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Thread: Eff you, DriveTime!

  1. #1
    AlexxaHex
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    Default Eff you, DriveTime!

    Okay so many of you know I made the absolutely insane and retarded decision to purchase a vehicle from about a year ago. They approve people with shitty credit and also didn't look too hard at my income. I was making decent money but couldn't prove that I was making all that I said I did. Ehhh, no problem! They wanted to make a sale. And what sale they made!

    The major downside is that they charge WAY too much, and the interest rate is about 17.5%. The buyout price of a Cavalier just a few years old is $13K. I am making ~$400 payments every month. And I will be until Feb. of 2010. OUCH.

    My aunt says there might be a way to purchase a different car from somewhere else (a brand new one with 0% interest) and somehow have them buy my current one and then somehow configure my payments into a different payment thingy?? I'm not sure how to explain this. But does anyone know what I'm talking about? Is that really possible with this beast of burden? I would have to pay MUCH more than the car is actually worth to get rid of it, even if I bought it out right now with no interest.

    Has anyone dealt with DT before? If so, help me get away from them!

  2. #2
    Kaylinn
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    Default Re: Eff you, DriveTime!

    Yeah, haven't you ever heard of a car dealership advirtise " We'll pay off your trade, nop matter how much you owe!"

    So you go to the dealership, and on approved credit, you can buy a new, or possibly certified used car, and "trade in" your old car, even if you owe more on it that it's worth.

    The catch is that they do't actually pay off your old car loan for you, they just "buy" that loan and roll it into your new car loan. SO your still paying the old loan, it's just included into the new loan for the new car.

    It's slightly a dishonest practice...but there is a bright side.

    If you can get a new car loan for less interest, I don't see what would be the harm in doing it, and having the old loan rolled into it. It gets you out of the pits of DrivTime, and you have a lower interest rate, and you'll have a better car, because I truly believe DT only sells piece of shit lemons or previously wrecked cars...DT lies a LOT.

    I bought a car with them, and they forged the inspected sticker. My car had no breaks and no wheel bearings, and my tires enarly fell off, but I had paseed inspection. I only got my issue resolved after threatening to take them to court over the forged inspection sticker, which is very very illegal.
    Althought they took the shit car back, they put it on my credit as a repo, which it wasn't.

    Anyway....
    I don't think it's nesessarily a bad thing to do, if you have the creit to get a good interest rate and good deal on the new car. Just be careful and question everythign because car dealerships are the biggest liars and scam artists ever.

  3. #3
    God/dess VenusGoddess's Avatar
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    Default Re: Eff you, DriveTime!

    The only problem with the above scenario would be financing...the amount you would be financing would be too high for the bank to approve...making you too upside down on the car to be worth the "risk" of the bank shelling out the money for you.

    How much do you have to pay on the car? Can you work extra shifts to get the car paid off early? If you used DriveTime I am assuming that you have bad credit and cannot get a bank loan.

    You are better off keeping the car you have...working your ass off to save money and pay the car off early. Trying to trade it in to get a newer car with smaller payments is impossible. There is no way that you are going to get a loan to cover the payments of your current car, added to your newer car and come out ahead. Even if the interest rate is lower.

    Add that problem on top of finding a bank willing to finance that total.

    You could always try selling it as a "private seller". You'll still end up shelling out some cash for the difference between the pay off and what you can sell the car for...but if you want to get out of the car, it may be your only other choice.

    Sorry...

  4. #4
    Banned Melonie's Avatar
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    Default Re: Eff you, DriveTime!

    Alexxa, this situation is not unlike being stuck with a subprime high interest rate mortgage on a home that is decreasing in value over time. The problem is exactly the same in terms of negative equity - and the bottom line in both cases is that you are NOT going to find favorable refinancing unless you are in a position to re-establish positive equity first. For your Cavalier, this basically means having to save up the difference between the $13k DriveTime buyout price and the current Kelly Blue Book price ( which is probably around $6-7k) in cash in order to get out from under the deal before the full payment schedule of the DriveTime loan plays out.

    As Kaylinn points out, you're not really going to get anywhere with a 'trade-in & buyout the loan' deal on a new car purchase. The reason is the same ... negative equity. You still owe way more money to DriveTime than the Cavalier is worth as a used car. Unless you can save the cash to cover this equity shortfall on your existing car plus establish some equity in the purchase of your new car (for example $6-7k in cash to get 'even' on your Cavalier, plus another $6-7k in cash to make a 20% down payment on the new car), there is very little chance that you're going to obtain financing of any sort. There is zero chance that you're going to get approved for very low interest rate factory financing, because these factory financing deals have cast in stone terms / cast in stone creditworthiness standards / cast in stone income verification requirements.

    Probably your lowest total 'pain' option is to simply stick with the DriveTime payment schedule on the Cavalier loan to the bitter end, while at the same time saving up cash to be used as a substantial down payment on the new car you'll be looking to buy in 2010. Your lowest total dollar cost option is to deliberately go delinquent on the DriveTime loan, let them repossess the sucker, and try to elude DriveTime via a Chapter 7 bankruptcy filing. This of course will mess up your credit for several years, but it would seem that the existance of this DriveTime loan is already messing up your creditwortiness and will continue to do so for at least 3 more years too !

    Ultimately, thanks to the subprime mortgage defaults, followed by new regulatory guidance on borrower creditworthiness / income verifiability / equity, as a dancer you will be considered as a 'subprime' borrower when applying for future loans no matter what you do. About the only way to avoid a 'subprime' borrower classification (and the associated high prices / fees / interest rates) is to establish a track record of 2-3 years worth of tax returns showing regular and dependable dancing income after taxes are paid, to establish a positive net worth (i.e. your savings / investments / assets outweigh your payment obligations on bills / loans), to establish a history of 100% on time payments etc. But even after doing this, there are still going to be cast in stone rules set by the financial institutions which will prevent you from being offered the lowest cost lowest interest rate financing options simply because your 'job category' is considered to be risky.

    The new regulatory guidelines, and the de-facto treatment of most dancers as automatic 'subprime' borrowers, however, does create a 'moral hazard' situation of sorts. Because you work as a self-employed businesswoman with no invested capital, and especially because you work in a 'sexually oriented' business, you are going to automatically be lumped into a category of high risk borrowers. Thus if you WERE to declare bankruptcy, your future creditworthiness is not likely to be much worse than if you did not ! Therefore, in reality, you probably have little to lose by going bankrupt on DriveTime and forcing them to eat the $13k outstanding balance on your Cavalier loan - as long as your official earnings history shows that you are below the official poverty threshold of income of your local area such that you can file Chapter 7 and 'walk away' from your creditors.

    ~
    Last edited by Melonie; 10-02-2007 at 11:39 AM.

  5. #5
    Banned Katrine's Avatar
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    Default Re: Eff you, DriveTime!

    I would pay that fucker off with a quickness. But I know that's going to be tough with your new mouth to feed. Good luck with whatever you do.

    Can you get one of your regulars or slaves to help you with some extra cash?

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
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  6. #6
    AlexxaHex
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    Default Re: Eff you, DriveTime!

    Thanks everyone - I have very iffy credit right now because I haven't dealt with my student loans (ever) and there are some other things lingering (old cell phone bills, etc). I am very near the statute of limitations on my credit cards so I am not paying anything off until I get money together for my student loans because I know they aren't going to go away.

    But anyway - I am extremely broke right now, working just to get us by while Jess is in school, which is partially why I wanted to see if I could lower the car payments. I'm looking for a new club but I don't think I can work any more shifts than I am now because we don't have a babysitter that we trust. The only way to swing it would be to miss out on a lot more sleep. I don't have any solid regs right now and I asked my slave for a lot of help during my pregnancy because our cat was sick. I didn't want to ask too much if that makes sense.

    I guess I am pretty much stuck. I don't know if declaring bankruptcy would be the best thing since my credit will improve in a year or two when the cell phone bills and credit cards disappear. I'll also have more of a history with the IRS. Maybe I can try applying for a different loan then. Until then, I'll keep plugging along.
    *sigh* I totally didn't want to hear these answers but I think y'all are right. DT has me in a total headlock here.

    And sorry about your lemon, Kaylinn. Doesn't surprise me though. Mine makes an odd squeaking noise when I get into it. Other than that it's held up okay. I think it was a fleet car though. It had a lot of miles and I don't think it will last all that long. I think it might be toast by 2010!

  7. #7
    BrunetteGoddess
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    Default Re: Eff you, DriveTime!

    Ugh, take it from someone who filed BK7 this year; treat it as a LAST RESORT.

  8. #8
    God/dess FrustratedBunny's Avatar
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    Default Re: Eff you, DriveTime!

    You can call the finance company that financed the car and ask them to lower your interest rate if you've been making the payments on time. I've heard of them doing that. Of course you'd have to have a history of timely payments with them and even then it's up to their discretion.

    If you file bankruptcy it won't do a thing with your student loans, and it sounds like that is the big issue you have. I'd just try to pay down the balance on that car you have.

  9. #9
    AlexxaHex
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    Default Re: Eff you, DriveTime!

    DriveTime finances their own cars. So I highly doubt they'd lower the payments for me. Thanks anyway.

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