Quote:
Originally Posted by KevinC
Nonsense like this has been going on for a long time, but I thought it was largely over? Apparently not.
Back when I was young ('70s/'80s), if you walked into a dealership with a trade, first thing they did was determine how much equity you had in it, and also establish whether or not you'd be putting any cash down in addition to the trade. If you were upside-down in the trade (like this goofball in the example above) and didn't have a fat wad of cash to make up for it and then some, you were quickly escorted out of the dealership - absolutely no way to finance a negative equity deal back then. As it should be.
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Yes - that's exactly how it should be...
...but we live in an unsustainable economy of revenue growth at all times which translates to, let's get this sucker into a car, make solid margin on him and then let the bank deal with the repo...
... then we the taxpayer will socialize this loss once it happens at a large enough scale... sad state of times.