Dealerships Give Car Buyers Some Advice: Just Stop Paying Your Loan

Discussion in 'The Okie Corral' started by cowboy1964, Feb 16, 2020.

  1. DaleGribble

    DaleGribble Sandwich!

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    Change some of the terminologies around and this is an all to familiar story in recent American history...
     
  2. DaleGribble

    DaleGribble Sandwich!

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    If I did that the state government, who I didn't get a loan from, would literally suspend my professional license and prevent me from earning a living.
     
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  3. nam02G

    nam02G First throwing ax bullseye.

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    Friend of mine once told me about shopping for a new truck. When he told one particular dealership that he wanted to pay cash they lost interest in working with him. They make more money off the loan interest than they do off the profit from the vehicle. That's why they pull so many shenanigans to get loans approved.
     
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  4. Cooter!!

    Cooter!! Permanent Noob

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    I would never, ever, get a loan on a car. I can't think of one good reason why people do?(besides vanity):devildance:.

    A) If you have to get a loan, you can't afford it.
    B) A car is a TERRIBLE investment. The ultra-rare examples of positive returns, only prove the point.
    C) A new car you can't afford is even a WORSE investment than an old car you can't afford.

    The out-of-warranty fear is simply manufacturer propaganda. The same people selling you the latest-greatest thing, can't make the old model last past 7 years?! Hows the new one gonna do? Do you really need that fancy key fob?

    Either way (new or old car), if it breaks, it's in the shop. The cost of repair and a rental will always be cheaper than a years worth of payments. X 7 years, plus cheaper insurance, plus no interest, etc...

    Buy an old car that suits you (for cash), and get in a basic mechanics class. Even if you never pop the hood and get greasy, your knowledge will save you $$$$ when talking to a mechanic. The money you DON'T spend on a payment will easily cover maintenance and repair of an older vehicle.

    Then you can save all that extra cash to buy smart things, like guns and ammo....
     
    Last edited: Feb 17, 2020
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  5. mtidaflash

    mtidaflash

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    Should be basic information for anyone borrowing money. Houses, cars, etc: 5cf580062388b.image.jpg
     
    Last edited: Feb 17, 2020
  6. larry_minn

    larry_minn Silver Member Millennium Member

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    I’m trying to sell a solid older car. IF I was going to keep it I would put @$1500 in a new suspension. Period. But car KBB is @$600. If they pay @$100 to have their mechanic inspect it, give estimate to replace suspension parts...(likely get $100 back when he gets job) for $2000 they would have solid car for yrs. I am having trouble getting in, out of it. It has many scrapes (picked up in tornado, dropped on what. Was left of garage foundation). I had to replace radio antenna. (After jacking up, putting planks)
    $600 drive a rough ride and put $500 a month in savings account. In two yrs you have over $12k to make solid down payment on 2 yr old, under 20k miles nice unit. Plus you KNOW you can pay $500 a month.
    People with less then a grand in bank, $$$$ in credit card debt they only pay minimums but can be convinced they can pay $600+ a month payments. Of course they will fail.

    Let’s say the sub grand car fails in three months. (Your mechanic was wrong) you are still money ahead.
     
  7. GeneCC

    GeneCC

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    When a dealership does this on one of my companies open loans I immediately shut that dealer off from submitting loans to my bank so that my sales people can not work with them for new business. Only a matter of time if lenders stick together before that dealer is out of business.
     
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  8. rj1939

    rj1939

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    May, in part, be due to some brands/models being garbage................not worth messing with resale wise.
     
  9. rj1939

    rj1939

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    The whole credit rating system is crap. I get free credit reports as a come-on from one of my services. I got an email from them a week or two ago, saying that my credit rating had gone up 15 points, curious about what had happened, I checked it..................didn't really see what had "improved", but noticed that I had some "things that need to be improved". They were accounts that had been closed FOR CARS THAT HAD BEEN PAID OFF..............gee, can you not pay off a car anymore. One was my daughter's car, which showed up on my rating, it is paid off, another one for our car, again, paid off and my son's car........paid off.
    In four months, I won't have any vehicle payments.............guess my rating will take a hit. Don't really care that much, it is still pretty high.
     
  10. JW1178

    JW1178

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    Those guys at those dealerships are just out for one thing and it's making the buck today. I don't think it's morally right not because I care about the lenders but people think that if people in the business tell them it's okay then it must be okay. I don't care about the bank that loses money because it's a business deal and they did business with those people. If it gets too bad it will be the taxpayer that bails them out so no damns given.

    Some of you saying that people should buy beaters (which really is OT), tell that to a woman with kids that she should put her and her kids safety and well being at risk over some money.
     
  11. larry_minn

    larry_minn Silver Member Millennium Member

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    it does not have to be a beater. Two yr old, less then 50k miles @ half price. Or not buying the top of the line model.
    Adding $7000 to a car is easy. In things that don’t really improve it much. A smaller turbo that gets worse MPG but 30 more hp
     
  12. Louisville Glocker

    Louisville Glocker Urban Redneck

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    I'm of the Dave Ramsey school of thought on this topic. If you can't afford it, don't buy it. That is, don't borrow money for a frickin' car. If you can only afford a $1000 beater, that's what you should be driving. Put the money that you're NOT spending on your monthly payment into: 1. Car repair fund, 2. Car purchase fund, and 3. Retirement fund. Sure, it isn't glamorous driving a POS old car, but you'll be better off financially. You'll be happy later in life. But this society is so into instant gratification, that most people won't heed this advice. (p.s. I've currently got four vehicles titled to me, but just gave the oldest on to my son - his first car. And yeah, it is kind of a beater. But perfect for a first car).
     
  13. AK_Stick

    AK_Stick AAAMAD

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    Yeah, problem solved as long as you dong mind our economy crashing.
     
  14. Oldschooltube

    Oldschooltube Flux Capacitor Technician

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    I have new vehicles now but there was a period of a few years when I was younger that I would buy beater cars. I wouldn’t spend over a couple hundred on them. As long as they would get me to work and were (reasonably) safe.

    I would put bare bones liability insurance on them and go and If they broke down I would just leave them where they died and get another. It was actually nice not worrying about scratches, dings, potholes etc.