Quite the profit in selling used cars

[MillCreek]

http://www.latimes.com/la-fi-buy-here-pay-here-part1-storyb,0,7206927.story

I had not realized the profit margin inherent in selling used cars to the financially-distressed.  The 40% profit margin is double that of new car sales.  How interesting that many such cars are installed with remote GPS beacons and ignition disablers, to make repossession easier. 

[dogmush]

Woman in the first page of the story was an idiot.  

Another buyer might have balked at the deal she was offered. Lee figured she had no choice. She put $3,000 down and drove off in a 2007 Ford Fusion, agreeing to pay $387 a month for four years. The interest rate: 20.7%, nearly triple the national average for a used-car loan.

http://losangeles.craigslist.org/lac/cto/2664156384.html

http://losangeles.craigslist.org/lgb/cto/2676273735.html

http://losangeles.craigslist.org/lac/cto/2676260493.html

http://losangeles.craigslist.org/sfv/cto/2676246018.html

All from the first page of listings.

She let her desire for a "nice" car overpower her good sense.  I REALLY want a 6.2L four door Raptor, but I know that I cant afford it.  Now this lady knows she can't afford an almost new Fusion.  Hopefully she learned a lesson as about budgeting.

*ETA: That said Buy Here Pay Here places are pretty scummy.  but they're known scummy.  I have had several coworkers pour thousands of dollars into these places, and even while they're bleeding cash they'll make fun of my (at the time) beat up rides.  If you're an adult, and stupid about money, people will take advantage of that to take you're money.  Welcome to the real world.

[cassandra and sara's daddy]

high end on that fusion is less than 14 k
they screwed her
we have a place like that near here

[dogmush]

high end on that fusion is less than 14 k
they screwed her
we have a place like that near here

Oh yeah, they screwed her, but she lay down for it.  Again, with $3000 cash and $27K a year job, why was she financing anything?

[dogmush]

Although I gotta say the tricky repossession after bankruptcy was pretty shitty.  Most of those places around here won't let you get through bankruptcy before they snatch the car.

I've seen several of those super-fast hook up tow trucks grab a car from the parking lot of work while my coworker screams at them and chases them down the street.  good lulz there.

[Jamisjockey]

Oh yeah, they screwed her, but she lay down for it.  Again, with $3000 cash and $27K a year job, why was she financing anything?

Agreed.

It takes two to screw. 

Right after we moved to Salt Lake my wife traded in her 2wd Suzuki Vitara for a 4wd Suzuki XL7.  Our credit wasn't great and we were upside on the vitara.  She did it while I was at work, and got screwed.  Not the dealerships fault, she's the one that signed the papers. 

[Monkeyleg]

Geezis, my 2007 Mustang cost a couple grand less than that ($387 * 48 = $18,576 + $3,000 = $21,576), and it was almost new when I bought it. She really got screwed.

This isn't anything new. My MIL has been getting loans from HFC since the 1960's. I remember taking her to Household Finance Corp once when she was making a payment, and realizing that she was paying 24% interest. This was in the 1970's. Still, a "normal" bank loan could be had for 14% to 16% during the Carter years. I believe HFC is still charging that kind of interest.

[mtnbkr]

Sounds like another version of JD Byrider.  Several years ago, when my younger brother needed another car, we stopped at one of those lots not realizing the kind of business they were.  The plan was to pay cash for the car with a $5k budget.  We found something suitable, but a little above budget.  When I asked what the cash price would be, he said "we don't sell cars for cash".  I asked him "so, if I showed up here with a certified check for the full purchase price, you wouldn't take it?".  He responded that they wouldn't.  They prey on folks who can't get decent loans.

Again, with $3000 cash and $27K a year job, why was she financing anything?

$3000 doesn't get you much and $27k/year with three kids doesn't leave much room for saving anything.  I'm surprised she had $3k to put down on a car.  Still, I think if she put $3k down on a $7k-$10k car most places would be willing to finance at a better rate than she got.

Chris

[Perd Hapley]

Just like payday loan clip joints, lottery tickets, and all the other ways people prey on the poor. If the occupiers wanted to protest some truly evil capitalists, they would start there.

[wmenorr67]

$27K in California isn't much to live on.

Also go to most any major military base and there are a ton of buy here, pay here lots, along with payday loans, pawn shops, strip joint (citys that allow it), etc....

[BobR]

When I was in high school (late 60's) I worked in one of those lots as a mechanics helper. What we would do to make some of those cars seem to be mechanically sound was unethical and probably criminal in some cases. I imagine some of the same things are still being done. This was in Lawton, Oklahoma, right outside the gate to Ft Sill. Can you guess who this place preyed on?

bob

[birdman]

I REALLY want a 6.2L four door Raptor, but I know that I cant afford it.

If you ever want a ride in one, and are in northern Virginia, drop me a PM...it's a disturbingly wonderful truck.

Though, it is rather large (bigger than an original hummer in all dimensions, btw), which makes parking interesting if you can't find a smart car to use as a ramp.

Wait a year or two, I bet 50/50 that ford will release an ecoboost one, (which I really want) and you'll be able to pick up the 6.2's cheap.  That being said, the non-4-door 5.4's can be found reasonably, as theavsilability of the 6.2 and the supercrew depreciated them.

Mileage sucks (warning)...13 on my commute, 16 highway (at 70mph), range is still good (36gal tank in the supercrew) but your wallet hurts when you eventually need gas.

[Brad Johnson]

16mpg hwy from a 400+ hp 6.2l beast like a Raptor?  I'd say that's amazingly good considering the size, weight, and the fact that the thing has the aerodynamics of an open umbrella.  Heck, my 5.4l "plain jane" truck will only eke out 17.5 on occasion.  And that's with summer blend fuel.  Winter blend drops it to 16.5.

Brad

[Scout26]

Despite the best efforts of the .gov and the OWS morons.  There is always a tax on stupid.

[BridgeRunner]

Just like payday loan clip joints, lottery tickets, and all the other ways people prey on the poor. If the occupiers wanted to protest some truly evil capitalists, they would start there.

+1

My genius ex just destroyed us financially with payday loans.

Of course, one charitable thing that poor/poorer people really need that I haven't seen outside of the Jewish community is free loan funds.

I imagine that they would too often default; in the OJ world, where everything is on a smaller, closer scale, there is a certain amount of social pressure that doesn't exist in the world at large. The local OJ free loan fund is run by my sixth grade teacher, and aas stablished to honor the memory of the founding principal of the OJ Girls' school.  The Jewish Federation has a free loan fund as well. It would be intersting to know what their default rate is.

Heck, currently, I'm paying off a couple hundred bucks left on free loans two family members made to me over the course of the past year+. Without those loans, I'd have some major problems--they enabled me to get kids in daycare and get other stuff in order for starting work.

Without helpful family and absent community-based charity, people fall back predatory lenders to try to get of a desperate situation,'and usually it screws them over pretty fast.

[Boomhauer]

Although I gotta say the tricky repossession after bankruptcy was pretty *expletive deleted*ty.  Most of those places around here won't let you get through bankruptcy before they snatch the car.

I've seen several of those super-fast hook up tow trucks grab a car from the parking lot of work while my coworker screams at them and chases them down the street.  good lulz there.

Repo games is the best TV show ever. Watch it sometime.

People are dumb. I'd take advantage of it if I was a used car salesman. Hell, I have taken care of it...take a clapped out fullsize car from the '80s, worth a couple hundred. Slap a for sale sign on it for $1200, park it out in the yard. You'll have cash for it within a week if you live in a place with a high concentration of black people. And you'll see it two weeks later rolling around on huge rims and tires with a $5k sound system.

[wmenorr67]

Repo games is the best TV show ever. Watch it sometime.

People are dumb. I'd take advantage of it if I was a used car salesman. Hell, I have taken care of it...take a clapped out fullsize car from the '80s, worth a couple hundred. Slap a for sale sign on it for $1200, park it out in the yard. You'll have cash for it within a week if you live in a place with a high concentration of black people. And you'll see it two weeks later rolling around on huge rims and tires with a $5k sound system.

Also works if there is a high concentration of those that hail from south of the border.

[Perd Hapley]

You'll have cash for it within a week if you live in a place with a high concentration of black people. And you'll see it two weeks later rolling around on huge rims and tires with a $5k sound system.

Well, that was awkward.

Of course, one charitable thing that poor/poorer people really need that I haven't seen outside of the Jewish community is free loan funds.

I imagine that they would too often default; in the OJ world, where everything is on a smaller, closer scale, there is a certain amount of social pressure that doesn't exist in the world at large.

Exactly. That wouldn't work for most churches in America, for example. There is very little social pressure or New Testament church discipline that can't be shrugged off by going to the church down the street, or just not going at all. There are down sides to the inclusive, individualistic world we've built for ourselves. Upsides too, of course.

BTW, free loan means no interest? If I tried to get one of these free loans, would it involve a mohel?  

[dogmush]

Mileage sucks (warning)...13 on my commute, 16 highway (at 70mph), range is still good (36gal tank in the supercrew) but your wallet hurts when you eventually need gas.

Yeah, that's slightly better then my car gets these days. 

If I rode in your truck I'd REALLY, REALLY want one.  New house is on the way so I can't get a new car for 3-4 years. Sigh. Then I'll be stalking a used Raptor.

[Fitz]

$27K in California isn't much to live on.

Also go to most any major military base and there are a ton of buy here, pay here lots, along with payday loans, pawn shops, strip joint (citys that allow it), etc....

I have taken soldiers BACK to those places within the return period to fix that. It's amazing how easily they'll do a return when a 6'6" infantryman is staring them down.

I HATE how businesses prey on idiotic soldiers who think a new car is more important than fiscal responsibility

[Fitz]

If you ever want a ride in one, and are in northern Virginia, drop me a PM...it's a disturbingly wonderful truck.

Though, it is rather large (bigger than an original hummer in all dimensions, btw), which makes parking interesting if you can't find a smart car to use as a ramp.

Wait a year or two, I bet 50/50 that ford will release an ecoboost one, (which I really want) and you'll be able to pick up the 6.2's cheap.  That being said, the non-4-door 5.4's can be found reasonably, as theavsilability of the 6.2 and the supercrew depreciated them.

Mileage sucks (warning)...13 on my commute, 16 highway (at 70mph), range is still good (36gal tank in the supercrew) but your wallet hurts when you eventually need gas.

So, how much will you be sellin that beast for?

I have an adorable blue eyed 2 year old for trade. She's strong, so she could do manual labor

[Monkeyleg]

...take a clapped out fullsize car from the '80s, worth a couple hundred. Slap a for sale sign on it for $1200, park it out in the yard. You'll have cash for it within a week

If you can get the car for a couple hundred, why would someone pay $1200? Where are you getting the car for that price that the buyer can't get to?

Also, what is "clapped out"? Trashed? Worn out? Has a STD?

[Fitz]

There are entire BUSINESS models based on buying 80s full size cars for a grand, slapping 1500 dollar rims and a 400 dollar stereo in it, and selling it for 5k

[Perd Hapley]

There are entire BUSINESS models based on buying 80s full size cars for a grand, slapping 1500 dollar rims and a 400 dollar stereo in it, and selling it for 5k

What, no bizarre paint job to seal the deal?

[cassandra and sara's daddy]

close the deal with amp and sub woofers