Posted on 11/12/2022 5:00:45 AM PST by karpov
Idaira Chavez is just the type of car buyer that BlackRock’s new social-impact fund might have had in mind when it bought a stake in Tricolor Auto Group.
Tricolor gave Chavez, 21, a loan to buy a 2012 Kia Optima off one of its lots earlier this year. She needed the car to get to her job at a Dallas pet store after she moved to a nearby suburb.
...
But Chavez says being a Tricolor customer hasn’t made her life any better: A few months after buying her car from the company in January, the vehicle stopped working and she had to quit her job.
“I got ripped off,” she says.
Dallas-based Tricolor, which gets its name from the three-toned Mexican flag, is little known outside the Spanish-speaking communities it serves in Texas and California, its biggest markets.
Its focus on that Hispanic population has drawn the attention of big-name financial firms seeking to reach such groups to meet federal lending requirements and adhere to ESG—or environmental, social, and governance—commitments.
Tricolor is certified under a U.S. Treasury program that gives special perks to businesses that lend to underserved communities. It’s also the only subprime auto lender cleared by a key rating firm to sell securities backed by its loans as “social bonds.”
...
The ESG credentials have helped Tricolor raise money from some of the nation’s highest-profile banks and accelerated the growth of its business.
Chu says that Tricolor helps members of underprivileged Hispanic groups avoid predatory businesses while getting them into cars they can drive to jobs. The company focuses on undocumented migrants who often have no U.S. credit history, he says.
He casts his company as a mission-driven version of the used-car sales business known as “buy here, pay here.”
(Excerpt) Read more at barrons.com ...
So the Federal governments is giving "special perks" to used car dealers that focus on selling to illegal aliens. Do they have valid drivers' licenses? Financial companies such as BlackRock are marketing this as ESG because that's an "underserved" community.
What specific U.S. Treasury program is this? Since the GOP it taking over the House, it should defund this program.
Sure about that?
Mexicans ripping off their own is nothing new.
Ethics is business is not a Hispanic trait in the Hispanic World - nor will it ever be, unless they are true God-Fearing Christians.
Days or a few weeks maybe, but to blame the dealer on something months down the road?
Almost every medium to large corporation invests in ESG.
ESG = Corporate Fiduciary Negligence
Oh, and BlackRock’s stock has gone up 45.7% in the last month. (after a long cratering)
We called “buy here, pay here” car dealerships "buy here DIE here" because the loan rates for these shitty vehicles was so high, anyone suckered into buying a 10 year old vehicle and financing the purchase would die before ever paying it off.
In mafia speak, they're called juice loans.
Sounds like they are still being underserved:
“Buy-here, pay-here dealers have long been known for selling used cars—often old models with mechanical problems—at steep markups using high-interest loans, and for cycling vehicles back into their inventories again after borrowers default and the cars are repossessed.”
These are all things responsible car owners need to do to claim a car " just died" and make a reasonable case.
I found the “and it stopped working” suspicious.
A used car is still a used car. It doesn’t have new brakes, spark plugs etc.
This woman is surprised that she actually has to do service work on it.
I see those pieces-of-crap vehicles come into the neighborhood. Usually beat-to-Schiff white vans with anywhere from one to twelve ladders strapped to the top. The van will stop in front of a house, 3 or 4 amigos climb out...and some sort of un-permitted, less than quality repair work begins. Later, a couple more beat cars show up, a few more homies join the fray. Just as dark approaches, they pack up and leave...usually with a scattering of plastic soda bottles and and other debris left to reserve their parking places until the next morning...when they return and start the process all over.
Everything breaks eventually
Lolzzzzzz and ping
Tote the note car dealerships are leeches.. no one should be surprised that you dangle some free cash to them they will con their way to getting it.
You make a loan to sell a used car. The owner becomes unable to make payments. You go pick up the car.
The car is washed and sold again, and again.
The payments are pocketed
They started running TV ads reminding people that they control their retirement. I’m sure that has helped raise their stock value.
“So the Federal governments is giving “special perks” to used car dealers”
Kindred souls.
We (dealers) get blamed 2-3 years hell any time after the sale for everything.
She bought a car known for engine failures.
It failed. That was “unexpected”
Maybe that’s it, but 45.7% for a huge investment firm in a month is pretty wild.
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