Quote:
Originally Posted by BroadHopper
I read in the Wall Street Journal that the govt is going over the paperwork and found a number of discrepancies. Dealers may not get paid. Also there are folks going into bankruptcy as they took out loans for new cars that they can not afford. On the long run, this program will cost the taxpayers even more money.  |
To claim the money was strictly the burden of the dealership...with no recourse to the customer. We were required to approve the deal at our own discretion,front the money, and allow the customer to take delivery of the vehicle.
Claiming and receiveing the money was the most painful month of my life...bar none. Remember, each deal as worth 3500/4500, so every every 10 deals averaged $40,000...when we got to 120,000/150,000I was told everyday by the owner, "I hope you're sure we're getting this f****** money!"
12 documents had to be submitted with every transaction, and each and every one was bounced the first time. Took forever, but every dealer that I know, got all their money.
As for defaulted loans...
I would say that is inacurrate information. A year or so back, there were no banks...none, zero, that had any interest in subprime auto lending. During this program, the banks, as well as the dealers, had their pick of the litter with regard to quailty of customer. I can assure you, back then, if the credit score was not 650+ the banks would not even look at the paper. To be approved, a customer needed a great score, have the proper income/debt ratio, and a very strong equity position on th vehicle. My honest, educated opinion is that there is just no waythisprogram will lead to many repos. Regardless of what a third party writer of some article says.