>...if i lend you $100 to buy a car, you pay off 50%, i can sell the car for $70, i would have to give you $20 (you only owe me $50) The trick is to lend me $1

>...if i lend you $100 to buy a car, you pay off 50%, i can sell the car for $70, i would have to give you $20 (you only owe me $50) The trick is to lend me $100 on a $40 dollar car that I cannot sell for $70. Nevermind the fact that in most states I can't sell the car for any amount as the dealership owns the lien. > There are strict rules what you can do state by state, but generally you can't repossess something worth more than the outstanding balance and keep the rest as a profit A lot of articles have been written about scammy "Buy Here, Pay Here" autosales that exist despite the strict rules. Since the dealership is financing the car, they can tweak the initial balance and monthly payments to their liking, while following the letter of the law but hitting the repo quota on the same '97 Honda Civic.