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Comments made by PeterSalinas

California's "Buy Here Pay Here" Used Car Industry Could Face New Regulations

Dear Sir,

The information provided in this short piece, including comments from Sen. Lieu, are inaccurate and, even if it were opinion, unsubstantiated by the facts. The lack of any semblance of information in the form of data, statistics or even anecdotes to support the accusations in this piece point to a lack of journalistic professionalism. You should take this off your Web site. Should an editor from KPBS want to step up and do a balanced and insightful piece, I am available to provide a wealth of information about this legal and balanced industry. (You have my e-mail address.)

Please keep the following in mind: Recent news stories such as this have appeared that state that, we, buy here-pay here dealers charge high prices with hefty finance charges because we want to encourage loan defaults (aka repossessions). Nothing, let me repeat that, nothing, could be further from the truth.
The high charge-off rates (No. 1 expense in most dealerships) create the need for higher prices and not the other way around. The interest rates charged reflects not only the inherent high risk, but the dealer’s cost of funds which are significantly higher than banks who borrow capital at close to zero percent. Each state has also defined maximum interest rates (with few exceptions) and dealers comply with those laws as well. I am quite certain that there are situations where a dealer has sold a particular vehicle several times but it is NOT because they want to, it’s because it came back several times. The reason it came back is that the customer failed to live up to the contract and make their payments.

August 7, 2012 at 9:02 a.m. ( | suggest removal )