They're a Chrysler dealer ... Chrysler is owned by the Fed.Gov now ... so clearly this is Bush's fault [Awesom]
Printable View
They're a Chrysler dealer ... Chrysler is owned by the Fed.Gov now ... so clearly this is Bush's fault [Awesom]
Fixed it for you.Quote:
Originally Posted by Zundfolge
You sir would be my nemesis!!! [Tooth]Quote:
Originally Posted by Colorado Luckydog
I wasn't attacking the victims btw..just painting the picture how the rate got jacked up. To intentionally markup 2% in car $ range hardly get you any YSP.
I tried selling cars when I was 18. I've seen guys forge signatures before. If I remember correctly, it was someone trying to get someone who was in jail to co-sign for them or something.
I used to forge my parents signature for school stuff like field trips I forgot about or problem letters!
I just contracted a guy that had a repo before his bankruptcy and his brankruptcy just discharged. He is financing $12833 dollars. His interest rate is 20.99%. His payments are 306 a month for 72 months.
I bought my wife a chevrolet Colbalt. We are financing $14688. Our interest rate is 0.0%. Our payment is 204 a month for 72 months.
We are financing more money at $100 bucks less a month for the same term. It sure pays to have good credit.
I really don't think people understand the difference sometimes.
yup, they shell out while spouting dave ramsay.Quote:
Originally Posted by Colorado Luckydog
I love reporters who don't pay attention, i am sure the interest is $3000, but no just because of the 13 extra dollars.
the 3000 includes all the interest. other wise that a a 19 year car loan.
I've been in vehicle finance for over 20 years. I'd like to say this sort of thing by dealers rarely happens, but it does happen.
First off, the finance market is risk vs return. The higher the risk, the higher the interest rate. Practically speaking, someone that pays 13% apr is a higher risk. One that pays 18% is generally exceptionally high risk. The rate is high because the chances of additional collection effort, the chances of default are greater than someone with good credit.
Also part of the dealer's sundry income is finance reserve. Outside of special factory incentive rates (which are subsidized through profit in the vehicle). They are allowed to mark up the interest rate and make additional income. Perfectly acceptable (most finance companies limit the amount to no more than 2%). They will also occasionally buy down the rate during special sales events.
Quite possible that the loan amount was $20,000 or less or the term was 36months or less. I doubt the cars were new. $10k for 60 mos @ 13apr is 227.53, @ 18apr it's 253.93. Or $20k @ 36 months the payment is 336.94 @ 13apr, $361.52. However, for a $13/mos difference to equal $3000, you're talking about 231 month financing, so that's an error.
Also, it appears obvious from the article that these are uneducated buyers, high-risk and probably not wholly credible. The reporter may be just as ignorant and his or her editor should be considering a completely different line of work.
Never walk out of a dealership without a copy of the purchase order and finance contract (the dealer may withhold an original copy until it is accepted by the finance source, but insist on a photo copy if one is not readily provided).
If you can't pay for your vehicle in full within 24 months, you cannot afford it (businesses excluded for tax reasons).
I prefer/employ an even stricter philosophy/rule, "I never walk out of a dealership with anything financed." If I can't pay for it...I don't get to have it yet, period.Quote:
Originally Posted by gcrookston
Clearly understand this is not a practical option for all people all the time as life circumstances vary but...man...I just cannot carry a note on a friggin' ride and rationalize that expense. Have not been in that position for many years, I like it. But...this results in compromise, at least for me, and right now I drive a vehicle I have little passion for (she gets me up-n-down-the-hill 12-months a year, I'm cool with it).
Good input above gcrookston, thanks for providing the added detail.