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Author Topic: I clicked on a random car loan  (Read 21624 times)

JammingJAY

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Re: I clicked on a random car loan
« Reply #15 on: April 28, 2009, 09:29:04 am »
LOL!

Looks like buy here pay here dealers pawning off bad loans.

Let's see...

Car guy gets 21.45% interest you get 17.34% for taking on the risk of a 640-660 credit score with a 10yr DL for the next 65 months on a car with a LTV of 118%.

Car guy gets 4.11% as long as your loan is paying.

When the payments stop you get charge off.

Whats not to like!

Bid baby bid!

Vermonter even put a loan up!

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Urbi_et_Orbi

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Re: I clicked on a random car loan
« Reply #16 on: April 28, 2009, 10:07:39 am »
I think the very idea of re-selling loans is flawed. 
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Elmslice

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Re: I clicked on a random car loan
« Reply #17 on: April 28, 2009, 10:25:27 am »
I posted this link in another thread but it's more relevant here. 

http://www.prosper.com/invest/listing.aspx?listingID=414862

2001 Grand Am with 118% LTV (!) when originated 7 months ago.  29 payments to go.  19.95% borrower rate.  Yet listed as B grade.

This is the junkiest junk imaginable.  I'd say it's the equivalent of an E or HR vacation funding loan on the old Prosper.   The ONLY people who should get involved with this kind of loan are buy here pay here lots which install devices that disable the car when the loan goes late.

So, Prosper has set up a situation where the B grade is applied to a horrible loan, the kind of loan that results in an underwater borrower and no equity repo more often than not.  Shameful. 
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JammingJAY

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Re: I clicked on a random car loan
« Reply #18 on: April 28, 2009, 10:34:32 am »
I like this one

http://www.prosper.com/invest/listing.aspx?listingID=414860

Me thinks the current DQ and low CS prompted the listing.

Hell the guy probably called and told CPS he lost his job.

Where have I read this before?

Quote
* CPS has calculated the estimated loss on their loans using historical performance data for pools of receivables that have similar credit and structural characteristics.



 :D

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The old rule has changed: it seems that people now do have a right not only to their own opinions, but to their own facts.

I'm now trysexual. The GLBT folks are so behind (no pun).

Senator

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Re: I clicked on a random car loan
« Reply #19 on: April 28, 2009, 10:44:45 am »
Yeah!  But compare those juicy interest rates to CDs!  ::)
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112233

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Re: I clicked on a random car loan
« Reply #20 on: April 28, 2009, 10:48:08 am »
Quote from: JammingJAY on April 28, 2009, 09:29:04 am
LOL!

Looks like buy here pay here dealers pawning off bad loans.

Let's see...

Car guy gets 21.45% interest you get 17.34% for taking on the risk of a 640-660 credit score with a 10yr DL for the next 65 months on a car with a LTV of 118%.

Car guy gets 4.11% as long as your loan is paying.

When the payments stop you get charge off.

Whats not to like!

Bid baby bid!

Vermonter even put a loan up!

who says they even bought the loans? what's to stop dealers from approving the loans on their side only after they are funded on prosper?
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LoanChimp

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Re: I clicked on a random car loan
« Reply #21 on: April 28, 2009, 10:49:36 am »
This is completely insane...  :D :D :D
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JammingJAY

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Re: I clicked on a random car loan
« Reply #22 on: April 28, 2009, 10:52:24 am »
Quote from: LoanChimp on April 28, 2009, 10:49:36 am
This is completely insane...  :D :D :D

Maybe this is Prosper twisted idea of institutional lending.

 :D

 
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The old rule has changed: it seems that people now do have a right not only to their own opinions, but to their own facts.

I'm now trysexual. The GLBT folks are so behind (no pun).

Elmslice

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Re: I clicked on a random car loan
« Reply #23 on: April 28, 2009, 11:03:07 am »
Quote from: 112233 on April 28, 2009, 10:48:08 am

who says they even bought the loans? what's to stop dealers from approving the loans on their side only after they are funded on prosper?

The examples I looked at before nausea overcame me show loan origination dates of a few months ago.  I suspect, although there's no way to really tell, that these loans were never owned by the dealer.   If a company owns such a loan portfolio, which loans will it then resell?  The one with equity or the one without?  The guy who told you he's broke or the guy whose auto drafts sail through monthly? 

Prosper misrepresenting risk (again!) only adds insult to injury.
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JammingJAY

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Re: I clicked on a random car loan
« Reply #24 on: April 28, 2009, 11:05:05 am »
Quote from: Elmslice on April 28, 2009, 10:25:27 am
I posted this link in another thread but it's more relevant here. 

http://www.prosper.com/invest/listing.aspx?listingID=414862

2001 Grand Am with 118% LTV (!) when originated 7 months ago.  29 payments to go.  19.95% borrower rate.  Yet listed as B grade.

This is the junkiest junk imaginable.  I'd say it's the equivalent of an E or HR vacation funding loan on the old Prosper.   The ONLY people who should get involved with this kind of loan are buy here pay here lots which install devices that disable the car when the loan goes late.

So, Prosper has set up a situation where the B grade is applied to a horrible loan, the kind of loan that results in an underwater borrower and no equity repo more often than not.  Shameful. 

Hey anton's good for $250 on this baby.


 ;D

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The old rule has changed: it seems that people now do have a right not only to their own opinions, but to their own facts.

I'm now trysexual. The GLBT folks are so behind (no pun).

112233

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Re: I clicked on a random car loan
« Reply #25 on: April 28, 2009, 11:08:45 am »
Quote from: Elmslice on April 28, 2009, 11:03:07 am
Quote from: 112233 on April 28, 2009, 10:48:08 am

who says they even bought the loans? what's to stop dealers from approving the loans on their side only after they are funded on prosper?

The examples I looked at before nausea overcame me show loan origination dates of a few months ago.  I suspect, although there's no way to really tell, that these loans were never owned by the dealer.   If a company owns such a loan portfolio, which loans will it then resell?  The one with equity or the one without?  The guy who told you he's broke or the guy whose auto drafts sail through monthly? 

Prosper misrepresenting risk (again!) only adds insult to injury.
remember all those option backdating scandals? prosper is not going to care and if someone calls them on it, they will just point their fingers somewhere else.
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LoanChimp

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Re: I clicked on a random car loan
« Reply #26 on: April 28, 2009, 11:13:03 am »
Quote from: 112233 on April 28, 2009, 11:08:45 am
Quote from: Elmslice on April 28, 2009, 11:03:07 am
Quote from: 112233 on April 28, 2009, 10:48:08 am

who says they even bought the loans? what's to stop dealers from approving the loans on their side only after they are funded on prosper?

The examples I looked at before nausea overcame me show loan origination dates of a few months ago.  I suspect, although there's no way to really tell, that these loans were never owned by the dealer.   If a company owns such a loan portfolio, which loans will it then resell?  The one with equity or the one without?  The guy who told you he's broke or the guy whose auto drafts sail through monthly? 

Prosper misrepresenting risk (again!) only adds insult to injury.
remember all those option backdating scandals? prosper is not going to care and if someone calls them on it, they will just point their fingers somewhere else.

The payment history is also highly suspect IMO...
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ferengi31337

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Re: I clicked on a random car loan
« Reply #27 on: April 28, 2009, 11:23:29 am »
As was pointed out in another thread, who knows who the lienholder will be.  If it's CPS, you may as well go buy a CDO^2.
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JammingJAY

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Re: I clicked on a random car loan
« Reply #28 on: April 28, 2009, 11:25:48 am »
OMG....

There is a 4.24% premium to get on this one.

http://www.prosper.com/invest/listing.aspx?listingID=414856

 :D :D


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The old rule has changed: it seems that people now do have a right not only to their own opinions, but to their own facts.

I'm now trysexual. The GLBT folks are so behind (no pun).

112233

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Re: I clicked on a random car loan
« Reply #29 on: April 28, 2009, 11:26:21 am »
Quote from: LoanChimp on April 28, 2009, 11:13:03 am
Quote from: 112233 on April 28, 2009, 11:08:45 am
Quote from: Elmslice on April 28, 2009, 11:03:07 am
Quote from: 112233 on April 28, 2009, 10:48:08 am

who says they even bought the loans? what's to stop dealers from approving the loans on their side only after they are funded on prosper?

The examples I looked at before nausea overcame me show loan origination dates of a few months ago.  I suspect, although there's no way to really tell, that these loans were never owned by the dealer.   If a company owns such a loan portfolio, which loans will it then resell?  The one with equity or the one without?  The guy who told you he's broke or the guy whose auto drafts sail through monthly? 

Prosper misrepresenting risk (again!) only adds insult to injury.
remember all those option backdating scandals? prosper is not going to care and if someone calls them on it, they will just point their fingers somewhere else.

The payment history is also highly suspect IMO...
only hypotheticals. The main point is how can lenders be sure of what they are bidding on? prosper is even less involved now.
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