I have no position here. That said, "delinquent" can mean many things to many people. Frankly, I think ACF is better managed than many subprime outfits.

After 40 years as a used car dealer I can say that this is the worst market I have seen in maybe the past 15 years. CACC has "dealer partners" they buy paper from and CACC has little real downside exposure other than the price of money.

I am at a point where my partner and I hold our own paper. Right now, we don't want to be "big"; just profitable.

A funny thing happened at the lot today. Many of our customers "bhph" folks have been getting "bought" on new Hyundai and KIA models. I guess these @#$% buckets are getting better buy I hope I don't live long enough to sell the damned things.

Getting back on point, I had a lady (late 20's) come onto the lot looking for a unit. We do a credit check and are somewhat strict in our underwriting. The big down stroke don't impress us much; we look at the ability to repay.

This lady sure enough had bought a Hyundai on a 72 month contract @ $450 per month!! We term our paper out at a MAX of 30 months. Anyway, looking over the TRW I saw that Wells Fargo financed this customer/victim; the lady had some of the worst credit I have seen BEFORE they wrote the deal. Curiously, after the repossession, the account was "sold" to another finance company?? Dear readers, does something smell in Denmark?

HSBC and WF are at the top of my short list. The number of repo's we are seeing at the auctions are alarming! Not just the number of cars but the CONDITION is downright scary. Many of these units are selling for a yard behind rough....

Keep in mind folks that the shorts have largely worked their way through subprime mortgage stocks. Subprime auto lenders are next and frankly, I see a melt down.

Yesterday when the FED pumped in all that money it was a false attempt at stabalizing the market. I see this as a major sign of overall weakness.

Since other car people read this board, I would be interested in your comments regarding my theory. As to our reposessions, the condition is just deplorable; no maintenance to speak of; filthy condition and rife with electrical problems due to unproperly installed stereo's.

Folks, for all too long, bad credit had no consequences when the subprime mortgage and auto lenders came along. This attitude toward credit is coming home to roost.

My detailer just lost his house to forclosure; I begged him NOT to do the adjustable rate mortgage, this poor working man didn't have the resources to buy a home.

Darn, I don't want to sound overly bearish, but I don't see anything to revise my view point.