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.

 

https://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

 

Continue reading...