don't know? Is that a serious question? That was pure luck. I will be selling mine next month to get an expedition
I'm not trying to be sarcastic, but tnobles, if you claim that cars aren't worth squat right now, and they are only getting $1500 for a 2000 Malibu, why couldn't your husband find her an explorer for that price?
He can find em' all day long but there is more to a vehicle than the price, there is history, miles, damage, title, has it been wrecked, condition, etc. Besides, do you think that he could buy one for $4,500 and then would only sell it fot that much. And also a high bid does not have to sell. Most people are'nt going to sell for those prices, though in this subject, a lot (not all) of repo's will. Why do I get the feeling you are calling me a liar? P.S. even though my hubby bought mine for $4,500, he will not sell it for less than $9,000. That is what being a car dealer is all about, you heard the old saying 'you win some, you lose some'? Some he will make a hefty little profit on, some he will take a big loss on. Also like I said earlier, my hubby is in the business of selling cars, he will sit on it to make a profit. Banks are not, they are in the business to finance them, they don't USUALLY want to hang on to one for the hope's of it bringing more.
I'm not calling you a liar, what I was saying is, I hear all the time from people in car sales about what they get for cars at auction. Not one dealer I've run this by has said they have seen such a car go through for that price. Now does that mean your husband didn't get it for that price? no, it means the dealers I've spoken with have not seen that happen.
I don't mean to start a flame war here, but somethings tnobles is saying aren't making sense. She just stated that her hubby bought this vehicle for $4500, but wouldn't sell it for less than $9000, ok, fair enough, but if he wouldn't sell it for that price, why would anyone else? I mean the trade in value of that car, which is usually considered "wholesale" is over $10,000, why wouldn't the person who sold that vehicle just take it to another dealer and have him give him that?. As I stated before tnobles, I believe what you are saying, I just don't understand it.
There is a big difference selling at an auction than selling to the public, or even a private sale. First of all my hubby IS a wholesale dealer. He is licensed and bonded to sale wholesale, he is not bonded to carry warranties on cars, he is not bonded to finance etc. What my hubby does is go to auction A, gets a steal on a car and either takes to auction B, or takes it to another dealer. MY hubby does what most dealers do not do, most do not want go to the 6 auctions here in Ms. to the 4 auctions this side of La., to the 2 bigger auctions in Fl., so my hubby does, then sells the vehicle to these dealers that are not going to do that.What they will do is buy, fm my hubby, he will make his profit, then they will turn around and sell the car for a couple K down and finance it over 24 mos. They will get what the car is worth down, and then the next 24 months will be nothing but profit, then if they have to repo it, even better cause they can do it all over again and make 10 times what the car is worth. Now that is a 'tote your note' dealer, whereas a small bank, financing co. etc. will send the car to the auction, where the car is going to bring considerably less (you have got to understand, that is what auctions are all about, getting a good deal on the car, and MOST auto auctions ARE NOT open to the public for that reason, they do not want the public knowing what these cars are actually worth, otherwise they would be open to the public) But they will take considerable less (not all of the time) b/c it cost money to sell these cars, they have to repair them, which they do not want to do, usually a repo is a red light at the auction red light means 'as is' it costs to transport them. There is A LOT more than picking the car up and selling it, and considering they have ALREADY lost money on the car, they do not want to lose anymore, like I said before, they want to get out from under it as quick as possible and try to recoop someother way, wheter it be charging a higher interest rate to the next person or suing the owner of the repo'd car, But please do not be see naive as to think a bank or financing co. can not recoop their money some other way.
jrjr35, When I was in banking and we repoed a car, our goal was to get it sold asap. A bank is not in the business of storing or maintaing cars with all of the attendant cost. We'd salvage what we could and then very aggressively pursue the debtor. tnobles is right. Used cars depreciate quickly. Many smaller banks won't handle auto leases anymore because they are unable to realistically price the residual value of a 3 or 4 year old auto.
I understand the bank wants to dump the car as fast as possible, but, i'm not quite sure about the "agressively pursuing" the debtor part. if the person didn't have the money to make their payments, why would the bank think they'd have anything to pursue? so i guess i don't understand the banking and auto industry,
We would sue and get a judgment. The judgment last for 20 years and carries a 12% interest rate in this state. If you ever hope to have a home or access to financing at reasonable rates, you have to satisfy the judgment. It always amazed me that people who were so broke during months of letter writing and phone calls all of a sudden found some money when the process server visited them.
I don't know keepmine, unlike you, I'd like to think most people are honest, and would pay if they could.
jrjr maybe I should have said this from the beginning, it has not always been this bad, but scince 9/11 the car business has gone to crap, that is why new dealerships are practically giving cars away, 0% interest, bad credit no credit, no payments til. etc, it is killing others in the business, therefore dealers are doing what they can to make a living, but since the business is so bad dealers are not paying what they would normally pay. Therefore they are not being sold for near what they are worth. Maybe that will help you understand why cars are not worth squat. now come tax time though, the dealers will pay more b/c they know that most people have cash in hand and will buy. You know the supply and demand thing
I understand what you're saying tnobles, and thankyou for being so patient with me. But I just didn't like keepmine's insinuation that people are trying to rip off these banks. Things happen, why the hell would anyone want a repo on their CR if they didn't have to?. And I don't understand why having a process server would "scare" anyone into paying money, It's a judgment, not a felony, If you don't have the money, you don't have it. I'll back off for awhile now, I think there are more important issues to be discussed on this board.
I dont think KM is insinuating that people try to rip the banks off, like I said earlier even my hubby has a repo, there is always a reason, some are irrespnsible, some ran into a crisis, some there are other problems, my hubby for instance, had the dealership honered the warranty, he would not have turned the truck in. I believe what KM is saying is that the banks are going to get their money one way or another. But I do not mind explaining this at all. If I can help someone understand something that I have knowledge of, I am more than happy to explain away! Like I said earlier though I do not condone the way it is done, it is just one of those things THAT IS.
I agree tnobles, but hear this: IF A PERSON DOESN'T HAVE A JOB, ASSETS, OR ANYTHING OF VALUE, AND THEY DON'T HAVE ANY PROSPECTS OF HAVING THESE THINGS IN THE FORSEEABLE FUTURE, THE BANK CAN HAVE 1000 JUDGEMENTS, AND THEY STILL WON'T GET THEIR MONEY. I didn't mean to shout, let's agree to disagree on this and go forward.
tnobles I wasn't trying to be sarcastic. I'm for real. I see you are selling your explorer. How much are you selling your for? Is it in good condition
