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Smart Shopper Making Car Payments in Hard Times
49 messages, Last post on Mar 01, 2009 at 10:26 AM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
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Replying to: component81 (Jan 12, 2009 7:44 pm)
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Replying to: ronvpr (Jan 20, 2009 3:41 am)
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1.5 Billion... In the latest economic recession I feel victim to a slow real estate market and corporate layoffs. For the last year I have struggled to make my car payment on time...but eventually Chrysler financial received the monies necessary to continue on with my car loan. At rate...of 13% interest. At the time of purchase, a special favor was called in to Chrysler Financial from the dealership in which I purchased the car. I had a low credit score and commission only job for a source of income. Since taking on the loan, again, I have made late payments, my credit score has improved over 100 points. Now in a time where most people including myself can no longer support themselves the same way they could a year ago I came to you for help. I did not give up, file for bankruptsy or ignore the calls and wait for the car to be reposessed. Instead I asked for an interest rate reduction, a refinance anything to help me keep the car and keep paying on it. Chrysler Financial was given 1.5 billion to help ease it's financial woes, but for their customer, they are willing to do nothing. My car was financed way above what should have been legal. I like many others drove off the dealership lot upside down in my car. In hopes that my real estate job would enable me to pay the car off early. After real estate tanked, I found another job. I was layed off 2 weeks before Christmas. I did not again give up, file for unemployment and sit around thinking about bankruptsy but instead diligently searched for another job that would hold up better in a shaky economy. I found it. In healthcare. A skilled nursing home specializing in Alzheimer's and Dimentia. Although my pay would be $15,000 less a year, it was a long term choice. In the mean time I have a car that I pay $570/mo for. No it's not a BMW. Rather a Mazda 6 with 99K miles on it. At 13% interest it's easy to see that even adding on a couple years to the loan as well as dropping the interest rate to even 9% would still be financially beneficial to Chrysler Financial and also enable me to keep the car. But as every customer service agent repeatedly explains to me...Chrysler Financial will not help. They suggest going to another financial institution to refinance. The problem is this...like an arm mortgage, my car CAN NOT be refinanced unless I have about $3,000 to put down. This is because the market value is MUCH less than what I owe on the vehicle. A common, old and much repeated story. If I had the $3,000 I would one, pay Chrysler or two refinance at a better rate. My question is this: Chrysler Financial received their bail out money. When your agents tell me over the phone, that I signed the contract and it is my responsibility I have to wonder where yours is? Will you continue to unethically lend money? When you do and your customers need help, will you turn your back and say sorry, we know we got you in to this, but we will do nothing for someone who is willing to work hard, answer our phone calls and try to do what's right? There is no question as to why your company needs bail out money. There is no question why a large percentage of your customers are looking for a bail out, or rather help. When people ask me who your car is financed through, what will be the future reputation spread from "word of mouth"? I am disheartened that someone could ok this loan (like so many mortgage brokers did) walk away and say sorry there is nothing we can do to help. Even the banks will help homeowners reduce their interest and give the people who are trying to do what's right the help they need and deserve. Just like Chrysler Financial needed in their time of need. Please only pass this email along to someone who cares. Cynthia Weber Account# 1013664533 |
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Replying to: jocuto (Jan 25, 2009 7:31 pm) I would hope that some of the bailout money would go to provide some help to people in financial duress. Unfortunately, that does not appear to be in the cards. By the way, the bailout for Chrysler Financial was only announced less than than two weeks ago and I don't believe they have actually received any of it yet. Technically, it is a loan and it does come with some strings attached. First, the money is intended to help make loans to new car buyers and, second, the cars that they sell to those customers will become the collateral for the government loan. I'm sorry to say that doesn't do any good for people already out on a financial limb.  tidester, host SUVs and Smart Shopper |
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Replying to: jocuto (Jan 25, 2009 7:31 pm) we know we got you in to this HUH?? Did you not call the police when the rep from Chrysler was holding a gun to your head to make you sign the contract? Yes, that's sarcasm. I'm sorry for where you are financially, but you have nobody to blame but yourself. I am disheartened that someone could ok this loan YOU ok'd the loan! You ASKED for it! Face it, if you had been denied at the time, you would have come here screaming about how Chrysler financial is not sympathetic to the credit-challenged for NOT giving you the loan in the first place. Now they gave you what you wanted and you complain anyway. Again, yes, I feel bad for you. But blaming others is just not right and I find it deplorable.
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Replying to: qbrozen (Jan 26, 2009 9:18 am) Two sentences picked out of a 2-page letter. If you read the whole entire letter I'm quite aware that Nobody owes me anything. The government doesn't OWE Chrysler Financial anything either do they???? I was comparing a car deal with a housing deal. Sure, you can refinance in a year, just like all the ARM mortgages could in 7 right?. This is what your brokers and dealers tell you. Everything will be fine. So big guy, no one to blame but myself. Is that what you tell the auto workers who were layed off after 20-years of work too?? Is that what you tell people who tried to sell their homes (people who didn't buy into ARM mortgages) but only to realize the value had plummeted! Is that THEIR FAULT??? Again my point....Chrysler needed to be bailed out because the economy took a turn for the worse...EXAMPLE: PEOPLE ARE LOSING THEIR JOBS, SOURCES OF INCOME and ABILITY TO PAY FOR WHAT THEY COULD A YEAR AGO. THIS IS NOT THEIR or MY FAULT rather a set of circumstances WE ARE ALL TRYING TO OVERCOME!!!! So the government gives the bail out of Chrysler, but Chrysler won't so much as ease up on an interest rate for their customers. That's my point...they still make money, I like Chrysler and millions of every day hard working people have been effected by layoffs economy this and that. So if someone says....hey you have to a filet tonight instead of filet and lobster to keep things going...you would think a filet would be ok. Everyone still survives. Ignorance is bliss isn't it? I really don't want your sympathy or anyone else's. I'm not BLAMING anyone, just pointing out the facts. Yes, I OK'd the loan. Many people ok'd buying a home and didn't expect the value of that home to plummet. And to respond to your..."what I would have done assumption". You are incorrect. I would have been forced to look and purchase elsewhere. It's a simple observation, one that continues to prove corporate greed, and then the public has to hear their crying and whinning to the government to help them on every major new outlet. But when it comes time to channel that into building back a successful business, clientel, and employment...they are on the same path that led them to their "bail out" woes. Just think about it, maybe not from the perfect lifestyle or past you may have had in your life..,but in general. Remember in the end.... You and I are helping to pay for the "bail out".
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Replying to: jocuto (Jan 26, 2009 10:59 am) And what does your auto loan have to do with the auto workers?? Again, NOTHING! There is absolutely no connection between your bad credit and their jobs. So, to answer your question, would I tell someone who was laid off it was their fault? No, of course not. HOWEVER, would I tell someone with a mortgage they can't handle the same thing? YUP! I really don't want your sympathy or anyone else's. I'm not BLAMING anyone, just pointing out the facts. Yes, I OK'd the loan. Many people ok'd buying a home and didn't expect the value of that home to plummet. Huh. Ok, I apologize if I've misinterpreted your statements, but could you then explain what it is you meant when you wrote things like they "unethically" lent you money? or they "got you into this"? And, finally, what you meant when you implied that you would badmouth Chrysler financial? By the way, 13% is not bad for someone with poor credit. Just take a look at the standard rates allowed on credit cards (18%-21%), and those rates apply to folks with outstanding credit, too.
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Replying to: qbrozen (Jan 26, 2009 11:39 am) It's ALL related, it is ALL intertwined you should realize that much. It ALL pertains to our economy and the way business is conducted. I also love your assumption about bad credit. If you read my email, I said I DID have bad credit when I purchased the car. The credit is good now, but refinancing will not happen because the loan is set so far above market value no other institution will refinance that much for the car. So be careful before you rant about what you THINK and don't KNOW. I think it was unethical to ok a loan that should not, by company standards, be approved in the first place, I think it was unethical for mortgage company's to introduce the ARM. I'm entitled to those opinions. 13% is a good percentage rate? For an auto loan? You are comparing and auto loan with a credit card loan?? I wouldn't know, I don't have any credit cards. I have nothing good to say about Chysler Financial, my right, my experience, my choice.
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Replying to: jocuto (Jan 26, 2009 11:59 am) I'm curious about one more thing, though. What company standards state the loan shouldn't have been approved? And, yes, 13% is not all that bad for an auto loan for someone with questionable credit. My brother was staring down the barrel of 16% with a 650 credit score last month, and the dealer was having difficulty getting THAT past the bank. Yup. Your opinion and your right. No doubt. But when you state your opinion on the internet, I have every right to respond. And I'm sure you didn't think you could go on a public forum, state you've had a bad experience with a financial company because they lent you money when you asked and now won't give you a break, and not get some sort of backlash. I'm more than happy to discuss such issues. But we should try to not let it get so personal. |
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Replying to: jocuto (Jan 26, 2009 11:59 am) Regarding your car loan: You read the terms and conditions You understood those terms and conditions You agreed to those terms and conditions You are obligated to those terms and conditions Just like in the R E business when a buyer signs the Earnest Money Receipt and Agreement. |
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