The subprime auto loan crisis?

[26 Inf]

Question for the car sales guys: My buddy recently bought a dodge ram, loaded, with less than 10,000 miles on it. Someone knew he was looking and told him when the guy traded it in.

Story was that every 4 months this guy trades trucks at this dealership. Is there anyway that works without losing your rear?

[Averageman]

The way that works is someone is BS'ing.
The Truck was repo'ed.

[26 Inf]

The way that works is someone is BS'ing.
The Truck was repo'ed.

I don't think that is the case. My friend was told when the guy would be picking up his newest truck and bringing in the truck my friend subsequently bought.

I thought it sounded as if the dealership liked having low-mileage current year trucks to sell as used, but couldn't figure out how the guy trading wasn't losing his rear.

[Averageman]

I don't think that is the case. My friend was told when the guy would be picking up his newest truck and bringing in the truck my friend subsequently bought.

I thought it sounded as if the dealership liked having low-mileage current year trucks to sell as used, but couldn't figure out how the guy trading wasn't losing his rear.

As a guy who used to buy a new Mustang GT every two years, I don't see how he isn't losing his butt on those deals.

[26 Inf]

As a guy who used to buy a new Mustang GT every two years, I don't see how he isn't losing his butt on those deals.

I don't either, that is why I asked one of the car guys the question. Could be the guy doesn't care. I do know my buddy is happy with the deal on the truck he got.

[glocktogo]

I just think new car prices are insane. I got a new 4X4 Tahoe at work this year. It's pretty nice and I thought maybe I should get one to replace my 02 4Runner to tow the boat with. The msrp on a base model 4X4 LS is $51,510. That's the cheapest 4X4 Tahoe you can get? Yeah, call me when they're willing to take about $12K off that. BTW, a Premier before adding any options is $66K, for a Chevy SUV. No thanks.

[Averageman]

I'm just guessing that a lot of people go in to the dealership without a clue, make an emotional purchase and then reality hits.
Maintenance, insurance and day to day life make that car purchase a stone around their necks.
The vehicle goes back before the first oil change.
The Dealership writes off the depreciation the now used car is financed at a higher rate to the next clueless purchaser or someone works out their own financing and walks away with a vehicle that is a good deal cheaper than new.
That seems to be the norm here.

[JC5188]

I don't either, that is why I asked one of the car guys the question. Could be the guy doesn't care. I do know my buddy is happy with the deal on the truck he got.

Sounds like a program car...rental agency or something similar. Mileage is the determining factor, not age. Or at least that's the way it was in the 90's when I was in that business.


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[Arik]

Question for the car sales guys: My buddy recently bought a dodge ram, loaded, with less than 10,000 miles on it. Someone knew he was looking and told him when the guy traded it in.

Story was that every 4 months this guy trades trucks at this dealership. Is there anyway that works without losing your rear?

Only way that works is if the guy payed cash. If he brought it back on a finance/lease it's a repo. If he's not getting repo'd every 4 months he's paying cash AND he's loosing big big...HUGE! New car drops in value soon as you pull it off the lot. Dealerships will screw him over for the trade in value because they'll need to make a profit too. There is no way this is happening unless this dealership found the richest retard in the world

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[Arik]

I'm just guessing that a lot of people go in to the dealership without a clue, make an emotional purchase and then reality hits.
Maintenance, insurance and day to day life make that car purchase a stone around their necks.
The vehicle goes back before the first oil change.
The Dealership writes off the depreciation the now used car is financed at a higher rate to the next clueless purchaser or someone works out their own financing and walks away with a vehicle that is a good deal cheaper than new.
That seems to be the norm here.

Yes and no. For new cars dealerships don't write anything off. Once they sell (assuming finance or lease) they're done with the car. It's now owned by the bank. If payment is stopped bank repos the car and sends to the auction. Occasionally a buyer might realize they're in over their heads and bring the car back to the dealer. In which case the dealer will contact the bank and have them take the car.

Once the dealer sells the car he gets his money from the bank and the bank gets the title. That it! They might have an arrangement where the dealer buys the banks cars back but 99.9% of all cars go directly to auction

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