Quote:
Originally Posted by MrMaxwell
I'm not talking about that, at all
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It really doesnt matter. In any state. There is a maximum interest rate you can charge people. Buy here pay here is much more risk then what you are talking about here, and they can only charge STATE MAX %. I was a Finance Manager for a large auto group in South Florida. A few reasons for this are. 30% is still astranomical. It managed the interest rates so people dont get ripped off. In the beginning of financing cars. You can buy the money from the bank at 3% and sell it to the customer at 30%. You cannot do that anymore. Based on the model year of the car you can make anywhere from 3% down on the actual interest. and this is mainly on low risk loans. On higher risk loans the seller only makes 1.5-2% of the actual interest.
30% is a very very high interest rate. Almost loan shark rates. You also have to have it at a point where people are going to purchase things. Charge people 100%. They will stop buying, and no buying means no selling. No selling means no business.
There are many reasons why the government regulates interest rates and why there is a credit system. The mortgage crisis should have taught you more.