He should.
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Originally posted by Winston
Assuming he has even thought along those lines. They were options mentioned by other posters, not by Spec as coming from the guy in need of the cash.
Speculation, sure. But that's all we've got, since we don't know the guy, and apparently neither does Spec. But there's a lot of money to be made here on the back of someone else's misfortune and thoughtlessness, so who cares! Plus you get to appear "kind".
The reason why we're suggesting against it is not because the interest rate is too low, it's that the risk is too high, especially given the collateral offered.
It also does nothing to ameliorate the larger problem, that of the gamblers gambling problem. It also involves Spec in a problem that is not his own... well, it is now.
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As someone who has done enough loans in the past, I can tell you that A) automobiles are considered terrible collateral and B) the typical rate of interest for a "lender of last resort" (places like TransCanada Credit in Canada) is in the 30% neighbourhood."The French caused the war [Persian Gulf war, 1991]" - Ned
"you people who bash Bush have no appreciation for one of the great presidents in our history." - Ned
"I wish I had gay sex in the boy scouts" - Dissident
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Originally posted by Winston
I don't lend money out, but if I were to, and had the security of getting the car upon non-fulfilment, 7% p.a. Not that I see the relevance of what I would do."The French caused the war [Persian Gulf war, 1991]" - Ned
"you people who bash Bush have no appreciation for one of the great presidents in our history." - Ned
"I wish I had gay sex in the boy scouts" - Dissident
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Originally posted by Winston
I don't lend money out, but if I were to, and had the security of getting the car upon non-fulfilment, assuming the realisation value of it is accurate, 7% p.a. Not that I see the relevance of what I would do.
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I agree. So 30% it is.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891
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As told to you by others, 15% isn't market rates for this type of loan. 30% is.
You're charging under-market rates - as is Spec. That's all we're saying.
And, apparently, you agree.
you shouldn't deviate much from the market rates
As someone who has done enough loans in the past, I can tell you that A) automobiles are considered terrible collateral and B) the typical rate of interest for a "lender of last resort" (places like TransCanada Credit in Canada) is in the 30% neighbourhood.
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He's massively undercutting market rates for someone in that person's situation."The French caused the war [Persian Gulf war, 1991]" - Ned
"you people who bash Bush have no appreciation for one of the great presidents in our history." - Ned
"I wish I had gay sex in the boy scouts" - Dissident
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