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2003 KIA sold 8 times in 3 years!

B

BUTCH1

Lifer
John Oliver is at it again, this time it's the "sub-prime" auto loan industry, in one case a car from a buy here/pay here was repo'd WITH AN INFANT IN THE BACK SEAT!
 
Well, to be fair, with buy here pay here you dont get your name on the title until its paid off so technically youre renting it.
 
i met a guy last weekend who was down for the weekend. His car was outfitted with these weird looking solar panels. He had 4 (2 on the front, 2 on the back). His job was to locate people who were late or were not making their car payments. He drove down a street and his computer picked up every car's license plate within a block. He showed me his computer screen. Crystal clear. The license plates he picked up were clear as day. When he came across a car that needed to be reposed, he called up the repo guy and he did the rest.

The technology is scary.
 
blackangst1 said:
Well, to be fair, with buy here pay here you dont get your name on the title until its paid off so technically youre renting it.
Click to expand...
The same holds true if a bank lends you the $$ to buy the vehicle, you can will get the title after it's paid off or it goes to a dealer if you trade it in on a newer car down the road. Banks and finance companies really DON'T want to repo your vehicle and most will work with you if hard times come up. BHPH on the other hand LIKES to repo because they can sell the same POS 2003 KIA to another sucker at 2X it's book value and a 26% interest rate loan.
 
On another note, going into debt just because you want a sweet ride is frekin stupid. This sub prime mess with the auto loans has gotten really bad.

I've read that people are taking out 6-8 year loans on a car. That's insane. If you can't afford a car you might want to rethink your strategy.
 
Mai72 said:
i met a guy last weekend who was down for the weekend. His car was outfitted with these weird looking solar panels. He had 4 (2 on the front, 2 on the back). His job was to locate people who were late or were not making their car payments. He drove down a street and his computer picked up every car's license plate within a block. He showed me his computer screen. Crystal clear. The license plates he picked up were clear as day. When he came across a car that needed to be reposed, he called up the repo guy and he did the rest.

The technology is scary.
Click to expand...

the city has been doing this for eons.

the size of solar panels? are they license plate readers from the 90's or something?

Mostly, we see these license plate readers:
Minihawk_ANPR_Camera_on_police_car.JPG


12060771.jpg
 
Mai72 said:
i met a guy last weekend who was down for the weekend. His car was outfitted with these weird looking solar panels. He had 4 (2 on the front, 2 on the back). His job was to locate people who were late or were not making their car payments. He drove down a street and his computer picked up every car's license plate within a block. He showed me his computer screen. Crystal clear. The license plates he picked up were clear as day. When he came across a car that needed to be reposed, he called up the repo guy and he did the rest.

The technology is scary.
Click to expand...
"Solar panels"??, I think they were probably mirrors that fed the tag info into a database looking for those who were in default on the loans.
 
Preying on people without financial resources or the intelligence it takes (apparently) to have financial resources.
 
BUTCH1 said:
The same holds true if a bank lends you the $$ to buy the vehicle, you can will get the title after it's paid off or it goes to a dealer if you trade it in on a newer car down the road. Banks and finance companies really DON'T want to repo your vehicle and most will work with you if hard times come up. BHPH on the other hand LIKES to repo because they can sell the same POS 2003 KIA to another sucker at 2X it's book value and a 26% interest rate loan.
Click to expand...

26%? That's cheap. I saw a story about a local government employee with a car loan of 33%. Don't let me start with the buy here pay here car stores, pawn shops, and quick cash loan places in front of the entrances of the military bases.
 
Svnla said:
26%? That's cheap. I saw a story about a local government employee with a car loan of 33%. Don't let me start with the buy here pay here car stores, pawn shops, and quick cash loan places in front of the entrances of the military bases.
Click to expand...

Wow, I thought 29.9% was the legal max, guess I thought wrong!..
 
19%? That way low for BHPH.

So a salesman sold Bernice a $8K car when she already knew she could only afford a $2-3K car? Hmm

Here, they can't repo after a few days late unless the customer has already been 30 days late and had the proper paperwork sent to them.

My wife wants another baby. Maybe I should open a BHPH.

I love the shutoff for non payment.

Damn, don't buy a Kia.

lol GM financial...didn't they learn last time?

I love customers that just got out of bankruptcy.

My pipe dream is to be able to get Magnus or Dr P to financially back a BHPH so I can offer used car loans at a mere 14%.

Svnla said:
26%? That's cheap. I saw a story about a local government employee with a car loan of 33%. Don't let me start with the buy here pay here car stores, pawn shops, and quick cash loan places in front of the entrances of the military bases.
Click to expand...
Hmmm, maybe the government is fucking the men and women in the military. $15/hr, I say.
 
I thought it was a bit interesting that he harped on places for lending to people with bad credit scores given the piece where he harped on places for relying on credit scores and the amount of incorrect information\medical dept that was reducing scores and making it hard to get loans to the detriment of people's lives.

So people need cars to get to work but the market is such that lenders are needing to make riskier loans for these people. I have no doubt that there are places that take advantage of people but it sounds like the middle ground needs to exist. I do also wonder more about that car that was sold for more than it was worth. Was it because these people could not get a car anywhere else? If so, how does that relate to the need to own a car as presented earlier in his episode. Was it because the buyer didn't know better? Perhaps some measure to limit how much over the cars value the BHPY places are allowed to sell to someone with <X credit score. You would have to tread carefully or else they would just not offer to sell cars to people who potentially need them.

Not exactly the same but a pretty interesting discussion on pay-day lending that would have some overall relevance when discussing how to address the auto loan issues
http://freakonomics.com/podcast/payday-loans/

highland is still a terrible person for preying on the weak and innocent though 😀
 
BUTCH1 said:
"Solar panels"??, I think they were probably mirrors that fed the tag info into a database looking for those who were in default on the loans.
Click to expand...

It would be interesting to see how high the error rate of that database is and who's maintaining it (and how often).

People get their houses mistakenly foreclosed on, and I'm sure there are far more safeguards with that.
 
Mai72 said:
i met a guy last weekend who was down for the weekend. His car was outfitted with these weird looking solar panels. He had 4 (2 on the front, 2 on the back). His job was to locate people who were late or were not making their car payments. He drove down a street and his computer picked up every car's license plate within a block. He showed me his computer screen. Crystal clear. The license plates he picked up were clear as day. When he came across a car that needed to be reposed, he called up the repo guy and he did the rest.

The technology is scary.
Click to expand...


humm, dont you need paperwork from the bank to do a legal repo? you just can go around with a list start snatching cars can you?
 
On the one hand, Lenders should be able to make a buck.
On the other hand, a lot of the practices being done at those types of car dealers are pretty unethical.

Selling a car with a KBB of 3K for 8K is shady as hell.
Selling a car with the intention of repoing it rather then the intention of actually selling it for good is shady.
Telling the people the monthly payment and focusing on the monthly amount rather than the total cost, while not warrantying/guaranteeing the car is shady as hell.

Also, one problem I had with that .. DO NOT LEAVE KID IN CAR. If your car gets repod with your kid in it, its YOUR FAULT for leaving your kid in the car without adult supervision.
 
Burn
Telling the people the monthly payment and focusing on the monthly amount rather than the total cost

Even the new dealers do this but I expect them to be shady too. When I worked for a guy that had a BHPH, the majority of the customers only cared about the monthly payment and, of course, how good they looked riding in it.🙂



Thanks for the payday link, Ex. I would have liked them to cover where the borrowers in the state that capped the rates borrowed from after.
 
highland145 said:
Burn
Telling the people the monthly payment and focusing on the monthly amount rather than the total cost

Even the new dealers do this but I expect them to be shady too. When I worked for a guy that had a BHPH, the majority of the customers only cared about the monthly payment and, of course, how good they looked riding in it.🙂
Click to expand...

I believe you and understand, however in many cases, people were only told the 1 number. It was not made clear and known that they were being charged X for the car and Y for the financing. You can blame the ignorant or stupid buyers all day long. A sucker is born every minute, but, in the end, only a crook rips off a moron.
 
I looked at getting into the sub auto market after a friend bought a house with the money he made off of a few cars. I just couldn't bring myself to be part of it. I just felt like I was taking advantage of people in bad places. I'm not knocking people that do it, I just didn't like the feeling of being like a slum lord.
 
BurnItDwn said:
On the one hand, Lenders should be able to make a buck.
On the other hand, a lot of the practices being done at those types of car dealers are pretty unethical.

Selling a car with a KBB of 3K for 8K is shady as hell.
Selling a car with the intention of repoing it rather then the intention of actually selling it for good is shady.
Telling the people the monthly payment and focusing on the monthly amount rather than the total cost, while not warrantying/guaranteeing the car is shady as hell.

Also, one problem I had with that .. DO NOT LEAVE KID IN CAR. If your car gets repod with your kid in it, its YOUR FAULT for leaving your kid in the car without adult supervision.
Click to expand...

Maybe she thought the kid in the car was a form of "repo prevention", apparently not. They are treading in dangerous waters though, kinda hard to not see a kid in a car seat and going through and taking the car anyway might be kidnapping charges. They are entitled to their collateral back on a defaulted loan but not entitled to take a kid along for the ride!.
 
BurnItDwn said:
A sucker is born every minute, but, in the end, only a crook rips off a moron.
Click to expand...
New and used buyers are mostly morons then but I understand what you're saying.

Did you have time to listen to Ex's clip? Interesting.



And what happened to your username? Truncated for the new forum or have I just not noticed?
 
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