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Buy Here Pay Here used car lots: vicious cycle: sign, drive, default, repossess and resell

Posted: Fri Jul 06, 2018 11:03 pm
by cwerdna
I'd never even heard of such operations until something related to California law came up that applied to "Buy Here Pay Here" used car lots.

http://www.latimes.com/projects/la-fi-buyhere-payhere/ convinced me these businesses seem predatory, preying on the poor/those w/bad credit who need a car.

Re: Buy Here Pay Here used car lots: visicous cycle: sign, drive, default, repossess and resell

Posted: Fri Jul 06, 2018 11:18 pm
by LeftieBiker
We've had them here for years, and yes, they are. They essentially rent high mileage older vehicles for new car payments, repossessing and reselling them often.

Re: Buy Here Pay Here used car lots: vicious cycle: sign, drive, default, repossess and resell

Posted: Wed Sep 05, 2018 6:27 pm
by Ingroundeffect
Very big business here in Oklahoma. Heck there are even chains like Car Mart where that is their primary business model.

Buy car at Auction for $3,000 or less.

Sell car for $6,000.
$500 - $1,500 down payment
$200 a month car payment.
Most will make 1 - 5 payments then default. Some never make a payment.
Pay $200 to reposses car (with a gps tracker)
Sue for remaining balance on the car.
Resell car to next person.

I had a friend that worked his dads lot for a while. Said their record was selling the same car 5 times.
Very easy to prey on those that need a car but have bad credit and will pay almost anything to get one. Truly sad.

This is right up there with allowing people to sell a car they are upside down on and finance their loss on a new car so they are immediatly upside down on it. Turning a $20,000 car into a $25,000 car that they will continually never pay off. Sad thing is these are almost always Chevy dealers with these ads.

Re: Buy Here Pay Here used car lots: vicious cycle: sign, drive, default, repossess and resell

Posted: Thu Sep 06, 2018 7:01 am
by DaveinOlyWA
cwerdna wrote:I'd never even heard of such operations until something related to California law came up that applied to "Buy Here Pay Here" used car lots.

http://www.latimes.com/projects/la-fi-buyhere-payhere/ convinced me these businesses seem predatory, preying on the poor/those w/bad credit who need a car.
"This" is the reason I got out of the car selling business. FYI; these practices are not restricted to fly by night operators. Every dealership that sells used cars has people using "Spify" (Pronounced "Spy-Fi" for Special Financing)

I sold cars for a well known American Auto Manufacturer and yeah, it was an independently owned franchise but after seeing the EXACT same thing at 2 other dealerships, I realized that it was all about selling cars using any method available.

It was hitting people who were trying to get up. It was something I simply could not be a part of.