As cultures continue merging at rates unknown or believed by most, as we spoke about about in a previous article here. We are very concerned with how repossessions will become in the near future.
I personally worked in Latin America for many years, South America to be more specific, like other developing nations. While working there I realized that the credit industry is very limited. It is limited in that mortgages are almost non existent. If you wanted a mortgage in most areas, it would cost you an astounding 20% interest rate at a ridiculously short term loan. Bottom line is most of us smart enough wouldn’t go near a South American mortgage with a ten foot pole. The same goes for car loans and any other loans. In fact the best credit I seen was in the more recent years of credit card offerings from the large department stores.
In essence most cars you see on the roads, most houses in the neighborhoods are all owned outright by private parties. Suddenly, a huge merge continues to build in a culture known mostly for credit offerings, cheap money, good interest rates and even decent rates in comparison to the native homes. Cars that would cost upwards of 60 or 70 thousand dollars are suddenly only 20 thousand here and the dealership gets the approval in ten minutes.
Wave the carrot in front of the rabbit and he will bite. Suddenly there are huge amounts of people with new cars and although cheap interest, still large payments due, plus interest, plus plus.
There are no repossessions in any developing nations that I know of, if there are it is very few and people do not even know what the word repossession means. So imagine a bank calling and calling. The debtor has no idea what the word repossession means. The repossession agent has no idea that the debtor doesn’t know even who he is. The repoman shows up uninvited, the car is loaded with personal belongings. The debtor is used to theft as developing nations has a tremendous amount of theft everywhere, good towns, bad towns, restaurants, buses, shopping centers, snatch and grab, armed robbery, killings and the list goes on. Sort of similar as the States but enhanced 50 times plus. People are used to it, there is no trust factor in most parts of South America, hence no credit offerings.
The question here is, how are people unknown to the industry going to react when they do not know who the hell is stealing their car. Who the hell is sifting through their personal belongings or even still who is snooping around the driveway at 2am. Personally I see this as an added danger that most people will not even think about that is surely coming our way, especially in those areas that are growing significantly with people from other parts of the world.
In areas that the influx of many foreigners are coming, road rage is way up. For those of you that have traveled, not just a quick visit but actually spent time in developing nations will know, road rage is a way of life and this culture is simply not used to the same amounts of road rage that are beginning to happen.