I had a friend who bought a boat. Instead of his payment book arriving he received the title. He found out the finance company went bankrupt and in doing so had to release all titles and was not allowed to collect any more payments from customers. He ended up with a new boat for free!
This happened to me many years ago. I traded in a truck for an SUV, about 2 weeks later salesman calls and says you gotta bring back the vehicle because no bank will finance. I said ok, have my truck ready and down payment ready. The guy said but your truck got detailed and a new set of tires. I said that's ok I'll take free tires for the trouble. He then called back and said congratulations the loan was approved. I said no, congratulations you saved your ass from giving me free tires and getting an SUV with mileage on the odometer back 😁🤣
When I was in the Army I had a soldier come to me with a problem with a vehicle he bought the previous night. It apparently broke down on him in the parking lot. Once done chewing out his NCO's (I was his platoon sergeant) for allowing their soldier to get taken advantage of, I started asking questions of the soldier. Long story shortened: He never signed any paperwork for the vehicle. The owner of the lot allowed him to take the car home and then return the following day to get the loan paperwork straightened out. I advised his NCO's to tow the car back to the lot, leave the keys on the seat and drive away. Later that day I get a call from the owner of the lot (I was waiting for that call). He wasn't at all happy and told me he was going to call the Division Commander (two star general). Then he made another mistake by telling me that he was in fact a retired Brigadier General (one star). Now I was never worried about this guy calling the Div Commander but when he told me he was a retired BG I told him that he should be ashamed of himself for taking advantage of young soldiers. I also informed him that I would be making a formal complaint to the IG in hopes that they recommended to the Corps Commander (three star general) that his business be placed on the "Off Limits" list. Meaning that soldiers would be told to stay away from his business.
Lmao I love the “I’m a prior ‘insert high ranking military officer’” scam. Like some 1 Star would be working at a damn shady used car dealership post retirement.
@@Shipwreck15151 I mean it was the owner. Could have his own business buuut formally being that high a rank or even having been in service at some point running a shady business? Yeah right. 😂
If you were a General, and now your a used car dealer you fuck up. it's like how every waiter at Applebees in Coronado is a former Seal. FYI no your not. But man when I was in one of my favorite things was to become a problem for people fucking with my soldiers.
I had a similar thing happen about 10 years ago. One of my favorite things to do is to get dealerships to agree to things I know they can't do then use that to negotiate some extras. This went to the extreme: We bought a 2 y/o new Grand Prix GXP from a local luxury dealer. We did the deal on a Sunday & I did my usual negotiating. They took over a week to realize the bank wouldn't fund the deal for the terms they agreed to. I agreed to come back & sign a new contract if they gave me a 2yr maintenance plan for free. Well, they chose to go the prick route & start threatening me. Little did they know I was a much more determined prick. Turns out, they had already sold my trade & paid off the loan (including the chunk of negative equity). The finance manager & desk manager insisted on trying to bully me into forgetting their incompetence. So much happened, including losing my job & taking a massive pay cut meaning the bank was not going to finance a $20k vehicle. I ended up driving the car for 7 months with them unable to get the loan done at the agreed rate (at this point I refused to budge) & unable to give me my car back, when I said we wanted a different (cheaper) vehicle. We had the owner of the dealership leaving messages for us. A month later we were back in the dealership to get the replacement vehicle. The finance manager hands us a new contract to which my response was "great, let's go ahead & add a 2 year bumper to bumper warranty". He said there was no room for the cost to which I said "no room for a free warranty?". This guy LOST IT! He threatened to call the cops on us if we didn't sign the new contract & give them the GXP back (that now had 13k miles). I told him there was no way he was calling the cops to their high-end dealership over their incompetence then said "hand the keys to my trade & we'll just part friends". He storms out of the office, slams the glass door cussing up a storm. About 10 minutes later the GM walks in (guy who knew we had them by the ballz) & says "you want a warranty?" me: "yup" him: "will a 1 year B2B work?" me:"yup" him: "great, sign here" By the time everything was said & done between eating the negative equity in my trade, the massive depreciation on the original car, the buying down of the interest rate, & the lost profit on the vehicle we bought for $3k below trade-in value, they lost a little over $18,000 on our deal. That all could have been avoided with a $500 service contract & not being dicks lol
I had a dealer pull a stunt like this on me once. They had me too, until I called my parents to complain and my Mom told me to read the contract and just force all parties to abide by the terms of the contract. They took the car on a "repo", trashed my credit, and took me to court for the balance. I was too poor to pay for a lawyer, but it turned out the only "lawyer" I needed was copies of the checks they refused to cash. The judge pointed out that they weren't allowed to decline my payment and then claim I never paid them. I got my car, they had to remove all the negative marks from my credit, and every six months we had to go to court to show the judge that they were accepting my payments. I don't think that last part is normal procedure, but I recall the judge wasn't happy. For the love of all that's holy, make copies of every receipt and payment you send! These dickhead dealers can really talk a good game in court and sound really convincing, but no amount of talking can get past receipts. Keep that paper trail. Keep your original contract.
Something similar happened to my family friend. His Nissan truck one hot September day back in 2018, I think it was, while he was driving it floored itself. He tried in vain to stop his runaway truck. He nearly died in the ensuing wreck that totaled other vehicles in a parking lot his crumpled Nissan truck landed on. Seriously, his crumpled truck landed on three or four vehicles totaling them in the process. It was estimated he was going about 120 mph when his truck began to flip and roll. During the wrecking part his truck took out the entire post of an electrical pole just underneath the portion of the power pole holding up the power lines. That was shocking to see just how tightly wound the power lines are. My family friend was stuck in the hospital in the ICU for I think about six consecutive months. He almost died because the one guy who saw the immediate aftermath literally took ten minutes to call 911. While he was in the hospital desperately recovering the Nissan dealership completely wrecked his credit and made sure *NOONE* in that business would do business with him seemingly ever again. I really wish I had a dashcam in my then '03 Ford Expedition. Several days before his near deadly truck accident I took him to the same Nissan dealership to get his truck battery fixed or replaced. It was acting up and causing all sorts of issues in his truck including a randomly stuck accelerator pedal. The Nissan dealership did *nothing* beyond giving him a sob story of *why* the dealership could not afford to do anything beyond charging the battery which was already around 90% charge at the time. My family friend and I were forced to retake the same failing truck battery. I have been blaming myself about his then and current predicament actually. If I had that dashcam at the time I would of been able to very easily prove his case in court and probably win a substantial financial whatever from that Nissan dealership for attempted negligent homicide or something like that. Especially when they knew very well that exact truck battery was having those critical problem in my family friend's Nissan truck.
I had this happen in Eugene Oregon in 2008 and I brought the car back, demanded my trade in returned, and demanded a null-and-voided contract signed by the dealership sales manager of that location. They tried everything to swindle more money out of me. After finally getting my trade in brought back around front over a few hours of arguing, I poped the hood and checked the fluids as usual. Well lo-and behold, my engine oil was all gone(they drove it from around the back like that) and so I walked across the street and bought 5 quarts of oil at the gas station because it this point I knew damned well I couldn't trust these shady SOBs. As I begin to pour oil into the engene, it starts to run out on the ground. Yeah... The oil pan drain plug was missing! These slimy punks were on the hook for a replacement engine instal at a shop of my choice, as well as the vehicle I was attempting to purchase to be my unlimited mileage loaner for the duration of the repairs(7wks). As per the legal opinion set up by my counselor and sent as a letter of intent. They asked me for the name of the shop and signed a contract with the shop to agree to cove all costs associated with their "mistake" in repairs needed of the associated vehicle by VIN. They paid the tow bill to take it to the shop, and covered all costs associated with the repairs(new engine) as well as adding almost 11k miles to the loaner, likely dropping the resale value that much more. They must've been already fighting other legal stuff to agree to such a settlement out of court.
@MrTackleberry79 My experience is not as amazing as yours but: Yrs ago, driving home, a commercial on the radio guaranteed financing. At that time I had bad credit so I called, talked to a salesman, had him run my credit & he said no prob. Went the next day, traded in my car & drove away in a new Dodge Dakota. (1st yr it was out?) 2-3wks later they call to inform me I have to find my own financing or return the truck!?! When I asked abt the 'guaranteed financing' he told me; what they usually did was package 1 questionable loan app with a pack of loan apps with excellent credit & tried to get the loan company to take the whole pack. (Didn't work in my case) So, I said no prob, I'll bring it in tomorrow & I'll be taking my trade in back! He put me on hold for 10-15 min ... turns out they'd already sold my Toyota! Needless to say I forced THEM to figure out the financing situation😎
Many years ago, around 50, I had about the same thing happen to me. I made a deal with the dealer for a 4x4 and filed the paperwork and a couple days later was notified they had not done their end and I needed to bring the truck back in until the financing went through. I took it and did some serious muddin, took the truck back to the dealer, handed them the keys, then went to another dealer.
Some of the stories here remind me of a story from a lawyer I know. He was dealing with a bankruptcy proceeding and speaking to someone from the bank that held the loan for his client's car. He was trying to inform them that they needed to stop attempting to repossess the car while the court was sorting out the bankruptcy. Long story short the agent didn't like whet they were being told and informed him that unless they were given priority status and received some money right away they would have someone repossess the car the following day. He told them that, before he responded to what they'd just said he recommended they run that by someone in their legal department and that he would wait on hold. About 5 minutes later a very panicked lawyer from the bank came on and informed him they would NOT be attempting to repossess the car and even offered to reduce the amount owed as part of the proceedings. For those who don't know why this is amusing, a creditor such as a bank CANNOT repossess property during bankruptcy (there may be special circumstances but in normal cases they have to wait for the bankruptcy court to split things up.) If my friend had wanted to screw them he could have just let them send someone to get the car and then thrown them under the bus to the bankruptcy court and they'd have been in a world of trouble. They'd have likely had to return the car AND forgive the loan in addition to any penalties or charges for violating bankruptcy law. He like's to joke that the lawyer at that legal department probably needed new pants after hearing the customer service agent tell him what they'd said.
Correct. When you file bankruptcy, you list all your creditors, amounts owed and their last known address. The Court sends out a Petition for Bankruptcy and "Notice of Stay." The Notice of Stay means that all creditors must halt any actions against the Debtor, including repossession or even contacting the Debtor. A Trustee is assigned to the case, and they will divide up the assets and make payments to creditors. If a creditor does violate the Stay, you can notify the Court, and a Judge may levy sanctions against the creditor.
So it's basically a law against jumping in line or grabbing assets while the assets of the entity applying for bankrupcy is being divided up among creditors?
Dealer: "We know you signed the contract, but we're going to need a couple thousand dollars more." Me: "Ok, sure, take it out of your commission. Your mistake isn't coming out of my pocket."
I know in Colorado, dealerships had a standard form that required multiple initials. A couple of those boxes stated something along the lines of, we believe this is the interest rate and payment that we can get for you, however, if not, you will be billed $100 a day plus 50 cents a mile until you return the car or secure other financing. They would wait a couple of weeks to call someone and let them know that the financing fell through. The person's options were to bring hundreds of dollars back to the dealership and turn in the car or to take an obscene interest rate. This was fairly common practice for high risk borrowers. There was a radio personality at the time named Tom Martino that talked a lot about these lending practices. He may be fun for you to have a conversation with, Steve.
That's what consumer counsel call "yo-yo sales" where the vehicle is spot-delivered before the assignment of the RISC is accepted by a finance source. There are lots of circumstances where a spot delivery (and subsequent call back) are legitimate. However, there is also a lot of room for abuse. Car dealerships are not in the automobile business, they are in the money business, they'd sell widgets and not cars if there was enough opportunity and the dollars were big enough for doing so.
That is what they do but according to the attorney I had in Colorado they also are writing a contract between the person and the dealer so if they fail to get the financing and you don’t catch it you actually have the loan through them at a contracted rate. Some of the initials are to find and then pass off their debt to the third party lender for you to pay them. In my case they threatened with that same thing of paying and I just whipped out the attorney information and told them straight up yes you can try to make me pay but in the end I will get it back in the bad faith litigation and I had put 7k down plus a trade in so they knew they were in trouble with me. They got so desperate they tried separating my husband and I because I kept shutting them down. Finally I got pissed and laid the keys on the desk and said your move. Fix it or cut me a check for the car you already took to auction and sold which they should not have until the loan was guaranteed and I want resale value which I could have got at as a private sale plus my 7k down payment. We had the car cleaned out and my kids with a sitter so when they looked at the car they realized we would really walk away and then they would immediately loose money plus litigation because all negotiations would go through the attorney. They must have really had a bad run in with them because they wanted nothing to do with the attorney at all and were shocked I had it all lined up just in case.
@@stevevarholy2011 I've never had a car loan nor have I ever purchased a car from a dealer, for all the obvious reasons. I see car dealerships as being in the business of selling loans. The car they give you is analogous to the toasters and radios that banks gave to new account holders in the '70's to entice people to park money there at interest rates far below the rate of inflation.
Key words "until YOU return the car, or secure other financing". Legalese for we have no intention of securing your loan, but we'll be happy to rob you.
My Dad had a little trick he pulled when he bought a new car. He'd fill out all the paperwork, to include a financing application. Then he'd negotiate the sale, and get a signed sales agreement. When it came time to sign the finance agreement, he'd say "Ya know, I'm just going to pay for this", then write out a check. One time a dealership called the police to try to take his sale contract.
If you just make sure there's no prepayment penalty when you get your payment book you can just pay it off, the interest for a couple of weeks will be almost nothing.
@@davesnothere8859 I think some states ban it. I have actually seen a dealer take a 2000 car sell it for 10000 on installment not interest so if they try to trade it in they are 8k underwater. I don't understand how that is league no law against charging 10k for a 2k car I guess.
You don't dare want to pay cash down on the barrel for a new car. I new a woman who did that on if I remember rightly a 1977 Chevrolet Malibu. she paid the full price of the car in cash and when she started having all kinds of problems with it. the Chevrolet dealership acted like they didn't know her. she ended up stuck with that piece of shit and it kept falling apart the whole time she owned it. if she would have financed it she could have threatened to not make the payments and they would have worked on it. part of the problem was that she was a woman dealers and mechanics take advantage of women pretty often.
@@musicauthority7828 Don't make the payments they repo it, sell it at auction and you still owe the difference. Either you have a warranty or you don't
Thanks for the vid... and good advice. I had a deal worked out with a Ram dealer a few years back, and I have great credit. We had numbers worked out for the "Sale price" worksheet, and was signed by me and the finance Mgr. They came back saying they needed about 4% OVER the standard at the time. I said "fine. I will finance via my bank at 3%." At that point they said part of the rebates were tied to using Chrysler Financial. At that point I looked at the finance guy and said... "We have a signed contract on the sale price, with no mention of whatever rebates you may have hidden from me, and it doesn't dictate what method of payment I have to use." We went back and forth for a while... but they knew I had them. I'm happy to say... I got the truck, at the price they agreed to, and the rate I wanted. I will keep your info in the back of my head for the next dealer that is a pain in the butt.
My wife worked in the consumer loans department of a major national bank. A guy financed a car. At some point shortly thereafter, he took out an unsecured personal loan and used that to pay off the auto loan. (No idea why.) Then a while after that, he defaulted on the unsecured personal loan... and the bank repossessed the car. The one he owned free & clear, that they no longer held a lein on. He was very nice about it - he gave them 30 minutes to look into it and call him back, and until the end of the day to have the car back in his driveway; if they didn't call back within 30, or didn't have the car returned by 5pm, he would simply report it stolen and let the police know who took it. Panic ensued but they managed to get the car back to the guy in time.
Whoever holds the unsecured note will have to sue him for it. Always read contracts and make sure you understand everything before signing. If you don't, either walk away or get help to understand the contract. The power to contract is unlimited except for provisions that have been declared illegal before the contract was executed (signed by both parties). This includes court decisions of which neither party is aware. This is one reason for a “saving” clause in most contracts.
This may work in some jurisdictions, but the jurisprudence has evolved in most others (and civil law jurisdictions such as Quebec) to a point where the due diligence requirements (by law) on unsecured lending includes a requirement by the loanee to swear/affirm (paperwork) that financing will not be used to frustrate a secured lending contract. Typically (and this is legislated in some jurisdictions), there is a requirement for secured lenders to indemnify unsecured lenders because of a clause in the consumer's secured lending contract whereby the security interest on paid-off property persists up to 365 days after the loan has been satisfied in full, to avoid exactly these kinds of situations. Still a super cool story though, but probably not 'reproducible' !
@@Grauenwolf Absolutely, you are right, but the barrier to doing this is often in the consumer lending contracts that you (the borrower) have with your lenders. The unsecured lending contract has a provision re: usage of funds, and the secured lending contract has another provision re: agreement of the consumer to jointly and severally indemnify, together with the secured lender, claims against you by another lender who is a member of the XYZ payments association (in Canada, this is often the Canadian Payments Association, which is basically a group of banks). This is typically ONLY the case for RISC type loans, and not personal lines of credit, etc., which have no stipulations as to usage of funds. In places like Quebec, these rules are legislated into the CCQ, with carved out exemptions for private lending.
@@Grauenwolf I can neither confirm nor deny what @Kworld Standard is saying - they certainly sound like they know what they're talking about - but for what it's worth, this was quite a few years ago (so rules have probably changed), and both the auto loan and the unsecured personal loan were both from bank "A", so there wasn't a bank "B" in this particular scenario.
No, it wouldn't - at least where I was working. Other than the vehicle being off the lot, nothing changed as in actual ownership of the vehicle. I worked at a dealership and new cars where "sold" and when/if the deal unraveled, it went back on the lot as a "new" car or worst case, it was a "demo" - with addendums added to jack the price back up to make up for the discounted demo "status". It was uncommon, but deals unraveling usually happened at multi-dealership offsite sales where rival dealerships were competing for sales numbers. Also end of the month (EOM). Anything was done to make a sale and the details were worked out later.
Something similar happened to a friend. He had a trade in and the dealer told him he needed to bring the car back because the financing wasn’t approved. The dealership told him he couldn’t get his trade in back because they already sold it. The dealership’s first offer was to refund half of the trade in value. Funny thing was when he told them he hired an attorney, they magically found his trade in.
I had this happen where they sold my traded vehicle at auction and never paid off my loan on the trade in. I was still getting billed by the lender so it came down to the loan officer messed up the paperwork. I started calling attorney’s and one begged me to let them handle it. I refused to pay more than what we agreed to do they moved around the financing rate to make up the difference but kept saying I wish you would just pay it. My comment was I wish you could do your job right. I also informed him if I had to pay up now they better check with legal caused if they pushed it any farther not only would they have to pay fair price for my trade in plus damages because I was two seconds from laying the keys on the table. They stopped talking and redid the paperwork to our benefit.
It's some amazing sort of delusional thinking. I mean that literally, the dealers actually think any mistakes they make will be made right by the customer. I'm not talkng out a yoyo scam that is planned, spot the vehicle and then demand 2k cash and resign loan at much higher rate. Duh ...I guess I just said the obvious, and the premise for a lot of Steve's content.
A similar thing happened to me. I agreed a price, bought a vehicle, signed the papers including the loan agreement and drove it off the lot. Later they called me up and said that the loan wasn't approved and I needed to come in and put $2000 down. I refused, they insisted, I said well that's not our agreement but I can return the vehicle. They didn't like that idea. So they drew up new papers knocking $2000 off the price and the loan and I came in and signed and got a lower monthly payment. Clearly I'd paid too much for the vehicle in the first place but their own loan company (it was their brand's corporate auto loan entity), made them reduce the amount outstanding.
Thats a SPOT sale, never buy on a weekend. I did that, signed for the loan on Saturday they had my money trade in Harley. Called Tuesday with a higher interest rate loan. I showed up with helmet in hand said give me my shit back. well, 1 hour later, cops almost called, epic shouting match I left, called an Uber went home minus my 7k down and no Harley. Waited a week, didnt answer their calls. Ended up with 4 new tires and a 3.5% interest rate.... They still delete my rant I copy and paste to their FB page. LOL
@@adamgray1753 Thanks Adam, I tell everyone I hear is car shopping, If I am in my ride I have the paper work to show them, yea the dealer wanted it back, Kifer Mazada in Eugene Oregon.
I bought a car for cash, but brought a cashier's check/bank check/whatever you call it for payment. The dealership saw the bank check and filed the sale with a lien in favor to the bank the check was drawn on. Fortunately, the bank did a great job of releasing the lien from the title. I also had a car salesman explain a car sale was based on mutual trust between buyer and seller (I was about 22 at the time and he thought I was stupid). I replied "Great, then I assume since you trust me I can take delivery upon presentation of my personal check".
Once I purchased a new van out of state on a note (I planned to pay in full when I arrived home). Inadvertently the dealership sent me the title with no lien prior to me paying. When I spoke with the manager about it he got a bit nervous. I assured him he was going to get paid, and we agreed that an overnight cashiers check would be good enough to make him relax a bit.
It happens but most people just take title and sell it four times in family and you get a free car with nothing but tittle fees and gifting it so low tax that is it they can’t do nothing tittle is 9/10 of possession period the end oh well
Ex of mine signed for an apartment where she needed an guarantor. The apartment offered a service where they could guarantee for her. But she was subsequently denied... Thus they also denied her any use/access to the apartment but still wanted her to pay because she signed. No money/consideration was ever exchanged or any services/products actually rendered, but they did put a claim against her credit. Had to get a lawyer to write a letter, as they were not willing to proactively fix the situation.
WHY DIDN'T SHE SUE THEM - ? - NOTHING FROM NOTHING LEAVES NOTHING - NO ONE WAS DAMAGED HERE - EXCEPT HER - WITH THEM TRYING TO GET HER TO PAY FOR AN APARTMENT - THAT SHE HAS NEVER LIVED IN - AND - WAS DENIED OCCUPANCY - BECAUSE OF CREDIT ISSUES... - SO THEY RENT THE APARTMENT TO SOMEONE WHO'S CREDIT WORTHY - AND - COLLECT TWO (2) RENTS - ? - FOR THE SAME APTT - ? - (THIS MEANS IF DAMAGE IS DONE TO THE APARTMENT - THEY MAKE HER PAY FOR THAT TOO - ? - ) - NO - (THIS WAY THE LANDLORD BENEFITS...) - A CONTRACT CAN'T BE ONE SIDED - WHERE ONE BENEFITS - AND - THE OTHER DOESN'T - ALLEGEDLY
@@sarsbrooks5398 it was her first time getting a place. I was the one who informed her about what she needed to do to fix the situation when i met her. I even called the busness to see if they would be reasonable but the manager literally said "this is what lawyers are for " total dbag.
@@dogeatdog6157 GOOD 4 U - AND - HER - BAD 4 THE LANDLORD - NO JUDGE/LAWYER - WILL ALLOW SOMEONE TO COME IN2 COURT - AND - EXPECT SOMETHING TO GO THEIR WAY - WITHOUT HAVING CLEAN HANDS THEMSELVES... - SHE MAY BE AWARDED DAMAGES 3X - 5X - BECAUSE OF THE INTENTIONAL FRAUD - IF SHE ASKS 4 IT - OTHER WISE - THE JUDGE WILL THROW IT OUT... - ALLEGEDLY
@KAPT Kipper and you are bothered by this for WHAT reason??? OCD, DUTY, HOBBY? do you just oddly enjoy pretending to be some authority figure on other peoples keyboard usage?
Well explained, Steve! We have handled alot of Spot Delivery cases over the years and most end up with six figure outcomes for our clients. Some clients even ended up keeping the car and not having to pay for it. As long as there is proof that the loan was approved, the TILA document was given to the consumer, insurance has been bound and an odometer statement has been signed, the dealer cannot prevail (absent fraud on the part of the buyer in providing credit information).
This really makes me appreciate the place that sold me my vehicle. They read the entirety of my contract, and my loan agreement. I was bored to death by the time we got to the end, and then the warranty talk came,but it was worth it.
Also I remember working with a fellow who purchased with a trade in using his own savings to pay. The dealer completed the contract gave him the keys and paperwork and sent him on his way. Later the dealer discovered there was an existing lien on the trade in. Apparently they failed to look at the title (this was in Maryland in 1972) which clearly showed a lien and lienholder noted on it. We worked in collections for a large finance company at the time and this chap worked nights as an F&I man at a dealership himself. They called him at work to try and get him to pay the amount owed on the trade in but he refused, stating they wouldn't pay if the shoe was on the other foot. He stood his ground and left them high and dry. Apparently he knew the ins and outs of the business and had no fear of any legality. They did hound him for months over the issue with mailings, phone calls at home and at work. He just laughed at them. He told me later how rotten they treated customers all the time and he felt they deserved it.
This is another reason to find your own financing before you buy. The first is that the dealer takes a markup on the loan, so you will save if you deal directly with the lender and come into the dealership with approval in hand.
He has a video about this, shopping around at a few dealers (and letting the dealers know you are) and absolutely not bringing in money to buy the car right there.
It depends on the deals going. On the last vehicle I financed I walked in with financing in place, got to the point after negotiations to check finance with the small (and actually decent/reputable) used car dealer and he said to me "Oh, through local credit union X, do you mind if I try local credit union Y, they have been coming in really low, almost 1% below X the last week or so for some reason." so I tried that, and I got a 1% lower interest rate (3% instead of 4%). So much like KO I will listen to see what is offerred, but show up with my own financing as the fall back.
@@Daishar I agree. In most cases, people can find better deals on their own if they have reasonable credit scores. But sometimes the dealer can do better. As others have mentioned, do not tell the dealer up front that you have your own financing because they may offer a better price if they think they will make it up on their financing markup.
This is a common problem Anything to get the sale Happened to my brother like 10 years ago on a used truck. He had to return it a day later and get the car he traded back...
We got into a situation similar to this! This dealership sent us home on Friday with a car while telling us the paperwork was done. On Saturday evening we got a call saying we weren't approved for the amount we needed for the SUV we drove off with so we could switch to a different vehicle. One look at the car they tried to get us to take and I knew we'd been victims of 'bait and switch' scam and on top of that the dealership wanted to claim we would owe them rental fees for the original car. With less than an hour before the dealership closed I contacted another dealership and told them what happened. They set us up with an actual car loan and a vehicle we actually loved! We had five minutes to get to the original dealership where we dropped their car off and showed them nice SUV we got from their competitor!
I hate to shortcircuit the narrative, BUT If you look into that stack of papers you signed for purchasing an automobile, you'll find a stand alone form 'ERRORS and OMISSIONS ' (or similar language ) which states your agreement to re-sign ANY paperwork related to the purchase that contains errors or omissions in order to remedy the transaction and contract. Trust me, the Dealership has a copy of your signature on this form. Don't hate Us😁
Happened to me years ago in Utah. They said my loan was approved. I get a call 2 weeks later from the dealership saying something is wrong with my loan. They never filed paperwork. Luckily I got a loan setup with a different credit union. No consumer protection laws in Utah. Lesson learned.
You can skip ALOT of pain by getting pre-approval from a bank or credit of your choosing. Then, you only have one inquiry on your credit. I do it, highly recommend it
Yeah, they were selling my late husband a new truck. In the middle of it they cleaned his other truck and called a customer that was looking for that type of truck and sold it before the sale of the truck my late husband was trying to buy was finalized. BIG NO NO. Then he later had the nerve to call and say my husband owed him $500.00 dollars for borrowed money. This guy is out of business now. He had to sell out because of his many underhanded practices.
Unfortunately it happens way too often. I used to work for dealers for years. Many times it is the finance manager who is either trying to get a cheaper wholesale rate from another lender to have a bigger spread and make more money. Once i took over a department and had 7 car deals under the desk that were never filed, approved and people have been driving the cars for months. It was anightmare to fix.
Had something similar when I bought my first car, went in on a weekend closed the deal, drove the car home that night. by Wednesday that week I got a call saying the financing failed and I need to re-negotiate terms. To bad for them because I was so nerves about borrowing money for the first time I read the contract word for word and found the clause Steve pointed out. Told the guy at the dealership, "We have a contract and you gave me the place to send payment. The payment will be there before the due date regardless if they're ready or not. If you need to change that send me an official letter with the new payment address" and then I hung up. never heard from them again after that but lesson learned and now if I go to buy a car I go in with financing already sorted out, I just don't tell them that. PS if you want to buy a car, finance via a local credit union, they usually have the best terms.
That happen to a friend of mine that bought a used RV through an RV dealer. So the dealer sold my friend the RV though a loan, started to make payments, but never received license plates. Months later still hadn't received plates, and after multiple payments and upgrades on the RV. He later finds out that the RV dealer bought this RV with a lean, so proper DMV papers could not be filed. He ended up returning the RV, and the dealer had to refund the cost of upgrades and the payments he had made.
I paid via wire transfer for my last car, negotiating only the price. Dude pulled out the four square and I told him don't bother. Then insisted I fill out paperwork with references and stuff. Told him if he didn't want fake information just give me the wire transfer numbers. He looked so disappointed I wasn't "going back to finance". Tough cookies, you offered the car for x amount on the front end...not my fault you won't make anything on the back.
Dodge dealer did that to me. Bought a durango on a saturday, was at the dealer most of the day and evening waiting for financing to go through. finally they said congrats, here's the terms, sign here. I did. Monday I get a call... sorry but the financing didnt go through, we need to go with another loan deal which will raise your payments by xxx. I gave them back the truck.
I leased a Chevy Cruze in 2014 took Frickin 8 hours we were famished and half delerois . They had to get car with right options from another dealership . Then do there thing with it. Then salesman has to show us everything . I'm like this is stupid. Never again . If it's not on lot Leave
Sounds like that dealership has some financial control issues as well. Most dealerships would have been jumping up and down if they hadn't received loan proceeds within a reasonable period of time.
if they sold me a car did not go though to the bank & the deanship want me sign a new one i tell them hell no i sign it im not doing it again u missed up the car is my try to take it back
They did it to me and I finally had to call the dealership after waiting 45 days for my payment book and they didn't even realize they hadn't got the loan and they couldn't get it for the o Teresa they said so I got the truck for $23k less then the contract just to keep the payments the same they were pissed.
We need you to come in and sign a new contract, because we can't get financing".....Too bad, so sad. Send the check to the dealer via registered mail. Sue me. lol
Always go with pre-approved financing. It certainly cuts down on the games AND you can then let the dealership try to beat the pre-approved loan you have in hand.
Try your local credit union and get pre-approval from them before going to the dealer as Credit Unions usually have the lowest interest rates and you can get the dealer to match or beat it.
The trick is, DON'T let the dealership know you have the pre-approval, and talk the price down as much as possible, then slap it down once you shake on a price. My salesman's jaw dropped when i talked him down several grand then pulled that
@@x1RoBoT3x yep, one thing at a time. I do give the dealership the chance to BEAT my pre-approved financing. But I don't reveal it until the price of the car is set. Also, don't buy anything in the F&I office.
Better idea. Buy a reliable car. Keep it for twice the length of the loan (or longer). Once the loan is paid off, keep making the same payment to a savings or money market account. Then buy all your subsequent cars for cash and save shitloads.
Dealers call it “ Roping “ in essence, they rope the car, like you would with a steer. You might hear them say” our deal fell through, we had to rope it” I love this channel! Knowledge is power!
Sounds like you still let them screw you. As Steve said most likely the contract was between you and them. And if they let you keep it for a month likely they knew that you were in the right. I hope you got every dime back when you brought it back
s s Same situation here! Back in 2000. It was a Jeep Wrangler Sahara. Funny/scary thing was that all the odometers stopped working about 1 mth after owning it. As soon as I entered the dealership to return it the odometers miraculously started to work.
Back when 0% Credit Cards were the rage I would buy cars and bikes with the cards. Several of the dealers refused to accept my payment method. I informed them refusing it was a violation of the merchant agreement with Visa / MC . The card if offered must be accepted, but they still refused. I have had counter offers where they will take half on the card. But all cried at the added 3% the Card stuck them with. I got 0% APR
My brother worked for credit card processor. The provide terminal & process payments of credit cards. He got to inform numerous "buy here, pay here" car dealerships they just gave away a car becsuse they were not authorized to sell cars via credit cards. Their merchant agreement limited CC transactions to certain items/services such as accessories or repairs, etc.
@@jeffo9331 No it's a real . I got sent 2 or 3 0% transfer cards a week. I started the story out saying " Back when" I realize you may be too young to remember those days . there seems to be doubt with some about the merchant agreement. In those days if you wanted to accept the card , you MUST accept the card.
Sounds like a case of "not my problem." As long as the title went through what can they legally do if they fucked up the paperwork? I wasn't the one who fucked it up.
@@JohnTheRevelat0r And then don't have a lawyer, because why would you need one? You didn't break any laws Or rules. This is a non-incident. If they want money they can ask you for it or try to take you to court. In the meantime, put the money aside, just in case, and wait to see what everyone else does. Worst case scenario should be that you have to pay the same money a different way. Best case scenario could be a free car.
This happened to me last year! I bought a truck with 101k miles on it. Dealer called me the next day wanting me to come back down to redo the loan, the bank they thought was going to approve me wouldn't do vehicles over 100k miles. I told them no, I already signed the paperwork, they ended up finding another bank to finance me at .1% less.
@@Foolish188 i worked at a job where some managers would literally be there 50 hours+ a week on the clock and they would likely only really work 15 to 20 hours, one was so lazy that he would take a week of vacation toward the end of each quarter in order to get a floating manager in training to do the entire 13 weeks of paperwork that he refused to do so he only did 6 or so hours of real work a week. Perhaps he's my old boss...
A few years ago we had a strange thing happen. I was on-line checking our accounts at a bank. I saw about a $30k loan that had been taken out, and payments were actually being made. I asked my wife about it, and she had no idea. So we called the bank and they said it's for the new tractor we bought. I said we didn't and didn't take out a loan. They looked things up and said we did, and the paperwork was at the branch we banked at. What happen is another person with the same name as mine, who also banked at the same branch and not related to me, took out a loan for his small business for a tractor. It took more than a month of non-action by the bank. I ended up researching the proper banking federal agency and said if the loan isn't off my account by the end of the week two things will happen. First I'm calling the federal agency. Next I had the branch manager's name, who did the loan, and would be filing a complaint with the local police for identity theft. And I would be there as the uniform officers come into the branch to arrest the person who stole my ID. I told the person on the phone, at the main office, don't worry I'll make sure to have the police show up at a busy time Friday late afternoon to arrest the manager. I then also contacted the actual person, same name, and told him what happened. I suggested he also contact the bank because they screwed up and will likely have to rewrite the loan and cost him money because of their error, which he also could see happening. So we both hit the bank at the same time, even telling the bank we've talked to each other. I gave the bank a chance to fix it, they kept delaying it, and went nuclear. It was off our account by the end of that week.
I had a similar experience with a car dealership about 35 years ago. They had set up a car lot at a local mall near my home, but the home location of the dealership was about 90 minutes away from where I worked. I found a great deal on a '71 Cuda convertible and made an offer on the car. They told me that I was approved for the financing on the car with a really low interest rate. I signed the contract and they gave me the keys to the car and I drove away. This was on a Saturday. On Monday morning I got a call from the dealership and they told me that the bank hadn't approved the loan, but they got me approved by a different bank but now the interest rate was almost double and the payment would be almost $400 more per month. They said that I would have to come back to the dealership and sign the new paperwork. I would have had to drive the 90 minutes to their office. I told them that I didn't want the car for the new price. Then they said that I needed to return the car to them. I told them if they wanted the car, they would have to come get it, because I wasn't taking the time to drive all the way to their office. They told me that they would be calling the police and have me arrested for stealing the car. I was still young and dumb and didn't want to deal with it. I wish I knew then what I know now, but unfortunately, I didn't. Anyway, about 2 hours later, a tow truck pulled up in front of the place where I worked, and towed away the car. I didn't care at the time and hadn't even thought of it until I saw this video. Oh well, I just chalk it up to another point in my life. Thanks for the great videos
Similar situation….bought a car from Auto Nation. Got the car home, and had to travel to CA for work, left the car home. Got a call, the bank wants a higher down payment to approve your loan. I said the same thing, “hey, I signed a contract….take it out of your commission “. Of course, they said no, and I made them come to my house, pick up the car, and get my down payment back after I threatened to call my lawyer……..FRACK THEM!!!!! And after some research, I found out that it’s a common scam perpetrated by auto dealers….NEVER AGAIN!!!! I’ll buy from Vroom or Carvana!!!!!!
I had this happen to me, sign papers, I was getting a call from a finance company but didn’t answer because I assumed I didn’t need financing anymore. A month later the car lot was calling saying I needed to return the car and the salesman was very rude to me. Eventually they got financing with Cap one, then a year later when I went to renew my tags I learned that my tags were not registered to the car (I was using tags registered to a car I wrecked & they told me they changed them over). So I’ll never let a dealer do my financing again, I get it done prior to shopping. Lesson learned.
Steve, great job explaining finance in am easy to understand way. You have a way with words which makes you interesting to listen to on just about any topic.
I have a similar problem. I bought a used pickup from a dealer in Las Vegas, the nearest large city to me almost exactly a year ago, but I live in Arizona. I financed it through a credit union in 'Vegas. Normally the registration would have been handled through the dealer but this was an out-of-state sale. The title paperwork has been lost somewhere between the five parties and to this day I have been operating it on temporary tags because I can't complete the registration.
That sounds like some kind of scam, to keep the title away from you so they can always threaten to repossess the pickup (as someone ofc knows exactly where the title is). I think a lawsuit to settle the title would be the best thing to do. A lawyer focusing on car deals will probably tell you they've seen this hundreds of times before. Perhaps you can get one to do it pro-bono, or at least lay out the necessary steps to you.
You have one of the best RU-vid channels. I love watching you. You make everything so easy to understand plus you have your thoughts together. You don’t have all those annoying “um, uhh,” and so forth
This same thing happened to me a few years ago. I drove the car for 2 months. Took a road trip, they told me to bring the car back. They got the car back with 2,500 miles on it and I got my down payment back.
Quickly run up a couple of thousand miles, go into the dealership and say "okay, you want to renegotiate the contract, well since the car has 3 thousand miles on it, I am sure it is worth a at least 3 thousand dollars less than it was last month when you signed the contract....... So, my opening bid is same terms, 3 thousand dollars less".
More like 25% because you took it off the lot buy a new car try to trade it in about 3wks later with maybe 500 miles on it see what they will give you unless its a very sought after car like a c8 your screwed
Similar situation in 2002 whereas I bought a car in the Southeast but was living in Texas. Dealer did deal on a weekend as I was traveling and the transmission went bad so they took it as a trade-in worth X amount. They gave me more on the trade-in than it was actually worth to entice me into the new car. Took the new car to Texas and tried paying on the loan 30 days later but found out no loan existed. Not sure why cause I had great credit. They called and told me to return the car. I told them no that I would just send the money to them each month or they could come and get it and return my trade-in. They said they couldn't do that because my trade-in had already been sold. I told them fine then come get the car and bring me a check with them for the amount they authorized for the trade-in. They said the car was not worth that amount. I told them the contract said different. A week later a guy showed up in Texas to pick up the car, but without a check for my trade-in I sent him back to the east coast empty-handed. The dealer called me raising hell and threatening all kinds of stuff. I told him to simply send me either my trade-in or a check and the car would be released. Two weeks later the same guy showed up with a check for the right trade-in amount so I released the car and went and bought a nicer one.
Similar happened when I purchased a vehicle. They showed up, told me the loan wasn't cleared and they need the vehicle back immediately. It was the week of Christmas and the car was full of totes with decorations. They took the christmat tree off the roof and left me on the side of the road with a car load of totes, garlands, wreaths and a christmas tree. Then put me down publicly when I gave them a very fair review on their site. That wasn't even the worst dealership. Another had illegally stolen money from my bank account. They're insane!
It’s interesting. Back in the olden days car dealers actually held the paper and ( at least for a time ) they would service the loan. What’s interesting is that the loans actually increased in value as the loan was demonstrably good. The funny thing is, lots of paperwork here in Colorado is still written like that is still the case. Honestly as far as I can tell, I don’t think that the issue as to whether the dealership can sell your paper(assign the loan) is your problem in any way. They just have to take the checks. The sad part is, a lot of this is because the car dealing business is so sleazy that the dealerships can’t seem to service the loans. They owe tons of money, they have no credit and half the sales people are coked up. There isn’t a single person in the building that could be trusted to enter an amount in a ledger and take a check to the bank. It’s kind weird that things could get this bad. I guess this is how civilizations fall?
Nah, car dealerships, especially used car dealerships provide a very useful service. They provide "useful" employment for large numbers of people on the Sociopathic end of the human spectrum. If they didn't work there, they might end up as your accountant, bookkeeper, or financial advisor. You don't want that.
I'm very thankful for my dealer. I went to HARR Dodge in Worcester, MA. They gave me a GREAT DEAL on a 2021 Challenger, included a 2 yrs. Bumper to bumper, 4 free oil changes, tire and wheel, and paint and apulstry protection, and great trade in value for my trade in. To top it off...Got free lunch. When papers needed to be signed, the went over every sentence, and delivered a fresh brand new polished Challenger. AWESOME! Stories like this, that make me appreciate the dealers who appreciate and respect their customers.
Paid cash for my current vehicle was an older vehicle, but the dealership owner also was part owner of a business nect door and didn't care for the fact that he had to go next door to give me pocket change back since I paid cash and had no silver in my pocket. IDK what difference it made other than he had to make a deposit for both businesses that night rather than do paperwork and get an electronic deposit...
Best Way save up , get your car . If you have to get an economy car instead of the high performance Charger , you cannot afford that expensive car. Also insurance is as much as payment per month
@@davidderler5924my insurance carrier doesn't do monthly payments, at least not without almost charging as much as the quarterly payments would be. For $25 it's not worth the hassle to write 2 more checks...
I prefer cash as well.The weird part is dealers dont like it because they get commissions from selling loans.So they might want to charge more for cash. It's a weird world we live in
@@ronchappel4812 you're right. They often try to refuse cash or say the advertised price is for financing only. They want to tack on a couple grand more when you insist on paying cash, and sadly some don't know that's illegal.
From a dealer perspective, Steve is 99% correct. If a dealer "spots a car" and tries to change the terms after the fact, you are under no obligation to sign anything. Simply return the vehicle. The dealer has zero recourse. There is one form that every dealer I have worked for also has the buyer sign. It is called a delivery rider to the installment contract. This states that if the dealership cannot assign the contract to a bank, using the same terms as agreed upon, the contract is null and void and the vehicle must be returned within the specified number of days. This way the dealer won't be forced to take payments. It also states that if there is a typographical error or a signature missing, basically something innocent, and does not change any of the original terms, the buyer agrees to re-sign or correct the mistake. Again, the laws may be different for different states, but that is how it works in Illinois. Great channel Steve!
Interesting. I had a dealer TRY a spot delivery scam on me. I wouldn't let them do it, since I had a SIGNED contract. I just watched a a video from Kevin Hunter, where he said they COULD do it, because there is "usually" language in the contract that has a "right of rescission" provision or "Borrowed Car Agreement". How does that jive with the truth-in-lending stuff?
@@musicloverme3993 Yeah that's a sack a shit, like these places where irresponsible company staff get bills out to you.... after or right before the late payment date.
Similar thing happened to me a month ago. Two days later the dealership was running my credit everywhere. I called them and was told I signed a Power of Attorney document and they can do what they want. I responded by writing a power of attorney revocation letter, got it notarized and attempted to hand deliver it to which they rejected. I tried to return the vehicle they said I can't. I was also told even if I left the keys on the desk, "if something were to happen to the vehicle you're responsible" On the 5th day they called and said my loan was accepted.
When I bought my car in ohio in 2015, I was told I was approved for a loan through capital one. Capital one then called me a few days later to go over questions etc. Seemed ok. A week later the dealership called and said sorry they didn't approve your loan but we found a different loan company. I paid 2500 plus a trade in, (that was already gone) boy was I pissed. Not the interest rate or payment I would have agreed to. Felt like I was scammed. Wish I knew this 😪
*Steve, in Texas, the words are "retail finance agreement." some years ago, without thinking, I bought a vehicle on Saturday, 30th September. later, I came to realize this was important for them to get an addition unit "this month," and "this quarter." long story short, I wrote a hot check for $500 and drove off the lot, the balance going to GMAC, which I believed would be okay, and it was. I funded the check on Monday. FWIW*
I had a dealer run credit inquiries, then submit my information to a few banks who ran credit inquiries, even though I brought in my own financing! I was livid.
Many years ago I bought a stereo on time. They never sent me payment book. About 5 years later I bought speakers from them again on time and they sent me a payment book for both items. I just paid it.
I used to sell cars in Texas. Often we run the customer's credit and know what range of rate we can get for them. We sell them the car at the top rate (or even higher). If they agree to it then it's fair. They the dealership shops the deal around to the best rate. So it's regular to get customers to sign for 6.9% and sell the deal to a finance company that offers 4.9%. The dealership pockets the difference. This is super common in Texas. It's part of how the dealerships make money. They BUY a deal with the customer for one rate then they SELL the deal to a finance company for a lower rate. Generally they pocket the difference. I'm not sure exactly how, I never worked in finance. But it happens regularly.
I had this exact same thing happen. I also found signs of undisclosed major body repair(left rear quarter pannel replacement on a 5yo car spot welds were poorly done) so I brought it back.
My uncle drove a new vehicle off a lot in Kansas City, MO. For 4 yrs, he had a vehicle free of charge. He never got the payment book. He attempted to call people to reconcile it and was unsuccessful. After 4 years, he received a phone call from a person inquiring about the vehicle. Long story short, my uncle surrendered the vehicle and somewhere else and purchased a new vehicle.
Happened to me: went into the dealership to buy a new car (on a Saturday). Almost perfect credit. Financed it through a local credit union. Around Wednesday of the next week, I got a letter in the mail saying that the loan was denied because they thought I was carrying too much credit card debt . I went into the dealership (with my wife's car, already paid for 🙂 - I was worried about them trying to repo the car on the spot) and let the finance guy know. We went through a bigger, out-of-state credit union the next time. I got the loan. As of today, I still owe $3,000ish on the loan, and it will be paid off by the end of the year (about 15 months ahead of the life of the loan). And I kept paying off the credit card debt, and owe about one quarter of what I did on the cards. Never had a bankruptcy or been harassed by bill collectors! Didn't do manufacturer financing because I couldn't get the minimum payments as low as I would have liked.
Last weekend I had to buy a new car, part of the down payment was in cash. I made a point to put the cash in the glove box, because of knowledge of civil asset. Yes I know that police "reasons" to search a car isn't a high bar for them to clear, but at least it was something.
@@johnree6106 thats about as protective as a condom made of paper towels man. I mean yeah its certainly better than having a pile of cash on the seat, but a thirsty officer will find a reason to search.
I had a strange one, bought a used car around Christmas and the owner of the dealership was on vacation, he came back to work between Christmas and New Years and called me and asked me to come in, I did and he told me he wasn't happy with the contract. He had a different finance company he wanted to contact. Long story short he gave me an extra thousand dollars on my trade in , then reduced the sale price by eight hundred and the new finance company reduced the finance rate by 4%!
This sounds like completely the opposite world. You sure you didn't somehow buy that car in a parallel universe, where car dealers are much better people? Driving through a very dense, strange fog on the way home? Either way, Christmas miracle.
I had this happen to me in Colorado in 1980. A dealer in the north burbs of Denver sold me a brand new 4wd truck and sent me on my way. I beat the living piss out of the truck in short order because I lived in the mountains and had some rough terrain to traverse. I get notified I need to return the truck as they didn't get financing approved. I took the truck back to them and was told they could get a less expensive truck financed instead...a 2wd one. I was reluctant due to where I lived. When they saw the truck that was scratched and dented with lots of miles, already, they wanted to get the financing done, somehow. I sat there for the entire afternoon and into the evening. My boss came and sat with me for a while in case I needed a ride home (he had been working in the area that day). Eventually they put me into another new, but less expensive truck. Being young and not realizing the ramifications I should have made them enforce the original contract and just pay them. It never occurred to me to hire an attorney. I trusted that what they said was legitimate. I was not happy as I really needed a 4wd to get up to my home. Looking back I know I would handle things differently all these years later.
You should always buy your money elsewhere. Not because of issues like this, but because it takes away the dealership's bargaining power. You should really only be negotiating one thing: the selling price. Sort out the financing terms elsewhere and sort out the trade-in elsewhere. If you go in to a dealership and try to negotiate 3 separate transactions all at the same time, they've got you by the short and curlies.
So what happened in Court to the Client that got his car Repo'd for non payment? Did the Judge rip the Dealership multiple new Waster Disposal Orifices and tell them to give your client back his car and accept his payment checks as per the Contract?
Yeah, that happened to us a few years back. We bought a mini-van and it was several weeks until the dealership contacted us. Said our loan wasn't approved. We were wondering because we were waiting for a payment book. No big deal since we didn't put down a down payment or had a trade-in. Had a free car for a bit.
I went through this about 8 years ago. I bought a truck from a local dealership. Signed papers for what felt like three hours. I got no paperwork and made no payments for 9 months. I called numerous times and documented everything. Now this is a local dealership. I know the people that work there and they know my. We see each other at the supermarket and I remind them. So at nine months I get a phone call they're on top of it now and need me to come in and sign some more paperwork. I say no way you screwed this up not me. If I come in we're renegotiating. I drive a lot and the truck now had 14k miles on it. I told them I am on the verge of NOT buying the truck due to mileage. Or you can come get it. They said come in we'll talk. I went in and they sold it to me at employee pricing plus manufacturers discounts at the time. Total was $8,400 under the original purchase price.
First new car I bought, the bank approved the loan then reneged the next day. It was a demo car, just over 4,000 miles on odo. Apparently 4,000 is the threshold and the bank wouldn't commit. 6 months later, dealer found a credit union, but the $16,000 car with a $24,000 payoff was now $12,000 with a $16,000 payoff. Demo cars are kinda funny in that they instantly become a used car once you sign the paperwork even though it's a new car. Maybe Mr. Lehto could explain the distinction...?
Personally I like buying 15 year old cars for a couple grand. Drive the shit out of them for a few years, put in what maintenance is needed (I do most everything myself), and you can then sell the car for nearly what you paid for it. Drive a car for a few years at a cost of 3 or 4 regular car payments on something new! My wife does drive a newer Jeep, but my truck is 12 years old and my car is 18. I make my "monthly payments" to an IRA.
Homeless? Renter? Or are you one of those people who buy a money pit (House or condo) and think housing prices always go up? Doesn't mean buying a house is wrong, but the middle class have huge debts because of their attempts to finance their lifestyles.
@@_DMAC I used to do that. But I got better at spotting bargains, and have driven the last two cheap cars for ten years. Biggest expense has been replacing tires. My brother drove a 20 year old car for 16 years before a teenage driver crossed into his lane and crashed into him. Not badly hurt, but didn't get much for his car from the teenager's insurance.
