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Victoria auto dealers and related news


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#421 vortoozo

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Posted 15 October 2021 - 03:42 PM

they certainly do cater to those that have more difficulty with traditional bank car loans.

 

Well, to answer your question, I don't think that's the future of car buying. Other than in that small segment, maybe.

You pay what they ask and the interest rate that they offer. There's no negotiation, and if you're desperate, then you have to take it even if you realized it's overpriced.



#422 Victoria Watcher

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Posted 15 October 2021 - 03:43 PM

Imagine. A retailer with fixed prices.

And generous lending policies for the most disadvantaged. Those left behind by the big banks.

The horror.

To be serious though they have at least 4 different interest rates - depending on your credit rating.

Edited by Victoria Watcher, 15 October 2021 - 03:45 PM.


#423 vortoozo

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Posted 15 October 2021 - 06:00 PM

Imagine. A retailer with fixed prices.

And generous lending policies for the most disadvantaged. Those left behind by the big banks.

The horror.

To be serious though they have at least 4 different interest rates - depending on your credit rating.

 

If you're being "left behind" by a big bank for a secured loan, then you probably can't afford the car you're buying.

Predatory lending is not something I tend to defend.



#424 Victoria Watcher

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Posted 15 October 2021 - 06:02 PM

What if a single mother needs a car to drop the kids off at daycare and go to work, since the father is 40 months behind in child support?

you housed people with good credit ratings call it “predatory”. we call it a survival lifeline the big banks refuse to extend us. Despite their billions in profits.

Edited by Victoria Watcher, 15 October 2021 - 06:05 PM.


#425 vortoozo

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Posted 15 October 2021 - 06:16 PM

Certainly doesn't help in the long run when they can't afford housing/food/car payments because they're paying too much for a vehicle.



#426 Mike K.

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Posted 15 October 2021 - 07:44 PM

Our education system certainly gets a big F in terms of teaching kids even basic financial knowledge.

Meanwhile, everyone of us has a credit card in our pocket that charges ~20% if you miss a payment. And that’s if your credit is good, otherwise the rates are even higher. Is that not predatory lending?
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#427 spanky123

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Posted 16 October 2021 - 07:42 AM

^ Credit cards I can accept. If you live by the agreed terms it costs you nothing, you get to defer payment and you can pick up a benefit in the form of cash back or rewards.

 

Even though most people understand math, the psychology is whether or not you can afford the payment. If you can afford the $400 a month for the car then you are not as likely to do the math to see what it actually costs you.

 

Years ago I got into the leasing business after I tried to lease equipment for my business and saw how expensive it really was. I knocked a few basis points off the going rate and hung up a shingle. I was amazed at how much demand there was from who I would consider to be sophisticated buyers.  



#428 Mike K.

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Posted 16 October 2021 - 08:15 AM

So you’re ok with 20% interest on your credit card, but not on other lending vehicles?

Lots of us slip up every month and pay that interest rate. We even pay the credit card companies annual fees. And electronic payment has driven up the cost of goods 2-3% to cover vendor processing fees with your credit card payment.
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#429 sdwright.vic

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Posted 16 October 2021 - 11:03 AM

And electronic payment has driven up the cost of goods 2-3% to cover vendor processing fees with your credit card payment.


I thought a cashless society was supposed to save money?
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#430 spanky123

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Posted 16 October 2021 - 11:16 AM

So you’re ok with 20% interest on your credit card, but not on other lending vehicles?

Lots of us slip up every month and pay that interest rate. We even pay the credit card companies annual fees. And electronic payment has driven up the cost of goods 2-3% to cover vendor processing fees with your credit card payment.


I haven’t paid a dime in credit card interest in the past decade. Sure I slipped up a couple of times but a quick call to the bank fixed that. Unless you are habitually late they most always reverse the charge. Cost them $200 to get you as a customer in the first place!

Credit cards are guaranteed payment to the business providing you process them right. Cash shrinks and is expensive to handle and cheques bounce and get held at the bank. The 2% you are paying is a great deal as research also shows that your customers spend more.

Most banks will waive your annual credit card fees if you have a minimum balance of a few grand or 1-2 months CERB free money!


Edited by spanky123, 16 October 2021 - 11:57 AM.

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#431 rjag

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Posted 16 October 2021 - 12:32 PM

My cards are set up to pay in full every month. Theres no way I'm paying any interest to the card companies! Thats insane


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#432 vortoozo

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Posted 16 October 2021 - 05:02 PM

Most car dealers won't accept payment for a vehicle by credit card. If you're suggesting that the alternative to using a predatory lending organization like Canada Drives is using a credit card @ 20% interest, that would be quite hard to come by. And for people that have to carry a balance from time to time, most banks offer a lower interest card for a small annual fee. Although lines of credit often have a better rate.



#433 Victoria Watcher

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Posted 16 October 2021 - 05:37 PM

Most car dealers won't accept payment for a vehicle by credit card. If you're suggesting that the alternative to using a predatory lending organization like Canada Drives is using a credit card @ 20% interest, that would be quite hard to come by. And for people that have to carry a balance from time to time, most banks offer a lower interest card for a small annual fee. Although lines of credit often have a better rate.

 

what he was saying was that people pay 20% all the time on credit cards.  not that they buy cars with them.

 

 

 

 

As PYMNTS reported earlier this month, Canada Drives’ American cousin Carvana enjoyed an impressive second quarter, with revenues rising almost 200 percent from the same quarter in 2020.

 

The company also sold more than 100,000 vehicles for the first time — a 96 percent jump from the previous year — with Carvana projecting that it's on the path to selling more than two million cars per year.

 

 

https://www.pymnts.c...rive-expansion/

 

 

people really enjoy the model.


Edited by Victoria Watcher, 16 October 2021 - 05:41 PM.


#434 Mike K.

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Posted 16 October 2021 - 07:12 PM

It’s all relative, right?

One guy’s idea of a predatory loan is another’s life saver, or opportunity maker, or problem solver.

It’d be nice if everyone got 2% loans for consumer purchases but that’s reserved for an exclusive few. The rest of society pays 5-10-15-20%.
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#435 Victoria Watcher

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Posted 17 October 2021 - 12:05 AM

It would be nice if I could get the steak dinner at The Keg for $12, my cost to prepare it at home.

But I occasionally like to go spend $65 at my predatory food maker.
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#436 Mike K.

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Posted 17 October 2021 - 06:59 AM

Did you pay the predatory 20% tip that shows up as the first option on the bill, or 25% as the second option, or 18% as the third?
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#437 Victoria Watcher

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Posted 17 October 2021 - 07:15 AM

I was with a group of 7 so they took a mandatory 22%.
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#438 Mike K.

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Posted 17 October 2021 - 07:34 AM

Hopefully you weren’t late getting to your car, or the $2 parking fee might have turned into a $20 predatory ticket, or $40 if you don’t pay it right away.

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#439 Victoria Watcher

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Posted 17 October 2021 - 07:58 AM

we were drinking. with a 150% markup and over 100% in taxes.

So we took a cab that was almost triple what a ride in my own car would cost.

Total night of predatatiin.

Hopefully there will be laws soon.

Edited by Victoria Watcher, 17 October 2021 - 07:59 AM.

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#440 Mike K.

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Posted 17 October 2021 - 08:02 AM

Did you pay the predatory 20% tip that shows up as the first option on the payment machine the driver handed you, or 25% as the second option, or 18% as the third?

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