Auto Loan Bubble is Inflating

[bjl584]

http://www.cnbc.com/id/100612622

"though Nelson's credit history was an unhappy one, local car dealer Maloy Chrysler Dodge Jeep had no problem arranging a $10,294 loan from Wall Street-backed subprime lender Exeter Finance so Nelson and his wife could buy a charcoal gray 2007 Suzuki Grand Vitara.

All the Nelsons had to do was cover the $1,000 down payment. For most of that amount, Maloy accepted Jeffrey's 12-gauge Mossberg & Sons shotgun, valued at about $700 online."


"Loveless, working as a cook at the local O'Charley's restaurant, had trouble keeping up with the $329 monthly payment. In February last year, the family got a title loan secured by a 2001 Ford Windstar van. In May, subprime lender World Finance gave them a $1,500 loan, secured by a television, a PlayStation and a DVD player."

[kork13]

ugh.... reading that just makes me ill....

[JoeP]

ugh.... reading that just makes me ill....

Me too. This part didn't help:

In Alabama, Jeffrey Nelson continues to drive a bus for the Walker County school system and to work as a constable for his neighborhood. His financial struggles continue, too. "It's one hit after another," he said recently at a local mall restaurant over a dinner of bourbon-glazed chicken - some of it packed up for later. "Three days ago, I lost my iPhone. Had to buy another."