S3 E21: Auto Lending, 2016 Election Update & the Olympics: Last Week Tonight with John Oliver

2016 US Presidential Election Controversies

• Hillary Clinton faced scrutiny over her tax returns and State Department emails, while Donald Trump made controversial statements about "second amendment people" and President Obama.
• Despite attempts to clarify, Trump doubled down on his remarks, leading to further criticism and confusion.
• Trump made unfounded claims of potential voter fraud in Pennsylvania and applied for "Trump election day observers," raising concerns about the implications of such actions.

Parody of American Petroleum Institute (API) Advertisement

• Oliver criticized an API advertisement for its similarities to Last Week Tonight's opening credits.
• A parody ad featuring "Rebecca" and "Andy" satirized the API's messaging and environmental stance.

Predatory Lending Practices in the Automobile Industry

• The main story focused on the automobile industry's impact on the environment, particularly the role of cars in contributing to climate change.
• The video discussed the prevalence of car ownership and its necessity for many American workers.
• Individuals with poor credit face challenges in obtaining a car, leading them to seek out subprime auto loans.
• Buy Here Pay Here dealerships offer financing to individuals with bad credit but charge high-interest rates and add-ons, resulting in inflated car prices.
• These dealerships can repossess cars if payments are even a few days late, sometimes disregarding the belongings inside, including infants left in the car.
• Repossessed cars can be resold multiple times, generating profits for the dealerships regardless of their condition.
• Despite a decline in Buy Here Pay Here lending, it has been replaced by other predatory lending practices targeting individuals with poor credit.
• Subprime auto lending is expanding, with major lenders like Santander and GM Financial, as well as newer players like Scopas and Exetor, actively participating in this market.
• The motivation behind this lending frenzy is similar to the subprime mortgage crisis, where high-interest loans are bundled and sold as investments on Wall Street.
• Experts express concern about a potential subprime crisis in the auto sector, but there are key differences compared to the housing crisis.
• Used car dealers are facing pressure to issue riskier loans to keep up with the competition, leading to longer terms, less money down, and higher costs for borrowers, increasing the risk of default.
• Aggressive tactics employed by used car dealerships to attract customers with bad credit include predatory practices and deceptive advertising.
• Despite concerns about the human misery caused by these loans, they present an opportunity for Wall Street as high-yield investments when packaged as collateralized securities.