Used car dealers?

You know the old jokes about car sales­men…

You may have encoun­tered one of these fast talk­ing sales guys that just lied the entire time and over charged you for what turned out to be junk…

It is like­ly that most of us at one time or anoth­er have end­ed up buy­ing some­thing that we real­ly did not want and prob­a­bly could not afford in the first place. The real prob­lem is that there are many of these “fly by night” used car deal­er­ships, (steal­er­ships?) That prey on those that have almost no choice when it comes to get­ting a used car financed.

They call these vul­tures of the junk yards buy here pay here or one of my favorite’s “On the Lot Financ­ing” Mean­ing that if the car gets off the lot that is about all you can hope for…

High Mileage..

Huge mileages like 245,000 miles on a vehi­cle that is ten or more years old…

Folks IF you by chance are read­ing this and you do not real­ize it…

When a car or truck gets over 100,000 miles on it it is about wore out.

Why else do peo­ple trade in cars and trucks at three years old?

They trade in vehi­cles because they do not want the headache of fix­ing the vehi­cle, mean­ing that nor­mal things that would be replaced have not been fixed or replaced.

Brakes, shocks, steer­ing prob­lems, front end issues, belts hoses alter­na­tors bat­ter­ies and a lot more.

Front Axles that are just com­plete­ly worn out. This is just a small list of things that you might encounter when buy­ing a vehi­cle with over 100,000 thou­sand miles on it..

But wait, were talk­ing 200,000 thou­sand miles and more right…

Oh yes and guess what the prob­lems you encounter are going to be severe and expen­sive to fix or repair.

But the fast talk­ing sales­man will not tell you this and they will sit there and lie to your face about prob­lems that they know exist but will nev­er tell you about. I am sure there are a few decent used car STEAL­er­ships out there but I have not seen one in at least 20 years.

This prob­lem has got­ten so bad that the fed­er­al gov­ern­ment and many states are get­ting involved in pro­tect­ing Amer­i­cans that have to deal with these sor­ry excuse for a busi­ness AKA used car deal­er.

I know what you may be think­ing not all deal­ers are this bad but the prob­lem is that a lot of just reg­u­lar hard work­ing folks out there just are not well edu­cat­ed when it comes to these buy here pay here lots.

First stay away…

Stay away from these buy here pay here or on the lot financ­ing because you will end up pay­ing more for the Junk (alleged junk) than you would pay for a new­er car with a war­ran­ty.

Pay more in the long run and end up with a vehi­cle that no longer runs or dri­ves… Is that pos­si­ble…

Yes and in fact it is quite prob­a­ble.

Most peo­ple see just the sur­face they need a vehi­cle and they do not want to dri­ve a beat up junker, so they see most­ly on the sur­face of things.

They might see new paint and think “its a great car or truck” But what about the acci­dent that will cause your tires to wear out ten times as fast as a car or truck that was not in an acci­dent?

These sor­ry car lots will lie to your face about the con­di­tion of a vehi­cle.

They will tell you (Yes) this was owned by a lit­tle old lady that only drove to church on sun­day.

But the truth is very dif­fer­ent.

High Financing..

How much will financ­ing cost?

The aver­age cost is between 19 per­cent and 37 per­cent.

Yes, 37 percent…

So you pay down $2000.00 No war­ran­ty expressed or implied.

You then owe two month­ly pay­ments (they some­times call these bi week­ly pay­ments which is kind of igno­rant but hey it’s a rip off folks) alleged­ly.

The aver­age pay­ment is 350.00 every two weeks.

That is 700.00 a month.

For a vehi­cle that already has 240,000 miles on it and is by def­i­n­i­tion already wore out.

How long do you have to make pay­ments?

Once again the aver­age is 36 months.

Add that up…

Go ahead, seri­ous­ly add that up the down pay­ment, the high­er than nor­mal inter­est and the length of pay­ments along with the high­er than nor­mal pay­ments.

You will find that you paid three times more for that junk vehi­cle than you would have if you had gone to a rep­utable deal­er. (IF you can find one)

Watch out for the big bait and switch..

Right now there are deal­ers on face­book that are adver­tis­ing the entire price of a vehi­cle as 1200.00 and the MSRP as 341.85

But that is not even real in fact it is against the law but face­book cares not when bucks are com­ing into the cof­fers of the great and mighty face­book.

What they mean is that you pay 1200 down and you then pay 341.85 every two weeks for 36 months.

But that is not all folks oh no there is more.

You see the rea­son why they want you to pay two times a month is that it dou­bles the price with­out you real­ly under­stand­ing why.

Nor­mal used finance rates are between 3.4 per­cent and 12 per­cent.

The month­ly pay­ment is usu­al­ly around 350.00 to 450.00 depend­ing on how new and yes how nice the auto­mo­bile actu­al­ly is.

So, if you are pay­ing 350 times two that is the same as pay­ing for two months on a bet­ter val­ue at a bet­ter rep­utable busi­ness.

Your pay­ing twice as much for a vehi­cle that can­not even qual­i­fy for financ­ing. Wait did we say twice as much? No, think again, if you are pay­ing 19 to 37 per­cent inter­est that is anoth­er two times.

So… Four times as much.…

Please do your­self a favor do not ever go to a buy here pay here lot …

You will end up regret­ting it per­haps not right away but even­tu­al­ly it will sink in that you got tak­en advan­tage of and received noth­ing but a lot of grief in return.