Next subprime bubble to burst: auto loans, from New York Post.
Subprime auto loans are on the rise and, just like subprime mortgages, are claiming untold victims.
Samuel Perez, 32, is still dealing with fallout from his experience with a subprime loan five years ago, he told The Post.
Officials at Woodside, Queens, dealership Auto Palace offered him an 8.49 percent interest rate on a BMW, with a teaser rate of 6 percent after six months. Perez worked out a financing deal that included monthly payments and trading in an Audi and rolling its payments into the new car.
The rate never made it down to 6 percent since the BMW didn’t work properly, so Perez returned it. But the dealer wouldn’t give him back the Audi, which it had not paid off, or release him from the debt on the BMW, even though he’d never received title.
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