[stampchez]

http://www.bloggingstocks.com/2008/10/01/a...-what-the-heck/

Are they saying that 0% financing for 72 months for people who barely qualify is a bad idea? I don't buy it!

[jkp1187]

My favorite was the article I saw on CNN.com yesterday, where the writer mentioned that car dealers were blaming the reluctance of banks to give out more borderline home equity loans for the decline of car sales.

WTF, people were getting H/E loans to buy their cars? Am I the only one who sees something messed up with that?

[Spook]

Originally Posted by jkp1187

My favorite was the article I saw on CNN.com yesterday, where the writer mentioned that car dealers were blaming the reluctance of banks to give out more borderline home equity loans for the decline of car sales.

WTF, people were getting H/E loans to buy their cars? Am I the only one who sees something messed up with that?

I was shocked by the number and amount of cash out home refinancing that has been going on. Had no clue. We have all been getting refinance offers in the mail for years but I have a decent 30 yr rate and wasn't even tempted by exotic mortgages. I took out a $50K second (7% rate two years ago) when I bought this house to bridge the sale of the last house but paid that off as soon as the house sold. Didn't even think about keeping the money as a 30 yr Porsche loan. However, other folks have been financing cars, vacations, and anything else you can think of. It was considered equivalent to income. Totally messed up and now they can't refinance and can't afford the bubble they created thereby screwing all of us. Where is Dickens and debtors prisons when you need them? (bah, humbug)

[ptack]

There certainly have been times when you could get a much better rate via a home equity loan than a straight auto loan. The issue isn't how you finance, the issue is how much you finance. If you stay within your means it doesn't matter. The huge Chevy dealership that just went bankrupt did so partly because they made way too many car loans to people who had zero credit. What's sad is that the spill over from all this recklessness will invariably impact people who were very responsible all along.

[stampchez]

Originally Posted by ptack

There certainly have been times when you could get a much better rate via a home equity loan than a straight auto loan. The issue isn't how you finance, the issue is how much you finance. If you stay within your means it doesn't matter. The huge Chevy dealership that just went bankrupt did so partly because they made way too many car loans to people who had zero credit. What's sad is that the spill over from all this recklessness will invariably impact people who were very responsible all along.

Bill Heard had it coming. They were superrrrrrrr sketchy. They would do things like tell the finance company that a car being sold was a loaded model while it was actually a base model. Fat margin on those transactions.