wkloss
231 posts
msg #112126
- Ignore wkloss |
3/9/2013 1:48:40 PM
four,
These are no better than the borrowers and the part I copied & pasted below tells the whole story. This is subprime lending to low income people with bad credit. There is no effective recourse against a defaulting borrower and that leaves the collateral. If the vehicle is wrecked, stolen, the engine or transmission goes bad etc you have a bad loan. I tried some of this with small car lots about 20 years ago and got some great tax deductions.
We serve a large market. Dealers use CPS auto finance programs to support vehicle sales to credit challenged customers. CPS customers may have a prior bankruptcy, repossession, low credit score, collection accounts or charge-offs.
Bill
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