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 ...
“I wasn’t very good on paperwork,” said William Lesinski. Including a down payment, initial installment payments and garnishments, he paid nearly twice the $12,885 sale price of the Mustang, which he said had more than 100,000 miles.
Oh, come on. This is predatory lending. They took advantage of an idiot. /s
There are used car dealers and there are loan sharks that sell cars. These guys are the latter.
I wanted to buy my Son a Mustang when he graduated from high school.
He got a good fly rod, instead.
It’s like the old saying......
“Give a man a Mustang and he’ll crash it into a tree. Teach a man to fish and he’ll never go hungry.....or ruin your credit.”
Or something like that.
Always buy a car in cash, paid in full.
Any one who buys a car they can’t afford, lose more than just their shirts.
Its stupid to pay more for a car than its worth.
Something doesn’t sound right. Every car I’ve ever financed had to be insured, the finance company required it and was notified by the state of any lapse in coverage. Learned that the hard way right out of college, the insurance they’d slap on it was very expensive. It took some work and some money to get that straightened out, and I never let it happen again.
A 26 percent interest loan is like a payday loan for cars.
The exorbitant interest rate will bury you long before you enjoy the car.
If you don’t have cash up front to buy the car, don’t buy!!!
Its that simple.
El Stupido
The really aggressive ones have a device sort of like a LoJack, miss a payment, they disable the car and come get it.
No one put a gun to their head to buy the car from these people.
If the loan conditions are horrible, which these seem to be, what you do is walk out and go to a better dealer.
“finance company required it and was notified by the state of any lapse in coverage”
Yup. My guess is the guy isn’t telling the whole story
My Dad bought for me both of the used cars I owned, paid in cash.
A good used car can be affordable if you know where to look and can pay it off it in full before you roll out of the dealer’s lot with it.
Subprime car loans are financial robbery.
Now I buy my vehicles for cash. Before,I did bank loans at reasonable rates. I insure through USAA. Never missed a payment, never had a problem. Moral: don’t borrow more than you can afford to repay.
They’re people who don’t want to buy a used car outright.
Idiots. You should never pay for a car more than its worth.
And it already began depreciating the moment its driven off the dealer’s lot.
This is not like a home mortgage loan which appreciates in value with every payment made towards paying off the loan.
A car loan is the exact opposite; it should really be called a suckers’ loan or a liars’ loan.
Exactly.
We never take out loans for vehicles. Used or new.
I’ve financed them through a credit union with one exception, rates were very reasonable. The exception was a special promotional rate through the manufacturer that the credit union couldn’t match.
LOL, perfect.
This guy is a moron...
I had a similar experience with the first home I bought, a condo. Seems the builder badly needed to move them and got a sweetheart deal for its buyers from a local S & L.
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