What's the catch with these no credit check, open loan-ok, $500 down dealerships? This one in particular seems too good to be true. Am I missing something? Can an experience buyer check it out and let me know of their opinion? This will be my first car.
mnfreshstart(facebook and website name)
>pic related, it's from their website
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29.9% interest and a HIGH payment on short terms
Ah I see. Thanks m8.
This, and they'll just repo and resell it when you inevitably can't make the payments because people who make payments wouldn't be looking at places like this. They're scumbags.
Well I'm just starting off in my life and desperately need a car. A reliable car. Messed up on my student loan earlier on by going awol but am making enough to cover my rent, loans and $400 in total(per month for car payment and insurance). Just need a 2nd chance m8.
I'm not saying you're a scumbag--I'm saying they're scumbags. I think you'll inevitably you'll regret this decision, but when you've got no choice, you've got no choice.
Save up that $400 a month for a few months. Ride the bus in the meantime, and start looking for a Craigslist Special.
The car loan route is not safe, and they'll take you for as big a ride as they can.
Honestly if the interest rate is as high as
stated, I won't go through with it. I'm not desperate enough to be blinded by a conman. It's just that this dealer had a car I wanted but it's literally too good to be true.
I agree. I'll probably do this and just get a cheap beater but public transportation is not an option for me so I'll have to see which route I take.
I think it's probably going to be more along ~18%. I would do this if it's at all feasible to ride bus.
>everyone deserves a better future
>especially us when we will repo all your life
I once bought a miata from a BHPH.
Was clean and only 100k miles for $4k
They offered 24.5% and 300/month
I put down $2k
Next month paid the second $2k
They were mad.
Damn that would be about $3000 in interest for the vehicle I want.
Were they okay with paying off early? Were you the few to succeed?
>dealer sells cars at 30% undermarket value
>go see car and it's actually decent
>offer to pay up cash
>dealer refuses and say I need to finance
>financing is at 49.9% (the legal limit before usury)
>Dealer says yeah but you can get a low monthly payment if you take 8 years
People actually fall for this.
What do you recommend for a reasonable auto loan length?
For new car 5 years would be stretching it far.
For used car nothing more than the actual time before the car becomes worthless. Usually 2-3 years.
Okay. thanks.
They cant stop you from paying it off.
But yeah they were mad
Only if it is an open loan. Read the contract you sign. They could very well add in a clause that adds fees for early termination of the contract.
If you look for a car loan you can also look up with your bank. They can often get you a good interest rate and you know for sure they will be reliable.
True. I never considered that. I'll get right on to it.
You can go to get preapproved for credit. They will tell you how much you can take. Then cutoff 30% of that amount and look up for cars.
When you find a car and negotiated the price you can go back to your bank to get a bank draft. (Like a cheque but certified by the bank.) Don't let the peddlers try and tac on extra costs afterward. Remember you can always walk out.
Appreciate the tips.
John Oliver did a good story on this
>fifty fucking percent interest
That can't be true, let alone legal...
Assuming it's like most bhph, they're not a financial institution of any sort so they're not bound by any of the rules banks/creditors have to follow. Depending on the state they can charge however much interest they want. They can also calculate it whenever they want as well. Banks/creditors might go monthly, but a sleazy bhph could do a daily calculation if they really felt like it
That's horrifying.
this one?
Look into joining a credit union if you have those. They will generally give you a much lower APR
>financing a car
Your point?