Chip shortages due to lack of investment in right fabs

Re:Chip shortages due to lack of investment in right fabs by Spooky23 on Monday January 31, 2022 @11:22AM (#30149734)

Used car lenders will collapse.

The 72 month loan for a $50,000, 2019 F-250 will be completely underwater, and the car owners may decide to literally send the cars “underwater” to get out of the loans.

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Re:Chip shortages due to lack of investment in right fabs by thechao on Monday January 31, 2022 @12:23PM (#30150708)

This doesn't sound right? I thought the value of the collateral had no bearing on the loan, except as a condition for the lender to call the loan if the collateral loses too much value?

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Re:Chip shortages due to lack of investment in right fabs by Spooky23 on Monday January 31, 2022 @12:33PM (#30150893)

If a person owes $40k on an asset worth $30k, why would they keep paying?

Based on what happened in places like California with mortgages, they will default one way or another.

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Re:Chip shortages due to lack of investment in right fabs by ahtihn on Monday January 31, 2022 @01:31PM (#30151972)

Defaulting has a cost though. If you default on your car loan, how likely is it that you're getting a loan for the next car? What kind of interest rate are you going to get?

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Re:Chip shortages due to lack of investment in right fabs by Spooky23 on Tuesday February 01, 2022 @02:41PM (#30168031)

Depends. You can get a mortgage with a modest premium a year or two out of Chapter 13 bankruptcy.

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Re:Chip shortages due to lack of investment in right fabs by Scarblac on Monday January 31, 2022 @02:24PM (#30152869)

In Europe at least, they'd still be on the hook for the rest.

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