If they employ these methods, their risk should reduce significantly, as well as repo costs, and therefore be reflected in nice big loan rate drops. OTOH, if it enables a person who otherwise would not qualify for a loan to get one, it could be argued as a 'good thing'. I personally shudder at this level of what feels invasive.
No, that is a 'very bad thing', since if a person does not qualify for a loan, they do not have the means to pay it back. Thus, the finance company gets what little money they had, plus the car.
This was one of the root causes of the US banking collapse of 2008 -- they permitted mortgage loans to those who could ill afford them, then bundled all that bad debt in with good debt and re-sold it as "asset backed commercial paper"
The http://en.wikipedia.org/wiki/N... NINJA loan, the Interest-only loan and a host of other vehicles were used to take the earnings and the savings (and ultimately, the houses) from people who should never ever have been given mortgages at that point in their lives.