The 7 year USED car loan

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Originally Posted By: Bryanccfshr
Yes I have and I got the job with the background investigation despite my poor credit score! I supposse if I worked in finance or banking an employer could hold it against me but I have withdrawan from the credit market completely with no open accounts and no liability within the bounds of the law. It is much better to have a score in the 400's and no debt at all than in the 700 or 800's and a bunch of debt.


I've read in more than one place that people without 'some' debt being paid off managed are much worse off than people who a fair amount of debt, AS LONG as those with debt are making the payments....
 
You are speaking from the credit industry perspective and the pardigm that you need credit.

My paradigm says to [censored] with credit ratings. I no longer need them(I did think I did at one time but I was simply living on my next 3-5 years income instead of on my current and past years income. I would rather have a terrible credit score(I do) and no debt. I can buy a car anytime I want(but have no need for anymore(I have a trip vehicle a recreatinal jeep and a work truck provided by my employer) and I can buy a house with 3-5 years of setting it aside maybe less ifenergy prices do what I need them to.

I am not saying credit has no place. It just needs to be much less prevalent and easy to get. It should be reserved for homes or starting a business and capital investments in business or agriculture. Not for consumer level fuel, not furniture, not electronics, not harley Davidson motorcycles, not vacations, not to pay the bills when all the other bills on credit exceed the income, not for fashinable clothing, not even for motor oil! Not for a car. Seriously. before I understood the concept of financing at the age of 11 and 12 I was mowiing lawns and printing cards and expanding my small juvinile business because I was convinced that I had to have cash in hand to buy anything I wanted in life.
I was led astray and like an alcoholic I cannot handle easy access to credit as a consumer. For business and home I am much more disciplined. As a consumer I like my initial impression at 11 or 12. If I want that shiney car I need the cash to pay for it. with that kind of commitment I really weight Wants-vs-needs. All of the sudden having to put a large amount of cash to pay for an objecgt becomes a deeper more introspective discussion. That is the fiscal discipline our country no longer has as a whole as a population and as a government.

It just upsets me that this industry has such free reign to draw people into usery rates. The only way to take the power from the industry is to not use it.
 
I agree that not enough 'checks' are in the system to keep out people who have no real chance of using credit responsibly. If credit was only extended to those who understood and respected how it is to be used, there wouldn't be most of the problems, OR SYSTEM that exist around, and live off it, today.

But, its like our societies addiction to oil - we're so entrenched, it's gonna take a complete re-work of the way we live for us to get out of its grasp.
 
I've seen both sides. I have some friends that are SO credit-averse that they work like dogs to avoid debt. but they had help, FIL bought house, they paid HIM off instead of the bank.
I have another friend that makes $50K/yr, no house, nothing fancy, doesn't even eat out, and always saying he can't afford something.
someone said the income tax advantage of owning a home wasn't worth it to him. well, for me, after writing off the interest plus child tax credits and EIC, I get a larger return from uncle sam than I paid in. so, for me, my home loan IS worth it.
a credit card or home equity/refi could be a life reserver for you and your family. if you lose your job, and it's winter, and you don't have enough cash to fill the oil tank, what'r you going to do, set the furniture on fire?
my house was the best investment I ever made. it has saved me a few times over the years.
 
Originally Posted By: addyguy
I agree that not enough 'checks' are in the system to keep out people who have no real chance of using credit responsibly. If credit was only extended to those who understood and respected how it is to be used, there wouldn't be most of the problems, OR SYSTEM that exist around, and live off it, today.

But, its like our societies addiction to oil - we're so entrenched, it's gonna take a complete re-work of the way we live for us to get out of its grasp.


I've suggested that credit only be given to those who can figure what they payment is. I.E. a test. The applicant is given the interest rate, the term and the principle and they have to figure the periodic payment and the total interest paid.

If they can't do the math then they are not ready to borrow money.
 
if everyone paid off their loans on time, or if everyone had a favorable interest rate, what of all the people that benefit and get rich off of others' misfortune?
the banks NEED high risk people; there are industries that DEPEND on the penalties and fees extracted from the working poor. I'm sure there are MILLIONS of people that earn a living because of high risk loans.
not to defend them, but I would guess that if you were an executive at a credit card company, you'd want things to stay just the way they are.
 
I too am sure they'd want things to stay the way they are. I'd rather see the public take financial responsibility and see credit card employees lose their jobs so they can go elsewhere and produce something useful in our economy, like cars or food... and not just shuffling money around while skimming some off the top.
 
I work with a guy who was in the Air Force in the 80's. On April Fools Day 1989, he was stationed in the God-awful wasteland known as Minot, ND.

He went to the local Ford dealer and shelled out $12,000 for a Mustang GT with one option, A/C. At that time, the purchase price of the car was *equal* to the amount of his ANNUAL INCOME. After he did it, he couldn't believe that he had made such a crazy decision.

He drove that car until 2006, when he finally broke down and factory ordered a 2006 Altima V6 with leather and a stick shift (but oddly enough, ABS was not offered with the V6/manual combination). He ordered it anyway.

The car was bought back from him by Nissan, because the car was delivered with documentation that claimed it had ABS (but it didn't). Now he drives a 2008 Altima.
 
Originally Posted By: Drew99GT
Originally Posted By: Gary Allan

With a new car dealership held as some ideal template to model after ..how far to you have to drop to be in sleaze??


You got me there!


I dug into this a little more (J.D. Buyrider). There are some oddities to the one that my son works at.

For example, they give away a ton of free service. Their inspection (both IM and safety) are literally half the price of the competitive market rate (about $80). They're under $40. They charge about $45/axle on brake work. Service is a total loser for the operation. It's just the cost of doing business.

Here's the rub that's sorta a contradiction.

Let's say you're a perpetual late payer on the loan. All over the map with spaces after the due date. Once you're "over the hump" ..and let's say you blow your trans or engine, they'll throw in another one at no charge. It won't be new ..but an otherwise good engine. They want THAT buyer to finish out the loan.

Now take someone who has be totally on time. He WON'T "automatically" get the freebie since he's going to fulfill the contract in earnest. He'll probably be eating half or all of the repair.

The cars all come with an 18month/18k drive train warranty. I think that there's a 30 day bumper to bumper on other stuff working.

They make their money on the car's price, just like anyone else ..but it's more like social work for the economically challenged.

Meanwhile there's repo's ..and "skips" (apparently nomclature for those who just drive away with the car to another state or whatever) ..and insurance lapses where the accident waits until the insurance is lapsed ..and it's never a fender bender ..but a total loss (this aspect may be due to the amount owed vs. market value).

When I asked why they didn't sell insurance in the package, there are apparently laws/regulations that make it a unlawful to do so ..at least under the same banner.
 
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