While Oliver says the result of these loans won't necessarily be as devastating as those from the mortgage crisis, there are still trouble signs.
John Oliver, of Last Week Tonight fame, has a particular knack of taking a hilarious look at shocking current events. He did just that recently with one of his segments where he talks about just how many auto lenders are currently preying on people trying to buy a car who are financially strapped.
If you've seen The Big Short, a movie about the housing bubble and subsequent financial crisis of the U.S. in 2007 and 2008, you'll see where this is going. Oliver gives examples of people with low income who were tricked into signing "buy here / pay here" loans. These loans, given out by dealerships, typically have huge interest rates, but by the time customers realize it, they're already further in debt and need to default.
The fake commercial is as hilarious as it is scary.
As Oliver puts it, "in practice, these dealerships can trap people with few options, into paying vastly more than a car is worth. It's just one of the many ways in which when you are poor, everything can be more expensive." He says the average interest rate on a buy here / pay here lot is 19 percent, and in some cases can be as high as 29 percent!
These companies actually seek out people who recently went bankrupt, in the hopes that they'll be desperate enough to sign a contract that, on the surface, looks amazing, but in reality is too good to be true.
While Oliver says the result of these loans won't necessarily be as devastating as those from the mortgage crisis, there are still trouble signs. At the end of the day, he's worried about the auto industry becoming a farce, and goes so far as to do a live commercial for a vehicle in the guise of a fictional character known as "Crazy Johnny," who is joined by Keegan-Michael Key, of Key and Peele fame.
The fake commercial is as hilarious as it is scary, and is just one part of the segment that will have you chuckling one moment, and gasping another.