shane_th_ee
Full Access Members
But you have to ask "at what rate?" The captive finance arms need loans with good credit scores so they can mix them in with the high risk loans and sell them off in tranches as CDOs. And the parent companies need them to make those high risk loans to move product. So if you have a good credit score, you have the ability to create something they want (a low risk loan) and they have something you want (money). The trade happens via the captive finance company subsidizing the interest rate on your loan. Which means you can arbitrage the interest rates between what you can earn in your investment accounts vs what you have to pay in interest...We were shocked when we went to settle up with the finance guy and he had options for 72 months and some longer. Then he was shocked when we wanted zero months.