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How do people like this get loans?

Texashiker

Texashiker

Lifer
<Somewhat serious thread>

A lady my wife works with bought a new SUV, it looks like a chevy trailblazer.

She is in her mid 20s, divorced, 2 small children, had a car repo'ed a few years ago, and is paying notes on a brand new chevy truck.

Now that she has the SUV she is going to let the finance company repo the truck.

How does someone get financing with a repo and currently paying notes on a truck?

The lady makes ok money, its nothing to brag about.

She is a friend of the family. My wife and I have known her, her mom, her dad, her brother, her sister, her stepdad,,,, for about 15 years or so. When she had surgery a few years ago my wife and I visited her in the hospital. So its not like she is a stranger.

How do people like that get loans?
 
As long as the lender can make money, they'll do the loan. If they can squeeze enough out of the mark before the repo to cover their costs and profit margin they're happy. Think of it as a high priced rental.
 
Different brand but read somewhere that GMAC was significantly lowering their standards to help move vehicles......here we go again.
 
highland145 said:
Different brand but read somewhere that GMAC was significantly lowering their standards to help move vehicles......here we go again.
Click to expand...

Sigh. I stated after GM finished with their bankruptcy proceedings, and again after they 'paid back' their tax payer loan, that they (GM) would be in the exact same boat again because of their union contracts, shoddy vehicles, and lax financing. Not sure whether I should laugh or cry that I'm being proven right again.
 
GMAC is now called ally. Then new gm then bought ally again so they could move cats to subprime idiots. New gm will be bankrupt again inside of 10 years. Its still run by the same idiots and still producing cars that only compete with the last generation of the industry leaders ( Malibu , cruze etc). GM makes some great cars (ats , vette , chevy ss when its out) but they don't sell in volume and their volume cars are mediocre and have to be moved via bad loans and discounts. Sounds like a recipe for sucess.

Case in point I saw 2 caddilac ELRs in camo today in LA with a volt following them. Looked slick will be a technological masterpiece I'm sure. Probably will cost $$$$$ since development will have cost a lot and theyll make barely any money on them and they won't sell many of them.
 
Bateluer said:
Sigh. I stated after GM finished with their bankruptcy proceedings, and again after they 'paid back' their tax payer loan, that they (GM) would be in the exact same boat again because of their union contracts, shoddy vehicles, and lax financing. Not sure whether I should laugh or cry that I'm being proven right again.
Click to expand...

Since GM only owns a very small percentage of stock in GMAC (Ally Financial), how does anything that Ally Financial does reflect on GM"s union contracts and their shoddy vehicles?

Since you blew that one, I'll take it you knew you blew the part about shoddy vehicles too.
 
Squisher said:
Since GM only owns a very small percentage of stock in GMAC (Ally Financial), how does anything that Ally Financial does reflect on GM"s union contracts and their shoddy vehicles?

Since you blew that one, I'll take it you knew you blew the part about shoddy vehicles too.
Click to expand...

Uh, no. To both.

I'm not the only person in this thread who's flatly stated that GM will be in the exact same boat inside a decade.
 
TwiceOver said:
The rate is probably ridiculous. They'll make a profit one way or another.
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Of all the credit categories, deep-subprime buyers, those with the worst credit, have seen the biggest drop over the last year in new-car loans, averaging 12.51 percent interest, a 0.89 percent decline. New-car loan interest rates are currently at 9.55 percent for subprime, 6.34 percent for nonprime, 4.54 percent for prime and 3.29 percent for super prime.
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Meh, 12.5% shit credit. That ain't bad.


*2012 rates.
 
no suprise.

My ex SIL is the same type. she gets loans on vehicles then "turns them back in because of mechanical issues" roughly 6-9 months latter. She claims they have mechanical issues and the dealership takes them back and forgives the loan.

yet roughly every 12 months she gets another vehicle loan. She just got one on a 2010 Ford escape. sigh
 
How? Three words: high interest rate, as in double digits or higher.

http://www.huffingtonpost.com/2012/07/20/getting-a-car-loan-now-easier_n_1688983.html

The average interest rate for a deep subprime loan &#8211; or a loan to someone with a credit score below 550 &#8211; on a new car is 12.9 percent, compared with 3.2 percent for buyers with the highest scores, according to Experian Automotive, which tracks automotive credit data.
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Paying over 4X as much? Yike!!!

That's for new cars. I bet for used cars at "buy here, pay here" places, the rates would be higher.
 
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Its kinda funny, at least around here the status car trend is reversing somewhat..

Seems like many Manfacturing or Hourly employees are driving a (leased) Lexus/Audi/BMW/MB etc..

Salaried and Executives drive the Honda / VW / Toyota / lower end or older luxury brands.

Whats that expression in Texas ?? All hat and no cattle ?
 
I am currently talking to my Credit Union about getting a new car loan wtih %2.5 APR.

I avoided trying to get a car throughout College and couldn't save the money long enough to be able to buy it on my own. Everytime I saved, something happened with my family or there was some expense that had to be paid (at one point I had $5,000!). Then, I ended up in the ICU 2 years ago and took home a $900 Hospital bill (and it was $12,000 for the entire "vacation". Thank goodness I had insurance), a $500 Ambulance bill...I was only in the Ambulance for ~5 minutes, and an additional $200 bill for Labs.

So, I spent whatever savings I had left and paid those bills off. Not in a lump sum...but they were gone within 5 months.

Now, I am still trying to build up that fund again...but wiped it out once again when my mother lost her job and has been seeking employment for nearly a year. I am helping my stepfather pay the mortgage...a mortgage for a house I don't live in. It's a bitch.

My credit is 50 points from being perfect, btw...but, the prospect of owing more than $1500 on a credit account scares the shit out of me.


Anyway...If I get this car, I just might have a mental break and might night ever get to drive it. It has literally been the ONE thing I absolutely needed to get for myself that never happened because I try to take care of home before I take care of myself.

If this Internship at Kellogg works out, I just might do something insane like swim across Lake Michigan naked.




How some lady who clearly abuses her finances can get a new car while losing her other car is beyond me...
 
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SheHateMe said:
I am currently talking to my Credit Union about getting a new car loan wtih %2.5 APR.

I avoided trying to get a car throughout College and couldn't save the money long enough to be able to buy it on my own. Everytime I saved, something happened with my family or there was some expense that had to be paid (at one point I had $5,000!). Then, I ended up in the ICU 2 years ago and took home a $900 Hospital bill (and it was $12,000 for the entire "vacation". Thank goodness I had insurance), a $500 Ambulance bill...I was only in the Ambulance for ~5 minutes, and an additional $200 bill for Labs.

So, I spent whatever savings I had left and paid those bills off. Not in a lump sum...but they were gone within 5 months.

Now, I am still trying to build up that fund again...but wiped it out once again when my mother lost her job and has been seeking employment for nearly a year. I am helping my stepfather pay the mortgage...a mortgage for a house I don't live in. It's a bitch.

My credit is 50 points from being perfect, btw...but, the prospect of owing more than $1500 on a credit account scares the shit out of me.


Anyway...If I get this car, I just might have a mental break and might night ever get to drive it. It has literally been the ONE thing I absolutely needed to get for myself that never happened because I try to take care of home before I take care of myself.

If this Internship at Kellogg works out, I just might do something insane like swim across Lake Michigan naked.




How some lady who clearly abuses her finances can get a new car while losing her other car is beyond me...
Click to expand...
QFPics.😉

TBH, continually helping family means you might not get a car. Ever.
 
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