KOONS TYSONS CORNER IS BACK!! TIME TO GET SOME GREAT DEALS!!

[1971demon]

Pretty much ALL the dealers in my area are one of three groups. They don't care who you buy from, they know they will get their share.

And it's not just car sales! How do you think labor rates suddenly jumped from $60 to $210/hr!!!!!

Again, the poor people get screwed!!!!! SCUMBAGS!!!!!!!

Min, wage skyrockets..(and above min wage earners escalated respectively)...take a look @ what workers comp rates have done since Covid..as well as health care packages for workers...now combine that with the national shortage of technicians ...dealers are paying premium wages for certified skilled technicians....and if you check...$60 hr labor rates vanished @ least 15/20 years ago

 

[2ndAmend]

...and if you check...$60 hr labor rates vanished @ least 15/20 years ago

Maybe in NY.

 

[1971demon]

Maybe in NY.

I cant remember $60 rates...the lowest I remember is 90 and that was pre Covid

 

[Slowpoke387]

Very lucrative...not so much that they are poor...they generally have atrocious credit history..and more often than not...deadbeats with a very high default rate..

Hey if you've repo’d in the past and you're a 523 then consider yourself lucky to be approved anywhere for any car.

 

[1971demon]

Hey if you've repo’d in the past and you're a 523 then consider yourself lucky to be approved anywhere for any car.

And...at ANY interest rate...

 

[MikeD1]

Back in the early '90's I was designing software that was being sold to these "buy here - pay here, everybody drives" car lots & what they were doing was a total scam. I actually felt bad for their customers (even tho I rarely feel bad for losers with shit credit).

They were in bed with the auto warranty places, who were also making a fortune off this crap. The way the scam works is they get these trash credit ppl to come buy one of the crap cars on their lot. The finance contract was typically a 'rule of 78's' loan + they forced the ppl to buy an extended warranty thru their approved company. Any down payment & the initial payments went to paying off the warranty, then loan interest, then principle.

Basically, more than 80% of these loans defaulted in the 1st 6 - 9 months. The dealer would repo the car & put it back on the lot & the way the warranty thing was set-up they essentially 'repo'd' that as well. The dealer would cash out the warranty & keep the $ + the loan interest and of course, there was never any equity to payback to the buyer.

The remaining 20% were not out of the woods yet ! The lot would call them, sweet talk them about how good they have been doing with the payments, and bug them to come in & 'upgrade' to a newer/better car (with a higher payment of course). Few resisted and those that got sucked in eventually ended up in the 80% that get repo'd group.

A lot of states put laws in place to curtail much of this, but I'd bet next months pay there are still scumbag dealers out there running some version of this scam.

 

[1971demon]

Back in the early '90's I was designing software that was being sold to these "buy here - pay here, everybody drives" car lots & what they were doing was a total scam. I actually felt bad for their customers (even tho I rarely feel bad for losers with shit credit).

They were in bed with the auto warranty places, who were also making a fortune off this crap. The way the scam works is they get these trash credit ppl to come buy one of the crap cars on their lot. The finance contract was typically a 'rule of 78's' loan + they forced the ppl to buy an extended warranty thru their approved company. Any down payment & the initial payments went to paying off the warranty, then loan interest, then principle.

Basically, more than 80% of these loans defaulted in the 1st 6 - 9 months. The dealer would repo the car & put it back on the lot & the way the warranty thing was set-up they essentially 'repo'd' that as well. The dealer would cash out the warranty & keep the $ + the loan interest and of course, there was never any equity to payback to the buyer.

The remaining 20% were not out of the woods yet ! The lot would call them, sweet talk them about how good they have been doing with the payments, and bug them to come in & 'upgrade' to a newer/better car (with a higher payment of course). Few resisted and those that got sucked in eventually ended up in the 80% that get repo'd group.

A lot of states put laws in place to curtail much of this, but I'd bet next months pay there are still scumbag dealers out there running some version of this scam.

Hmmm...just HOW MUCH..is next months pay

 

[MikeD1]

Hmmm...just HOW MUCH..is next months pay

Well, retired so it depends on what you count as 'pay' & what month yer look'in at !
Note that I didn't say 'income'

 

[1971demon]

Well, retired so it depends on what you count as 'pay' & what month yer look'in at !
Note that I didn't say 'income'

Dont get coy...we all know yer one of the RICH guys on here

 

[Slowpoke387]

Back in the early '90's I was designing software that was being sold to these "buy here - pay here, everybody drives" car lots & what they were doing was a total scam. I actually felt bad for their customers (even tho I rarely feel bad for losers with shit credit).

They were in bed with the auto warranty places, who were also making a fortune off this crap. The way the scam works is they get these trash credit ppl to come buy one of the crap cars on their lot. The finance contract was typically a 'rule of 78's' loan + they forced the ppl to buy an extended warranty thru their approved company. Any down payment & the initial payments went to paying off the warranty, then loan interest, then principle.

Basically, more than 80% of these loans defaulted in the 1st 6 - 9 months. The dealer would repo the car & put it back on the lot & the way the warranty thing was set-up they essentially 'repo'd' that as well. The dealer would cash out the warranty & keep the $ + the loan interest and of course, there was never any equity to payback to the buyer.

The remaining 20% were not out of the woods yet ! The lot would call them, sweet talk them about how good they have been doing with the payments, and bug them to come in & 'upgrade' to a newer/better car (with a higher payment of course). Few resisted and those that got sucked in eventually ended up in the 80% that get repo'd group.

A lot of states put laws in place to curtail much of this, but I'd bet next months pay there are still scumbag dealers out there running some version of this scam.

A lot has changed since then. A lot has also stayed the same. Sub prime auto lenders are out there now and are a very small step above by here pay here lol. As far as where the payments go, the loans are just like a mortgage. Front loaded and not conventional auto loans. Why would they be? Being poor actually isn’t the reason. They scrutinize the income much closer because of their deadbeat credit history. They are super high risk. Most incomes on conventional auto loans don't even get looked at because most of them have good credit, you just have to state your income, but not verify it. No bank has ever asked me for a paystub but in the sub prime auto lending world you had better have a paystub with you. The terms are credit based (along with income) and believe it or not the finance companies do take big hits on the repo’s. Overwhelmingly the majority of repo’s happen because the car is a piece of shit and people won’t pay for a car that doesn’t run and they're usually completely upsidown anyway. These cars get repo’d by the finance company and shipped off to auction where they sell for nothing because they have a million miles now and they don’t run for shit. They have to make it up somewhere and that is in the interest rates for deadbeats. 20.99% (in MA anyway).
I can tell you that if a dealer keeps pumping out bad cars that are getting repossessed, they build up a poor portfolio and get cut off from doing business with that particular lender. Losses don't pay the bills. It doesn't pay in the long run to keep pumping out jalopies.
Buy here pay here it is a little different and even worse for the customer for sure but around here you are required to have a banking license to even do that and so it’s hard to find in these parts anyway.

 

[1971demon]

A lot has changed since then. A lot has also stayed the same. Sub prime auto lenders are out there now and are a very small step above by here pay here lol. As far as where the payments go, the loans are just like a mortgage. Front loaded and not conventional auto loans. Why would they be? Being poor actually isn’t the reason. They scrutinize the income much closer because of their deadbeat credit history. They are super high risk. Most incomes on conventional auto loans don't even get looked at because most of them have good credit, you just have to state your income, but not verify it. No bank has ever asked me for a paystub but in the sub prime auto lending world you had better have a paystub with you. The terms are credit based (along with income) and believe it or not the finance companies do take big hits on the repo’s. Overwhelmingly the majority of repo’s happen because the car is a piece of shit and people won’t pay for a car that doesn’t run and they're usually completely upsidown anyway. These cars get repo’d by the finance company and shipped off to auction where they sell for nothing because they have a million miles now and they don’t run for shit. They have to make it up somewhere and that is in the interest rates for deadbeats. 20.99% (in MA anyway).
I can tell you that if a dealer keeps pumping out bad cars that are getting repossessed, they build up a poor portfolio and get cut off from doing business with that particular lender. Losses don't pay the bills. It doesn't pay in the long run to keep pumping out jalopies.
Buy here pay here it is a little different and even worse for the customer for sure but around here you are required to have a banking license to even do that and so it’s hard to find in these parts anyway.

The dynamic you cant overcome as a consumer...if you have SHIT credit...(or no credit)...your screwed...and it's not the dealers fault...and if by chance you get a reasonably fair deal...yer in all likelihood...gonna fuck that up as well...a DEAD BEAT...is always a DEADBEAT... stop blamin the dealers

 

[Slowpoke387]

The dynamic you cant overcome as a consumer...if you have SHIT credit...(or no credit)...your screwed...and it's not the dealers fault...and if by chance you get a reasonably fair deal...yer in all likelihood...gonna fuck that up as well...a DEAD BEAT...is always a DEADBEAT... stop blamin the dealers

So true. Hey when I was kid there WERE no sub prime lenders. If ur parents didnt cosign you werent getting a loan. These people should be happy to drive off in an ok car with a warranty and no cosigner, even at 20%. I mean they just repo’d a year ago and they're off and running again. We never had any options without credit back then. Although it probably saved many from themselves lol.

 

[1971demon]

So true. Hey when I was kid there WERE no sub prime lenders. If ur parents didnt cosign you werent getting a loan. These people should be happy to drive off in an ok car with a warranty and no cosigner, even at 20%. I mean they just repo’d a year ago and they're off and running again. We never had any options without credit back then. Although it probably saved many from themselves lol.

Agreed...@ 18..(still in HS)..I had no credit..my mother had to co sign...or I wasn't gettin a car...when you fuck up yer credit...yer in the sub prime market for a car.a house...and you see those same people @ rent A center for furniture...