re: At local Honda dealership this morning

quote:

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Even the top of the line Pilot trim is around $50k. A 72 month loan for $50k at 7% interest rate is around $850 a month. I doubt that guy is somehow $20k upside down on his trade in…because that seems awfully hard to do unless its been wrecked and not repaired, plus highly unlikely a bank would approve a loan that high above the new vehicle value. Baw is probably only upside down by a small amount but his credit score sucks, so he’s getting a 15% interest rate

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I was curious if a bank would actually approve a loan when the collateral is only 60% of total amount borrowed.

Your scenario seems more plausible