Beware of auto yo-yoing

Here's an interesting article on the problem of "auto yo-yoing" where a customer drives away from the dealer thinking the deal was done but then the car gets pulled back when the dealer cannot "finalize" the loan (sell it to a bank.) The story did miss one important angle: the fact that dealers and customers got used to the ultra-lax/non-existent lending "standards" that we all had before the onset of the financial crisis. Back then (2007), dealers actually could "guarantee" that anybody could get a loan because Wall Street was not only buying everything (literally) but even had a strong preference for the most risky loans since they had they highest (non-risk-adjusted) yield. So, I am a little disappointed that the article did not strongly remind dealers (as well as consumers) that the guarantee that was available to them back in 2007 is no longer available today.

 

This is also an annoying reminder that liberals are right, that business can't be trusted to "do right" by the consumer unless Big Government is standing right there with a stern glare and a big stick. Sigh. Why can't business just "get it right" so we no longer need to tolerate these "See, I told you so!" liberals?

-- Jack Krupansky