This post is not a “how to” instructional about the best ways for those with poor credit to purchase a car; it is a true story of some friends who recently did. Hopefully, this tale will open some eyes and challenge readers to wake up and be aware of the high costs of a low credit score.
For reasons I do not know, Randy and Judy (fictitious names) have credit problems. Judy works at a job which requires the use of their car, while Randy is drawing SSI disability. They are both near 60 years old.
“We have a problem.”
With heads down and faces long, these two came to our door recently. Their car had died, was diagnosed with a blown head gasket and, because of its age, was not worth fixing. Feeling pinched because no car equals no work, they asked if I could give them a ride to go car shopping. “Sure”, I replied. “But I have a request — before we go looking, could you make the necessary calls to make sure that your financing is in order? ”
They agreed and went home to make those calls. The next morning, Judy phoned, sounding quite chipper, “Joe…good news! The Chevy dealer (in a town 40 miles away) told us that he will be able to find financing for us. Can we go look?”
“I thought you were going to check with your credit union. What happened there?”
“Well, they said that it had been too long since we had used their services and we no longer qualify.”
A Financing Fiasco
We took off after lunch and, while Randy and Judy met with the sales rep, I waited…and waited…in the waiting room. I was thankful for the Kindle app on my Droid. At around 6 PM, they reappeared, “We still haven’t heard back from the bank, so we might as well go on home. Our sales rep will call us in the morning after he talks with the bank’s loan officer.”
It was becoming obvious that Randy and Judy’s credit issues were worse than I had suspected.
The Saga Continues
The dealer called my friends the next day with news that the bank would require a very substantial down payment if they were to make the loan. With very little down payment money on hand, Randy and Judy were quite disappointed. To make matters worse, Judy’s supervisor informed her that she was in danger of being demoted if she did not get back on the job soon. So, with a touch of desperation setting in, my friends continued to seek financing.
The next morning Judy called me again. “Joe, we have some great news! A dealer (this time 30 minutes from home) will help us with financing! Could you give us a ride?”
I wasn’t able to that day, so we continued our quest the following day. This time Randy and Judy invited me to join them as they met with the finance officer — a man who impressed me with his straight up candor: “Understand that this financing is not from a bank; it is from this dealership. We have a program to work with those who have credit issues. We will charge 25% interest and we will require a premium price for a car. However, we won’t sell you junk…all of our cars have been thoroughly checked over by our mechanics.”
Bottom line: they paid $10,900 for a car which had a Kelly Blue Book retail price, excellent condition, of $6,640. Their total payout for the 45 months of this loan will be $18,300.
But Randy and Judy were ecstatic. They had found someone who would work with them, they had a “new” car, and Judy could go back to work with no repercussions.
After we got home, I made them an offer, “You know that people pay me to help them with their finances. I would love to sit down with you two and do my best to help you get your finances organized. And I won’t charge you a penny. What do you think?”
After a moment’s hesitation, Judy spoke up. “Joe. We are not afraid to ask for help. If we start getting in trouble, we will take you up on your offer.”
I guess that said it all. Maybe some people just can’t be helped.
However, as I stated at the outset of this post, maybe you, the reader, can learn from Randy and Judy’s experience. I hope so.
Photo by ilkerender
{ 7 comments… read them below or add one }
This is a great post. I feel for your friends because I know they are on a rough road. But as Dale Carnegie says: “Those convinced against their will are of the same opinion still.” This is a great tale for people who may be on the verge of going down this road and hopefully will save someone from paying the same price your friends have paid-on a car and in the experience of their finances.
Maybe it’s just me, but isn’t that the time, as a friend, you put your hands on their shoulders, look them in the eye and say, “For the X, Y, and Z reasons we just saw, you have bad credit. I can help you get good credit. Why are you refusing my help?”
To me, it’s obvious and they’re oblivious, but when it comes to situations like that, sometimes I just want to spell it out, and not let it drop after one denial.
I’d be interested in an article on intervention, if there isn’t one already. You know, the “Your friends and family are gathered here today because they love you, and you need help,” conversation.
Joe, good article. I do Biblical Counseling, I am finding so many people say they want help…but…they are not willing to put in the effort to change. I think we are living in a day when what is here today is what to live for. The Bible teaches us to be more Christ like. If we are to be Christ like we need to be open to change, whether the change is personal or financial.
@Tara — If this post simply helps one person ask for help, it has been successful. Your Andrew Carnegie quote is spot on!
@Christine — I would like to read that “intervention article” myself. This is not the first time I have offered my help to this couple, but their reaction is always the same…they are, as you pointed out, oblivious. I tried explaining to them during the process that they were paying way too much because of credit issues, but it fell on deaf ears. The balance between getting in their faces when they are not interested or letting them fall deep enough to know they need help is a fine line.
@Terry — I was intrigued by Christine’s “intervention” thoughts, so I am asking you, as a Biblical counselor, what your thoughts are on a forced intervention. It seems to me that Jesus made himself available, but never forced himself on anyone. Comments?
Joe, I believe you are correct that Jesus did not force Himself on others. Sometimes people need to go down the road of destruction before realizing they are in trouble. If they are not volutary in their recovery actions, they will not change. However, after saying this, we need to continue to make ourselves available to them as an act of love and wanting to be Christ like in our actions. When the rich young ruler came to Jesus he was allowed to go away and, I am sure, pondered that he had refused to do as Jesus ask him. Also, always remember we have the power of the Holy Spirit in the life of the christian. The Holy Spirit may be directing our words to their hearts. The power of prayer is on our side, we need to learn to be patient and let God do the work. Sorry , I don’t mean to write a book here, but, this is dear to my heart. Thank You, May God bless your eforts to serve Him.
Terry — Don’t apologize for sharing something that is close to your heart. I hope that Randy and Judy don’t “crash” financially, but evidently they need to experience some rougher times before they will be ready to change how they do things…and seek help. In the meantime, I can be available for them and pray for them. I have already made myself available, but I need to step up the prayer part.
Thanks for your wisdom. I pray that God will bless your counseling ministry.
I also have a question about a probquestion. I bought a car in February 2012, I’ve made two pmt. and the car is uncomfortableI want to trade it. How do I go about this, is it even possible. Judy