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Auto loan delinquencies in the fourth quarter hit their highest level since the financial crisis, a report out Thursday revealed.
About $23.27 billion in loans were 30 days or more late as of Dec. 31 — a whopping 14 percent increase from the year earlier and the most since the $23.46 billion in the third quarter of 2008, according to the New York Federal Reserve.
Delinquencies have moved up as the credit quality of the loans has deteriorated and the length of the auto loans has increased — sometimes to 84 months. [...] Delinquencies are the canary in the coal mine when it comes to losses for carmakers.
[...] The average monthly car payment in the fourth quarter rose above $500 for the first time, according to the credit-rating agency Experian.
(Score: 2) by TheRaven on Sunday February 19 2017, @12:34PM
There is no such thing as a "worse rate" than no loan at all.
I guess your reading comprehension isn't doing so well over the weekend. The interest rate that you're offered is related to how much of a risk you are. If you're a sufficiently bad risk that the bank won't lend to you at their lending rate, then it's because they consider the likelihood of your being able to make payments and not default on a loan at that rate is sufficiently low that they will likely make a loss out of the transaction. The likelihood of your being able to make payments at a higher rate and not default on the loan is not going to be any higher.
There are a few cases where you'll hit a corner case in the bank's risk analysis and you could have easily afforded the payments on the loan from the bank, but they're relatively rare.
sudo mod me up