Posted by on February 21, 2017 11:47 pm
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Categories: Business CDS Economy ETC federal government Finance Financial crisis of 2007–2008 Global Positioning System GPS GPS navigation device GPS tracking unit Interest rates Loans money New York Times Personal finance Student Loans Subprime lending Subprime mortgage crisis Toyota

The story of the Car Loan subprime lending epidemic is nothing new (one of many, student loans etc). Zerohedge has been writing about it for years, with the financial MSM catching on not too long ago. Even John Oliver had a segment about it on his popular show, Last Week Tonight. The new subprime lending epidemic, in the $1.1 Trillion market, which the experts tell us is contianed and won’t have the same effect as in the previous crisis, is where all it takes to buy a car at a dealership is the ability to fog a mirror. Cracks have been rearing their heads over the last few months, but nothing like we are seeing as of late. According to the latest data, auto loan delinquencies are now at levels not seen since the last financial crisis. But don’t worry, economists are already coming out of the wood works to tell us that the idea there is an auto loan bubble is “a litte overblown.”  Good thing economists have a great track record, and CDS contracts exist.  But what most people didn’t know, especially these buyers, who have credit scores of less than 600 and are driving a new car with little to no money down, is that they have a gps tracker in their new/used car. About a year ago, a friend who owns a car stereo shop outside of Sacramento told me that almost every single car or truck they work on has a gps tracker in the dash. What was even more disturbing, was when he said some of the cars as old as a 1994 Honda Accord, or a 1991 Toyota Celica, which the owners had just financed from a local dealership, had trackers in them. Up until he told me about the use of trackers, no one had ever mentioned this gps tracking that is being done without the owners consent, or maybe they didn’t read the 5 point font fine print when buying their car. Then this past Sunday, the New York Times had an Article titled “Federal Agency Begins Inquiry Into Auto Lenders’ Use of GPS Tracking” where the article went into detail explaining that with the use of GPS trackers, financing companies are now more willing to lend to the lowest income Americans because if things go south, they’ll know immediately where the car is and repo it.  Using GPS trackers also allows lenders to find out exactly where the car is after customers/deadbeats miss their payments. But, the federal regulators are interested because they realized that these GPS devices ufairly violate a borrower’s privacy, which only the federal government is allowed to do. So in the meantime, as long as the stock market bubble continues to make new all time highs on a daily basis, this subprime lending bubble will go largely unnoticed by a majority of Americans, who will be driving away in a 2017 Escalade while working minimum wage at McDonald’s.

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