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Wizard
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Wizard
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October 17th, 2019 at 8:58:17 AM permalink
Quote: AZDuffman

Depends what you call "important." If you go to buy a car with bad credit you are called a "get me done" and must accept the terms and price they say, possibly reduced to a BHPH lot where you must pay weekly and install GPS and shutoff on your car.



A friend of mine with lousy credit just bought a car at Car Max. I was shocked they found her a loan (it took only minutes), but at a 26% interest rate. I didn't know interest rates even went that high except on payday loans. They also installed a Lo-Jack or whatever they're called.
It's not whether you win or lose; it's whether or not you had a good bet.
kmumf
kmumf
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October 17th, 2019 at 9:04:14 AM permalink
26%! That should be against the law what a bad choice must really need a car.
SOOPOO
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RS
October 17th, 2019 at 9:24:11 AM permalink
Quote: kmumf

26%! That should be against the law what a bad choice must really need a car.



Disagree about 'against the law'. If there is a company that felt that the person was an acceptable risk at 20% then the person could borrow from that company. The fact that the person decided to buy the car under the conditions (26%) means the person decided it was worth it for him. Why should you or I (or the government) limit the ability of this person to get a loan? If the government said 12% max, then likely this person is carless.
DRich
DRich
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October 17th, 2019 at 9:30:31 AM permalink
Quote: EvenBob

In your mind buying 12 new cars
is saving money?



I have said all along that I splurge on my house and on my cars, but yes I do save a lot of money when I buy cars compared to other people buying new. Before I purchased my lastest car I probably spent close to 500 hours researching incentives, rebates, holdbacks, trunk money, and of course reviews. It is a 2018 SUV and my payment is less than $200 a month.
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AZDuffman
AZDuffman
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October 17th, 2019 at 9:49:55 AM permalink
Quote: Wizard

A friend of mine with lousy credit just bought a car at Car Max. I was shocked they found her a loan (it took only minutes), but at a 26% interest rate. I didn't know interest rates even went that high except on payday loans. They also installed a Lo-Jack or whatever they're called.



We are in such a cheap money environment that money will be found. 26% is probably near the top, and remember, Car Max probably marked it up from 20%.

I know a guy has an employee with really bad credit. The guy I know sent him to another guy he knows who has a lot. Now, the bad credit guy would have ended up paying more for some beat up sled with 100,000 miles than my buddy was offered to lease a brand-new BMW. Bad credit cost you big when you buy a car.
All animals are equal, but some are more equal than others
AZDuffman
AZDuffman
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RS
October 17th, 2019 at 9:51:18 AM permalink
Quote: kmumf

26%! That should be against the law what a bad choice must really need a car.



Make it "against the law" and that person walks everywhere. Same as payday loan shops. the people who want to ban them would never use them. The guy who needs a few hundred go keep his car on the road to keep food on the table does not want them banned.
All animals are equal, but some are more equal than others
kmumf
kmumf
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SOOPOO
October 17th, 2019 at 9:53:34 AM permalink
Quote: SOOPOO

Disagree about 'against the law'. If there is a company that felt that the person was an acceptable risk at 20% then the person could borrow from that company. The fact that the person decided to buy the car under the conditions (26%) means the person decided it was worth it for him. Why should you or I (or the government) limit the ability of this person to get a loan? If the government said 12% max, then likely this person is carless.



Well people pay that much on credit card balances all the time why not a car too i guess. I just feel bad for people just smothered by a snowball effect of bad finical dissensions.
billryan
billryan
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October 17th, 2019 at 10:03:56 AM permalink
A kid I worked with a few years ago was spending almost $20 a day to get to the job. A bus to the subway, subway to Jamaica and then the railroad to Bellmore. It took almost two hours each way for what was a twenty minute car ride.
He went out and bought a used car. When I asked him what he paid, he said $1500. It seemed like a great deal until he added .."and $57 a week". He thought it was for 72 weeks, which seemed odd.
It turned out it was for 72 months, and he was going to end up paying almost $20,000 for a car I could buy for $3500.
He wasn't worried because the salesmen told him if he made on time payments for six months, he'd be able to upgrade to the Lexus he wanted. In his mind, he was saving money.
The difference between fiction and reality is that fiction is supposed to make sense.
AZDuffman
AZDuffman
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October 17th, 2019 at 11:08:46 AM permalink
Quote: billryan

A kid I worked with a few years ago was spending almost $20 a day to get to the job. A bus to the subway, subway to Jamaica and then the railroad to Bellmore. It took almost two hours each way for what was a twenty minute car ride.
He went out and bought a used car. When I asked him what he paid, he said $1500. It seemed like a great deal until he added .."and $57 a week". He thought it was for 72 weeks, which seemed odd.
It turned out it was for 72 months, and he was going to end up paying almost $20,000 for a car I could buy for $3500.
He wasn't worried because the salesmen told him if he made on time payments for six months, he'd be able to upgrade to the Lexus he wanted. In his mind, he was saving money.



People go those BHPH lots thinking it will help their credit, but it does not. They do not report. While a legit place for some to buy, about half their cars come back as a repo. It is not the auto business, it is a loans and collections business.
All animals are equal, but some are more equal than others
DRich
DRich
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October 17th, 2019 at 1:26:56 PM permalink
Quote: AZDuffman

People go those BHPH lots thinking it will help their credit, but it does not. They do not report. While a legit place for some to buy, about half their cars come back as a repo. It is not the auto business, it is a loans and collections business.



We had a guy here in Vegas "Freddie from GMF Motors". "I will finance anyone". He would sell the same car an average of three times because they always got repossessed.
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