An Audiofool's Dream System

[cwall99]

Almost. The reason it is so expensive is to have the down payment cover the whole thing so there is no risk of loss. Just like a "buy here/pay here" car lot selling old $800 cars for five grand.

It's about mitigating risk. If someone puts a ton of money down on a car, they're a lot less likely to stop paying.

Here's something interesting:

The company's transaction records indicate a high demand for borrowing. The average purchaser finances around 90 percent of the price of the automobile, with the average loan size being around $11,000. Repayment is highly uncertain: more than half of the loans default, and the majority of these default within the first year of repayment. Interest rates reflect the high probability of default: a typical loan in the authors' dataset has an annual interest rate on the order of 25-30 percent.

Source: http://www.nber.org/digest/dec07/w13067.html​

With more than half of used car loans being defaulted on, BHPH dealers are only doing what they can to protect their money (additionally, Repo agencies aren't necessarily cheap).

Most people buy cars from BHPH dealers because they have poor credit histories, and can't financing anywhere else. For these folks, there are a couple of very important things to know:

• Most BHPH dealers charge interest at the limit of their state's usury laws (if the state has usury laws). Interest rates this high don't help reduce the volume of loan defaults.
  
• Most BHPH dealers don't report your payment history to the credit bureaus, so, even if you pay back the loan on time, there's no benefit to your credit score

If a car is repossessed, BHPH dealers can resell the car, use the proceeds of that resale and apply them to the original customer's loan. This is pretty much what all lenders do.

If your car is repossessed, though, you're still responsible for paying back any difference. That's a very important piece of information that a lot of folks don't realize when they voluntarily surrender their cars.

I've heard stories of BHPH dealers who abuse this practice to the extreme. But, because of this, BHPH dealers now are finding themselves to be targets of the CPFB, and have a lot of compliance issues they have to deal with. The passage of Dodd-Frank has been particularly rough on BHPH dealers.

 

[Rodsil]

Hi all,

Stopped by my local thrift store today and as I was driving into the parking lot the store next door had a stereo system playing outside their door. What caught my eye was that the speakers were what looked like a 70's 3-way design.

Sooo, after walking through the thrift store I walked down to the RAC to see what this thing was? It was big but not really loud for this many speakers and ones that are this big.

I tried picking up the center console part with no problem at all, must of only weighed around 25 pounds and the speakers were even lighter.

It states it's a 2500 watt system!

The pay-off price about killed me, my SX-1980 cost less.

After googling this name "Welton Technical Pro", I found several youtube videos of people saying how cool this was with all the LED lights going.

I felt so sad for anyone auctually fooled into thinking this was a great system and not having anyone around them to slap them upside their head before they wasted their $$$$

I'm sorry but I got one from Aaron's rent to own paid 300 cash out the door, and its is a very loud stereo. And puts out a lot of bass. I've had it since 2014 and it still is very loud.

 

[Dazaa]

I'm sorry but I got one from Aaron's rent to own paid 300 cash out the door, and its is a very loud stereo. And puts out a lot of bass. I've had it since 2014 and it still is very loud.

Is it meant to lower in loudness as it ages?