Zero Hedge
0
All posts from Zero Hedge
Zero Hedge in Zero Hedge,

Signs Of An Auto Bubble: Dealer Literally Offers "Low Credit Score Discount"

If you're still on the fence about whether the auto market in this country is anything but a massive bubble being propped up by extremely loose credit underwriting standards, then we think we've just found some definitive evidence for you. 

As Jalopnik noted earlier today, at first glance the following advertisement for a $55,000 truck from a dealership in Texas looks fairly 'normal'...an extremely high starting MSRP at the top followed by a series of incentive offers that make the vehicle look "affordable."

But, take a closer look and we think you just might find something rather disturbing...that's right, a $1,500 discount offered only to people with "Low Credit Scores." 

 

Ordinarily, of course, lender/dealer financing incentives like these would be offered to folks with good credit, because...well, that's at least somewhat logical, but it seems as though this particular dealer has already sold a $55,000 truck to everyone with good credit and is looking to 'creatively' broaden it's addressable market. 

Meanwhile, looking at the fine print, it seems as though this incentive is particularly targeted at subprime borrowers with credit scores below 620.

"April 2017 Pricing on all new vehicles may include up to $1500 in finance rebates that have certain credit requirements to be able to claim this rebate. The finance office is Credit Score based and you must be below 620 to qualify. If you are over a 620 you must add up to $1500 to the price. Varies by make and model. Not all units are eligible for this rebate. Call Dealer for Details."

All of which helps to explain why this happened:

 

And while we know that this will be perceived as cruel and unusual punishment by today's entitlement society, we have an idea we'd like to throw out there just for shits and giggles...for anyone out there with a credit score below 620, might we kindly suggest that it might not be the best idea to be shopping for a $55,000 vehicle...just a thought.