Around 42 percent of Santander Consumer’s subprime auto loans made between 2009 and 2014 by dealers identified as “high risk” in Massachusetts and Delaware have defaulted or will default, an amount that is substantially higher than the losses in the overall lending portfolio, Moody’s said in a separate report. “Information in the settlements indicate that some loans in these deals were underwritten based on inflated income and inflated value of collateral,” according to Moody’s.
The auto market is a trillion dollars, compared to the 8 trillion dollar housing market... but cars go down in value while houses go up.
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user-inactivated: The auto market is a trillion dollars, compared to the 8 trillion dollar housing market... but cars go down in value while houses go up.
They also don't last 50+ years either, have land underneath them, etc. Once their value is used up, they're worth about $200 for scrap and that's it.
Now, cars can be an investment, but we're talking about ultra rare concours quality cars and such. Or limited production supecars. Though I wonder if that's all less about the cars and more rich people's ways of creatively investing money. I mean, me? Why buy a car I'm not gonna drive and enjoy.