Quote:
Originally Posted by ToryMikey
The major difference between USA and Aus in both car and housing loans is the ease of obtaining them.
Bad credit car loans are almost a meme in US culture. Here in Aus, application processes are stringent. We don't have a Fannie Mae or Freddie Mac here, never have, and we can't just walk away from our cars or homes if we can't make payments.
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More correctly, the process of repossession is more difficult in our country which is why
banks tend to work with people rather than take possession of vehicles, that’s normally last resort.
Thing to understand is that in a country of 330 million odd, there’s going to be a percentage
of the population who are financially irresponsible and live up to every last penny they earn.
You are quite right, our market and lenders are way more conservative, ask more “what ifs”.
The only people crying at the moment are car dealers who see profits receding as used vehicles
start coming back to more reasonable prices……house loans concerns me more but promise of
multiple interest rate drops in 2024 is obviously keeping the market buoyant…for now.