On: Ask HN: What is the next bubble in your opinion?

[rorykoehler]

What use is a recovery if liquidating it will get only a fraction of the loan's value back?

[kylehotchkiss → rorykoehler]

If your credit score is bad, you are probably getting quoted a 15-25% interest rate (my first quoted interest rate was 25% at carmax when I first started working). They can recover depreciation pretty quickly in that case.

[charlesdm → rorykoehler]

I'm assuming they don't give you a loan for the entire amount, i.e. just 70% of the value?

[baldeagle → charlesdm]

Throw in a prior car not paid off, paint/tire/oil protection and an additional warranty - it isn't hard to get up to or over 110% of the car's value.