Phones are less expensive than a car, I get that, but here’s another bullet point to help illustrate the fact that more people are struggling to make their auto loan payments: Americans are prioritizing their phone bill over the car, reports Bloomberg.
“Payment priority of cell phones is higher than personal and auto loans and similar to or slightly lower than that of mortgage,” Ram Ahluwalia, the chief executive officer of PeerIQ, a New York-based provider of data and analytics for the consumer lending sector, said in an interview. “Now with Lyft and Uber, you can access transportation via cell phone. The car no longer is a central asset. Technological change is driving shifts in consumer behavior.”I think the point here is valid. But it’s not because the car is “no longer” a central asset. Millions of people need to get around for work and errands every day. Instead of this being a sign that record amounts for loan terms, loan amounts, and 90-day delinquent borrowers, Bloomberg frames this around a sign of opportunity for investors to consider purchasing securities backed by phone bills.
(Jalopnik.com)
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