A recent Wall Street Journal article delved into a subject that we at Cassels Garage hear about all too often – car dealers engaging in income fraud. Some car dealers simply do not put the customer’s best interests first, instead opting to approve them for car loans that they cannot realistically afford.
$809/mo Car Payment on a $660/mo Income?
The article uses the example of a woman named Mirna Lopez, who bought a pre-owned 2018 Pathfinder and found herself with a car payment of $809 a month. The problem was, she only earned about $660 per month. How did she get approved for a loan that she wasn’t even close to being able to make the monthly payments on? The sad truth is that the dealer gave inaccurate information about her earnings to get her approved for a car that would drown her in debt. This is called income fraud, and it happens more often than you might think. In fact, about 1 in 5 auto loans contain income fraud. “The consequence for a lot of people is to ruin them financially for five to 10 years,” lawyer Richard Feferman points out.
At Cassels Garage, we pride ourselves on giving our customers honest, reliable estimates and high-quality auto services. We want what is best for you and your car, and our outstanding reputation reflects these values. Purchasing, maintaining, and repairing a vehicle are important tasks that sometimes require hard decisions. This week we’d like to focus on a subject that has been in the news lately – debt from car loans. We would like to educate our readers on the subject of auto loans and offer advice on the savviest way to go about the car buying process.
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When it comes to purchasing a car, there are some important things to consider. Should you buy new or pre-owned? Should you finance or pay in full? These are good questions, and it’s crucial to take them into account before making this big decision. At Cassels Garage, we have seen all types of car situations over our 50+ years serving Brevard County. In our years of experience, we believe it’s a wiser and more frugal option to choose a good-quality pre-owned car and pay it off upfront if you’re able to. Of course, it’s up to each individual to come to their own decision on this matter, but we’d like to present some information supporting why we think buying used is a better option.
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