Ask HN: What is the next bubble in your opinion?

Re:Ask HN: What is the next bubble in your opinion? by kylehotchkiss on Wednesday January 18, 2017 @10:49PM (#13432833)

It's pretty easy to repo a car all around the country if you don't pay your bill. Add in the fact that most new cars sell with GPS transmitters built in and many car loans are provided by the car company themselves and you've got yourself a quick way to recover losses. It's harder for a bank to evict a tenant of a mortgage, harder for a bank to get money from a graduate who is buried in debt, harder for a credit card company to recover from people who aren't paying either.

The funniest thing is how much cheaper new car loans are compared to used car loans.

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Re:Ask HN: What is the next bubble in your opinion? by rorykoehler on Thursday January 19, 2017 @12:56AM (#13433411)

What use is a recovery if liquidating it will get only a fraction of the loan's value back?

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Re:Ask HN: What is the next bubble in your opinion? by kylehotchkiss on Thursday January 19, 2017 @11:02AM (#13436785)

If your credit score is bad, you are probably getting quoted a 15-25% interest rate (my first quoted interest rate was 25% at carmax when I first started working). They can recover depreciation pretty quickly in that case.

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Re:Ask HN: What is the next bubble in your opinion? by charlesdm on Thursday January 19, 2017 @06:07AM (#13434827)

I'm assuming they don't give you a loan for the entire amount, i.e. just 70% of the value?

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Re:Ask HN: What is the next bubble in your opinion? by baldeagle on Thursday January 19, 2017 @08:51AM (#13435714)

Throw in a prior car not paid off, paint/tire/oil protection and an additional warranty - it isn't hard to get up to or over 110% of the car's value.

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