FINANCIAL: Dealerships Give Car Buyers Some Advice: Just Stop Paying Your Loan – WSJ

The trade-in, where a buyer hands a car back to a dealership and uses it as credit toward another one, is often a crucial step in car buying. But some dealerships are instead telling buyers to give their old cars back to their lenders—and selling them new ones—in a practice known as “kicking the trade.”

Source: Dealerships Give Car Buyers Some Advice: Just Stop Paying Your Loan – WSJ

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This seems dishonest by both the dealer and the borrower.

Like the sub-prime mortgage fiasco, the banks are letting the “originator” off the hook.

The fix is easy.  Make the originator responsible — both jointly and severally — for the loan when and if it defaults.

Problem solved.

Be it any kind of loan, everyone needs to have skin in the game!

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