October 1, 2014

As people inevitably default on their subprime auto loans, dealers turn to a variety of ways to retain their merchandise, sometimes with hazardous consequences.

 

http://nyti.ms/1qwkB8x

 Questions:

  1. Do regulatory agencies need to clearly define when a borrower is in default?
  1. Should lenders be able to turn off a moving car?

From The New York Times

 

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September 15, 2014

In order to attract cash-strapped buyers, more auto dealers are offering sub-prime loans on vehicles for people with poor credit. This video and the one below document the potential dangers of this financing practice.

 

http://nyti.ms/1lgctaY 

Questions:

  1. What are the major advantages and disadvantages of sub-prime lending?
  1. Are investors in bundled sub-prime car loans taking on significant risk?

From The New York Times

 

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