Life Advising a friend. - Page 3

Micjones · 07:03 PM

So there's this girl at my job who is currently having a Hell of a time with her car dealership. It's one of those "buy here, pay here" lots. Her last car was repo'd after she missed a couple payments so she's been scrambling to find reliable transportation. Turns out that she moved a bit too quickly and took a flyer on a 2002 Ford that has upwards of 100K miles on it. A car that also brings with it a financial responsibility of right around $10,000. Obviously she's going to come out on the losing end of the deal. In all likelihood...the car will shoot craps long before she sees the light at the end of that contract.

So she tells me she's going to ask the dealership to refund both her first few payments and the initial down payment she remitted when she bought the car. Getting that money back is her end game.

I'm trying to talk some sense into her and help her realize that getting that money back at the expense of having this reported as another repo on your credit isn't a fair trade-off.

Am I wrong to suggest to her that the dealership is under NO legal responsibility to let her out of that contract?

She swears that she's going to get another car with an even LESS reputable lot. I tell her that they're going to see the open car loan and tell her to hit the bricks.

She's one of those people who talks her way out of everything with customer service personnel. But those are significantly smaller battles. Removal of NSF fees, refunds on hotel stays, etc. She's convinced she's going to win this fight. I think she's in BIG trouble.

Am I off-base here?

Micjones · 12-16-2009, 06:58 PM

Quote:

Originally Posted by WilliamTheIrish

Mic, I recall a similar story (possibly a title loan(?) from you about another friend). Is this the same person?

Let her learn the lesson.

No sir. Different girl.

I know I can't make the decision for her, but I'd really like to talk her out of doing something stupid.
This could be a VERY expensive lesson.

**BigMeatballDave** · 12-16-2009, 06:59 PM

Funny thing about GM cars. Back in '03 I bought a 1994 Corsica for $500. It had 150,000 miles on it. I drove it 2 yrs and had no problems with it and put 30,000 miles on it. At 180,000 miles I gave it to my sister while it was still running great and she locked up the engine.

**MahiMike** · 12-16-2009, 07:02 PM

What's another repo on her record?

**luv** · 12-16-2009, 07:03 PM

Quote:

Originally Posted by Micjones

No sir. Different girl.

I know I can't make the decision for her, but I'd really like to talk her out of doing something stupid.
This could be a VERY expensive lesson.

Trust me, let it happen once, and she'll be much more likely to remember it. Some lessons, even expensive ones, need to be learned the hard way. You've done your part by trying to tell her.

If it happens twice, she's just an idiot.

WilliamTheIrish · 12-16-2009, 07:03 PM

Quote:

Originally Posted by Micjones

No sir. Different girl.

I know I can't make the decision for her, but I'd really like to talk her out of doing something stupid.
This could be a VERY expensive lesson.

Mic, if she thinks for even a nanosecond that she's getting any $ back from a "Buy Here-Pay Here" joint, I don't think the individual has the smarts to be talked out of it.

Good luck, man.

Micjones · 12-16-2009, 07:04 PM

Quote:

Originally Posted by BigChiefDave

Funny thing about GM cars. Back in '03 I bought a 1994 Corsica for $500. It had 150,000 miles on it. I drove it 2 yrs and had no problems with it and put 30,000 miles on it. At 180,000 miles I gave it to my sister while it was still running great and she locked up the engine.

Another co-worker corrected me. It's actually a Ford.
Not sure there's really any difference though...

Micjones · 12-16-2009, 07:05 PM

Quote:

Originally Posted by MahiMike

What's another repo on her record?

She had a brand new Kia repo'd about 4 months ago after getting behind on her payments.

kstater · 12-16-2009, 07:06 PM

I had an employee come in with a "new" truck from one of those places saying how he got a great deal. After running the numbers, he was paying 27% interest. And he was buying insurance from them as well.

**Mr. Flopnuts** · 12-16-2009, 07:08 PM

Quote:

Originally Posted by Micjones

Flops when she tries to get a car from this other dealership won't they see an open car loan and deny her application?

I'm hoping so... That'll be her saving grace.

Unfortunately a lot of these buy here pay here places don't run credit reports. It's risk/reward. If they can fleece enough of a down payment, they can always go get the car when she's 1 day late. That's right, legally these places don't have to honor any kind of grace period. Some states require it, I don't know off hand if MO/KS are on the list.

**luv** · 12-16-2009, 07:10 PM

Quote:

Originally Posted by Micjones

Another co-worker corrected me. It's actually a Ford.
Not sure there's really any difference though...

There is. In my experience, Fords break down even sooner.

**OnTheWarpath15** · 12-16-2009, 07:10 PM

Quote:

Originally Posted by Micjones

She had a brand new Kia repo'd about 4 months ago after getting behind on her payments.

She might have been better off buying a bus pass.

If she couldn't keep up with payments on a KIA, how is she going to keep up paying $400/mo for a POS?

**Mr. Flopnuts** · 12-16-2009, 07:17 PM

Quote:

Originally Posted by Adam

Usually the down payment covers the value of the car. Once they get a single customer to make that payment, they can repossess it over and over again and resell it over and over again for a ridiculous profit margin. Only costs are collection/repossession. They'll do it until the car breaks down and might actually cost them something significant to repair.

Oops. I missed this the first time around. This pretty much sums it all up right here.

greg63 · 12-16-2009, 07:22 PM

She's an idiot.

**Saul Good** · 12-16-2009, 07:38 PM

Quote:

Originally Posted by Micjones

Flops when she tries to get a car from this other dealership won't they see an open car loan and deny her application?

I'm hoping so... That'll be her saving grace.

These places don't care. Everybody who walks onto their lot is in the same situation. The worse your credit, the bigger your desperation. Desperate people make stupid financial decisions.

Her credit is so shot that another repo isn't going to make much difference. She needs to scrape together about $1,500 and buy a jalopy with a little life left in it for cash. If she can then save up $300 a month for two years (while putting the other $100 she was spending towards repairs), she can buy a $7,200 car for cash that will last her 5 years. Then she can put $400 a month into investments and have a nice little nest egg.

You don't have to make much to retire a millionaire if you stay away from car payments, credit cards, and whole life insurance.

Tylerthigpen!1! · 12-16-2009, 07:49 PM

Quote:

Originally Posted by Saul Good

You don't have to make much to retire a millionaire if you stay away from car payments, credit cards, and whole life insurance.

College kid here. What do you mean by whole life insurance? And do most used car lots run this business model?

12-16-2009, 06:22 PM
Micjones Whose house? Join Date: Mar 2007 Location: KCMO Casino cash: $10005180	Advising a friend. So there's this girl at my job who is currently having a Hell of a time with her car dealership. It's one of those "buy here, pay here" lots. Her last car was repo'd after she missed a couple payments so she's been scrambling to find reliable transportation. Turns out that she moved a bit too quickly and took a flyer on a 2002 Ford that has upwards of 100K miles on it. A car that also brings with it a financial responsibility of right around $10,000. Obviously she's going to come out on the losing end of the deal. In all likelihood...the car will shoot craps long before she sees the light at the end of that contract. So she tells me she's going to ask the dealership to refund both her first few payments and the initial down payment she remitted when she bought the car. Getting that money back is her end game. I'm trying to talk some sense into her and help her realize that getting that money back at the expense of having this reported as another repo on your credit isn't a fair trade-off. Am I wrong to suggest to her that the dealership is under NO legal responsibility to let her out of that contract? She swears that she's going to get another car with an even LESS reputable lot. I tell her that they're going to see the open car loan and tell her to hit the bricks. She's one of those people who talks her way out of everything with customer service personnel. But those are significantly smaller battles. Removal of NSF fees, refunds on hotel stays, etc. She's convinced she's going to win this fight. I think she's in BIG trouble. Am I off-base here? Last edited by Micjones; 12-16-2009 at 07:03 PM..
Posts: 15,344

12-16-2009, 06:59 PM	#32
BigMeatballDave GBM 8-12-15 Join Date: Aug 2000 Location: Dayton, Oh. Casino cash: $10052154	Funny thing about GM cars. Back in '03 I bought a 1994 Corsica for $500. It had 150,000 miles on it. I drove it 2 yrs and had no problems with it and put 30,000 miles on it. At 180,000 miles I gave it to my sister while it was still running great and she locked up the engine.
Posts: 59,997

12-16-2009, 07:02 PM	#33
MahiMike He's Mahomie! Join Date: Aug 2001 Location: Jax, FL Casino cash: $10023443	What's another repo on her record? __________________ 99.9%
Posts: 17,387

12-16-2009, 07:06 PM	#38
kstater Custom User Title Join Date: Jan 2007 Casino cash: $-1683437	I had an employee come in with a "new" truck from one of those places saying how he got a great deal. After running the numbers, he was paying 27% interest. And he was buying insurance from them as well.
Posts: 40,007

12-16-2009, 07:22 PM	#43
greg63 Homer go crazy!!! Join Date: Nov 2003 Location: SE Kansas Casino cash: $6383990	She's an idiot. __________________
Posts: 19,387