Advice Wanted - Buy Here Pay Here lot

Jimmy Cincinnati /

I welcome any advice that will help a friend out. So here is the story.

I work with a younger guy that was sapped into buying a car from a Buy Here Pay here lot. He is currently lower income and they sold the car to him for about 3 times its value. Currently he has made most payments on the car for about a year but recently has had difficulty making a payment. He currently is behind a payment and the car has mechanical issues. Its a 2009 Chevy with around 170K on it. The car blue books for $2000-$3200 range and he currently owes $6500ish on it. He does have a 2nd paid for car so Ive been tossing him the idea of getting rid of Chevy since he is struggling to make bills. So here are the avenues of options that i see (advise if there are more). The first one was his idea which the dealer seems to like...

1) Surrender the car. The dealer ship said they would sell the car at auction and he would owe the difference from the sale and the outstanding balance.

2) Pull a new loan from a bank with longer repayment date to pay off the dealer.

The 2nd was my idea and I based it on a few reasons...

1) Private selling the car would bring more than the dealer auctioning the car off.

2) He has insurance through the dealer that he could then drop and find private insurance for cheaper (its around $100 a month). FYI the car payment currently is $400 a month ($200 every 2 weeks).

I know nothing here is stellar but Im trying to find him the most painless way out of dealing with this car. The dealer really is a scumbag (fyi its a place in Hamilton Ohio). Im worried if he surrenders the car and stops paying that they will issue a judgement against him in court and garnish his wages.

Is there another route he can go?

Also, what banks would be willing to work with him on a private loan? He estimated his credit score to be around 500. I asked him about previous loans he might of had and he claims the car is the only loan he has ever had.

Any help is appreciated. I just want to him him get through this. I think he learned a tough lesson here how these places just prey on people.

Re: Advice Wanted - Buy Here Pay Here lot

I like your idea best, but with a credit score like that I don't know if he could get such a big loan, maybe with a co-signer? Car would not do for collateral, may well be worth it to file bankruptcy in this case, that dealer ought to be run out of town. :/

Re: Advice Wanted - Buy Here Pay Here lot

That’s a shit situation. Fuck predatory lenders.

Tell him to set the car on fire in the dealers lot next to the more expensive stock.

JK. Of course.

His credit score can’t get any worse. Any further obligation to an overpriced car is bad. I’m 3/4 of a bottle of wine in and I’m having trouble with professionalism. But, I say walk away. Don’t pay another penny. Ignore bill collectors. It will be over eventually. After a couple years of not paying the PIECE OF SHIT PREDATORY CAR SALESMAN, the collection agency will accept a settlement payment of WAY less than the amount owed to just clear the books. That’s part of the benefit of shitty credit. Stick it to them.

I’m out.

Re: Advice Wanted - Buy Here Pay Here lot

Jimmy Cincinnati /

I like your idea best, but with a credit score like that I don't know if he could get such a big loan, maybe with a co-signer?

Im worried about that as well. In theory, if he could get approved for say $4000 he could sell the car and hopefully cover the differnece of the loan. It would leave him in the hole $4k but the payments would be more manageable. I do not believe he knows anyone whom will consign for the loan either. I was hoping some bank would approve him something since he does have a history of steady employment.

dealer ought to be run out of town. :/

Completely agree, but i know there are probably 20 dealers around there to pick up the slack.

Whats funny is the dealer recommended he surrender the car to them so they dont "have to charge him the repossession fees." I wanted to tell the lady to eat dirt.

But, I say walk away. Don’t pay another penny. Ignore bill collectors. It will be over eventually.

Obviously this would trash his credit score, which in my opinion doesn't really matter. So the real question is, what is the likely hood of him getting sued then having his wages garnished?

I asked the lady at the dealer (he put me on a conference call with her) if he could surrender the car, and perhaps pay $1000 to just be clean and clear from the car beyond that. She of course denied with no counter options. At one point she started recommending he find a cheaper place to live and apply for assistance. You know, get on section 8 housing so we can get our over priced car payments from you.

No one should pay $500 a month for a 11 year old high mileage chevy.

Re: Advice Wanted - Buy Here Pay Here lot

Overpriced Parts /

He can’t private sell the car because they have the title or have a lien on the title.

Best bet and I saw this work before is to contact the local investigative news team and have them contact the dealer to see if he could get out a deal if they don’t want to have negative press, If they don’t it would make a good news story.

Re: Advice Wanted - Buy Here Pay Here lot

Jimmy Cincinnati /

He can’t private sell the car because they have the title or have a lien on the title.

It would be annoying to sell the car, thats true. Because in theory he would have to find a buyer whom will pay him up front for the car... then he would have to pay off the dealer and wait on the title to be released to him. It would be a crap shoot for sure.

Re: Advice Wanted - Buy Here Pay Here lot

If the car should "disappear" the insurance should cover the loan balance right? Highly criminal I know, and it would have to never surface again kind of disappear... Bankruptcy sounds better all the time, would give him a clean slate to rebuild from, and they can't take his paid for car. Around here costs about 1,200 to file, save a few car payments, (let them repo the car) and file, all the related collections will stop and he can start again.

Re: Advice Wanted - Buy Here Pay Here lot

Overpriced Parts /

> Stephen Keller Wrote:

> -------------------------------------------------------

> If the car should "disappear" the insurance should cover the loan

> balance right? Highly criminal I know, and it would have to never

> surface again kind of disappear... Bankruptcy sounds better all the

> time, would give him a clean slate to rebuild from, and they can't take

> his paid for car. Around here costs about 1,200 to file, save a few car

> payments, (let them repo the car) and file, all the related collections

> will stop and he can start again.

The insurance would not pay much for that car if it was stolen so he would still be on the hook for the balance,

These buy here pay here lots love to take the cars back/repossess them so they can sell them again and again and again

Re: Advice Wanted - Buy Here Pay Here lot

They would if it is insured for the value of the loan.

Re: Advice Wanted - Buy Here Pay Here lot

Jimmy Cincinnati /

They would if it is insured for the value of the loan.

So i love your passion here but I wont recommend anything illegal. But perhaps there something to your idea of bankruptcy. Its a route Ive never taken nor given much thought to but I wonder if it would apply for his situation.

These buy here pay here lots love to take the cars back/repossess them so they can sell them again and again and again

They really are some of the lowest forms of bottom feeder scum in our society. I dont know how that lady goes home at night after a long day of screwing people hard up on cash.

Re: Advice Wanted - Buy Here Pay Here lot

I know "better" than to "disappear" a car....but.... ;) Bankruptcy is a big step, if everything else was great in his life, credit score etc, it may not be a good idea, but given the situation, bad credit, financial difficulties etc, it makes a world of sense. Look into it, you could be paying off that heap for years, whereas in one fell swoop all his debt would be erased credit cards etc, and the infernal car. I know people who have done it and have new credit cards within a year, I have never done it, but only because at the time I needed to I could not afford to... fought through it and ok now, but it was a long road, but I was not down as much as your friend. He can keep his paid for car as well. The idea of going to the media to force the dealers hand is ok too, but that just puts you in the limelight, and does nothing to get you ahead in life as bankruptcy can. Bankruptcy is a legal right, but should only be used if you understand how you got there so you can do better, not a way to write off your bullshit every 7 yrs.

Re: Advice Wanted - Buy Here Pay Here lot

Jimmy Cincinnati /

Bankruptcy is a legal right, but should only be used if you understand how you got there so you can do better, not a way to write off your bullshit every 7 yrs.

I think he got to this point just because of no guidance in finances in his life. I think this is waking him up a bit and I just think / hope he makes better choices going forward. One positive thing is he has no other debt (credit cards or loans). His issue is just a income issue, which he is trying to better himself. He has been looking into becoming a fire fighter and Im trying to help him get a CDL.

Re: Advice Wanted - Buy Here Pay Here lot

He's probably already paid for the worth of the car, or close to it. If he's suffering bad financially, that is why we have Bankruptcy laws.

Re: Advice Wanted - Buy Here Pay Here lot

Certainly don't burn or lose the car to collect insurance..we all know either is jail time.he probably won't get a bank loan because the car won't stand as collateral and probably will be hard to unload by reselling to someone else because he owes more than it's worth....only 2 things left ..turn it back and take his chances they won't try to garnish wages or bankrupt....

Re: Advice Wanted - Buy Here Pay Here lot

If he gives the car back and never pays a penny, I highly doubt they will go after his wages.

Just harass him like crazy and turn his debt over to a collection agency. Which he can ignore as long as he pleases.

My wife’s family is terrible about this stuff. I get calls from people looking for them. It’s weird. My sister in law had a similar car which she hid from the repo people and then just drove illegally for a long time. I think that’s stealing? Point is, they don’t try that hard. They want to talk tough and rip people off. Court costs way too much, so if he walks away, all he has to lose is his credit score which is bottomed out. 550 is as low as it gets. Far as I know.

No option that involves him continuing to pay for a car he doesn’t possess makes sense. NO, don’t do that.

$500 a month can get you a decent house in Ohio. My last place, before I moved, was a brand new double-wide home on a 6 acre wooded lot with a pond. Across the road was a river and cattle pasture. Serene. It cost $600 a month. If I had to live there or section 8, dumping all my income into a shyster’s pocket, I’d pick the country home.

It’s good that your talking about responsible options. I don’t think these kind of people deserve that consideration. They do deserve for him to get a new phone number, open a different bank account, and move on with his life.

Re: Advice Wanted - Buy Here Pay Here lot

Overpriced Parts /

> Papa _ Wrote:

> -------------------------------------------------------

> If he gives the car back and never pays a penny, I highly doubt they

> will go after his wages.

>

> Just harass him like crazy and turn his debt over to a collection

> agency. Which he can ignore as long as he pleases.

>

> My wife’s family is terrible about this stuff. I get calls from people

> looking for them. It’s weird. My sister in law had a similar car which

> she hid from the repo people and then just drove illegally for a long

> time. I think that’s stealing? Point is, they don’t try that hard. They

> want to talk tough and rip people off. Court costs way too much, so if

> he walks away, all he has to lose is his credit score which is bottomed

> out. 550 is as low as it gets. Far as I know.

>

> No option that involves him continuing to pay for a car he doesn’t

> possess makes sense. NO, don’t do that.

>

> $500 a month can get you a decent house in Ohio. My last place, before I

> moved, was a brand new double-wide home on a 6 acre wooded lot with a

> pond. Across the road was a river and cattle pasture. Serene. It cost

> $600 a month. If I had to live there or section 8, dumping all my income

> into a shyster’s pocket, I’d pick the country home.

>

> It’s good that your talking about responsible options. I don’t think

> these kind of people deserve that consideration. They do deserve for him

> to get a new phone number, open a different bank account, and move on

> with his life.

A double Wide home is a trailer not a full foundation house, same with a prefab house but ya trailers and double wide trailers are very reasonable and somewhat near where I live but there’s a waiting list for the nicer parks

I know someone who got a like new repo trailer for $14,000 with only $98$ a month park maintenance fee which includes landscaping and Snow removal,

He never has to pay rent rest of his life but I don’t know if I would trust those for trailer parks are like tornado magnets, I’ll tell you though the Doublewide with big carport, under trailer storage, porch/patio front and backyard are worth it but I like to have a poured walls/foundation basement lower level just in case the weather goes south

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