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I think you're making assumptions on intent/motivations. It's not like you can't bring your own financing to any car dealer, if you really can't secure a loan f

I think you're making assumptions on intent/motivations. It's not like you can't bring your own financing to any car dealer, if you really can't secure a loan from anyone else - then for these used car lots the costs of being willing to deal with that market are rolled into the price of this car. They aren't just a lot, they are a high-default finance and repo operation also. They need to pay additional insurance, monitor their cars - their rates can't be great and every car requires some version of gap insurance on their end probably at least for a while if they're rolling these costs into the sale price and then requiring no or little down payment. I assume since they're smaller operations their money has a higher time-value to them -- i.e. if a higher than normal number of people pay late one month, they may be late on their debt payments since I assume they have some type of line of credit and they themselves probably don't have the best rate. I don't think they are specifically out to mess up people's lives is all I'm saying, it's easy to get caught up in the emotional side of a car repossession but think about if a client didn't pay you and you were racking up credit card interest waiting for them so you can pay your own bills -- would you feel bad about taking back your work after a certain period of time?

FireBeyond 9y ago
> every car requires some version of gap insurance on their end probably at least for a while if they're rolling these costs into the sale price When you're selling a Kia with a KBB of $3,000 for $13,000, I'm going to assume you've adequately "factored in your costs" without resorting to gap insurance (which is going to be huge, because the insurer is going to pay fair market on KBB, not what you sold the car for) other than (further) extortion. > they may be late on their debt payments since I assume they have some type of line of credit and they themselves probably don't have the best rate. Hah. I had to use a subprime dealer after my divorce (not to the extent of GPS / immobilization, but 'pricy'). A year or so after buying the car, I got a call from a bank that I didn't recognize, saying that I owed them $2,000. This was the same amount that I'd written on a check for the down payment on the car. Sure, a cancelled check stub saying "Sorry, I paid the dealer the down payment" cleared it up, but something was awry. Six months later, their multiple locations are shut and another bank has them in court for breaches of contract that I think ended up as fraud proceedings against the dealership owners for multiple financing issues (mind you, they were both still driving their Bentleys)...
djrogers 9y ago
> I think you're making assumptions on intent/motivations. I’m not sure how you parsed that from my post - I didn’t ascribe any intent or motivation to any party.

FireBeyond 9y ago

> every car requires some version of gap insurance on their end probably at least for a while if they're rolling these costs into the sale price When you're selling a Kia with a KBB of $3,000 for $13,000, I'm going to assume you've adequately "factored in your costs" without resorting to gap insurance (which is going to be huge, because the insurer is going to pay fair market on KBB, not what you sold the car for) other than (further) extortion. > they may be late on their debt payments since I assume they have some type of line of credit and they themselves probably don't have the best rate. Hah. I had to use a subprime dealer after my divorce (not to the extent of GPS / immobilization, but 'pricy'). A year or so after buying the car, I got a call from a bank that I didn't recognize, saying that I owed them $2,000. This was the same amount that I'd written on a check for the down payment on the car. Sure, a cancelled check stub saying "Sorry, I paid the dealer the down payment" cleared it up, but something was awry. Six months later, their multiple locations are shut and another bank has them in court for breaches of contract that I think ended up as fraud proceedings against the dealership owners for multiple financing issues (mind you, they were both still driving their Bentleys)...

djrogers 9y ago

> I think you're making assumptions on intent/motivations. I’m not sure how you parsed that from my post - I didn’t ascribe any intent or motivation to any party.