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Buy Here Pay Here Loans told by a REPO MAN You Should Read This

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Anonymous
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Re: Buy Here Pay Here Loans told by a REPO MAN You Should Read This

Well when you put it like that I guess there is always a worse job out there

 

Have a great day

Message 11 of 20
Anonymous
Not applicable

Re: Buy Here Pay Here Loans told by a REPO MAN You Should Read This


@Anonymous wrote:

Great post!  Everyone has a job, from Repo man to the doctor who checks prostates all day.  A job is a job. Smiley Happy

 

This is has me wondering the % of Used Cars on lots that are repo.  Used is a popular choice since depreciation of vehicles is so high.

 

Thanks RepoGuy and hey, at least you don't check Men's prostates all day, right? Smiley Very Happy That's a crappy job. *puts sunglasses on face*


Thanks, now I'll have 'Hail to the Colorectal Surgeon' in my head for the rest of the night (google it for a laugh Smiley Happy

 

 

Message 12 of 20
Anonymous
Not applicable

Re: Buy Here Pay Here Loans told by a REPO MAN You Should Read This

How can you determine if a buy here pay here lot sells more than 1000 cars a year? And what if they have multiple sites?
Message 13 of 20
Anonymous
Not applicable

Re: Buy Here Pay Here Loans told by a REPO MAN You Should Read This

There are a couple ways to check

 

First you can obviously tell from the size of the dealer if they are working out of a mobile home or small room in a building odds are they dont sell that much, second you can check with online resources such as checking the Secretary of States website type in the legal business name and view the annual reports, I also think there are some consumer agencies out there that have records, and at least in my state by law every business that operates under a privelage license such as a dealer has to have open public knowledge concerning their annual sales.

 

But more importantly it's the LAW that if any used car dealer does not sell or have over 1000 customers they cannot report to any CRA.  So if a person ends up buying from a dealer and they ask the dealer because its your right to ask if they report to a CRA and the dealer says no and for some reason the car is repossessed by the bank or lender and it appears on your report you can first dispute this with the CRA and then file a suit in court for the business operating under false pretencies.  Under NC law in the event a dealer obtains the minimum requirement of sales or customers in one fiscal year and begin to report any consumer who previosuly purchased a vehicle whether in that year or prior must be notifed by mail that the account held by the consumer is now being reported to a CRA.  The dealer has to send the letter by mail and registered return receipt so neither party can say they werent notified, this also helps the consumer in the event the dealer claims a letter was sent to the consumer and in fact it wasnt and the dealer is lying, then the post office will have a record of that mailing.  

 

So bottom line is the consumer is covered by the law in the event they purchase a vehicle from a more unethical or traditional dealer not affiliated with larger mainstream banking institutions.  Hope this helps answer your question and give you a little piece of mind 

 

Have a Blessed Evening 

Message 14 of 20
Anonymous
Not applicable

Re: Buy Here Pay Here Loans told by a REPO MAN You Should Read This

Thanks for sharing, that was a very informative post. 

Message 15 of 20
Anonymous
Not applicable

Re: Buy Here Pay Here Loans told by a REPO MAN You Should Read This

Good read… I wanted to share my experience as well.

 

In 2009 I was young and dumb and wanted my first car. I was over 18. My mother had run my credit into the ground; so, none of the traditional dealers wanted to finance me without putting down at least 5k. I was making minimum wage.

 

I eventually found a buy here pay here and selected a 1999 Jeep Cherokee with 150,000 miles on it for 9k. I put 2k down and drove off the lot with biweekly payments of $300 for the next two years. Go ahead and do the math and let your jaw hit the floor. They told me they could help rebuild my credit and they would report monthly to CRAs. Of course they did not.

 

During this time I faithfully made my payments; but, the car was falling apart. At one point I had put an additional 3k worth of work into it. I could take the key out of the ignition and keep on driving. It was scary.

 

I paid that sucker off early and traded it into a dealership who told me flat out it wasn’t worth anything. I think I got 2k for the car... if that.

Long story short… these places are SHADY. Stay far far away. The bus, a bike, and your own two feet are a MUCH better deal than these places. If you’re thinking of going to one RUN AWAY AS FAST AS YOU CAN!

Message 16 of 20
Anonymous
Not applicable

Re: Buy Here Pay Here Loans told by a REPO MAN You Should Read This

Thx for the info. My question is Im in a veh that is not worth it. You said they cant report to a cra, want to surrender the veh, will this hurt my credit? Help me understand if you could pls?
Message 17 of 20
Anonymous
Not applicable

Re: Buy Here Pay Here Loans told by a REPO MAN You Should Read This

Hi RJrepo, just a quick question and I hope you can answer it.
If a "Buy here pay here" dealership sells a car for 3 times its value and as a customer you actually purchase this vehichle, what happens when they repossess the vehichle?
The car dealership sells it again, but what about the balance?
If it's 3 times what the vehicle is worth, can it be disputed?
Please help? Thank you for the great article!
Message 18 of 20
StartingOver10
Moderator Emerita

Re: Buy Here Pay Here Loans told by a REPO MAN You Should Read This


@Anonymous wrote:
Hi RJrepo, just a quick question and I hope you can answer it.
If a "Buy here pay here" dealership sells a car for 3 times its value and as a customer you actually purchase this vehichle, what happens when they repossess the vehichle?
The car dealership sells it again, but what about the balance?
If it's 3 times what the vehicle is worth, can it be disputed?
Please help? Thank you for the great article!

When your vehicle is repossessed it is sold (usually at auction) and the proceeds applied toward your outstanding balance. If there is a deficiency amount, you owe the rest. The repo and the remaining balance + fees (repo fee + default interest and any other fee in your loan agreement) can be added to the balance and the balance reported to the CRA.  Or not reported to the CRA if the lender doesn't report. However, the lender can then get a judgment against you for the remaining unpaid balance of the loan. The judgement shows up in the public records under your name whether it is on your credit report or not. 

 

If you signed a contract for 3 times what the vehicle is worth, then that is the amount you agreed to pay.  There is no rule or law that says the dealership can only sell for the amount the vehicle is worth.  It is whatever you agreed to pay at the time you signed the contract and the loan agreement. 

Message 19 of 20
NGMK
Established Member

Re: Buy Here Pay Here Loans told by a REPO MAN You Should Read This

As a owner and manager of a dealership whose does inhouse financing I find my self obligated to respond to the initial post:

I operate a small used car dealership in Central Florida, we mostly do cash and outside financing sale but from time to time and in a case by case basics we entertain buy here pay here sale. These are car buyers whose can not qualify for conventional subprime financing thru a bank. Most of the case is simply because they can not provide proof of income or recent repossession. 

 

When one of our buy here pay here customer falls behind on their payment we give them many opportunity to catch up, but that is not always they case. We probably end up recovering about 15% of all vehicle sold with in the first year and another 15% before the loan maturity date.  So basically 30% of cars end up back on the lot or are never found or recovered in a marketable condition again. 

 

The notion that if you sell a car lets say with a $1000.00 down payment and the customer default on the loan after making two payments you end up profiting from the down payment is not accurate, so your claims are straight up nonsense, anyone who is involve on the auto loan process knows that the initial down payment gets eaten up wit sale taxes registrations fees and title fees ( not to mention the gps devices, loan docs fees etc) at the end of the day a $7500  car in the state of FL will come up to be about $8400 when you add all the additional fees the authorities requires to be paid in order to register the vehicle. After one of two payments lets say the customer default and gets his car repossessed, everybody knows that cars always devalues at a very fast rate. The down payment goes all to the state in taxes and fees, you be lucky if you can sell the same car for $6500 (a whooping $1000 less than what it would had sold for 3 months before) 

 

Buy here pay here is not as profitable as some people think. Yes there are a lot of dealers out there not paying nice and praying on customers at times of needs. But for the most part a lot of the customers that find themselves forced to buy from these type of dealer have brought this on themselves by screwing every financial institution who dare lend money to them. 

 

 

Message 20 of 20
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