If you are looking for another indication of how bad the car market is hurting, and in turn, how bad the banking industry is still hurting please consider the following.  It seems that lending companies have started to take drastic steps to get back revenue lost in seizures.  Companies have actually started suing people who have had their cars repossessed.  The reason: depreciation.  The same depreciation that kills the value of your car as soon as your dive it off a lot also effects the bank when they attempt to sell the car.  In turn banks are looking to make up the difference from the former owner.

MSNBC is reporting that the former owners are shocked at the lawsuits:

“They were completely stunned that if they gave the car back they couldn’t just walk away from the deal,” Tischhauser said. Deficiency judgments are “a microcosm of what’s happening in the housing market.” 

This cannot be good for banks or car companies.  Who in their right mind is going to buy a car if they know (with this bad economy) that said car if repossessed could also mean a hefty lawsuit?  I think this move will end up back firing on the lending companies for the simple reason that it will alienate potential car buyers.  Banks are going to need a positive image boost and this is certainly not a move in the right direction. 

For more information about auto transport and car carriers, contact National Transport today!

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