Tax payer subsidies in the form of 'bail outs'.Originally Posted by Borderland
That and by making some of the cheapest cars out there with substantial incentives attached. A Chevy Malibu (Impala, whatever the model is today) - may MSRP the same as a Camry. But the incentives and the willingness of GM to finance folks at 16% APR means they continue to sell cars.
Then there are fleet sales of trucks, which remain a huge portion of GM's business.
16% APR seems like a lot. That must be for a not-so-good credit rating. I honestly don't know because cash is king.
In the P-F basket of deplorables.
Yep.
GM, Nissan, Kia, and Chrysler are the main automakers who are willing to finance people with mediocre to bad credit for a car loan. Between that and fleet sales (including rental car companies) that's how they stay in business.
I don't mind financing a car - but I'm not paying over 3.5% interest on a 5-year loan. Last two we bought were 3% and 2.25% respectively.
But a lot of folks are lured by the siren song of a new car every few years and are willing to finance their souls away.
That works out for those who don't mind buying those used and off-lease cars.
If we have to march off into the next world, let us walk there on the bodies of our enemies.
True.
One of the other things going on these days - GM, Nissan, and Kia will still lend to those who are driving 'rideshare' (aka Taxis) for Uber and Lyft. I know when we went to buy my mother a new Mazda, they were adamant that if she drove Uber or Lyft (not that she ever would), that it was a violation of the loan agreement and they would repo the car.
This didn't surprise me, given how many miles people are putting on the collateral of these loans.
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