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> If I take out a loan to buy a car, the loan amount is not going to be larger than the value of the collateral (the car).

Pray tell of these new cars whose value does not plummet the moment they are driven off the lot.




Which is why car loan providers usually require a substantial down payment so the loan is not underwater. (And why home mortgage providers usually require a LTV well under 100 percent--and make you pay mortgage insurance even then unless the LTV is even lower.)


What the hell are you taking about? I have never made a down payment for a car and have never paid interest on a car loan. Ever. And I’ve purchased many cars.

E: woah! .06 seconds to the first downvote to a Dow thread comment on a two day old post! I’m out.


Currently several year-old cars are selling for nearly as much as brand-new cars. Even before the current car shortage, repossessed zero-money-down cars were commonly resold at basically the same price as the first sale.


Currently. Which is mostly notable because it is not normal.




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