A client sent me a letter he got from a car dealership touting the financing he can get even though he is currently in bankruptcy. You can find a copy of the letter here.
How does a car dealer think of a person going through bankruptcy? Desperate? A victim? I do not see any financing terms here. However, I would almost guarantee that this is not a good deal for anyone. I have seen financing companies impose 8 percent interest on car loans – per month. That’s almost 100 percent per year. The letter suggests getting rid of your current car and getting a new one, so that you can re-establish your “good” credit.
A good credit rating, of course, just means that you will pay less to borrow money in the future. I recommend that my clients avoid borrowing a lot of money after bankruptcy, because borrowing got them into trouble in the first place. When there is a real need to re-establish credit, there are better ways than to buy a new car on credit. Take a look at this article for better ideas.
So the first good reason to avoid this solicitation is because it is unlikely to be a good deal. The second reason? This guy is in Fontana. I don’t care if you are bankrupt; I don’t want my clients to need to go to Fontana for a car.
September 4, 2014