View Full Version : Express Credit Auto



Thunder
05-15-2010, 02:28 AM
Greetings.

Two years ago, I bought a 2002 Dodge Stratus SXT 2-Door Coupe for a whopping $12,000 (3x the retail value at the time). Now, the value for this car is just under $4,000 (shown by a bank) with millage over 90,000.

At that time, they refused to lower the price, but I did not know the actual retail value. It was also the only place that I could get something of decent quality with payments.

Despite the fact of 2 years on time payments every time, the credit scores had only increased very slightly. Even with proven responsibility for this car, I am still required to have 700+ score for a loan with a bank. Reputable dealerships still ask me for a cosigner (they are that stupid).

This leaves me with the only option to trade in the car for a truck at the same place....Express Credit Auto.

$12,000 + $4,000 interest brings up the total of $16,000. I have $4,637 left on the car. Trade in time is $4,500 or less. I can trade now with $200.

Considering that they overprice all of the vehicles on their lots, how do they specifically deal with trade? Do they add the remaining balance onto the new purchase or do they buy back the car for $4,500?

Would like for someone with experience there to help me out here.

Will I be able to bring down the price by arguing the retail value? What can I do? Will they print out the CarFax history?

kevinpate
05-15-2010, 10:02 AM
Other than noting the mileage, you've not noted anything about the condition of the car.
Depending on known or anticipated issues over the next year, perhaps you're better off continuing with the car a while longer instead of moving into a new not so great deal on a different vehicle?

Thunder
05-15-2010, 01:04 PM
When I got the car, the only thing that they had to replace was putting in a new heater system. That's just about it. Never had any other issue at all. The exterior condition is good, few scratches and dents, but not really noticeable, unless looking directly for it.

evh5150
05-15-2010, 03:17 PM
ouch. this was the only place you could buy a car? whats your credit score?

kevinpate
05-15-2010, 04:31 PM
When I got the car, the only thing that they had to replace was putting in a new heater system. That's just about it. Never had any other issue at all. The exterior condition is good, few scratches and dents, but not really noticeable, unless looking directly for it.

Take care of the basic items, have it checked for anything more major that might be looming, and then keep driving it. Drive it til the wheels fall off, figuratively speaking.

Thunder
05-15-2010, 04:34 PM
Yeah, it was at the time. Now, I can go anywhere, but they require much larger down payment, which I wouldn't want to blow it off what I save up (money that I save just in case).

I went to a dealership today and I was told 2,500-3,000 for the car, which is so much lower than 4,800 offered by Hudiburg Chevrolet.

The issue that I am seeing among used dealerships is that they are using banks. They should be doing self financing like Express Credit Auto does and use the payment shutoff device.

ECA do not use banks, so that is why it is easier to just get something there.

My score on Transunion is 555 and Equifax is at least 550. I have seen the score from Equifax from BancFirst and it showed so many months of no update on the car payment, so the slow reporting by ECA is hurting me a bit, I think.

Still.... I have hardcore evidence on the fantastic payment history on the car that shows me paying $400 a month, sometime more.

I just saw a commercial for Express showing that they are marking prices "to sell" so I don't know if its just a gimmick or really selling at retail value, which I doubt.

Probably going to just hold off until next payday and then trade for a truck at the same place (hope they bring in new stock).

Thunder
05-15-2010, 04:35 PM
Take care of the basic items, have it checked for anything more major that might be looming, and then keep driving it. Drive it til the wheels fall off, figuratively speaking.

I'm fed up with having a low car. It's way too low and I've been waiting patiently to trade. First, it was suppose to be within 6 months, then it was a year. 2 years now, I am ready.

Thunder
05-15-2010, 04:37 PM
I am curious, now that Express have on record with me for 2 years, if they are going to offer lower interest rate on the trade...

metro
05-18-2010, 08:26 AM
Thunder, here's some advice.

1.) Don't buy a car from a predatory lender such as ECA or any of those in-house financing places. They are out to screw people, they're in it for one reason, to make good money, not to help people. You want a deal on a car, save up cash put it in a money market savings account and buy one at a public auto auction when you've saved enough. You'd be better off putting your extra money on paying that car off early than you would getting a bigger car payment. It's negative rich.

2.) Keep your car until it's paid off, it's usually cheaper to fix an old car versus financing another one for years to come. You also can't build wealth as fast with a car payment.
3.) I HIGHLY RECOMMEND to read a book called Total Money Makeover by Dave Ramsey or The Millonaire Next Door by Thomas Stanley before you do ANYTHING.

Here's some stats for ya. Search for yourself, these are all over the internet and in wealth building books. You don't have to make good money to become a millionaire, many blue collar workers are millionaires, the most common professions are plumbers and auctioneers are millionaires because no one expects them to buy nice suits, cars, houses, etc, yet people expect Dr.'s and Lawyers to "spend more".
*76.5% of millionaires buy used cars, not new.
* More than 80% of millionaires are first generation millionaires (they didn't inherit into wealth)

adaniel
05-18-2010, 08:55 AM
Thunder, here's some advice.

1.) Don't buy a car from a predatory lender such as ECA or any of those in-house financing places. They are out to screw people, they're in it for one reason, to make good money, not to help people. You want a deal on a car, save up cash and buy one at a public auto auction.
2.) Keep your car until it's paid off, it's usually cheaper to fix an old car versus financing another one for years to come. You also can't build wealth as fast with a car payment.
3.) I HIGHLY RECOMMEND to read a book called Total Money Makeover by Dave Ramsey or The Millonaire Next Door by Thomas Stanley before you do ANYTHING.

Good tips.

Unless your car is falling apart, keep your old one until you pay yours off, and then put what you were paying monthy into a savings account until you have enough for a huge down payment or even to buy one outright. If you walk onto a car lot while still owing on a previous car, you are practically begging to be taken advantage of. And thats true independent of whether you're upside down or not.

I just have to ask, usually you can get a car loan with a credit score under 700 without a cosigner, you may just not get the prime rate. Have you checked your FICO score lately? If they told you that you need a cosigner and they aren't bs-ing you your score is probably a lot lower than you think. If thats the case spare yourself some heartburn and take a year or so to bring your score up. You will save yourself so much in the long run.

If you're just dead set on buying a new car, try to finance with your personal bank. You can usually get lower rates and they'll cut you a break for things like automatic debit, long account history, etc.

Whatever you do stay away from Express Credit Auto or any other "buy here pay here" scam factory.

ronronnie1
05-18-2010, 09:13 PM
Listen to Metro. He has good advice.

You should really just keep the car till it's "done." I'll drive a car forever and only replace it when it's DEAD.

My last car I drove for 7 years. I literally drove it until it was done. I was driving up an on-ramp, and the transmission gave out AGAIN. So I simply got my books out of the trunk, called a friend to take me to class, and never even bothered going back for it. Just abandoning it there on the side of the road.

mmonroe
05-20-2010, 12:55 PM
HA! Success! I followed the Total Money Makeover and I just bought a car, not an expensive one, but better than I had, IN CASH just this past week. Great Deal on it too! I agree, read the TMM by Ramsey and get a dependable car, doesn't have to be fancy, wait to buy fancy when you have the million!

MikeOKC
05-20-2010, 01:00 PM
Thunder, Listen To Metro! He is spot-on and please, please, stay away from the "tote-the-note" outfits.

mugofbeer
05-20-2010, 01:08 PM
KEEP DRIVING THE CAR YOU HAVE.

Your credit rating won't improve greatly until you have paid off a loan and paid down other credit to reasonable levels. You don't want to pay everything off but you want your total payments to take-home pay ratio to be no more than 35%.

metro
05-21-2010, 10:08 AM
HA! Success! I followed the Total Money Makeover and I just bought a car, not an expensive one, but better than I had, IN CASH just this past week. Great Deal on it too! I agree, read the TMM by Ramsey and get a dependable car, doesn't have to be fancy, wait to buy fancy when you have the million!

Same here, I sold my car I was making payments on last summer, bought a repo'd Mercedes in cash for the cash I had left over, AND bought my scooter to bang around on for fun. I used some of Dave's tactics when buying the car, don't be dead set on anything, flash cash, and don't say anything, before I knew it, in less than a minute the guy talked himself down $400 before I said a word, ended up getting it $9000 less than what it sold for 9 months earlier to the person they repo'd it from. Money Talks, when they see that cash, they want it. Talk about a blessing.

Roadhawg
05-24-2010, 08:58 AM
Good info !!! I have an old pickup with 150K but everything works and it runs good so I'm going to drive it until the wheels fall of. I'm just about caught up with bills so I'll put what I would be spending as a car payment into savings to use when I'm ready to get another used one.

Thunder
05-26-2010, 06:28 PM
Just an update. I've gotten the full $4,519 for trade value on the car (which no other dealers is brave enough to do that). :-) Sh1t happens when dealers don't pay attention, so they lose business (all that money from me they could've got). One lucky place, Hudiburg Chevrolet will be receiving my money for the '05 Chevy TrailBlazer. Yay!!! Even better, no money down, so I can continue to build up my savings (more like for emergency). Done it all on my own.

BBatesokc
05-26-2010, 08:11 PM
Dave is the man when it comes to finances. Not really one of those cultish fans of his, but much of the advice is spot on. The wife and I only buy cars we can pay cash for. Fact is, you will never get a 'good financial deal' buying a new car and can often get screwed even buying used. Those tote-the-note places are the worst. Regardless, I couldn't imagine working a deal on a car without knowing its estimated true value.

oneforone
05-26-2010, 09:32 PM
I honestly I think if more people started paying cash for vehicles, the price of cars would fall drastically.

I think it is crazy a person can pay $38,000 (which can turn into $45,000 after interest and other fees) for a vehicle that will be worth $10,000-$20,000 if you keep it the life of the loan.

A new car is really a stupid investment if you think about it unless your the type with the cash flow and credit to re-finance/re-purchase every 2-3 years.

BBatesokc
05-26-2010, 09:51 PM
Exactly right OneForOne. My wife always wanted an Infinity FX35. Loaded the way she wanted it retails for $47,000. She saved and we kept our eyes open. I spotted one posted on CraigsList from Thoroughbred Motors so we looked at it and bought it. It was a 2007 with 30,000 miles, one owner and all the options. The original owner in Florida paid $47K for the car. Two years later it had lost $27K in value. My wife could sell it next year and get most, all or possibly even make a profit from the car. Personally, I always look for a car that is 3-4 years old. I find its taken the biggest depreciation hit and I can still get a very new-to-me quality car that will lose little value over the next 12-24 months.

What I hate to see is these tote-the-note lots that sell someone a car worth $4,000 for $8,000 and try to make them feel like they got a great deal.