Last post on Oct 22, 2013 at 12:51 PM
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What is this discussion about?
#295 of 347 Re: BHPH vs. renting a car [occupant1]
Mar 10, 2007 (1:36 pm)
I figure it this way. You pick out a nice low mileage '99 Taurus, it's $700 down, $75 a week, 78 weeks, total price $4995+ttl+interest, comes to $6400 altogether. You'd be making payments on that car, and say the transmission gives out after a few months. Now you have choices.
Or you can go to Carmax and pay $8500 for the vehicle.
#296 of 347 Re: BHPH vs. renting a car [occupant1]
by kyfdx@Edmunds HOST
Mar 10, 2007 (1:37 pm)
Geez... If I can afford $75/week, I'm just going to lease a new Accord..
Mar 10, 2007 (4:33 pm)
If you have NO cash or credit or are a "credit criminal"
(thanks Terry aka R Royce) the BHPH lots are your only
way to go !
Those BHPH lots in Fl. sure made a ton of $$$$.........
Sell a car that anyone with cash could buy for $2000
to a person with a little cash and/or no credit for
$1000 down and $60 or so a week for a YEAR.........
You figure MOST can't or won't pay after several weeks.
The car gets popped and resold to some other poor sap
for the same deal...................
#298 of 347 Re: BUT [geo9]
Mar 12, 2007 (7:24 am)
Old saying of "You reap what you sow" comes to mind
#299 of 347 Re: BHPH vs. renting a car [occupant1]
Mar 22, 2007 (10:27 am)
Actually this is not how the system works at all. The first place where you are misguided is in what you think the dealer paid for the vehicle. Just because Kelly Blue Book or NADA tells you the "value" of the vehicle does not mean that is what the current market value of the vehicle is or what the dealer has to pay in order to get the vehicle. In most parts of the country your down payment merely covers the cost of t.t.&l on the vehicle. This isn't the 1970's and vehicles don't cost what your granpa paid. You are correct that you can take your repair money and buy at another dealer because they do not check your credit but the BHPH dealer you originally bought from may report to your credit and if you can suffer out what you think to be your cruel and unusual punishment of a car for the contract term that you agreed to, then you might actually be able to get into a better car the next time and take yourself out of this cycle. But I guess in the long run it is all a matter of your personal value system, how you were raised and whether you think everybody owes you something or if you are going to take responisibility for the bills you didn't pay in the first place the got you into this situation.
#301 of 347 Re: Imagine making... [lemko]
Mar 03, 2008 (12:30 pm)
Bruce Johnson is trying hard not to lose his 2000 Dodge Neon. He and his wife, Helen, took out an $800 loan from Fast Auto Loans Inc. near Richmond. They've paid three payments , $533 , and still owe more than $900.
Johnson is paying about $40 per month on the principal and about $200 in interest. If he stops, he'll lose the car. If he continues, he'll sink more money into the car than it's worth.
"I'm paying $5,000 for a car that cost me $1,300, and if I get sick and miss a payment or can't make a payment they're going to come take my car away," Johnson, a 67-year-old retired carpenter, said in a telephone interview.
Johnson now wishes he'd just gotten a payday loan. At least then, he says, he would have known what he owed. Either way, he said, legislators need to protect families like his from predatory lenders.
Man, that just burns me up. Here a poor blue collar worker just trying to make ends meet is forced at gunpoint to take a handful of cash and hand over his car keys. When is the government going to step in and stop this victimization?!
Reminds me of the time a banker came to the house and held a knife to my wife's throat while I signed documents to refinance our home. Anyone know a good lawyer that can help me out?
#302 of 347 Re: Imagine making... [qbrozen]
Mar 03, 2008 (2:43 pm)
When is the government going to step in and stop this victimization?!
Not to sound unsympathetic, but the numbers in that article just don't add up.
First, the current balance on the loan is greater than the amount borrowed ($900 vs. $800). How is that possible?
Second, the article claims Mr. Johnson is paying $240 per month ($20 principal + $200 interest) but has already made three payments totaling $533 which works out to $177.78 per month. Which is it, $240 per month or $177.78 per month?
Finally, if he's paying $200 interest per month on a loan with a balance of $900 then his monthly percentage rate is about 22%. which adds up to an astonishing 264% annual percentage rate. Even a predatory lending organization is required by law to inform the customer what the APR is along with the total amount that will be paid over the term of the loan. Mr. Johnson had to have been aware when he signed on the dotted line that the total cost of this $800 loan would be over $5,000.
The government should certainly go after predatory lenders. However, I suspect the author of the article botched it and just didn't get her facts straight. And if the 67 year old Mr. Johnson was either completely oblivious to the tems of the contract into which he entered or was unable to coherently convey the facts to the author of the article then perhaps he ought not be driving in the first place.
SUVs and Smart Shopper.
#303 of 347 Re: Imagine making... [tidester]
Mar 03, 2008 (4:25 pm)
Thank you for doing the math I wa about to.
No, this doesn't add up.
It is a sad story and I feel for this guy especially at the age he is.
Still, he put himself in this position either by not paying his bills or making some horrible decisions.
This is when family support is needed. Hopefully this may be available to him.
#304 of 347 Pawn Shop Loan
Mar 04, 2008 (2:11 am)
In my state it could be a pawn shop loan.
There are restricted to something like 35% PER MONTH interest rates.