Bad debts are written off.
They should be... but sometimes the creditors are bailed out. See relatively recent history.
Do some people buy or lease cars they really can’t afford? Is that part of the problem? How do so many afford the Lexus and Lincoln Navigator vehicles, which seem to be all over the place, at least in my area?
Cars are ridiculously expensive. And due to that people are getting 7 year loans. So 500.00 for 7 years of not more. Then you have people not making a decent wage and you have a disaster happening. I about blew a gasket when I paid 20K for my 2011 car. I hadn’t bought a new car in 14 years prior. My next car will be in 2025 or so. I hear the car companies are charging 40 grand for a car. Ridiculous!
So, you are saying that lending someone $3,000 and them not paying it back is “neutral” to the company?
Because if you think that, you are incorrect.