Another Big Reason We Need The Elio

[RUCRAYZE]

NYT article today discussing the way poor folks, who need cars to get to work, are being taken advantage of with very high interest rates on very hi-milage cars because of their credit worthiness -

http://nyti.ms/1yWS4SV

 

[JEBar]

folks with poor credit are going to pay higher interest rates on most everything they finance .... the good news is with an Elio they can get a new vehicle for the same money they are paying for most pre-owned

 

[CompTrex]

folks with poor credit are going to pay higher interest rates on most everything they finance .... the good news is with an Elio they can get a new vehicle for the same money they are paying for most pre-owned

...and it should work towards helping them improve their credit score if they keep up the payments.

 

[JEBar]

...and it should work towards helping them improve their credit score if they keep up the payments.

absolutely but that would also be true for any loan from a reporting agency

 

[Horn]

NYT article today discussing the way poor folks, who need cars to get to work, are being taken advantage of with very high interest rates on very hi-milage cars because of their credit worthiness -

http://nyti.ms/1yWS4SV

Well an easy way to fix this problem....live under your means. I see so many "broke" or "poor" people that have satellite TV, the newest $500 iphone.....then when it comes to a credit card, they pay the minimum.

Yes, dealerships do charge high interest on ppl with poor credit, but have you looked at it from the dealer/financing company's perspective? When I worked at a dealership, there were many people who had scores in the 400s!!!! Im not talking about someone who had health issues and couldnt pay a hospital bill, im talking about looking at their credit history that shows their last 3 cars were repo'd, didnt pay their phone bill, owe macy's $400 etc. Those people would always come to the dealership with a max of $1500 down, but usually closer to $500 and expect to get a $15,000 car.

 

[Horn]

Oh and btw, if EM finances those customers, they will have a higher interest rate too....if not, the people with better credit will foot the bill with higher interest or higher priced cars....

 

[Jeff Porter]

On the reality side of things... it's going to be at least 2 years from today, that people with poor credit will be able to buy an Elio.

Unless things change for some reason, people with poor credit today will continue to try to get something for nothing... they'll go to a dealer that advertises "bad credit? come on in!", and will get themselves in a car loan with a very high interest rate, with payments the buyer can't afford, and the buyer will be instantly upside-down on the vehicle. It's very sad.

Greedy loan companies better be careful, we may see a similar situation to 2008, and the economy may feel some pain, again.

As far as people needing to learn to live within their means, that's not going to magically happen. Lenders giving loans to people that can't afford them, and credit card companies giving cards with huge credit limits... these things enable people to live beyond their means. It's the reality of today, unfortunately.

That article gives a perfect example. A woman claims she went to get a car loan for her daughter, thought she was just co-signing for the loan, and it ends up being hers. Good lord. She looked the employee in the eyes and said "I don't have any income," as if the employee is supposed to look out for her best interest and stop her from getting into a loan she can't afford. As you can see, THAT ain't happenin'.

 

[Horn]

People have to stop blaming the loan companies. No one forces you to take out the big loan. It is no different than a credit card. No one forces you to use it and not pay it off.

The loan companies arent going to change. The only person you can change is yourself.

We (society) need financial education at a young age. IMO it should start in middle school. Too many people screw up in college and already start with the table against them. Fortunately, I have a small student loan.

We (society) can't keep blaming the loan companies and have to look in the mirror. I bet if everyone with poor credit only paid 4-5% interest on any loan, hey would still screw up elsewhere. Most people get a high interest rate loan due to their low credit score....

There are many people who need to take responsibility for their OWN actions.

 

[JNR]

People have to stop blaming the loan companies. No one forces you to take out the big loan. It is no different than a credit card. No one forces you to use it and not pay it off.

The loan companies arent going to change. The only person you can change is yourself.

We (society) need financial education at a young age. IMO it should start in middle school. Too many people screw up in college and already start with the table against them. Fortunately, I have a small student loan.

We (society) can't keep blaming the loan companies and have to look in the mirror. I bet if everyone with poor credit only paid 4-5% interest on any loan, hey would still screw up elsewhere. Most people get a high interest rate loan due to their low credit score....

There are many people who need to take responsibility for their OWN actions.

I think professional ethics and personal responsibility should both be goals of a society we live in.

 

[Horn]

As far as people needing to learn to live within their means, that's not going to magically happen. Lenders giving loans to people that can't afford them, and credit card companies giving cards with huge credit limits... these things enable people to live beyond their means. It's the reality of today, unfortunately.

I agree that someone that is horrible with credit today isn't going to be fixed any time soon, but a credit card company does not force someone to swipe that card.

People "NEEDING" the biggest tv, to spend $1000s of dollars on gifts each year, to have the new laptop and cell phone, to go to the mall every day etc is a bigger reason.

I'm not saying that high interest doesn't hurt people, but people hurt themselves more. Again, i'd have people come to the dealership I worked at with NO MONEY DOWN and try to buy an expensive car with bad credit. That is not the creditors fault. That is due to no financial smarts