This Labor Day we wanted to share some consumer-side information pertaining to car sales. Specifically, those sales where the buyer purchases a car through a loan. Used car salesman and bankers have almost as bad of a reputation as lawyers. Today, we focus on the role of bankers and lawyers involved in a car sale. What could go wrong?
The following presentation is designed as introductory. It is also not intended to convey any ill will toward banks involved in car loans. It is focused primarily on bad news for those with already existing poor credit. From a lender's perspective it is risky to make a loan to someone with a poor credit score as there is a higher chance of default. Therefore, it tends to be specialized lenders making loans under such circumstances and demanding higher rates for the increased risk.
The below is best viewed in full screen.