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Go Back   TDIClub Forums > VW TDI Discussion Areas > Dieselgate - VW Group Emission Scandal

Dieselgate - VW Group Emission Scandal Discussion around the VW Dieselgate Emissions scandal. Details and news updates can be viewed here: http://forums.tdiclub.com/showthread.php?goto=newpost&t=448336 This forum is a work in progress depending on requirements, usage, etc.

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Old October 27th, 2016, 05:09   #1
fan of fanboys
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Default Impact of buybacks on bank?

So I was thinking last night: I imagine a big chunk of TDi vehicles that are being bought back currently have loans. And that means interest which means bank profit. Making up a number lets say 100,000 loans will be canceled/paid off prematurely. Number could be higher or lower, I don't think any of us know.

Be fascinating to see the impact this has one lenders/banks bottom lines, both on individual companies and as a whole.

I am sure this will have a notable impact on the market
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Old October 27th, 2016, 05:31   #2
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How much do you think consumer debt is at any one time in the US? Think around $12 trillion. The payoff of 100,000 loans in a short period of time won't even be noticed. So no affect.
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Old October 27th, 2016, 05:34   #3
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How much do you think consumer debt is at any one time in the US? Think around $12 trillion. The payoff of 100,000 loans in a short period of time won't even be noticed. So no affect.

I doubt it will go unnoticed. It is a guess since we do not know the number of loans and amount of remaining interest owed but even if not a substantial impact it would be an impact nonetheless. The impact is lessened as it is spread across who knows how many banks but still am impact.
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Old October 27th, 2016, 05:41   #4
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I doubt it will go unnoticed. It is a guess since we do not know the number of loans and amount of remaining interest owed but even if not a substantial impact it would be an impact nonetheless. The impact is lessened as it is spread across who knows how many banks but still am impact.

The biggest impact would be on VW Credit (VW and Audi financial arm). I would assume that most loans/leases on VW/Audi are through them, as they often offer special deals. Obviously not all loans will be through them. But a good chunk will. So they will see a marked let off in interest. Now, they will probably be financing a bunch of new cars as well, so that will help.
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Old October 27th, 2016, 06:04   #5
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How much do you think consumer debt is at any one time in the US? Think around $12 trillion. The payoff of 100,000 loans in a short period of time won't even be noticed. So no affect.
I am sure most of the people are going into new loans. With interest rates so low it's not like they are making much off them anyway.
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Old October 27th, 2016, 06:06   #6
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And for most cars that get paid off, those people will be buying new cars and will have loans on them,......so not much affect.
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Old October 27th, 2016, 06:09   #7
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Not even a blip on the big picture radar.
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Old October 27th, 2016, 06:41   #8
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Not my problem, don't care.
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Old October 27th, 2016, 07:00   #9
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Not my problem, don't care.
cared enough to post about how much you do not care
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Old October 27th, 2016, 07:00   #10
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And for most cars that get paid off, those people will be buying new cars and will have loans on them,......so not much affect.
that is good point

might actually increase number of loans
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Old October 27th, 2016, 07:16   #11
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cared enough to post about how much you do not care
so what? you're not my time keeper.
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Old October 27th, 2016, 07:47   #12
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Not even a blip on the big picture radar.
Not even a blip on that blip.
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Old October 27th, 2016, 08:09   #13
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so what? you're not my time keeper.
just observing the time you spend on things you do not care about
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Old October 27th, 2016, 08:12   #14
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Well, now that the big news has broken and some people (and you know who you are!) are spinning their wheels, there's plenty of time for renewed incivility.
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Old October 27th, 2016, 08:16   #15
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Several observations about this issue:

1. As others have noted, VW/Audi Credit is most exposed to dieselgate loans. The VW/Audi Credit loans are for new cars, which perform better than used car loans.

2. All car loans in U.S have a delinquency rate below 1%. That is for both new and used cars.

3. Like all loans, the highest interest payments are early in the term of the loan. Later in the loan term, interest payments are quiet low. So VW/Audi Credit has made most of it's profit by now and not much more profit to be made from old loans by now.

4. Old loans will be paid off with VW buy back funds anyway. So VW/Audi credit will get their money before the car owner gets their money.

So, the banks will not loose any money on Dieselgate at all.
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