Here’s a perfect example of the causes behind the ‘credit crunch’, coming from a German credit company that offers car loans:

If some Heath Ledger look-alike Eurotrash douchebags want to drive around in hot yellow Lamborghinis with their leather clad girlfriends, who are we to deny them a completely implausible loan?

As the commercial implies in German ‘Das kann Ich auch! = I can do that too!’, anyone can get one of these loans, right? Yes, and that’s the problem…The prevalence of ‘easy credit’ or the abundance of loans available to people who can’t afford them was one of the main causes of the current American economic recession.

Delving deeper, it is true that auto loans can’t be viewed in the same way that these perilous ‘Countrywide mortgages‘ should be. One main distinction is that most auto loans are set at a fixed interest rate, while the mortgage loans, blamed for screwing over so many people, were adjustable rates that unknowingly climbed higher during repayment.

That having been said, it seems that people not being able to pay their mortgages is seriously affecting their ability to make car loan payments. Who would have thought?

According to a recent article in the Houston Chronicle, car loan delinquencies have reached their highest rate in 17 years. That means 3% of all car loans taken out won’t be paid back. Obviously these facts continue to have a major effect on the economy. The Chron’ tries to explain this further:

Other car owners succumbed to repayment plans of seven years, compared with the traditional maximum of five years. As a result, estimates, more than a quarter of auto loans are “upside down,” meaning the borrower owes more than the car is worth. The average negative equity was $4,305.05 in March, up 32 percent from March 2002. also reports that 1.6 million cars will be repossessed this year, that’s a 10% increase from last year. The solution is pretty simple, if you can’t afford a boner-inducing Lamborghini, don’t let some German credit company commercial let you think otherwise. Especially if you’re some Eurotrash douche. The last thing I want to see is someone like you in a cool car.

What type of wheels are pushing, and can you afford them? Are we unnecessarily trashing sketchy Europeans cuz we’re just jealous? Let us know in the comments section.

Houston Chronicle: Automobile Loan Delinquencies Accelerating, April 26, 2008