Kicking the loan

Off-Ramp
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Full article in wall street journal. Looks like auto industry (dealership) is behaving like mortgage lenders of early 2000s.

Problems often begin with consumers who buy cars they can’t afford or sign loans they don’t understand. But dealerships can compound the trouble. Some dealerships areinflating borrowers’ incomes on loan applications so they can sell them bigger or more expensive cars, according to lawsuits and interviews.

When dealerships kick the trade, they typically get a lender to approve a loan for the buyer’s new vehicle. Next, the buyer generally goes home with two vehicles and two loans. It is only then the buyer asks the original lender to repossess the original car.

Connex Credit Union sued Connecticut dealership Barberino Nissan in 2016, alleging the dealership “repeatedly told customers to just deliver the keys to Connex.” Barberino denied the accusations but agreed to a settlement roughly a year ago, according to the dealership’s lawyer.

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And here stands a victim who signed a contract agreeing to repay 123% of her monthly income on a single expense.

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$809 a month payment for a 2018 Pathfinder… Has a picture been posted to the Trophy Garage?

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Look these are predatory practices no doubt however these are grown adults signing contracts. No one forces them to go into a dealer to buy a car let alone sign something they can’t afford. There needs to be some personal responsibility here.

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