I agree with everything said here to a point, but the real issue is veiled or clouded by the perception of the credit crunch. The main theme or question here is what happens to the independant car lots, and the individuals when the market has been narrowed by this loan inavailability? Who will buy your used car, and at what value. Seems this condition seriously devalues one's vehicle, and entices one to "sell" (get raped) to a dealer... This is the apparent collusion I speak of... How long before the only outlet for a used vehicle is thru a franchise dealer? I've always believed that if one HAD to pay cash for big-ticket items, the resulting price would be much lower. Credit, especially easy credit allows for artificial inflation of goods, don't ya think?
And why would one open a line of credit (equity loan)on their home for depreciable goods, like an automobile? Seems not the wisest choice to me, and not even an available choice for those who do not own a home.
Oh, and with regards to save and buy... always a very wise and approapiate plan; however when one's money is earning 13% plus, seems more appropriate to borrow at 5-6% or so, and let the nest-egg continue to grow, C'nest Pas?
I am way too ignorant about the financial world, to realize or discern why a product, like an auto loan for a private-party sale, would be any more a risk than, say, a personal loan for the same item... Eliminating the product can only be because of some other benefit garnered to the lending institution, as has been implied here in this thread...
Originally Posted by drewprof
Dealers get kick back on points just like mortgage brokers
And this should generate outrage, IMO...
Originally Posted by jayhawk
"This too shall pass."