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As subprime auto borrowers default, collection suits pile up in local courts (St. Louis)
St. louis Post-Dispatch ^ | 6-6-16 | Walker Moskop

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 ...


TOPICS: Business/Economy; Culture/Society; News/Current Events; US: Missouri
KEYWORDS: autoloan; buyerbeware; corruption; crime; organized; stupidity; subprime
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Do stupid things, pay a stupidity tax. this guy was insane.
1 posted on 06/06/2016 3:08:08 PM PDT by dynachrome
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To: dynachrome

“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.


2 posted on 06/06/2016 3:08:51 PM PDT by dynachrome (When an empire dies, you are left with vast monuments in front of which peasants squat to defecate)
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To: dynachrome

Oh, come on. This is predatory lending. They took advantage of an idiot. /s


3 posted on 06/06/2016 3:09:41 PM PDT by VerySadAmerican (The day Trump is sworn in I'm changing my screen name.)
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To: dynachrome

There are used car dealers and there are loan sharks that sell cars. These guys are the latter.


4 posted on 06/06/2016 3:18:23 PM PDT by dainbramaged (Get out of my country now)
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To: dynachrome

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.


5 posted on 06/06/2016 3:21:55 PM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: dynachrome

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.


6 posted on 06/06/2016 3:22:15 PM PDT by goldstategop ((In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever))
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To: dynachrome

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.


7 posted on 06/06/2016 3:24:05 PM PDT by RegulatorCountry
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To: dainbramaged

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.


8 posted on 06/06/2016 3:24:12 PM PDT by goldstategop ((In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever))
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To: dynachrome

El Stupido


9 posted on 06/06/2016 3:26:41 PM PDT by Gasshog (Clinton denies... Except to see a lot of this)
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To: dainbramaged

The really aggressive ones have a device sort of like a LoJack, miss a payment, they disable the car and come get it.


10 posted on 06/06/2016 3:27:18 PM PDT by RegulatorCountry
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To: dainbramaged

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.


11 posted on 06/06/2016 3:27:38 PM PDT by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: RegulatorCountry

“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


12 posted on 06/06/2016 3:27:52 PM PDT by dynachrome (When an empire dies, you are left with vast monuments in front of which peasants squat to defecate)
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To: RegulatorCountry

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.


13 posted on 06/06/2016 3:29:40 PM PDT by goldstategop ((In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever))
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To: RegulatorCountry

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.


14 posted on 06/06/2016 3:32:05 PM PDT by libstripper
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To: Secret Agent Man

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.


15 posted on 06/06/2016 3:34:21 PM PDT by goldstategop ((In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever))
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To: goldstategop

Exactly.

We never take out loans for vehicles. Used or new.


16 posted on 06/06/2016 3:35:55 PM PDT by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: libstripper

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.


17 posted on 06/06/2016 3:37:27 PM PDT by RegulatorCountry
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To: blueunicorn6

LOL, perfect.


18 posted on 06/06/2016 3:40:56 PM PDT by FreedomPoster (Islam delenda est)
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To: dynachrome

This guy is a moron...


19 posted on 06/06/2016 3:43:50 PM PDT by Vendome (Don't take life so seriously-you won't live through it anyway - "Enjoy Yourself" ala Louis Prima)
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To: RegulatorCountry

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.


20 posted on 06/06/2016 3:46:10 PM PDT by libstripper
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