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. “Nationwide, repossessions are up about 15 percent so far this year.” Many analysts, however, warn that allowing your car to be repossessed often doesn’t free buyers from their obligation. “They still may owe money if the lender sells the car for less than the balance owed. Moreover, the repossession typically stays on consumers’ credit reports for up to seven years.”
In an editorial, California’s Whittier Daily News places blame for the crisis on some “auto lenders and financiers” who “made loans to people with questionable credit or with limited ability to pay.” Attorney Alec Trueblood told the Daily News “Unscrupulous dealers who finance their own loans” sometimes “collect deposits and payments from people they know can’t afford them — that way, they can repossess the car and resell it over and over.” He reports that he has seen dealerships “knowingly misstate a buyers’ income — either with or without the buyer’s knowledge — so the lender would accept the loan application.”
US News & World Report – 10-06-08
By Chris Woodyard, USA TODAY
Repo lots overflow with reclaimed cars
Updated 2/14/2008 12:47 AM |
This year’s predicted 10% rise in vehicle repos to 1.6 million would be a third higher than 10 years ago, says Thomas Webb, chief economist for a unit of Atlanta-based Manheim, which sells cars to dealers worldwide. The increase comes atop a 10% rise in repos last year.
Car and truck repossessions this year are headed for the highest level in at least a decade, thanks to easy credit and a faltering economy, says an economist for one of the largest wholesale auto auction services.
posted this comment there at 3.02 p/ET-US, 10-06-08, USA
Cricket Diane C Sparky Phillips writes:
The repossession of cars likely shows more about unemployment levels than dept of labor because their numbers are manipulated. The US Department of Labor number is based on first-time applications for unemployment benefits as if that is the percentage of Americans unemployed and jobs lost which doesn’t indicate a true percentage of people that are currently unemployed.
What are the current stats of cars, trucks, and furniture repossessed? Way over 3.4 percent, I would guess. The number of jobs lost and unemployment percentages are a faulty non-representation and lenders, including large lenders know it – so do other countries that are dependent on the US consumer economy. That is why they aren’t going to lend.
These two articles were from earlier this year, however the current numbers and last years numbers of auto and truck repossessions have to be staggering. They are closer to indicating the real problems that exist in the fudging unemployment figures as the Dept of Labor has done.
But, today, those banks, bankers, investors, sovereign wealth funds and others that make lending happen – already know the real unemployment numbers are not a little bit higher than 6% – but way, way, way higher because their numbers don’t come from our US department of Labor. – Duh.
Why would they want to lend money for people and businesses in the USA? Why would they think there will be a return on the value of that loan now? What could possibly make sense about investing in the US as it is today, or to keep a small business open, or to open one, or to support consumer-based businesses on their continued hole-in-the-bucket productivity without buyers?
The reason the US government agencies in charge of publishing different economic factors numbers are manipulating their presentation and using techniques of distortion, mixing apples and oranges, comparing estimated whole stats from the Great Depression with partial stats of the current situation and doing other divisive techniques to misrepresent these numbers (including the unemployment/ job losses stats) is because they are choosing to do it that way.
Written by Cricket Diane C Sparky Phillips, 10-06-08, USA