Buy Here Pay Here: The Subprime Auto Loan Scam

Check Cashing/Payday Loans are legal forms of loan sharking encouraged by the rich who love business more than the exploited poor and working class.  Other forms of robbery and exploitation of the working people and poor include rent to own furniture that cost several times what decent furniture costs.  Then you have these scum bag auto dealers with the 500 dollars down and a payment a week forever.  A loan that costs many times the value of the car.

Debt Slavery and loan sharking run by a legalized Mafia

From FireDogLake:

By: David Dayen
Wednesday November 2, 2011

More attention needs to be paid to the LA Times’ excellent series on subprime auto loans. The first installment concerned Buy Here Pay Here used car dealerships, and how they hook low-income borrowers into high-interest loans, then repossess the car when the loans go bad and resell the car to the next mark. This is an endlessly repeating cycle, where the same lemon can be sold and resold multiple times. And if you’re current on your payments or if you worked out what you thought was a modification, well, that’s just an inconvenience.

A year and a half later, Lee fell behind on her payments and filed for bankruptcy. So she was relieved when the dealership called and offered to make her loan more affordable. The sales manager even promised to throw in a free smog check. Lee, 35, drove back to Repossess Auto on a rainy Monday evening, handed the keys to an attendant and sat down with the manager.

Moments later, she said, employees parked four cars tightly around the Ford, blocking it in.

There would be no new deal. Lee’s car was being repossessed. She and her children waited in the rain until a friend could drive them home.

Lee, who described that night as “one of the worst experiences of my life,” had stumbled into the bare-knuckle world of Buy Here Pay Here used-car sales.

The used-car dealers prey on the necessity among even low-income individuals of having a car. They will pay whatever they need to get one, regardless of the terms. And then they get locked into a rate they can’t afford. That’s the whole point for the dealership, which wants to make money off the vehicle again and again. One car has been resold eight separate times, according to the LAT investigation. The BHPH model is so reliant on repossession that they outfit the cars with hidden GPS devices and remote-control ignition blockers.

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