What's shiatty, is paying more per month on a civic that's 10+ years old than you would on a brand new suv if you could get approved for the loan. It sucks being young with absolutely no credit history and no family or friends to co-sign for you.

some of these dealerships are accused of purposefully structuring loans so as to virtually guarantee the borrower will default.

I've heard... I know I've heard this, someplace... wait...

I know I've heard of this ..

Different product... hang on... It'll occur to me.

krapykid03: What's shiatty, is paying more per month on a civic that's 10+ years old than you would on a brand new suv if you could get approved for the loan. It sucks being young with absolutely no credit history and no family or friends to co-sign for you.

Buy a beater, get a secured credit card, use the credit card for gas and pay it off every month, then go back in a year and finance a car.

BadReligion: Buy a beater, get a secured credit card, use the credit card for gas and pay it off every month, then go back in a year and finance a car.

I'm a good-for-nothing kid and I'm getting a real kick out of this, because I'm currently in Month 9 of the last step in the above plan. I still barely have enough credit to get myself a used Ford Escort at an absolutely ridiculous interest rate. Not that my underpaid part-time job would allow me to afford any of that, anyway.

UltimaCS: BadReligion: Buy a beater, get a secured credit card, use the credit card for gas and pay it off every month, then go back in a year and finance a car.

I'm a good-for-nothing kid and I'm getting a real kick out of this, because I'm currently in Month 9 of the last step in the above plan. I still barely have enough credit to get myself a used Ford Escort at an absolutely ridiculous interest rate. Not that my underpaid part-time job would allow me to afford any of that, anyway.

In that case, save up and buy a beater. No use in putting yourself in debt if you don't have the means.

I did some consulting for one of those companies.

They always treated their customers with respect, even in the back office when nobody was listening.

Some people can't get a regular car loan, and this place would let them buy a car. Sure, their loans are expensive. That's the only way to make loans available to people with a history of defaulting.

If the customer makes all the payments, good on them -- they bought a car.

If the customer misses payments without calling, the repo men will track the car using the built-in GPS and bring the car back to the shop.

FWIW, the article they're indirectly referencing is here at the LA Times' website.

BadReligion: In that case, save up and buy a beater. No use in putting yourself in debt if you don't have the means.

I've already got the beater. Just waiting a couple months until it inevitably gives out, and it costs me more to fix than I paid for it.

thenateman: I did some consulting for one of those companies.

They always treated their customers with respect, even in the back office when nobody was listening.

Some people can't get a regular car loan, and this place would let them buy a car. Sure, their loans are expensive. That's the only way to make loans available to people with a history of defaulting.

If the customer makes all the payments, good on them -- they bought a car.

If the customer misses payments without calling, the repo men will track the car using the built-in GPS and bring the car back to the shop.

So you get cause a couple accidents, injure someone, and get a DUI and nobody has any problem at all with an insurance company jacking up the rates. But somehow they feel you are entitled to be a horrible mess for credit and get the same rate as the best customers.

And for all the people whining about being too young to get credit they do the same thing to you also in insurance and nobody has a problem with it.

Here's a little clue....it's called risk based pricing. It's not your money to get for free. It's someone else's. You are free not to use it.

I recently realized I have enough un-earmarked funds sitting around I could pay cash for one of those Fiat 500's. I'm actually on the lookout for what to do for a business next, now that I'm bored with what I'm doing.

I wrote that not to brag, but to say how nice it is not to worry about things like auto finance. But now that I've read this I wonder if I can learn enough spanish to get into this myself. I'm a book dealer with 5000 books in his inventory, I must have a spanish dicitonary somewhere.

brandent: thenateman: I did some consulting for one of those companies.

They always treated their customers with respect, even in the back office when nobody was listening.

Some people can't get a regular car loan, and this place would let them buy a car. Sure, their loans are expensive. That's the only way to make loans available to people with a history of defaulting.

If the customer makes all the payments, good on them -- they bought a car.

If the customer misses payments without calling, the repo men will track the car using the built-in GPS and bring the car back to the shop.

So you get cause a couple accidents, injure someone, and get a DUI and nobody has any problem at all with an insurance company jacking up the rates. But somehow they feel you are entitled to be a horrible mess for credit and get the same rate as the best customers.

And for all the people whining about being too young to get credit they do the same thing to you also in insurance and nobody has a problem with it.

Here's a little clue....it's called risk based pricing. It's not your money to get for free. It's someone else's. You are free not to use it.

Oh and I mean I agree with you

cmunic8r99: 20.7%? That's nothing. (new window)

I think Western Sky counts on intimidation, and that they'll get court wins from the tribal courts. Which you won't have to worry about off their reservations. Same sorta problems with trying to sue for personal injuries from a mishap at an Indian Casino.

I'd love to get interest rates like that for my money.

A Fiat? What are you nuts? Have you never listened to Car Talk?

Not surprised at all. A "tea party" leader in this small town is a retired big-boy car dealer, now he just has a tiny lot with about a dozen cars. He's gotten sleazy in his advancing years. "Good cars for good people," or some smoke-blowin' slogan like that. I'm not surprised he'd try to bend the rules to suit his avarice.

wildcardjack: I recently realized I have enough un-earmarked funds sitting around I could pay cash for one of those Fiat 500's. I'm actually on the lookout for what to do for a business next, now that I'm bored with what I'm doing.

I wrote that not to brag, but to say how nice it is not to worry about things like auto finance. But now that I've read this I wonder if I can learn enough spanish to get into this myself. I'm a book dealer with 5000 books in his inventory, I must have a spanish dicitonary somewhere.

I finally saw one of these the other day, and as somebody who once (briefly) owned a Fiat 500 I have to say they managed to faithfully recreate the original in ALL of it's craptacular glory. I'm wondering if they've also recreated it's tendency to completely rust out in 5 or 6 years, even in the fairly mild climes of Italy.

brandent: thenateman: I did some consulting for one of those companies.

They always treated their customers with respect, even in the back office when nobody was listening.

Some people can't get a regular car loan, and this place would let them buy a car. Sure, their loans are expensive. That's the only way to make loans available to people with a history of defaulting.

If the customer makes all the payments, good on them -- they bought a car.

If the customer misses payments without calling, the repo men will track the car using the built-in GPS and bring the car back to the shop.

So you get cause a couple accidents, injure someone, and get a DUI and nobody has any problem at all with an insurance company jacking up the rates. But somehow they feel you are entitled to be a horrible mess for credit and get the same rate as the best customers.

And for all the people whining about being too young to get credit they do the same thing to you also in insurance and nobody has a problem with it.

Here's a little clue....it's called risk based pricing. It's not your money to get for free. It's someone else's. You are free not to use it.

If they can repo the car easily with the gps, where's the risk?

cmunic8r99: 20.7%? That's nothing. (new window)

You know, at least Western Sky basically admits in the ads that they are trying to fark you over. They flat out tell you the money is expensive and they have a slimy looking dude offering it up. The only way they could make it more obvious that it's screwing you, would be to offer you a complimentary butt plug.

Dafatone: If they can repo the car easily with the gps, where's the risk?

You should repo some deadbeat's car in the middle of the night, then tell me where's the risk.

thenateman: Dafatone: If they can repo the car easily with the gps, where's the risk?

You should repo some deadbeat's car in the middle of the night, then tell me where's the risk.

Good point. Still, the risk isn't exactly in the hands of those who stand to profit from the ridiculous interest rates. I guess those that profit employ the repo folks.

Dafatone: thenateman: Dafatone: If they can repo the car easily with the gps, where's the risk?

You should repo some deadbeat's car in the middle of the night, then tell me where's the risk.

Good point. Still, the risk isn't exactly in the hands of those who stand to profit from the ridiculous interest rates. I guess those that profit employ the repo folks.

Don't forget, the dealership is responsible for paying on the car every month, regardless of whether the "buyer" makes a payment.

From my (limited) experience, the dealership allows people to miss one week's payment before repossessing the vehicle. During that one week, plus whatever time it takes to repo the vehicle, the car dealership makes a payment, even if it's sitting in some deadbeat's garage.

/You sound naive in the ways of money

If one of those type places is the only place where someone can get a car, they most likely can't afford a car in the first place

/has a degree from the Institute of No shiat Sherlock
//professor was "dig deeper" Watson

Usury, not just bad but Old Testament bad.

thenateman: Dafatone: thenateman: Dafatone: If they can repo the car easily with the gps, where's the risk?

You should repo some deadbeat's car in the middle of the night, then tell me where's the risk.

Good point. Still, the risk isn't exactly in the hands of those who stand to profit from the ridiculous interest rates. I guess those that profit employ the repo folks.

Don't forget, the dealership is responsible for paying on the car every month, regardless of whether the "buyer" makes a payment.

From my (limited) experience, the dealership allows people to miss one week's payment before repossessing the vehicle. During that one week, plus whatever time it takes to repo the vehicle, the car dealership makes a payment, even if it's sitting in some deadbeat's garage.

/You sound naive in the ways of money

The dealer is actually the banker in most BHPH lots, so they don't need to "make a payment" - they're loaning their own money. If you loan somebody 10k to buy a car, and they don't repay the note, I would imagine it would cost at least several thousand dollars to hire somebody to repo the car, attach liens, clear the title for re-sale, prep the car for resale, etc, etc, etc.

Dafatone: If they can repo the car easily with the gps, where's the risk?

Let's say they had it a year before you repo it. You have the following expenses:

a. depreciation.
b. damage. These same credit risk types also tend to be more damage prone. you don't get the car back in the same shape it left the lot.
c. expense of the repo.

brandent: Dafatone: If they can repo the car easily with the gps, where's the risk?

Let's say they had it a year before you repo it. You have the following expenses:

a. depreciation.
b. damage. These same credit risk types also tend to be more damage prone. you don't get the car back in the same shape it left the lot.
c. expense of the repo.


Also lets not forget the

a) down payment
b) ridiculously high interest payments that will cover depreciation on an old car
c) loan fee, application fee, fee for reposession, fee for collecting fees

Im a big pro business person, but this is NOT risk base pricing, it is predatory.

My roommate was looking for a car a couple of months ago. He didn't have good credit thanks to some unpaid student loans and medical bills. He makes a decent living, but nothing spectacular. But anyway, he wanted a decent used car, but didn't have enough money to pay cash and couldn't get a loan, but was budgeting round $300/ month for a car payment. Finally, he got approved at a car dealership for a BHPH thing (it actually wasn't just a used car dealership, it was a new car place as well). He was all excited when the salesman said he could get a loan for $7000, and I was all excited because I was tired of driving him around. But when he showed us the cars he could get for that loan, we were pissed. They were all pos domestics, and only 3 to chose from. A late 90's Malibu, a early 00's Cavalier, and an early 00's PT cruiser. There was no way those cars were worth more than $4000, they were in such bad shape. He told the dealer to fark off.

Instead, he got a signature loan from his credit union for $5000, bought a $3000 civic which was in really good shape despite having 200,000+ miles on it, put some money aside for car repairs, and used the rest to pay off the medical bills.

I understand if you have bad credit, you will have a harder time getting a loan and will get higher interest rates, but these dealers are obviously pulling fast ones on people who just need a freaking car.

/csb

If the only thing you use this for is to get more of them at any cost...



Eventually, all of the things that you're supposed to use them to represent - end up looking like this



Money is a piss poor god.

UltimaCS: BadReligion: Buy a beater, get a secured credit card, use the credit card for gas and pay it off every month, then go back in a year and finance a car.

I'm a good-for-nothing kid and I'm getting a real kick out of this, because I'm currently in Month 9 of the last step in the above plan. I still barely have enough credit to get myself a used Ford Escort at an absolutely ridiculous interest rate. Not that my underpaid part-time job would allow me to afford any of that, anyway.

As someone rebuilding his credit... Stick with the beater for now, learn to do the small fixes/repairs yourself if you can & put as much money aside as you can.

In another year you'll have decent credit (try to get a second credit card if you can, but KEEP the balance low!!) and hopefully enough put aside to throw a couple thousand into a down payment on a decent car.

As someone with average/poor credit if you go through your bank/Credit Union for the loan you typically get a much better interest rate than if you're getting financed at the dealership.

TheGreatGazoo: A Fiat? What are you nuts? Have you never listened to Car Talk?

I have, and I'll take their advice on modern cars at around the same time I get my brain replaced with a cauliflower. That show is like a Twilight Zone Top Gear - all of Jeremy Clarkson's charm, James May's outgoing personality and Richard Hammond's intellectual approach combined.

Fiat 500 has been sold in the UK since 2008, so it's been tested - in the wet, even. Besides, most of the components are from the Fiat Panda, which has an even longer history.

I had no idea of the business practices of these places until I tried to buy a car there. I have always had good credit and my first car was bought for cash by my parents and I, so I didn't have to worry about "car payments" until I was an adult with a job.

I went to a lot and looked at a 2000-ish VW convertible (this was 2002). Price was right, I was really contemplating it until we got to the financing part. Bastard didn't bother to do a credit check and was going to charge 18% interest. I asked him for a better rate and he said something along the lines of, "Are you really sure you want me to check your credit, honey? It could make the rate as high as 25%." I knew I had good credit and told him to fark off.

I ended up buying a new car at a lower interest rate financed through the manufacturer (Nissan) and I had a better warranty.

In 2008, the owner of the car lot donated his lot space (premium site right in the middle of town) for our Animal Rescue's annual Yard Sale. We make $$$ that day, I don't think the guy remembered me telling him to get bent. He was super nice and not at all condescending like the first time we met.

Erik_Emune: TheGreatGazoo: A Fiat? What are you nuts? Have you never listened to Car Talk?

I have, and I'll take their advice on modern cars at around the same time I get my brain replaced with a cauliflower. That show is like a Twilight Zone Top Gear - all of Jeremy Clarkson's charm, James May's outgoing personality and Richard Hammond's intellectual approach combined.

Fiat 500 has been sold in the UK since 2008, so it's been tested - in the wet, even. Besides, most of the components are from the Fiat Panda, which has an even longer history.

How does it do on Marine beach assaults? I know the Fiesta was lovely, I'm just not sure how the 500 would stack up.