topic Re: buy here pay here in Auto Loans

buy here pay here

MsTucker09 — Tue, 20 Mar 2012 11:47:41 GMT

Hello guys I have a question....my brother bought a car at one of those buy here pay here places about a year ago and they have been calling him because he has never been late on his loan and they want to get him something a little newer. but he said that he is thinking about trading his car in at a dealership like carmax and get a 2 yr old car instead of a 7 or 8 yr old car. So i told him that he wouldn't be able to do that because those places dont report an auto loan on your credit report....he said they do........so who is correct me or him because I thought that was the purpose to get people without credit or with crappy credit in a car because they dont necessarily look at your credit report?? Thank you

Re: buy here pay here

Anonymous — Tue, 20 Mar 2012 11:58:53 GMT

The credit report never lies. Well, almost never.

Re: buy here pay here

MsTucker09 — Tue, 20 Mar 2012 13:17:06 GMT

ok so what does that mean exactly??lol ask him to pull his credit report?

Re: buy here pay here

Repo-ed — Tue, 20 Mar 2012 13:28:51 GMT

A friend of mine owns a buy here/pay here, and he reports to all 3 CBs. He charges 29% (Florida), but hey, if you really need a car, but have crappy credit, then you have to do what you have to do.

So settle your dispute, have him pull all 3 of his CRs and see if they have been reporting.

Re: buy here pay here

Anonymous — Tue, 20 Mar 2012 13:38:40 GMT

@MsTucker09 wrote:
ok so what does that mean exactly??lol ask him to pull his credit report?

Exactly.
Don't just "guess" to see who is right, the credit reports will let you know whether it's reporting or not.

Re: buy here pay here

MsTucker09 — Tue, 20 Mar 2012 14:07:00 GMT

okay great I will ask him. thanks

@Repo-ed wrote:
A friend of mine owns a buy here/pay here, and he reports to all 3 CBs. He charges 29% (Florida), but hey, if you really need a car, but have crappy credit, then you have to do what you have to do.

So settle your dispute, have him pull all 3 of his CRs and see if they have been reporting.

Re: buy here pay here

pizzadude — Tue, 20 Mar 2012 17:02:25 GMT

Definately pull his reports ~ then you'll know for certain.

Do you know what terms of his recent loan were ? I wouldn't think they were great, so going back there may not be in his best interest....

Re: buy here pay here

MsTucker09 — Tue, 20 Mar 2012 18:43:41 GMT

@pizzadude wrote:

Definately pull his reports ~ then you'll know for certain.

Do you know what terms of his recent loan were ? I wouldn't think they were great, so going back there may not be in his best interest....

im not sre about his terms I know they werent good because he pay 10k for a 2003 Buick regal last year....so he overpaid by thousands of dollars...lol...thats why he was trying to get one from a true dealer

Re: buy here pay here

Anonymous — Thu, 22 Mar 2012 16:14:54 GMT

@MsTucker09 wrote:
@pizzadude wrote:

Definately pull his reports ~ then you'll know for certain.

Do you know what terms of his recent loan were ? I wouldn't think they were great, so going back there may not be in his best interest....

im not sre about his terms I know they werent good because he pay 10k for a 2003 Buick regal last year....so he overpaid by thousands of dollars...lol...thats why he was trying to get one from a true dealer

Wow, that is brutal. My only experience with one of these places was when my wife and I went with her brother when he wanted a car. This place was awful and everyone was extremely rude. They also refused to say what interest rate they were charging and how much they were charging for the car. They only wanted to say what the twice monthly payment would be. Suffice to say it was a ripoff and we dragged him out of there.

Anyway, my contribution to this discussion is that they did insist they would report to all 3 bureaus. They kept using that to justify their high price by saying that part of what you are paying for is for them to report to the bureaus. I just had to laugh at that since most places report to the bureaus with any credit you use. Anyway, I'm sure many of these places do report. They sell "rebuilding your credit" as one of their selling points.

If I were you friend, though, I would not trade in his car for a nicer one from them. They just want to lock him in to paying way too much for yet another car for more months tacked on. If (s)he can't get financed at another dealer, just pay this one off and drive it until it dies.

Re: buy here pay here

MsTucker09 — Thu, 22 Mar 2012 22:29:02 GMT

@Anonymous wrote:
@MsTucker09 wrote:
@pizzadude wrote:

Definately pull his reports ~ then you'll know for certain.

Do you know what terms of his recent loan were ? I wouldn't think they were great, so going back there may not be in his best interest....

im not sre about his terms I know they werent good because he pay 10k for a 2003 Buick regal last year....so he overpaid by thousands of dollars...lol...thats why he was trying to get one from a true dealer
Wow, that is brutal. My only experience with one of these places was when my wife and I went with her brother when he wanted a car. This place was awful and everyone was extremely rude. They also refused to say what interest rate they were charging and how much they were charging for the car. They only wanted to say what the twice monthly payment would be. Suffice to say it was a ripoff and we dragged him out of there.

Anyway, my contribution to this discussion is that they did insist they would report to all 3 bureaus. They kept using that to justify their high price by saying that part of what you are paying for is for them to report to the bureaus. I just had to laugh at that since most places report to the bureaus with any credit you use. Anyway, I'm sure many of these places do report. They sell "rebuilding your credit" as one of their selling points.

If I were you friend, though, I would not trade in his car for a nicer one from them. They just want to lock him in to paying way too much for yet another car for more months tacked on. If (s)he can't get financed at another dealer, just pay this one off and drive it until it dies.

im not surprised because I told him he overpaid for that car

Re: buy here pay here

boomhower — Sat, 24 Mar 2012 15:38:44 GMT

I've bought twice from those places in the past. I was in a similar situation, I needed a car and didn't have any choice. My experience was similar, forced to overpay for the car at an insane interest rate. I think it's a good think if the place does report and reports correctly as a car loan. It will only help his chances of getting a real loan, even if it's from a subprime roadloans as the interest rate will at least be better than what he's getting now.

Re: buy here pay here

UpNComing — Sat, 24 Mar 2012 17:13:47 GMT

@MsTucker09 wrote:
Hello guys I have a question....my brother bought a car at one of those buy here pay here places about a year ago and they have been calling him because he has never been late on his loan and they want to get him something a little newer. but he said that he is thinking about trading his car in at a dealership like carmax and get a 2 yr old car instead of a 7 or 8 yr old car. So i told him that he wouldn't be able to do that because those places dont report an auto loan on your credit report....he said they do........so who is correct me or him because I thought that was the purpose to get people without credit or with crappy credit in a car because they dont necessarily look at your credit report?? Thank you

There have been situations where a subprime lender would honor a letter of credit from the buy here pay here lot. It's worth a shot.

Re: buy here pay here

MsTucker09 — Sat, 24 Mar 2012 19:58:19 GMT

@UpNComing wrote:
@MsTucker09 wrote:
Hello guys I have a question....my brother bought a car at one of those buy here pay here places about a year ago and they have been calling him because he has never been late on his loan and they want to get him something a little newer. but he said that he is thinking about trading his car in at a dealership like carmax and get a 2 yr old car instead of a 7 or 8 yr old car. So i told him that he wouldn't be able to do that because those places dont report an auto loan on your credit report....he said they do........so who is correct me or him because I thought that was the purpose to get people without credit or with crappy credit in a car because they dont necessarily look at your credit report?? Thank you
There have been situations where a subprime lender would honor a letter of credit from the buy here pay here lot. It's worth a shot.

okay great upncoming....who are the top subprime lenders (except for cap 1 and wells fargo)?

But just fyi Im not sure of how much he would be upside down on a car that he had a 10k note on a 9 yr old buick...he would probably have to roll 6 or 7k in negative equity..wow me and DH told him not to go there...he doesnt listen...he probably couldve gone to carmax or something

Re: buy here pay here

UpNComing — Sat, 24 Mar 2012 20:33:55 GMT

@MsTucker09 wrote:
okay great upncoming....who are the top subprime lenders (except for cap 1 and wells fargo)?
But just fyi Im not sure of how much he would be upside down on a car that he had a 10k note on a 9 yr old buick...he would probably have to roll 6 or 7k in negative equity..wow me and DH told him not to go there...he doesnt listen...he probably couldve gone to carmax or something

WF is barely in the subprime category. And that's only if the dealer heavily offsets their portfolio with prime contracts. Here's a short list of the subprime lenders we use:

AmeriCredit

Chase Custom Subprime

CPS

Drive Financial Services

Exeter Finance Corp

Liberal FInance Services

Condor Capital

Cap One (who is going nuts on prime lately by the way)

Santander Auto Finance

Re: buy here pay here

MsTucker09 — Sat, 24 Mar 2012 21:13:25 GMT

@UpNComing wrote:
@MsTucker09 wrote:
okay great upncoming....who are the top subprime lenders (except for cap 1 and wells fargo)?
But just fyi Im not sure of how much he would be upside down on a car that he had a 10k note on a 9 yr old buick...he would probably have to roll 6 or 7k in negative equity..wow me and DH told him not to go there...he doesnt listen...he probably couldve gone to carmax or something

WF is barely in the subprime category. And that's only if the dealer heavily offsets their portfolio with prime contracts. Here's a short list of the subprime lenders we use:

AmeriCredit
Chase Custom Subprime
CPS
Drive Financial Services
Exeter Finance Corp
Liberal FInance Services
Condor Capital
Cap One (who is going nuts on prime lately by the way)
Santander Auto Finance

what do you mean? they are only approving prime borrowers mostly?

Re: buy here pay here

UpNComing — Sat, 24 Mar 2012 21:39:31 GMT

@MsTucker09 wrote:
what do you mean? they are only approving prime borrowers mostly?

Cap One was never a player for prime borrowers until recently. We are sending practically all our business to them due to their competitive rates. They are still very much in the subprime game as well.

Re: buy here pay here

MsTucker09 — Sat, 24 Mar 2012 21:43:38 GMT

@UpNComing wrote:
@MsTucker09 wrote:
what do you mean? they are only approving prime borrowers mostly?
Cap One was never a player for prime borrowers until recently. We are sending practically all our business to them due to their competitive rates. They are still very much in the subprime game as well.

oh ok great, I have 2 cc in excellent standing with them so when I am ready to finance I will go to them first, even though I hope I will not get a rate over 15%

Re: buy here pay here

Anonymous — Sun, 25 Mar 2012 03:00:38 GMT

@UpNComing wrote:
@MsTucker09 wrote:
okay great upncoming....who are the top subprime lenders (except for cap 1 and wells fargo)?
But just fyi Im not sure of how much he would be upside down on a car that he had a 10k note on a 9 yr old buick...he would probably have to roll 6 or 7k in negative equity..wow me and DH told him not to go there...he doesnt listen...he probably couldve gone to carmax or something

WF is barely in the subprime category. And that's only if the dealer heavily offsets their portfolio with prime contracts. Here's a short list of the subprime lenders we use:

AmeriCredit
Chase Custom Subprime
CPS
Drive Financial Services
Exeter Finance Corp
Liberal FInance Services
Condor Capital
Cap One (who is going nuts on prime lately by the way)
Santander Auto Finance

Just as a heads up, AmeriCredit is going by GM Financial now (purchased by GM).

Re: buy here pay here

UpNComing — Sun, 25 Mar 2012 23:53:40 GMT

@Anonymous wrote:
@UpNComing wrote:
@MsTucker09 wrote:
okay great upncoming....who are the top subprime lenders (except for cap 1 and wells fargo)?
But just fyi Im not sure of how much he would be upside down on a car that he had a 10k note on a 9 yr old buick...he would probably have to roll 6 or 7k in negative equity..wow me and DH told him not to go there...he doesnt listen...he probably couldve gone to carmax or something

WF is barely in the subprime category. And that's only if the dealer heavily offsets their portfolio with prime contracts. Here's a short list of the subprime lenders we use:

AmeriCredit
Chase Custom Subprime
CPS
Drive Financial Services
Exeter Finance Corp
Liberal FInance Services
Condor Capital
Cap One (who is going nuts on prime lately by the way)
Santander Auto Finance

Just as a heads up, AmeriCredit is going by GM Financial now (purchased by GM).

Hmm, strange. Still listed as AmeriCredit in Dealertrack (online tool that links a dealer to his lenders). Maybe they kept the name. When did they switch over?

Re: buy here pay here

Anonymous — Mon, 26 Mar 2012 01:15:13 GMT

@UpNComing wrote:
@Anonymous wrote:
@UpNComing wrote:
@MsTucker09 wrote:
okay great upncoming....who are the top subprime lenders (except for cap 1 and wells fargo)?
But just fyi Im not sure of how much he would be upside down on a car that he had a 10k note on a 9 yr old buick...he would probably have to roll 6 or 7k in negative equity..wow me and DH told him not to go there...he doesnt listen...he probably couldve gone to carmax or something

WF is barely in the subprime category. And that's only if the dealer heavily offsets their portfolio with prime contracts. Here's a short list of the subprime lenders we use:

AmeriCredit
Chase Custom Subprime
CPS
Drive Financial Services
Exeter Finance Corp
Liberal FInance Services
Condor Capital
Cap One (who is going nuts on prime lately by the way)
Santander Auto Finance

Just as a heads up, AmeriCredit is going by GM Financial now (purchased by GM).

Hmm, strange. Still listed as AmeriCredit in Dealertrack (online tool that links a dealer to his lenders). Maybe they kept the name. When did they switch over?

About a month ago. They are not keeping the name, your system has probably just not updated yet. They sent me a letter telling me they were officially changing their name and ever since all info from them has had the new GM Financial letterhead.

Also, www.americredit.com now redirects to www.gmfinancial.com.