Posted on 06/06/2016 3:08:08 PM PDT by dynachrome
In August 2008, William Lesinski walked into a Car Credit City in Bridgeton and made a decision that would be far more expensive than he ever imagined.
Wanting to buy his son a car as a high school graduation gift, Lesinski put $1,750 down and drove off the lot in a 2003 Ford Mustang. The loan for the car was $11,367, and it carried 29 percent annual interest over nearly four years. His son would make the payments, but the loan was in Lesinski’s name.
After paying the balance down to a little more than $10,000, his son, who had stopped making insurance payments, wrecked the car, Lesinski said. In 2011, after more than $4,000 in interest had accrued, Car Credit City’s in-house finance arm, General Credit Acceptance, sued Lesinski. Factoring in attorney fees, the court judgment came to more than $15,000.
(Excerpt) Read more at stltoday.com ...
“...his son, who had stopped making insurance payments, wrecked the car...”
I agree. There’s more going on here.
I had a couple of years between high school and college, working different jobs. I bought a six year-old Japanese car that had around 50k miles on it. I paid $1,500 for it - cash. That was in the 1980s. I kept that car about 10 years, when I sold it, it had about 210k miles on it and it still ran okay and it looked okay - not a rust bucket. I got a lot of use out of that car without spending much. Yes, it was a “practical” car and not a fancy sports car or whatever.
As was the case at least as far back as the 1980’s.
“We may not have ‘em long, but we have ‘em first!”
This is not like a home mortgage loan which appreciates in value with every payment made towards paying off the loan.
Does upside-down ring a bell?
People have a right to free college tuition AND a free car.
Very few homes don’t appreciate.
Of course subprime loans just killed off the housing market.
We should give people can’t afford a house or car - we should give it to them for free?
The reason the interest rate is so high is high risk borrowers are gonna default on their payment - and in the end, the lenders have to eat the losses.
Last two new cars I purchased I financed.
One @ 2.25% (2014), this year we sold that vehicle and purchased an new vehicle with a 2.41% loan.
At such low rates I have better uses for my money.
Got no job, we don’t care.
Got a prison record, we don’t care.
Don’t expect to pay us...THAT’S when we care!
Exactly. I’ve gotten zero percent loans through the dealer. Sez me, I’ll use their money for free, for awhile.
... and when you get to the Schlossen Cutoff,
get out and cut off your Schlossen.
I know someone who is half owner in a used car lot that does that. One payment missed and bam! They’re gone. He’ll even sell to the same people later on down the line. They don’t lose money.
A 26% interest rate means this guy was seriously subprime and this wasn't his first credit fail rodeo.
Folks with criminal minds will blame the defrauded and cheer for his creditor.
Don’t buy anything on credit. Don’t buy anything that you don’t really need. Learn to do repair and manufacture as a hobby for now. Become more self-sufficient, then watch the crooks fall from political influence.
They gave him a go away interest rate and he signed the deal... Yepper, a moron..
29% ?!??
Predatory lending. That doubles the price of the loan in 3 years.
My Dad gave me a watch for graduation. I think he paid cash. :-)
I drive a 1971 International Harvester 1210 3/4 ton pick up with 93=94k on it.....Paid cash and will get 200-300 K with basic maintenance on a 345 c.i. International motor.....Anyone who drives a 40-50 thousand dollar truck is just a fool as far as I’m concerned....my insurance is less than 300 a year (for compulsory) and my tag fee/excise is 105.00 a year.....Now in my third year of ownership and small repairs /belts/tires(split ring rims I do myself)/Painted myself etc....The point I must make is that my truck pay’s for itself because it generates me $ beyond just going to work....people are stupid and lazy when they buy a vehicle they can’t fix themselves....I laugh....as they run to the bank to piss away there $....whats option 1 per month 150-175 a month? A fool and his money are soon parted....sound familiar?
Exactly, I don't get what people don't understand about this. Lenders charge rates like this because the loans to tatted morons like this guy's son are much, much riskier. It's a hedge against all the loans they end up writing off.
Yo Gold....Credit Union loans for auto purchase are pretty safe.
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