• Patches@sh.itjust.works
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    1 year ago

    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.

    • CmdrShepard@lemmy.one
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      1 year ago

      I cant imagine any reputable bank gave out a $35k loan on a $1200 car. That sounds like something a “buy here pay here” lot might so and they’ll just repo the car then resell it again.