There are many companies that make auto loans. Many of these companies have fell on hard times or are no longer even in business because of reckless lending habits. Many of these companies made poor credit auto loans a big part of their business.
The problem with these loans was the fact that they were very profitable for a long period of time. When the economy was booming, there was no need to worry if a borrower had a good job they were likely to pay back the loan at a very high interest rate.
That changed when the economy went into the tank. Thousands lost their jobs and with them the ability to repay there car loans. Since they already had poor credit, it was nothing to let the car go because their credit did not mean anything to them anyways.
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