You need to look out for this when buying a car
By: Darrell Castle
A recent New York Times article revisited the new fad of subprime car loans and how it hurts lower-income consumers.
If you recall, this is where car dealers inflate a prospective buyer’s income and credit information so they are then approved for car loans they can’t afford. These car loans sometimes have interest rates in the 20s, which effectively raises the value of the loan higher than the actual car.
This New York Times editorial mentioned the “yo-yo” effect in which a dealer gives a buyer one interest rate for a loan, let’s him or her drive the car around for days or weeks, then brings him or her back into the store to say “Oh I’m sorry, the interest rate wasn’t approved and will actually need to be higher.” Often, the person keeps the car at the higher interest rate.
More often than not, the car is repossessed after a couple of months of missed payments and then is sold for a lower value than the loan, leaving the consumer liable for the rest of the payment.
This is a scam, but unfortunately, many people have a tough time spotting scams until it’s too late.
This is becoming a popular trend, so it’s important to know what’s a good deal and what’s not. If a car deal seems too good to be true, then it probably is. If you have awful credit and low income, but you’re approved for a loan, be skeptical.
You may be reading this and have already fallen for this trick. You may already be stuck with that debt and you don’t know what to do.
By filing for bankruptcy, you can get yourself out of debt. Through a Chapter 7, all of your dischargeable debt can be discharged, or you can go through a Chapter 13 in which you enter into an affordable 3-5 year re-payment plan.
Each bankruptcy chapter comes with its own incentives and qualifications, and an experienced bankruptcy attorney can help you decide which is best for your situation.
The beauty of a bankruptcy is that one it’s complete, you have a fresh start to go out and begin making sound financial decisions to re-establish and rebuild your credit the RIGHT way.
At Darrell Castle & Associates, we not only want to help you get out of debt through a bankruptcy, but we want to guide you on your way to that new financial start by offering you access to our online credit restoration course 7 Steps to a 720. This course, which is free for our clients, will teach you how to re-establish and rebuild your credit the right way.
Our firm has received multiple Client Distinction Award from Martindale-Hubbel for client satisfaction, so I promise you’re in good hands.
Call (901) 327-2100 to schedule a FREE consultation with one of our experienced bankruptcy attorneys, or fill out one of the contact forms on this page.