One of my members (I work in a credit union) just bought a new car & had it dealer financed, b/c we couldnt do anything for her b/c of horrible credit (& yes, I know & told her not to go new, b/c of payment, due to the credit issues).
She just came & told me that the dealer had to do a lot of shopping around to find a finance place (mid 400 score w/ collection issues & lates). The one they found, is not only charging 20% interest on $18k, but also charged an additional $2000 FEE just because of the high risk factor! So, they actually put on the $2000 on the financed amount (b/c of course, she didnt want to put any money down), so she is upside down $2k from day one!
I have never heard of this. Is this something new or did they just get over big time? (even more than the 20%). I had the talk with her about her credit & needing to fix it long ago. She makes over $100k/yr, but is just bad with her money. Tried to help her reestablish, but turned down for $1000 secured loan!
2007-03-23 02:59:53 · 4 answers · asked by ricks 5 in Business & Finance ➔ Credit
wayne:
I know what you mean, but she is living beyond her means. Granted, $100k is a lot of means, but if you dont know how to handle it, its easy to get that beyond your control. I wish I had that problem, but seeing this, maybe I dont. With credit this bad, its about repairing the damage, not rebuilding it. There is nothing there to rebuild. She must start from scratch by paying off what is currently out there, not trying to get something new in the hopes that it will overshadow all the bad years.
2007-03-26 02:11:06 · update #1
I work in Special Finance and their are several lenders that charge additional fees to finance credit challenged people.
The fees are supposed to be paid by the dealers. What the dealer most likely did was show a $2,000.00 down payment and then add that amount to the sale price. This is bank fraud and if the lender finds out this happened (if it did) they will make the dealer buy the contract back and your friend will lose her car.
2007-03-23 03:07:49 · answer #1 · answered by ? 7 · 1⤊ 0⤋
I agree that what the dealer did may be fraud to the bank But its not uncommon to show a customer putting money down on a car that they never did and then adding in back later. NYS had laws against this but like "spifiman" said your friend would loose the car. With a 400 credit score she is lucky anyone would give her a loan. She should have listened to you and just bought a car she could pay cash for.
2007-03-23 03:13:13 · answer #2 · answered by asccaracer 5 · 0⤊ 0⤋
If she makes over 100k a year, ask her to paid off for the car !!! Why waste the money like that? and for credit, with the 100k a year, she can rebuild it. GeeZ!!
2007-03-23 21:18:24 · answer #3 · answered by a9113257311 3 · 0⤊ 0⤋
The discern you're probable finding at is the interest which you would be able to pay over the life of the non-public loan and definite, that's a gloomy discern to work out precisely how plenty it somewhat expenses to borrow money.
2016-10-20 07:05:39 · answer #4 · answered by ? 4 · 0⤊ 0⤋