Looks as though they have been allowing sub prime loans more than other auto makershttp://money.msn.com/investing/post--is-gm-headed-for-another-subprime-loan-crisis

it's a said state of affairs in America when only 3% applying for an auto loan have a FICO score above 600

Nothing to worry about Government Motors will just get more money from the taxpayers again ....

gafidler wrote:Nothing to worry about Government Motors will just get more money from the taxpayers again ...."And assemble Chevrolet pickups in Mexico"!

Good. Don't care. Have 3 Chevy' s in the driveway.

GM heading towards a sub prime loan problem? | Good Sam Community

26 Replies

BurbMan
Explorer II
Nov 14, 2013
Hey maybe we should keep the discussion in the "Tow Vehicles" section about the actual vehicles and not the business practices of the OEMs....since very few here appear to have a solid (or any) understanding of finance, business, or economics.

This thread is destined to become too political and get locked anyways.....
wilber1
Explorer
Nov 13, 2013
Stocks doing OK. Up 3% today and up 25% since last summer.
Vulcaneer
Explorer
Nov 13, 2013
Does it seem at least a little strange that one ALMOST bankrupt entity can loan a huge sum of money, to another NEARLY bankrupt entity? And this makes everything better for everybody?

Maybe the GM conglomerate should break up and make each business unit operate as their own separate entity. Let the strong survive. And the market can decide.
goducks10
Explorer
Nov 13, 2013
mich800 wrote:
hone eagle wrote:
The Texan wrote:
NJRVer wrote:
Since GM is the largest of course their numbers will be higher.
Follow the links in the article about GM not being alone in subprime loans and one goes to a photo of a guy in the Ford dealership.
So much for all you conspiracy types.

Good catch

Gm is the largest but not by as much as they used to be ,remember after the BK they are 1/2 the size they were before 2008.
Even if they go ti*s up ,someone will still have to build the cars the market demands,if it takes 200,000 jobs to build 15 million cars/trucks ,those 200,000 jobs will still be there ,just not the same people.
Could even be the same guys /gals if another auto company picks up the best pieces.

That is part of the problem. Everyone was told the jobs would just disappear but that was not necessarily true and there was no reason to turn decades of bankruptcy and UCC law on its ear because the end justifies the means. I do not agree with how it happened but do agree that we should have done something.

Not being a bankruptcy lawyer I have no idea how long a bankruptcy of that magnitude would take. I would imagine a long time. In the mean time wouldn't all connected GM employees be out of a job? Or at least most. I just don't see how Chrysler, Ford, Toyota or any of the U.S auto makers would be able to instantly start hiring more employees to fill the supply gap. I would think that it could be quite a while for all that to take place. In the meantime those workers have to pay bills. A big majority would lose their homes. It sounds like it would be simple but IMO the short term ramifications would out weigh the long term ramifications.
mich800
Explorer
Nov 13, 2013
hone eagle wrote:
The Texan wrote:
NJRVer wrote:
Since GM is the largest of course their numbers will be higher.
Follow the links in the article about GM not being alone in subprime loans and one goes to a photo of a guy in the Ford dealership.
So much for all you conspiracy types.

Good catch

Gm is the largest but not by as much as they used to be ,remember after the BK they are 1/2 the size they were before 2008.
Even if they go ti*s up ,someone will still have to build the cars the market demands,if it takes 200,000 jobs to build 15 million cars/trucks ,those 200,000 jobs will still be there ,just not the same people.
Could even be the same guys /gals if another auto company picks up the best pieces.

That is part of the problem. Everyone was told the jobs would just disappear but that was not necessarily true and there was no reason to turn decades of bankruptcy and UCC law on its ear because the end justifies the means. I do not agree with how it happened but do agree that we should have done something.
hone_eagle
Explorer
Nov 13, 2013
The Texan wrote:
NJRVer wrote:
Since GM is the largest of course their numbers will be higher.
Follow the links in the article about GM not being alone in subprime loans and one goes to a photo of a guy in the Ford dealership.
So much for all you conspiracy types.

Good catch

Gm is the largest but not by as much as they used to be ,remember after the BK they are 1/2 the size they were before 2008.
Even if they go ti*s up ,someone will still have to build the cars the market demands,if it takes 200,000 jobs to build 15 million cars/trucks ,those 200,000 jobs will still be there ,just not the same people.
Could even be the same guys /gals if another auto company picks up the best pieces.
The_Texan
Explorer
Nov 13, 2013
NJRVer wrote:
Since GM is the largest of course their numbers will be higher.
Follow the links in the article about GM not being alone in subprime loans and one goes to a photo of a guy in the Ford dealership.
So much for all you conspiracy types.

Good catch
Fordlover
Explorer
Nov 13, 2013
Engineer9860 wrote:
I hope GM goes bankrupt. Shut the whole worthless company down.

That will be great. The RAM fanboys, and the blue oval Kool-aid drinkers can sit around cheering their win over GM while ignoring the tons of their tax dollars being spend to pay out unemployment benefits to the displaced workers.

Yup. A huge win for the brand loyalists, and GM haters.

You pathetic people make me sick.

Nobody I know wanted to see GM go under, but I also don't want my great grandchildren having to deal with the debt from our irresponsible handling of economic issues 60 years from now.

That being said, if GM digs themselves into a hole again that they need bankruptcy proceedings, I say let 'em sink. And the same with Ford and Chrysler. That being said I believe all 3 companies are doing great, and are a far way off of financial disaster. Now if they actually had to pay back all the debt, loans and interest it might be a different story...

Fool me once, shame on you, fool me twice, shame on me.
Engineer9860
Explorer
Nov 13, 2013
I hope GM goes bankrupt. Shut the whole worthless company down.

That will be great. The RAM fanboys, and the blue oval Kool-aid drinkers can sit around cheering their win over GM while ignoring the tons of their tax dollars being spend to pay out unemployment benefits to the displaced workers.

Yup. A huge win for the brand loyalists, and GM haters.

You pathetic people make me sick.
mich800
Explorer
Nov 13, 2013
gmcsmoke wrote:
W4RLR wrote:

It's better to go through a bank or credit union anyway. Right now my credit union will loan money for a new car for 3% simple interest.

lol who do you think dealerships use? You think the dealership owner finances vehicles out of his own pocket?

The article is about the paper the finance arms of the OEM's hold. Not the financing the dealers place with outside banks.