Posted on 06/30/2017 12:45:43 PM PDT by Lorianne
Reader Brian emailed an ad for huge discounts on cars. The fine print is rather amusing: Must be subprime and must finance through Chrysler Capital.
Frequently, when you see an ad “only x available at this price”, there are really none available at that price. They all went to friends of the dealer.
I called about the 2017 Patriot and there were still some left but they were “going fast”.
The ad reads “Primary customer must have a FICO score below 620 and must finance through Chrysler Capital”
I asked what happens if my credit score was above 620. As expected, I could not get that price. For someone with a credit score of 800 the price jumps to $13,485.
I asked what happens if I pay all cash. That price is $13,995.
I asked about prepayment penalties and California does not allow them.
Still, the MSRP is $21,760 and you can get one for $13,995. That is a discount of 35.7% off the MSRP.
Frequently, when you see an ad “only x available at this price”, there are really none available at that price. They all went to friends of the dealer.
I called about the 2017 Patriot and there were still some left but they were “going fast”.
The ad reads “Primary customer must have a FICO score below 620 and must finance through Chrysler Capital”
I asked what happens if my credit score was above 620. As expected, I could not get that price. For someone with a credit score of 800 the price jumps to $13,485.
I asked what happens if I pay all cash. That price is $13,995.
I asked about prepayment penalties and California does not allow them.
Still, the MSRP is $21,760 and you can get one for $13,995. That is a discount of 35.7% off the MSRP.
SNIP
Crazy double snip, too.
What sort of kickback does the dealer get writing a subprime loan for Chrysler Capital?
Sounds like they are targeting subprime customers. And that’s a shame.
People with poor credit should not be coerced into buying these Italian crap cars.
Crappy loans are bundled and sold to investors looking for the “security” of investing in bonds. It’s a game for suckers.
That sot of deal suggests to me the company is counting on doing a lot or repossessing and reselling. The terms of the contract probably are so tight that if a customer spells a word wrong it triggers a repossession. That guy below 620 score is much less apt than others to actually study the fine print before he signs. At the cash price, how much is the seller’s “set-up” fee? What other of-course-there’s... other fees are involved?
If I were interested in buying a Jeep - WHICH OF COURSE I’M NOT - I would get my son or daughter to be the Primary.
Notice these ads use that term. Meaning that there will need to be a co-signer.
I’d get them to “buy” the car, then I’d take over the payments.
All in all - $13K is not a bad deal for a new car. I’d say you’d be better off buying a good used car for that amount. Except you can’t find the 0.00 financing on used vehicles.
That sot of deal suggests to me the company is counting on doing a lot or repossessing and reselling.
I think you just nailed it. The company wants a default on the loan. They get the car back, pus any money paid. They can keep selling and repo-ing the same car over and over.
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