They won’t have to worry about selling the cars, some used car dealer will take them off their hands gladly. What the banks and the financiers will have to worry about is how to bundle all of that bad debt into CDOs. There’s a movie about this I think.
No used car dealership is going to take a 2007 Chevy Cavalier for 35k and yet that loan was approved during COVID, and subsequently repo’d.
No dealer will ever unload that car without a huge loss.
It’s the banks problem to sort out. Until they sell the car to a dealer - they don’t lose much. It’s all ‘in the air’ on the books. They have a 35k loan and (in theory) a 35k car.
They won’t have to worry about selling the cars, some used car dealer will take them off their hands gladly. What the banks and the financiers will have to worry about is how to bundle all of that bad debt into CDOs. There’s a movie about this I think.
No used car dealership is going to take a 2007 Chevy Cavalier for 35k and yet that loan was approved during COVID, and subsequently repo’d.
No dealer will ever unload that car without a huge loss.
It’s the banks problem to sort out. Until they sell the car to a dealer - they don’t lose much. It’s all ‘in the air’ on the books. They have a 35k loan and (in theory) a 35k car.