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Originally Posted by JRTJH
Most (maybe all) of the automobile manufacturers have access to "in house financing", so the "lending institutions" are pretty much "directed by the same CEO and Board that is making the decisions on what to ship and what to charge. I agree, sooner or later, when prices return to "normal", all these inflated contracts are going to be upside down and somebody is going to lose a significant sum of cash on all or most of them.... I'll go "out on a limb" and project that it won't be the lending institutions. In 2 or 3 years, try to trade that new truck in on a newer one and I'd guess the trade in value will be "eaten by the owner, not by the lender"....
About the only "risk to the lender" is if the purchaser doesn't make payments on time. With the federal funding to individuals rising on a weekly basis (so it seems), there's a ready supply of cash for those who are not working and a surplus of cash for those who are still drawing a paycheck. So the "lender's risk" is being underwritten by the feds, in a round about way..... Have you got your "child care check" this month ??? Neither have I .....  |
I posted before I thought gap insurance should be something people consider if they are buying this year…i don’t get it myself but unless someone puts $20000 or $30000 down on a new truck they might find themselves in a hole if the truck gets totaled…the insurance company only will pay what they think a truck is worth and not a super inflated price…I wonder what the depreciation is on trucks right now?