I remember my Uncle telling me that back in the dayz Black Men could get loans to buy new Cadillacs quicker than they could to buy a new Home.
Of course Sub Prime Loans arent just for Black people with bad credit, but the banks and the government have been known in the past to target ill-informed Black and Mexican people for BS loans.
We all should know who got fucked the most with those Sub Prime Home loans, most of them being Black folks with 6 figure incomes and good credit
, hence the reason for me posting this thread.
I know... I know... like mentioned in the article, this cant be compared to the home owners fiasco, but im pretty sure theres more repercussions than just getting your car repossed if you dont pay your bill, so therefore, get educated before signing on the dotted line.
BTW....world of advice......buy a used car.
What you pay for a new car is really not its true value.
Aching for a Camaro, but your credit is a little spotty? General Motors now has a deal for you. It announced this morning it was buying AmeriCredit., an auto finance company with a strong sub-prime loan specialty. Owning a finance company also will let GM do more leases.
The deal is for $3.5 billion in cash (thank you, Uncle Sam) and will close in the fourth quarter. GM has lost sales because it owned no so-called "captive" finance unit to step up for sub-prime buyers -- who are 40% of all car buyers. GM and Chrysler are the only major automakers without their own finance units to support sales. GM pioneered the idea of a car company having its own loan unit, but now-independent Ally (formerly GMAC) is pretty much out of sub-prime car loans and leasing as it digs out of its mortgage mess.
"For some time, our dealers and customers have said that not having an in-house finance arm hurt our ability to offer sales and leases," said GM CEO Ed Whitacre on a conference call. "As a result, we were not as competitive as we could be ... Now we are going to fix that."
GM and AmeriCredit have run a non-prime credit program together since September 2009 that has increased loans to sub-prime GM customers and the company already does business with most GM dealers.
GM says about 4% of its buyers now are sub-prime -- up, but still a significantly smaller percentage than the other big automakers, so the company has been losing buyers to other companies that can get the customer a loan.
While sub-prime loans helped sink the home loan business, its long been a big share of auto loans and lenders are experienced in making it work. The obvious difference: If you don't pay, there's no expensive, complicated foreclosure process. The repo man will have the car before morning.
http://content.usatoday.com/communi...ericredit-to-increase-leases-subprime-loans/1
Of course Sub Prime Loans arent just for Black people with bad credit, but the banks and the government have been known in the past to target ill-informed Black and Mexican people for BS loans.
We all should know who got fucked the most with those Sub Prime Home loans, most of them being Black folks with 6 figure incomes and good credit
, hence the reason for me posting this thread. I know... I know... like mentioned in the article, this cant be compared to the home owners fiasco, but im pretty sure theres more repercussions than just getting your car repossed if you dont pay your bill, so therefore, get educated before signing on the dotted line.
BTW....world of advice......buy a used car.
What you pay for a new car is really not its true value.
Bad credit? GM buys AmeriCredit to do sub-prime loans
Aching for a Camaro, but your credit is a little spotty? General Motors now has a deal for you. It announced this morning it was buying AmeriCredit., an auto finance company with a strong sub-prime loan specialty. Owning a finance company also will let GM do more leases.
The deal is for $3.5 billion in cash (thank you, Uncle Sam) and will close in the fourth quarter. GM has lost sales because it owned no so-called "captive" finance unit to step up for sub-prime buyers -- who are 40% of all car buyers. GM and Chrysler are the only major automakers without their own finance units to support sales. GM pioneered the idea of a car company having its own loan unit, but now-independent Ally (formerly GMAC) is pretty much out of sub-prime car loans and leasing as it digs out of its mortgage mess.
"For some time, our dealers and customers have said that not having an in-house finance arm hurt our ability to offer sales and leases," said GM CEO Ed Whitacre on a conference call. "As a result, we were not as competitive as we could be ... Now we are going to fix that."
GM and AmeriCredit have run a non-prime credit program together since September 2009 that has increased loans to sub-prime GM customers and the company already does business with most GM dealers.
GM says about 4% of its buyers now are sub-prime -- up, but still a significantly smaller percentage than the other big automakers, so the company has been losing buyers to other companies that can get the customer a loan.
While sub-prime loans helped sink the home loan business, its long been a big share of auto loans and lenders are experienced in making it work. The obvious difference: If you don't pay, there's no expensive, complicated foreclosure process. The repo man will have the car before morning.
http://content.usatoday.com/communi...ericredit-to-increase-leases-subprime-loans/1
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