Often that 26% APR or better is paired with a price higher than market.
Probably about the same amount
1 Like
Itâs a trap. They know she canât pay, but you get all the money for selling the car, and then you can sell it again.
Thatâs what Franklin and Lamar did
1 Like
Rob Pitts (Rabbit) has a fun video explaining how BHPH really is.
Sadists might not like it but I think itâs fine for the government to have a certain cap, in that case maybe this person wouldnât have been in a lincoln and got a 2017 sedan instead with lower APR that she would be approved for. Empathetic consumer protection in absence of 100% financial literacy which is much more difficult.
1 Like
In the case of Wishopâs Camaro, Caspian Auto Motors of Stafford, Va., resold the car within two weeks and is now suing Wishop, of Petersburg, Va., to pay off the balance due on the four-year, high-interest loan.
Wishop, while acknowledging his checkered credit history, says he is pursuing his own legal action against the dealer.
âThey got paid twice for the same car,â he said. âThat was their aim. Thatâs their game.â
Caspian managers didnât return calls.
Car prices have soared so high that Robert W. Murphy, a Fort Lauderdale, Fla., attorney who represents borrowers, said he even had two clients get paid several thousand dollars each after their cars were repossessed and sold at an auction.
Thatâs because, by law, proceeds exceeding the loan recovery amount must be returned to the borrower.
âNeither put any money down, no equity, no skin in the game, and they both got checks,â Murphy said.