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Car Dealers Make More Profit On Loans Than Selling Cars
• https://moneymaven.io
A third of auto loans in 2019 had a term period over six years. People cannot afford the cars they are buying.
Seven-Year Loan Surge
America's middle class can't afford its cars.
A surge in the Seven-Year Auto Loan rate provides all the evidence you need.
Walk into an auto dealership these days and you might walk out with a seven-year car loan.
That means monthly payments that last well past when the brake pads give out and potentially beyond when the car gets traded in for a new one. About a third of auto loans for new vehicles taken in the first half of 2019 had terms of longer than six years, according to credit-reporting firm Experian PLC. A decade ago, that number was less than 10%.
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1 Comments in Response to Car Dealers Make More Profit On Loans Than Selling Cars
The reason for this is that nobody can make it to court without his transportation. The car owner can't make his loan payments. The car is repoed. The owner can't make it to court to show that he paid the loan off in advance, before he got the car or the loan. How did he pay it off? By making the promissory note a thing of value by signing it. How much value did the promissory note have before he signed it? None. How much was it worth after he signed it? The value of the car. He paid off the loan with the promissory note or final loan app. --- Tom Schauf was a bank CPA who discovered that loans are paid off in advance, by the value of the signature on the promissory note. The whole process is a creation of new money. Tom found this out by doing his job, auditing bank ledgers, which didn't seem to make sense to him, until he applied this simple logic. Search https://duckduckgo.com/?q=Tom+Shauf%2C+bank+freedom&ia=web.