Extended Auto Loan News
Cleveland Scrap Cars is now offering the fastest damaged car removal service available in Bedford, Berea, and Avon, OH. We are now offering fast cash for cars regardless of the condition in Geauga County, Macedonia, and Aurora, OH. When our junk car buyer purchases a car, truck or van, the process of recycling is the next step taken. The prices in auto scrap throughout the US have a tendency to fluctuate, call us for a quote for a junk car today. Those looking at selling a scrap car in the regions of Westlake, Shaker Heights, or North Randall need only to contact us.
A recent CNBC article tells us the following: “The CEO of Chase’s consumer and community banking division, Gordon Smith, says that his company is backing away from the extended types of vehicle loans, because they could face some stress in a financial downturn. Smith says they are lessening involvement in the 84-mo. term loans.
At Wells Fargo, the lender added $150M to reserves in the 2nd quarter, primarily driven by loan growth in the commercial, auto & credit card areas. However, during its presentation Tuesday, much of its session was devoted not to auto lending, but to the Consumer Financial Protection against the bank after staffers pushed consumers into new accounts for which they didn’t request. Some highlights from the Chase demonstration suggested that, for now, auto lending could continue at a steady pace. The bank indicated in its presentation that new vehicle loan delinquencies aren’t rising very much.
This isn’t the first time this year a leader at JPMorgan has commented on growing debt for car purchases. In June, JPMorgan CEO Jamie Dimon expressed caution on auto loans, which are hitting record highs. Earlier this year, the total volume of auto loans for consumers hit the $1 trillion for the 1st time.
Others have taken notice of the wide ranging credit offerings in the auto loan space. Speaking Tuesday at the Barclays event, Capital One CEO Richard Fairbank told attendees that the amount of capital has backed off recently, and that he has saw competitors taking on too much risk with borrowers. He added that, after making fewer auto loans in the 4th quarter of 2015, the bank has done more lending to auto buyers so far this year.” The full article is available here.
It should come as no surprise that lenders express concern regarding 84 month auto loans. Assuming that you drive around the average of 16K miles a year, then that vehicle is going to have 110K miles on it by the time it is paid off. It seem to be too lengthy of time period for financing such a depreciable asset; not to mention that most people will want to get a new car by the 5-year mark and then likely be rolling some negative equity into their subsequent loan.
Receive a quote for a junk car
We pay cash for junk cars in Solon, Walton Hills, and Streetsboro, regardless of condition and damaged car removal is included. Our fast cash for cars programs includes complimentary removal of your scrap vehicle throughout Bentleyville Village, Mentor, and Willoughby. Another way to characterize our business is as a junk car buyer that services the regions of Lyndhurst, Ohio City, and Highland Heights. Our junk car buyer is able to give you a junk car quote right over the phone when selling a scrap car in the cities of Maple Heights, Middlefield, and University Heights. We are glad to