Subprime Borrowers Are Skipping Payments In Large Numbers

Credit Acceptance Corp., the lender to car buyers with subprime credit scores, warned it’s seeing a sharp drop-off in payments as people shift their financial priorities to get through the coronavirus pandemic.

As unemployment soars, borrowers are putting off payments or “reallocating resources,” Credit Acceptance said in a regulatory filing Monday, explaining that it needs more time to publish a quarterly report. New lending is also slowing as dealerships across the U.S. are forced to shutter their showrooms, the company said.

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ricks0me - 4/21/2020 10:02:50 AM

0 Boost

I did not even read the article. I don’t have to. This is what happens when you lend to the non creditworthy people. I am not wealthy. Call me Joe 6 Pack. I am making payments that I signed for. Good times don’t last forever. Put something away for a rainy day...... Oh wait, Uncle Sam will bail me out.... That means you people tat are reading this are also paying for this.

Now the bleeding heart liberals can have their say >>>>

MDarringer - 4/21/2020 11:15:00 AM

+1 Boost

Indeed. And the loony Alt-Left will call these people "victims" rather than call them "irresponsible". When you spend money you don't have, you have to do so wisely by looking at the cost for repayment etc. People don't do that but that does not make them victims. It makes them stupid. But the "we mustn't blame" mantra of the Alt-Left allows these people to make stupid decisions repeatedly because "we mustn't judge". When you inculcate people to believe that the government should pay their bills, this is the idiocy you get. And we must remember that the Democrats do not want to liberate the masses; they want to have absolute control over them.

qwertyfla1 - 4/21/2020 3:37:16 PM

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Subprime borrowers -what could possibly go wrong? The originators of this junk have offloaded the CDO's long ago to other suckers er I mean "investors".

mini22 - 4/21/2020 6:17:19 PM

+4 Boost

Problem is these borrowers make up a significant amount of vehicle sales. Without subprime borrowers I'm sure sales would be 30 to 40% smaller for most car companies.

MDarringer - 4/21/2020 7:55:12 PM

-1 Boost

Mitsubishi and Nissan especially.

Section_31_JTK - 4/21/2020 10:14:15 PM

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Gee let's lend to people with lousy credit and dubious backgrounds. What could possibly go wrong?

ctsang - 4/23/2020 11:19:19 AM

+1 Boost

repro men will be very busy