Quote From: walter1101 Hi, I just want to stick up for the ladies who bought a new car. I have been a finance director for a multi-franchise auto dealersip. I must say that if these ladies walked into my dealership,the first thing I would do,is tell the sales person to sit them down comfortably,while I went through inventory. I would try to find the ceapest NEW car I could find. I specialized in loans for folks with bad credit.
Special finance lenders plan on the fact that they WILL re-posses. So if someone has bad credit,they will only approve loans on the newest,lowest milage cars. This way,when they(the bank) take it to auction ,they have a sellable asset. To approve them on a older car that is out of warranty would be a bad deal for the lender. Most people who have issues with bill paying,also have issues with oil changing etc.... Also in most bad credit cases,if the car has any mechanical problems,the buyer feels as though they shoud not have to continue payments. Therefore the lender gets back a car that does not run,and is out of warranty.
Also,special finance lenders have strict guidelines about the percentage a car payment can be in relation to total income. Debt to income as well as payment to income are primary considerations for approval.
Another option is the private note lot. Down payment is collected for what the car is actually worth,and the payments that the buyer makes is profit for the propriator. This type of car is usually in very unreliable or even unsafe condition.
The truth is ,no matter what kind of car these folks were to buy,they will be up-side-down,ALOT. Mainly because of deferred equity,and high interest.
Most lenders will loan on only $1000.00 down payment. At least in my part of the country,a car that runs ,drives and has a/c,brings much more than that at auction. It goes to a note lot where someone will pay $2500.00 down and $300.00 a month(or until it breaks down).
It seems to me if you have a job, and money problems,then it is important to keep your job,and not loose it from having your car break down too often.
I do not know all the details of this particular situation, But in my expirience,for these ladies it could very well have been NEW car or NO car.
Just my two cents-
Katherine from Tx
We haven't bought a NEW car since 1980. We have had used vehicles that have been dependable and God knows, a LOT less expensive. It just blows my mind to know how expensive new cars have become. It's just not worth it to have a HUGE payment every month. Around here where I live there are a lot of dealerships with nice used vehicles. We have always had good luck with our vehicles. Ironically the last new car we bought in 1980 was a LEMON. Of course there was a warranty on it, but we were constantly having to have something fixed.
Dr. Phil speaks with self-proclaimed slacker wives and moocher moms, who admit they fall short in the mom and wife categories. Keya is a stay-at-home mom who spends 18 hours a day in bed, while her husband, Tyrone, works and does everything around the house, including waiting on her hand and foot. Keya considers herself a “rich man’s wife, but Tyrone says he’s not rich at all, and he’s tired of feeling more like her maid than her husband. Dr. Phil has a surprise for Keya! Next, Nick and Tara turn in their mother, Rita, who is unemployed, living in her van -- when she’s not crashing at their homes -- and constantly receiving handouts from her family. Her family claims she’s even taken money from her grandson’s piggy bank! Are her kids to blame for always coming to her rescue? Then, a mooching mom makes her daughters feel guilty if they don’t pay her bills and give her cash. She has a job, so why is she taking her daughter’s student loan money? Talk about the show here.
