I am not convinced the correlation is so strong - would be good...

I am not convinced the correlation is so strong - would be good if someone had modelling.
What I am about to say is speculation and not backed up by numbers:

- I think most of their borrowers do not have mortgages - if they did, it would mean they would qualify for traditional loans so why would they be going to Money3 and paying above standard prices - mortgagees typically have credit standing
- I also think most of the people borrowing are getting money to get a vehicle for employment which would mean that until they start losing their jobs they are unlikely to stop payments as they will risk reposession as the loans are secured. Also, car repayments are not as significant a portion of someone's income as a mortgage payment.
- Summing up, I think defaults will go up if unemployment goes up but not necessarily if mortgage stress goes up.

All speculation