NotThatGuy
11-16-2019, 12:17 PM
Currently, I am helping out a local car lot set up their new network. Comcast Business Solutions parachuted this thing in, sent out a handful of guys to run new lines and left it a complete mess. No firewall up on their systems, no anti-virus programs on their network, etc. Just a cluster fuck and a half, so here I am. Now, this is one of those "haggle free" car lots which also specializes in subprime financing. Essentially, if you have a job, you have at least one bill that is current and a few hundred bucks, you can drive out of here in a Kia or some shit.
So, as I have been sitting here listening and hearing how they do these loans, it's absolutely amazing. Most states have a set interest rate cap, meaning you cannot go over that interest rate for a car loan or it's illegal. This place though, has it set up through a credit card company, who will finance anyone with the above qualifications at 29.99% interest rate! The dealership is getting 10 points of it. It's complete legal loansharking (I guess Harley does the same thing). Now, the vehicles that these people qualify for are usually 8k or less, have low-jack or something in them and this place has a "reconditioning department" which just handles all the repossessions. They also have a satellite warehouse that is full of shelves, floor to ceiling with belongings that came out of repo's neatly organized into bins. After 60 days, if these items are not claimed, they use a "online" group who lists all these items on E-Bay. There are 3 people, working full time, selling other people's crap on E-Bay. This place seriously prints money.
So now you have a little backstory. Yesterday I was there and was in the finance area, listening to a nigger trying to buy a 2018 Cadillac Escalade, it was used, has like 8k miles on it but it's the very base model. He was calling everyone in his phone to see if they would co-sign this note for him. He had no takers. At one point, the sales guy walked in to talk to the F&I manager about the deal and I swear this is what he had said "Look, I know we have repo'd four cars from him already, but all the interest he paid more than made up the difference from what we made reselling his cars. Whenever we repo his cars they are clean and we resell them fast. He is going to put 10k down, I am selling this to him for 68K. Thoughts?" They went for it. I just sat there chuckling about the whole thing. I will add more in a bit to this madness, it's amazing here.
So, as I have been sitting here listening and hearing how they do these loans, it's absolutely amazing. Most states have a set interest rate cap, meaning you cannot go over that interest rate for a car loan or it's illegal. This place though, has it set up through a credit card company, who will finance anyone with the above qualifications at 29.99% interest rate! The dealership is getting 10 points of it. It's complete legal loansharking (I guess Harley does the same thing). Now, the vehicles that these people qualify for are usually 8k or less, have low-jack or something in them and this place has a "reconditioning department" which just handles all the repossessions. They also have a satellite warehouse that is full of shelves, floor to ceiling with belongings that came out of repo's neatly organized into bins. After 60 days, if these items are not claimed, they use a "online" group who lists all these items on E-Bay. There are 3 people, working full time, selling other people's crap on E-Bay. This place seriously prints money.
So now you have a little backstory. Yesterday I was there and was in the finance area, listening to a nigger trying to buy a 2018 Cadillac Escalade, it was used, has like 8k miles on it but it's the very base model. He was calling everyone in his phone to see if they would co-sign this note for him. He had no takers. At one point, the sales guy walked in to talk to the F&I manager about the deal and I swear this is what he had said "Look, I know we have repo'd four cars from him already, but all the interest he paid more than made up the difference from what we made reselling his cars. Whenever we repo his cars they are clean and we resell them fast. He is going to put 10k down, I am selling this to him for 68K. Thoughts?" They went for it. I just sat there chuckling about the whole thing. I will add more in a bit to this madness, it's amazing here.