Auto Lending

Dealers that self finance shit cars, at shittier rates, to the blackest of niggers.

And Bill Maher Was an antivaxxer, doesn't mean all of what he says is bullshit.

Its dosturbing and evidence that we need to focus on public transportation. You need a car to land a job in a lot of places. Its common to ask if people have reliable transportation as part of an interview which is code for "car". The busses just dont cut it in a lot of places, especially where living close is too expensive for a lower income worker. The way america does things is stupid and doesn't work.

That said, any idiot should know what they are getting into with these loans. Desperate or not. Financial planning should be a required class before the age of 16 when kids are even allowed to drop out. Hell, make it part of math, more useful than calc II.

Buy here pay here. Basically the dealer provides their own financing options instead of a bank like a normal dealer. BHPH are shady, usually don't report you paying your loan so it's not even good for building credit, they will if you don't pay though. They charge high interest rates and your car most likely has a gps uniit somewhere. Their business plan is to sell to chumps that just look at the monthly payment, wait until they can no longer afford the payment anymore (or pay it off 7 years later) then come and tow it back to the lot to sell again.

>2 hour commute via public transportation
>10 minute car ride if she had a car

sounds like that fat bitch could get there faster by walking

but hey, who am I, just a white man with a 401k and a beer gut in process.

So its another example of taking advantage of dumb people.

Seems like the american way, whats the problem if banks do it

Walking?
did you see how morbidly obese she is?

so making her walk will make her fatter?

Its pretty clear that you are the one who go triggered.

my point is people that fat don't walk

Veeky Forums isn't your safe space.

Auto loans is a serious matter and facts must be stated, even if they trigger you.

>/pol/ say that usury should be banned
>2015 man said something similar
>still dismiss everything he say automatically
Ill be honest he is not very funny

There shouldn't be any regulation at all. If you're retarded enough to fall for it then you deserve it. You want a $3k car don't pay $8.5k with 26% interest. It's that simple.

>There shouldn't be any regulation at all. If you're retarded enough to fall for it then you deserve it.

Shit, you've got a point. We shouldn't have fallen for the banks fucking over the entire economy with subprime mortgages eight years ago!

I didn't know Longpostguy was a liberal cuck

Well fuck, that's sad

Didn't realize that Oliver was a meme, so I'll do my best to give a decent summary

Buy Here, Pay Here (often abbreviated BHPH or BH-PH), is a type of dealership model that became popular in the wake of the Cash for Clunkers program and the US recession following the collapse of the housing market.

BH-PH dealerships advertise themselves as an option for people with no cash on hand and horrible/no credit to be able to finance a car. The reason they earned the name "Buy Here, Pay Here" is because instead of lending money through a traditional source like a bank or credit union, the dealership itself is the "bank", and lends the money directly to the buyer-(It would not be horribly inaccurate to think of it as a dealership that simply lets a customer buy a car through a payment plan that charges interest)

Obviously, because of the type of customer this business model targets, their business practices are extremely heinous. They charge obscenely high interest rates, usually in the range of 18-29%, often on terms as long as 8 or 9 years. The cars they sell are auction cast offs, usually bought for pennies on the dollar of book value. It's the worst of local inventory that no other dealerships wanted to buy or try and sell.

Because the dealership itself is the "bank" they can ignore LTV regulations-(LTV is Loan to Value, and is a regulation most legitimate banks follow that limits the amount over book value, usually NADA, the bank will loan towards a car). This means the dealership can get away with charging basically anything they want for the car, often times 3 or 4 times the listed book value.

The dealerships also write extremely aggressive loan contracts that allow them to repo as soon as 24 hours after a missed payment, fit GPS tracking devices or start blockers, and demand payment every 2 weeks

The scary thing is, even more traditional dealerships like Carmax, Chrysler/Jeep/Dodge, and Ford are expanding their subprime business

I know this but he has some piss poor arguments. I miss Jon Stewart.
Except the people who take these are poor "luxury"/"sport" buyers who wont move to something else no matter how hard you try or tell them its a shit deal. ESPECIALLY IF ITS A CHRYSLER, CORVETTE, MERC, OR BMW.
I live in the same state as lpg btw. You know this shit if you live near trailerparks and the house/loan poor "rich".
>Captcha wants street sign
>Its an image of a cpu
What even

All this adds to further inflate the subprime auto bubble. If it's pushed to the point of popping, it could be just as dramatic on the economy as the housing bubble was, and it would absolutely destroy the car market in ways C4C and the first recession only dreamed about

again, didn't know JO was a meme, but everything he talks about in that video is accurate

Literally dealt with a girl yesterday who is in ACTIVE bankruptcy, the judge ordered her to get rid of her current cars and consolidate down to one. She would not look at ANYTHING other than a luxury brand (Merc, BMW, Infiniti, Audi, that sort of thing). Literally so terrible at personal finance she is in the middle of bankruptcy, and you couldn't have beaten an ounce of common sense into her with a metal baseball bat

Broken clocks can be right twice a day.

John Oliver happens to still be showing 2015, because c'mon!

>and it would absolutely destroy the car market in ways C4C and the first recession only dreamed about
The value of cars dropping lower than whale shit, destroying some people's investments, or the price of a shitted up escort ZX2 jumkping to insane numbers, barring poorfag high schoolers from getting their first car?

I get 6 figure job offers regularly but I don't have a car so I just accepted a $10 an hour gig learning how to fix semi trailers because I can't fucking sit here and do nothing...

the problem is, car's wouldn't get cheap. look at cash 4 clunkers and the recession, it jacked the prices up on cheap shitboxes more in 12 months than 10 years with of inflation

if the auto market goes belly up, dealers won't be able to offer loans, everything will go cash sales, and prices will fuckign skyrocket for them to stay in business

Man that would be a horrible thing! People would have to have cash to pay for their cars! And they would realize how insanely expensive cars are and do shit like buy cars they can actually afford! God man....

yet all your local shit jobs, like fast food, gas station clerks, and walmart employees would not longer have a means to get to work.

literally almost all of the entry level jobs in america are dependent on cheap, or at least easily obtainable, transportation, especially outside the few major cities that have anything close to reliable public transit.

yes im sure in your basement it would sound terrific for all that to happen, but it would result in an economic downturn 5 times worse than the housing bubble, as all your entry level job markets collapsed as people couldnt get to work

there is a lot of things coming together

>robots replacing low skill jobs
>no full time work
>even more vague reasons for being fired
>static wages
>self defence and defence of property is illegal

it brings the question if no one has enough cash to buy anything in spite of the fact the mass produced goods are cheaper to make than ever how does the economy work ?
its simple people no longer can own anything
all they have is debit and its getting to the point that our currency is backed more by debit than by any other factor

Pretty sure there was an auto loan pop during mortgage crisis.

>rices will fuckign skyrocket for them to stay in business
but if they're selling less, wouldn't prices go down so they at least make a sale?

>there are people that can't afford to buy a $2,000 car

How can you even say this with a straight face?

They need to make higher profits per car if they're selling less.

call an uber you fucking moron

auto sales is fixed demand. Economy goes into the shittier you have to maximize per unit profit, as you have only a small pool of people capable of buying cars

It's designed to get more and more people to rely on the government teet through handouts and maybe a basic income. Government has made it incredibly expensive to employ humans with obamacare, government has made travel incredibly expensive by raising taxes on fuel and roads, government has made it harder to buy cheap cars by destroying those that were traded in.

They aren't Veeky Forumstists, they're going to buy shitty used cars because they like how they look or what sound system some nig put in. They don't know how to inspect a vehicle or look up common issues, inquire about repair and service history, etc.

Static wages is, in my unprofessional opinion, the worst. I already have a hilarious story from my new IT related job that relates to that

Eh, it wiggled, but it didn't pop. Car loan bubble and student loan bubble are both now in imminent danger of popping

It's true as a rule though. You have thousands of people who can't buy a 2,000 dollar car. I have people who can't come up with 100-200 dollar down payments, literally people with ZERO cash on hand to buy a car, it has to be a zero down deal or bust. Fuck, I have had guys with 6 figure salaries so stretched out by debt they couldn't come up with 1000 dollar down payments on a 35K+ car.

da gobment is bad they take yur freedoms!

Ok grandpa. Simmer down, Hannity's on.

Jesus fucking christ it's sad to see people's indoctrination these days. Almost any federal program backfires and generally blows, this should be common knowledge by now.

if the car only consumed oil and petrol and fan belts sure you can afford it
>then the government steeps in and fucks your shit up

I can relate to the lack of financial education from all sorts of people in the US. I know a few doctors who are either obligated to working long hours (80+ a week, always on call, etc) or have had to file for bankruptcy because they spread their income too thin to uphold a particular lifestyle.

there is no getting off mr bones wild ride

To me it seems simple to not spread yourself too thin, what happened to these people?

The US has no formal system in place to teach basic financial skills. You don't learn it in school, so either you are lucky enough to be taught by a parent or relative, or you are motivated enough to figure it out yourself

Often times with people in 6 figure jobs or higher paying professions (doctors/lawyers), you have people who came from poor backgrounds or who were financially supported by parents who then stepped into jobs making more money than they had ever seen before. Without any type of financial education, they frequently fuck themselves over because they have no idea how to manage money/evaluate true cost/budget for themselves

When my wife started pharmacy school, they (amazingly) had a 2 week personal finance course all PY1 students had to take, and if you were married your spouse could come, so I did. You have incredibly smart people asking almost mind numbly dumb questions about basic finance, and a couple of Econ professors desperately struggling to keep these kids from taking the 6 figure salary they are about to get in 4 years and using it to drown themselves

Took some Phil classes in Uni; this shit's accurate. Maybe we are more than an Iranian niqab making factory blog.

>Let BHPH places fuck whoever's stupid enough
Is it just the Yurocucks that post Jew memes or did we become suddenly become tolerant

It does now.

I never bother with auto loans I just buy the car outright.

The worst thing is these people don't even spend money on anything good. It's bro trucks, RV's, boats and shit.

Just to add, these people with high paying jobs tend to be in social circles with other people with high paying jobs and it easily becomes a "keeping up with the Jones'" phenomena.

Don't forget the mountains of debt some of these white-collar professionals end up with (average medical school debt is $250k, on TOP of undergraduate debt). I keep seeing people I know who constantly complain about their 6 figure loan debt, meanwhile they're shopping for their next 3-series or fancy swiss watch/designer bag.

It's only in the past few years that they started TRYING to teach financial planning to doctors/residents for example.

>IT'S THE CURRENT YEAR, GOD
fuck off

I noticed current year man left out the part that cash for clunkers caused this.

Everybody likes to leave out that part, so it's not just limited to him. I've never heard anyone in government, from either major party, own up to the failure and vast negative consequences to that program

Current Year Man also left put many have to travel hours for a job since the number of full time jobs dropped because of Obamacare.

That would make sense if public defenders didn't exist. But they do because people don't enter the world expecting to break the law or fighting for custody.
For that reason there should be regulation.

LPG famalam
if someone buys a 100-150k car from a dealer, would it be smarter to finance it or to buy it straight with cash

Fuck John Oliver.

>John Oliver

KYS
Y
S

The bigger issue really is the regulations that DO exist aren't enforced, and dealerships that break them hardly ever face negative consequences

Usury laws right now (at least in terms of how they apply in North Carolina) limited the APR on a car less than 10 years old or less to 28.9%. Cars that are 2 years older or less are limited to 18%. You FREQUENTLY see buy here, pay here dealerships ignore this, and never get caught for it. I have seen people with effective interest rates from these places at anywhere from 40 to 300%

Most of these people have no idea what usury laws even are, and because they feed off ignorant people, they are never reported or prosecuted for it.

In reality, I don't know how you'd go about combating it. It's not that easy to audit the type of finance deals small back street dealerships are throwing out, and even if you could, who would do it?

Finance

Take the 150K you had and stick it in an index fund, use the interest you make to cover the car payment, and keep your 150 grand

The amount of transfers that can pay for their loans seem to prolong the student loan bubble.
Itll pop a good presidency away id say.
Wake tech is forcing me to take finance.
You describe finance class perfectly as its the same even with hs. People failed hs fiance often at the school i went to. Im hoping college finance i wont have to tutor people.

Assuming you actually have the 150K in cash, finance

Take your 150K and stick is in a low yield savings, or a low risk index fund. the interest you make will cover the car payment, and you won't deplete your 150K on a depreciating asset

My Credit Union offers 1.5% interest return just on a basic savings account.

So we need more laws based on the logic that there are top many laws for the common person to understand and gets fucked over.

SHUT IT DOWN LONGPOSTGOY

I like how slimy limey portrays these sub humans as rooting tooting white Texans and not the dune coons they typically are.

lol granted most of these places are 'Achmed the Autodealer' type situations, there is a notorious BH-PH dealership in my area that runs radio ads basically just like the parody one in that video, run by the biggest redneck white guy you will ever hope to come across

His radio ads are fucking hilarious though:

>it's flu season folks!
>Does your credit look as bad as I feel!
>We don't care, come on down, approved with 5 dollar down!!!!!!!
>terrible trade got you upside down!
>we don't care! We'll get you approved, 5 dollars down!

This.
I actually know some that have been investigated but not ever get accomplished fast enough to matter.
Finance wont do so great if your bank is shit.
Also dont stick everything in low risk index funds certain times your ending up with less than if you did fucking nothing with a portion of your income. Save a max of 1/3 that 150k put a tiny portion of your income in that and have the other portion of the initial go to low yeild. If you low risk/yeild is getting fucked you at least have money stashed to compensate.

Its almost like normies don't know what a good car is or how to fix problems. Most bh-ph dealers buy cars at auto auctions and do bare minimum repairs to resell them at inflated prices for the highest possible profit before gouging idiots on interest. If you can't admit how that is shady I'm not a cuck your a fucking dick.

>I actually know some that have been investigated but not ever get accomplished fast enough to matter.

I know of a couple places in Raleigh that got investigated by the local news, but all they did was close down for a month and open up under a new name, in the exact same location with the same staff, just used the new business name to purge out all the old negative reviews

>go to car lot
>find a car I'm interested in buying
>tell salesman I want to finance it
>negotiate on the total price of the car to get it as low as possible
>buy it
>immediately pay the entire principal of the loan before it accrues any interest

Good idea? y/n

I drive a 20 year old car I bought for $400 5 years ago, and I bought a house that sold for 60% of my annual salary . It's a lot better life to look poor and have $50k in the bank than to have the nicest car and house on the block and have to choose the Ramen or maybe you can get some Kraft dinner since you worked OT this week.

>CRAAAAZZZYYY KEVIN POWELL

Yes.

It's the same reason I enjoy a fleet of older shitboxes right now. It's much nicer at this point in my life to have several different types of vehicles to have fun with, and no car payment.

We have a winner!

Don't auto loans make you pay the interest you would have gotten even if you do pay it off early? Like on a house you can't just get a 30 year loan and pay it off in 15 just because you want to without having to pay for all the interest you agreed to on taking that 30 year.

Interest is accrued daily on a car loan bro, unless you get some super sketchy backlot deal. That's why tons of people make double payments or pay more than the monthly minimum, anything you pay extra on a simple interest car loan goes to the principle, which pays the loan off earlier, which means you pay less interest.

>You don't learn it in school, so either you are lucky enough to be taught by a parent or relative, or you are motivated enough to figure it out yourself
Actually I was taught it in school.

We had a class in high school that was all about life skills and other things you ought to know but aren't taught in a regular class, and loans was covered in it.

Can't say if this was a state thing, a county thing, or just a school thing, but I was taught it in school.

So what's the point in dealing with one year loans, two or three year loans if you just intend to pay it all in say one year?

The loan term just reduces the payment amount. It's to give you a safety net in case you can't pay the loan off as quickly as you hoped.

You could take a 6 year term, and pay the loan off in a year, but say one month you are little short on cash, you still have a manageable payment.

current year

>look up buy here pay here nc
>See dealership i got my civic from.
It makes sense how that 7gen was 6k now.
Good thing it was only handed down to me.

>my new IT related job

Oh, congratulations.

Most loans have no penalties for paying off early. Check with your lender though to be sure. DESU these BHPH dealers may have something to say about that in their loans, sleezebags that they are.

dealer skit at the end is actually pretty funny

Generally a bad idea cuz you make more money investing the extra cash you have and making payments than you save from just paying it up front and not having to pay interest.

Hi longpostguy,
I love what you contribute here, it's always insightful. This is going to be a bit off topic but I'd like to have a 1 on 1 conversation with you about an idea I have for your contributions. If you have any time, shoot me an email at:

[email protected]

I have no other idea on how to get a hold of you, so sorry for the burner email.

Thanks for your time.

I have only ever paid cash for the cars i've owned. I've worked shit jobs and never made over $100,000, so far.