No Credit? Bad credit?

[pwd72s]

Hurry down to your Ford dealer, they'll get you in a brand new car!~

Ford To Abandon "Traditional Credit Scores" For Underwriting Decisions As Sales Stall | Zero Hedge

[Arizona_928]

Time to pick up a heavily discounted 6.7l lol

[Jim Richards]

What could possibly go wrong?

[vash]

Damn. They would cream themselves if they saw my score. ��

[Steve Carlton]

880?

[RANDY P]

Originally Posted by pwd72s

Hurry down to your Ford dealer, they'll get you in a brand new car!~

Ford To Abandon "Traditional Credit Scores" For Underwriting Decisions As Sales Stall | Zero Hedge

Those with good FICO's will likely still get low APR financing- traditional bank financing.. Those who use this method are about to get their heads blown off.

This is "Buy here pay here" for new cars.

rjp

[ckelly78z]

Some friends of ours who have a son the same age as ours (18) and went to school together, just had a facebook post from a local Ford dealer showing his new F150, and her new Fusion.

Ironically, this was the same day they dropped off thier son to the University of Toledo for classes.

I'm still scratching my head how they are affording these new cars with 3 kids still at home, but "oh well" ....priorities !

[asphaltgambler]

Buy here / pay here business model works great with relatively cheap ( less than $15K) vehicles. Largely because of % of down payment and % of 'fees' or ' paks' on that amount or less works very favorably. If the deal is structured properly, the total cost to the dealer is recouped in 6 months or less. After that, gravy train money even if they repossess it.

Average repo's in a business like that, depending on area can be as high as 25%.

Now take a new vehicle where today the average cost is $30K - that risk is much, much higher for dealer and whoever is underwritting it. Plus the fact a new vehicle is only new once.

[RANDY P]

Originally Posted by asphaltgambler

Buy here / pay here business model works great with relatively cheap ( less than $15K) vehicles. Largely because of % of down payment and % of 'fees' or ' paks' on that amount or less works very favorably. If the deal is structured properly, the total cost to the dealer is recouped in 6 months or less. After that, gravy train money even if they repossess it.

Average repo's in a business like that, depending on area can be as high as 25%.

Now take a new vehicle where today the average cost is $30K - that risk is much, much higher for dealer and whoever is underwritting it. Plus the fact a new vehicle is only new once.

I know this Oxy cotin addicted dumb ass from my days @ Boeing-

Bought a 10 y/o Malibu, (KBB around $3K), for $8K and had to put $3K down, the remainder @ 25%

He told me, I couldn't stop laughing at him, all day long.

rjp

[Ferraripete]

Originally Posted by RANDY P

I know this Oxy cotin addicted dumb ass from my days @ Boeing-

Bought a 10 y/o Malibu, (KBB around $3K), for $8K and had to put $3K down, the remainder @ 25%

He told me, I couldn't stop laughing at him, all day long.

rjp

what my friend randy said. the sales model waits for its prey...boom!

you are an indentured servant.

[legion]

Ask Mitsubishi how this model works out.

On the other hand, when I bought my Mustang, between putting 50% down and my credit score, my APR was something less than 1%, even with a 7 year loan. (I wanted low monthly payments most of the time because I make a big payment when I get a bonus. It will be paid off in 2-3 years from purchase and they wouldn't let me make one big payment each year.)

[porsche4life]

Ford has been running some 0 for 72 specials lately too. They are hurting to move iron it seems.

[pwd72s]

Originally Posted by porsche4life

Ford has been running some 0 for 72 specials lately too. They are hurting to move iron it seems.

Not just Ford from reports I've seen. New car sales off industry wide. Was kind of hoping Tabs would chime in, saying this is another "the end is near" thing.

[RANDY P]

BMW has been putting all their unsold cars as demonstrators and repair rental vehicles to pad their sales numbers.

It seems all they have for sale on the lots are endless supplies of 4 cyl stripper 3 series with CPO. Most of 'em demonstrators or whatever.

[epbrown]

Originally Posted by RANDY P

I know this Oxy cotin addicted dumb ass from my days @ Boeing-

Bought a 10 y/o Malibu, (KBB around $3K), for $8K and had to put $3K down, the remainder @ 25%

I had no idea how these places worked. A couple of years ago, my aunt was worried her daughter was spending too much on a used car, a 2004 BMW 325i. I told her they weren't that pricey and decent cars, and I could help with repairs as I used to own one, so no worries.

Recently my aunt said the car was repossessed. "How? It was paid for!" Nope - what I thought was a reasonable purchase price had been the down payment, and she's been paying on a 13-year old car for two years! I can't believe she's spent about ten grand, all told, with nothing to show for it. I really wish they'd explained what she was doing at the time.

[KFC911]

No credit, bad credit, a few dollars and NO sense .

[legion]

Yep, the really shady lots make their money by selling the same cars over and over.

[Neilk]

Originally Posted by pwd72s

Not just Ford from reports I've seen. New car sales off industry wide. Was kind of hoping Tabs would chime in, saying this is another "the end is near" thing.

Terrible to say, but Hurricane Harvey might give them a boost once things get back to "normal".

[KFC911]

Credit....the "opiate" of the masses....get 'em hooked early, and most are hooked for life .

Back when I was a young dinosaur, a college student had zero chance of getting a credit card....now they descend upon them like vultures.
And that's just the tip of the iceberg imo....

[Jrboulder]

It's kind of concerning how dependent our economy is on buying unnecessary crap that the consumer can't afford.

People keep wondering how wealth keeps getting concentrated at the top, this is it right here.