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GM ramps up risky sub-prime auto loans

Discussion in 'Political Issues' started by Sam Spade, Aug 16, 2012.


  1. Sam Spade

    Sam Spade
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  2. Guss

    Guss
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    So they are 2.2% above industry average - Is that a big deal? Especially since they had not been experiencing bad results at lower levels. GM Financial is a money-maker, incidentally.

    Now about the new Malibu... They started with an experimental ECO model. Wait until they ramp up the mainstream model.
     

    #2 Guss, Aug 17, 2012
    Last edited: Aug 17, 2012
  3. walt cowan

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    barry will just foam the runway with tax payers money....again.
     
  4. callihan_44

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    hmm, I love SOME GM products but I am highly disappointed in the decisions they have made lately.....doomed to fail with the current leadership IMO
     
  5. Sam Spade

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    No, they're about 33% above industry average.

    6 out of 100 industry loans default. 8 of 100 GM loans default. That's not an increase of 2%, that's an increase of 33%.
     
  6. Brucev

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    Looks like GM is 2% above the industry average. If that is a real problem, the sainted stockholders will decide. The taxpayer has no say.
     
  7. JFrame

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    Who knows -- maybe this is a calculated plan to have a collapse of the automotive industry during President Romney's first term...

    Leftists are nothing if not forward-thinking...


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  8. aircarver

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    Yeahhh...

    But I don't see Toyota or Honda going down anytime soon ... So I'm good ! ...:supergrin:

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  9. JFrame

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    ...And it's good to see you buying American (those Ohio and Kentucky factories turn out good cars! :cool: )...


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  10. BuzznRose

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    No, it is 2% HIGHER than the industry standard, but 8% IS 33% MORE than 6%


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  11. BuzznRose

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    Sorry. This was a redundant post. My bad.



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  12. IvanVic

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    I picked up a new Tahoe @ 0% for 72 months, about the best financing you'll ever get on a car. Then again, I have good credit and it was an incentive deal to move the new 2011's before the 2013s hit the lot.
     
  13. JFrame

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    Yeah -- I don't think it's the car buyers with good credit that we're concerned about -- any more than the home owners with good credit brought on the crash of 2007.

    Congrats on your great loan! I'm in the process of refinancing my house at a historically low rate. :cool:


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  14. Guss

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    It's only 2 percentage points on a very big scale.
    GM Finance is a money-maker, incidentally. Doing even better than last year. It's hard to argue with success.
     
  15. Sam Spade

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    How long do you think that success will hold if they continue to increase the proportion of sub-prime loans?
     
  16. Guss

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    What's the worse that can happen if they have to repossess 2% of the cars they loaned money on?
     
  17. CitizenOfDreams

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    It's 2 percentage points or 33 percent higher than the industry standard.
     
  18. aircarver

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    We see a perfect example of 'Democratic math' .....:upeyes:

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  19. Sam Spade

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    Well, the whole TARP mess was brought on by a 4% default rate with sub-prime loans. And according to the article, GM is increasing the number that they're writing.

    You seem knowledgable---how much bad paper do you think they can carry before trouble rears it's ugly head again?
     
  20. QNman

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    Repo cars are money losers. That's part of "the worse".