As subprime auto borrowers default, collection suits pile up in local courts (St. Louis)

St. louis Post-Dispatch ^ | 6-6-16 | Walker Moskop

[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.

[Noumenon]

I always buy used and with caution. Last one I bought is a 2005 GMC Yukon Denali XL. Needed new tires and an instrument panel rebuild. It was a decent deal at $10K. Runs smooth and solid.

[Texas resident]

Never finance a depreciating asset.