Quote:
Originally Posted by kerry
I wonder if anyone has produced an analysis of the relative price of wholesale used cars to the general health of the economy. My impression is that what you are seeing not a good sign. It's an indication of the increasing credit unworthiness of the middle class.
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Based on the credit apps I'm seeing come through, absolutely.
Tax return season is at its peak. Lucky wage slaves actually get money back, and use it to make big purchases. With this money they buy as much as they can, using the return as a down payment to finance whatever they can get. This is prime time for a buy here pay here lot, as they mark the cars up $5000 over retail and charge 18-28% interest. They need the down payment to offset the risk as much as possible.
In my case, it may come down to adapt (go sub-prime/buy here pay here) or die (close up). I really don't see myself becoming a bill collector.