The LA Times published a feature on an unsettling "little-known but fast-growing corner of the auto market, (where) dealers command premium prices for road-worn vehicles and finance the sales at interest rates that can top 30%."
According to the article, the typical person who buy cars from such dealers need a vechicle to get to work, but are turned down at most dealerships because of their poor credit rating.
To encourage people to pay their monthly payments who are at risk of default, many dealers "almost always insist on long lists of references so they can pressure friends and family when a payment is missed."
Source: Ken Bensinger, "A vicious cycle in the used-car business," Los Angeles Times, 30 Oct. 2011, Accessed 30 Oct. 2011. Available: http://www.latimes.com/business/buy-here-pay-here/la-fi-buy-here-pay-here-part1-storyb,0,4616431,full.story
Sunday, October 30, 2011
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