Auto loan advice- Upside down and having a hard time.

[Remember0]

It's a combination of easy approvals and predatory (imo) dealer practices (pushing warranties, over-priced cars, etc...). This has little to do with the thread, but I think a mortgage like bust is coming for the subprime auto loan world in the coming years. It prolly won't spill over into the overall economy since autos are easily repo'ed and auctioned quickly, preventing bank reserves from being entirely depleted.

[blondy250]

Some economists predict the next bust will be the trillion dollar student loan debt.

[Remember0]

Or that. But I think subprime autos will bust as well. It won't reverberate through the economy though. People will just have a harder qualifying for auto loans in the future, is all.

I think though that the government knows the student loan bust is coming. Thats why they are offering things like Income Based Repayment and forgiveness after 10 or 20 yrs. I view this as an indirect bailout that I assume they think will stave off any problems.