02-04-2023, 08:49 AM | #1 |
Lieutenant
274
Rep 582
Posts |
Yo-yo car dealer financing
I have never financed a vehicle through a dealer and never will. But I know many people do as such I thought this NPR article is worth a read.
https://www.npr.org/2023/02/04/11529...o-yo-car-sales |
02-04-2023, 01:35 PM | #3 | |
Major General
7541
Rep 7,478
Posts |
Quote:
This is one of the many reasons why I can't believe people argue in favor of dealerships in some other threads. Sad thing is, this isn't new, the spot delivery scam is decades old at this point. |
|
Appreciate
1
Donatello.1231.50 |
02-04-2023, 01:50 PM | #4 |
Captain
1001
Rep 802
Posts |
One of the many reasons I have never purchased a new car.
Only buy good used cars from private individuals and pay for in cash after it has been checked over thoroughly. Bloody scammers are everywhere now.
__________________
2008 E86 M coupe
|
Appreciate
0
|
02-04-2023, 01:55 PM | #5 |
Brigadier General
3003
Rep 3,603
Posts |
|
02-04-2023, 02:04 PM | #6 |
Captain
1433
Rep 692
Posts |
That's so blatantly predatory... and on people that can't easily defend themselves. It boggles my mind how these kinds of things can continue to exist, especially even after the publicity. Is it all the lobbying or what?
|
Appreciate
3
|
02-04-2023, 03:11 PM | #7 |
Major General
7541
Rep 7,478
Posts |
Talk about victim blaming. Not everyone is an expert in financing or of even average intelligence. The way this is practiced it is a scam. Not legal in several states. People should be able to go buy a car without having to worry about whether their Hyundai dealership is going to pull a bait and switch on them.
|
Appreciate
2
RM73002.50 Donatello.1231.50 |
02-04-2023, 03:16 PM | #8 |
Major General
7541
Rep 7,478
Posts |
Not that I'd be in the situation for this to be tried on me, but if it were, I would totally crash the car as soon as I got that phone call telling me to come back. The dealership would be on the hook. I read that in this scenario, an insurance provider is not obligated to pay the claim. It’s not until the transaction is fully funded by the bank that the insurance kicks in.
|
02-04-2023, 03:42 PM | #10 |
Major General
7541
Rep 7,478
Posts |
Maybe you don't get it? They are doing this on purpose to make sure you can't go buy a car somewhere else and also force you into accepting a high and marked up interest rate.
|
Appreciate
0
|
02-04-2023, 03:43 PM | #11 |
Major General
7541
Rep 7,478
Posts |
|
Appreciate
0
|
02-04-2023, 03:52 PM | #12 |
Captain
1605
Rep 787
Posts |
I had a dealer try a yo-yo on me, but I think it wasn’t predation, but rather over optimistic financing. They called a week after the sale to say they wanted another $2500 down, so I asked “when can I come in to return it?” Just straight up dead-pan called their bluff. They said my trade was already gone (which I doubt), but I thanked them for buying for so much. A little back and fourth on the phone I told them I only live 2 miles away, it’s no trouble to drop it off and unwind the deal, and I had a company vehicle to drive in the mean time. He said he’d call me back. 2 days later he offered if I paid 1250 more down, they would increase my trade value 1250 to make the bank happy. I told them no problem, and promptly paid.
It’s not always predatory, and it doesn’t have to harm you financially. I came out ahead 1250, but you have to be willing to unwind the deal. I was happy to let them keep my trade at the negotiated price too, I was profiting as it was, so even if I lost both vehicles, I was positive on money. Be willing to walk away, have alternative transportation options, and don’t negotiate with negative equity. |
Appreciate
1
Efthreeoh18692.50 |
02-04-2023, 04:02 PM | #13 | |
Major General
7541
Rep 7,478
Posts |
Quote:
The issue is these shady dealers are finding easy marks they KNOW will have trouble getting financing at the rates they promised. These are people that don't usually have an extra car or the ability to fight. |
|
Appreciate
0
|
02-04-2023, 04:39 PM | #14 | |
Major General
7541
Rep 7,478
Posts |
Quote:
The fact that this is illegal or limited in many states tells you all you need to know. |
|
Appreciate
0
|
02-04-2023, 04:52 PM | #15 |
Lieutenant General
18957
Rep 11,124
Posts
Drives: M4 CS. Former G82, x2 F82, F80
Join Date: Nov 2010
Location: Jacked out of my mind
|
Having to sign a new "deal" was infuriating enough to read, but then this: "Documents from a later arbitration case show that the dealership wouldn't return their calls. And it didn't pay off the loan on their trade-in vehicle. So the Johnsons were stuck paying the loan, with no car, for nearly a year. They eventually used a chunk of their small retirement savings to pay the loan back."
I'm not sure I'd be able to stop myself from burning the place down at that point. That is some outrageous shit. This is why so many good, hardworking honest folks get absolutely screwed in this life. They don't have a dishonest bone in their bodies, so when they come around complete degenerate sociopaths like those at that dealership, they're completely incapable of knowing how to handle it. Makes me sick, I hope those people are made whole and that dealership loses a ton of business over this. |
Appreciate
2
chris7197541.00 M-technik-32276.50 |
02-04-2023, 05:32 PM | #16 | |
Major General
7541
Rep 7,478
Posts |
Quote:
|
|
Appreciate
4
|
02-04-2023, 05:46 PM | #17 | |
Lieutenant General
18957
Rep 11,124
Posts
Drives: M4 CS. Former G82, x2 F82, F80
Join Date: Nov 2010
Location: Jacked out of my mind
|
Quote:
Of course not, that would make me a degenerate worthless POS. It's no different in any industry, and in fact those who are in the know and are well versed in their field have an absolute duty to treat all people fairly and explain the ins/outs of the industry as well so they can to put people at ease. When people are paying you for a service, you have an absolute duty to give them what they paid for. Whoever is responsible for putting the people in that story through this saga are complete garbage human beings. Even if they didn't mean to do it initially, the fact they didn't go completely out of their way to make things right shows just how shitty they are. |
|
Appreciate
4
|
02-04-2023, 06:18 PM | #18 | |
Lieutenant General
18957
Rep 11,124
Posts
Drives: M4 CS. Former G82, x2 F82, F80
Join Date: Nov 2010
Location: Jacked out of my mind
|
Quote:
|
|
Appreciate
1
chris7197541.00 |
02-04-2023, 06:38 PM | #19 |
Major General
7541
Rep 7,478
Posts |
Or we could just limit a predatory practice that in reality will cause virtually no lost sales to the dealership. Why should you have to do hours of research to avoid getting fucked because some slimy F&I guy and lenders want to extract more money from people who already have bad credit.
|
Appreciate
0
|
02-04-2023, 07:46 PM | #21 | |
Captain
1605
Rep 787
Posts |
Quote:
in the first case, it's already illegal, and in the second, there is a lesson to learn from this story, and there are straightforward attainable methods to reduce risk. It's not a lack of understanding, it's taking that understanding one step further and addressing it with prevention. |
|
Appreciate
1
Efthreeoh18692.50 |
02-04-2023, 07:55 PM | #22 | |
Captain
1605
Rep 787
Posts |
Quote:
Everybody knows there are shady lenders, doing business with them is a choice. If that becomes your only choice, time to revisit your plans to ned their services. At the first sign of this nonsense they should have walked away and sought legal remedy for the trade-in. Seems they didn't ask the right questions or contact the right people. How did that dealer dispose of their trade in with no title? A lender won't release that without a payoff. Elements of that story are lacking basic logic. |
|
Appreciate
1
Efthreeoh18692.50 |
Post Reply |
Bookmarks |
|
|