Subprime Auto Loans & Tools of the Trade

http://news.yahoo.com/s/usatoday/20080331/tc_usatoday/hightechgeardisablescarifborrowermissespayment

Apparently 7 million autos purchased by subprime auto buyers. Estimated default rate is 30% for subprime auto borrowers vs. 7% for prime auto borrowers.

So many subprime borrowers are installing these lojack devices onto the car. No payment, no car movement or annoying noise, etc.

Companies selling such devices include:
Sekurus
Pay Technologies
PassTimeUSA

So as credit disappears, and investors won't buy the auto securities sold (yup, those loans are collateralized and sold too folks) the auto industry will further contract to "true demand" as I call it.

I think this (auto sales) are going to be a nightmare/HUGE mess this year

Dan Ross
http://BetterBizBooks.com