Fraud rates rising on auto loans

[Blackeagle]

Fraud rates on auto loans are rising, approaching the level of fraud seen on home mortgages before the housing bubble popped.

https://www.bloomberg.com/news/articles/2017-05-10/auto-loan-fraud-is-soaring-in-a-parallel-to-the-housing-bubble

One interesting antimustashian tidbit in the article that caught my eye: the total dollar amount of auto loans outstanding has risen 50% since 2010.

[MustachianAccountant]

Fraud rates on auto loans are rising, approaching the level of fraud seen on home mortgages before the housing bubble popped.

https://www.bloomberg.com/news/articles/2017-05-10/auto-loan-fraud-is-soaring-in-a-parallel-to-the-housing-bubble

One interesting antimustashian tidbit in the article that caught my eye: the total dollar amount of auto loans outstanding has risen 50% since 2010.

John Oliver did a piece on the auto loan bubble about 9 months ago:

https://www.youtube.com/watch?v=4U2eDJnwz_s

[Syonyk]

Once enough financial products based on them have been created, the industry will probably find a way to sell them to unsophisticated investors where they can blow up.

And not make the silly mistakes of 2008 where you could, with enough time, actually work out what the "products" were.

But that asset-backed triple-levered inverse double derivative offset is a can't lose investment!

[Marvel2017]

I believe it, I live in a gentrifying area Downtown and are surrounded by "low income" residents everyday. About 50% of them are driving a Dodge or Chevy less than 3 years old. I'm sure it's mostly dealers easing lending standards so they can make the sale, because 10 years ago this same sub-prime demographic would have only been able to buy from a "buy here-pay here" lot, and only a 5 year or older vehicle. Something is going on, not hard to see that.