An 84 month loan at New York’s maximum 16% interest means that the 60% threshold isn’t reached for 5 years, far after the expected loan lifetime.
And the car isn’t the only thing being sold, there might be a bundled reconditioning fee, a GPS installation fee, a documentation fee, a service fee, origination fee, nitrogen fee, etc. So when they sell the car again for the same $2000 plus fees that you bought it for, they’ll happily deduct that $2000 from the $3000 you still owe.
Since you mentioned subprime loans, to clarify: this is about the level below that, for people that can’t qualify for a loan from any real bank, even Santander.
And the car isn’t the only thing being sold, there might be a bundled reconditioning fee, a GPS installation fee, a documentation fee, a service fee, origination fee, nitrogen fee, etc. So when they sell the car again for the same $2000 plus fees that you bought it for, they’ll happily deduct that $2000 from the $3000 you still owe.
Since you mentioned subprime loans, to clarify: this is about the level below that, for people that can’t qualify for a loan from any real bank, even Santander.