\"Loans are just like used cars. If you see an ad in the paper for a used care,

Question

"Loans are just like used cars. If you see an ad in the paper for a used care, you have to wonder , why is the owner selling it? Mayber there is something wrong with the care that is hared to see. As a result, when you approach the seller, you will want to offer a very low price to make up for any defects. Instead, you could buy the used care from a dealer. The dealer offers a warranty on the car to protect its reputation. It is safter to buy from the dealer. In this regbard, selling a used care through a dealer rather than directly is just like selling loans through securitization rather than one by one." Do you agree, disagree, or agree in part with this statement? What similarities and differences do you see between securitization and selling used cars?

Thanks!

Explanation / Answer

i agree with the cars selling through the dealer because it is simple that he warranty so if we get any defects or problems we can contact the dealer and claim the warranty.

Securitization is the financial practice of pooling various types of contractual debt, such as residential mortgages, commercial mortgages, auto loans, or credit card debt obligations, and selling said consolidated debt as pass-through securities, or collateralized mortgage obligation (CMOs) to various investors.

selling used cars like dealing with the customer directly by the dealer or owner

similarities both are used cars and come low price

diferences are securitization give the money to buy car and selling used cars second hand one

securitization can pay like installments and selling used cars payment will be nett

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