buy here pay here

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@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

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Looking at the credit report and actually reporting a loan are two different things and doing one doesn't necessarily mean they are doing the other as well.

Virtually every potential lender is going to check your credit - including buy here, pay here. They, however, aren't so picky when it comes to baddies. 

When it it comes to reporting, many buy here/pay here won't be reporting. BUT there are some out there that do. When we bought a car from such a lot in the past, we made sure we picked one that does. That was my personal "precondition" to pay 24% on a car-loan.

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@UpNComing wrote:

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@MsTucker09 wrote:

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

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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.

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That's interesting. I had a loan on my 2006 BMW M5 with them and they belonged to the "elite" lending-group that actually issued auto-loans up to $100K. If you check out their terms today, I believe they don't lend out more than $50K any more.

[UpNComing]

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@UpNComing wrote:

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@Anonymous wrote:

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@UpNComing wrote:

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@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

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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

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

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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?

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Ok, so I got the scoop.  GM did purchase AmeriCredit.  However, they have kept the AmeriCredit name for the subrime division of GM Financial.  So if you are seeing GM Financial instead of AmeriCredit then I guess they view you as their prime credit customer.

[Anonymous]

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@UpNComing wrote:

Ok, so I got the scoop.  GM did purchase AmeriCredit.  However, they have kept the AmeriCredit name for the subrime division of GM Financial.  So if you are seeing GM Financial instead of AmeriCredit then I guess they view you as their prime credit customer.

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I would assume you have some good insider information, but I just have a feeling your insider was incorrect on this one.  I can guarantee I was sub-prime.  We were not approved by any other lenders after dealers shopped us to probably 20 different ones.  Our interest rate was 16.5%, even after putting down a very large down payment.  This approval was actually for my wife who had a FICO of about 550 with a past reposession, pretty solidly in sub-prime territory.  Additionally, the AmeriCredit website no longer exists (redirects to GM Financial) and everyone answers the phone as GM Financial now.

[UpNComing]

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@Anonymous wrote:

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@UpNComing wrote:

Ok, so I got the scoop.  GM did purchase AmeriCredit.  However, they have kept the AmeriCredit name for the subrime division of GM Financial.  So if you are seeing GM Financial instead of AmeriCredit then I guess they view you as their prime credit customer.

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I would assume you have some good insider information, but I just have a feeling your insider was incorrect on this one.  I can guarantee I was sub-prime.  We were not approved by any other lenders after dealers shopped us to probably 20 different ones.  Our interest rate was 16.5%, even after putting down a very large down payment.  This approval was actually for my wife who had a FICO of about 550 with a past reposession, pretty solidly in sub-prime territory.  Additionally, the AmeriCredit website no longer exists (redirects to GM Financial) and everyone answers the phone as GM Financial now.

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Couldn't get more insider than this one.  My AmeriCredit rep was in this morning.  It's possible that existing accounts were moved over to the GM side of things or its all GM Financial at the customer level.  Our contact number answers GM Financial Americredit.

Contact Information

AmeriCredit

888-556-4616

801 Cherry Street Ste. 3500

Fort Worth TX 76102

Services

Retail Lease

[MsTucker09]

so americredit only gives loans to GM vehicles

[Anonymous]

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@MsTucker09 wrote:

so americredit only gives loans to GM vehicles

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No, AmeriCredit/GM Financial is not a captive finance company.  For GM, I think that is Ally Financial now.  GM owns it, but I don't think they have changed anything with how they operate.  We bought a Kia Soul with it.

[GetAHouse]

"A friend of mine owns a buy here/pay here, and he reports to all 3 CBs.  He charges 29% (Florida)"

I just passed out. Please lord don't ever make me have to go to one of those places at those rates. My goodness

[Anonymous]

been there, done that, never again.

30 percent interest for a car is crazy.