Auto lenders and dealers engage in scamming practices by adding hidden fees, increasing prices for users with poor credit, giving loans with high interest rates to people who can't sustain them, and offering financing for expensive cars to individuals with low income and poor credit to profit from defaults. The practice exploits individuals with poor credit histories who are misled into high-interest loans for expensive vehicles, preventing them from obtaining reasonable loans at affordable rates.
Drivers are increasingly paying sticker price or more for a new car. Then there are sky-high insurance rates and mortgage-level car payments. Vox’s Marin Cogan explains how we got here.
This episode was produced by Victoria Chamberlin, edited by Matt Collette, fact-checked by Laura Bullard, engineered by David Herman, and hosted by Noel King.
Transcript at vox.com/todayexplained
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