Rolling over car loans could signal disaster for car sales
Given that, how could anyone who owes more on a car loan than the car is worth ever expect to rollover the extra debt to a new loan and ever get ahead? How could any bank or credit company ever expect such a deal to be a good idea? Apparently, such deals where people apply the upside down difference on a loan toward a subsequent loan have become common in recent years. Even if the real estate market weren't in the process of imploding such deals would inevitably lead to a situation where the buyer could no longer afford to keep buying. If carmakers have kept their sales volumes going on this kind of financing, sales that have already been sagging could go into complete free fall.
[Source: Detroit News]
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