble will
go largely unnoticed by a majority of Americans, who will be driving
away in a 2017 Escalade while working minimum wage at McDonald's.
Comments-
aliens is here
Feb 22, 2017 8:55 AM
No more for me if I can help it. I am keeping my car as long as I can. No more car debt for me. I am sick of debt.
{Qoute} In July 2009, Amazon discovered two of George Orwell's
books had been digitally uploaded to its Kindle e-book store by a
company that didn't own the rights. Amazon pulled the e-books from its
site and remotely deleted copies from customers' Kindles without
notice. The retail giant did refund the purchase price, but Kindle
users likened the remote deletion to Amazon coming into their homes,
taking a purchased book from their bookshelves, and leaving a few
dollars in its place. Was it legal for Amazon to virtually reach into
users' private Kindle devices and delete their e-books from afar
without warning? {End quote} -- LegalZoom.com at:
https://www.legalzoom.com/articles/can-amazon-legally-delete-books-from-...
If you complain that their new model sucks, they just pull the kill switch and the car goes dead. Not only that, but they only sold you the physical car, not the software that runs it, so that gets deleted.
You shoulda' kept your big mouth shut.
https://www.legalzoom.com/articles/can-amazon-legally-delete-books-from-...
If you complain that their new model sucks, they just pull the kill switch and the car goes dead. Not only that, but they only sold you the physical car, not the software that runs it, so that gets deleted.
You shoulda' kept your big mouth shut.
Wonder if some vehicles already have kill switches along with gps. Repossesion would certainly be easy.
Yes, some vehicles with crappy loans do have kill switches. I
knew a woman who's car wouldn't start every time she was a day late on a
WEEKLY payment.
I read the fine print on her (15% interest) loan document, and discovered they had to give her 30 days grace, and helped her get out of the crappy deal. Shheeesh.
I read the fine print on her (15% interest) loan document, and discovered they had to give her 30 days grace, and helped her get out of the crappy deal. Shheeesh.
Normally advanced GPS tracking devices do come with remote kill switch (GSM)
Did I read somewhere recently that every person in the USA owes
the equivalent of approx $6,000 in car debt? It's not a sub prime
meltdown on the horizon compared to 2008, just an indication of the
bizarre financialisation of just about everything that moves and how USA
citizens can't exist (let alone thrive) without debt.
This is a looming financial horror beyond measure, especially
when added to the student loan life-consuming scam that has exploded
between the U.S. Gov't, the FED bankster thugs, and the globalist crooks
and con-artists populating Academia.
The common man is being eaten-alive by academia-imposed financial ignorance and greedy moneysuckers in every walk of life.
The common man is being eaten-alive by academia-imposed financial ignorance and greedy moneysuckers in every walk of life.
Grab your wallet and hide your money just in case the
government wants YOU to bail out all these corporations who made more
bad lons to deadbeats.
I hope Trump lets them go bankrupt and jails the loan officers.
I hope Trump lets them go bankrupt and jails the loan officers.
Surely owners the least bit knowledgeable would give these tracker devices a dose of 110v up their power supply lead?
Just this past weekend, a big auto dealer in the Oklahoma City
area was having a yuge sale of repossessed autos. The deal was, you come
in, pick the vehicle you want, pay $57.00 and start making payments.
They said banks would be on hand to assure everyone, even those with bad
credit, got the vehicle they wanted. EEK!
Good thing I have three vehicles that have long been paid off. And no gps devices in them either. ;-)
Good thing I have three vehicles that have long been paid off. And no gps devices in them either. ;-)
That is a typical sales shill, every market has a dealership claiming that every weeek.
i smell another bailout
lots of unemployed unemployables tooling around houston in new government motors products
lots of unemployed unemployables tooling around houston in new government motors products
Having a GPS tracker is one thing, but you still need to have the nerve to physically go repo the vehicle.
I've yet to see the flat trucks rolling, loaded with ill-gotten BMWs and Lexuses.
Flat trucks rolling, loaded down with pseudo luxury cars, looks like .... victory.
I've yet to see the flat trucks rolling, loaded with ill-gotten BMWs and Lexuses.
Flat trucks rolling, loaded down with pseudo luxury cars, looks like .... victory.
We've become the Usurious States of America...how did that happen?