It’s actual almost impossible to get anywhere these days without a car. Commuting just for work, visiting distant relatives, going to school and getting youngsters where they need to go are all very valid reasons for getting a car. Consumers these days are even turning to their cars towards finance the cost of living. Auto and car title loan are overwhelmingly popular as the cost of living goes up and those who sadly are simply trying to make it from paycheck to paycheck try to look for ways to support their households.
According to the Annie E. Casey Foundation created by the founder of UPS, Jim Casey, 1 in every 4 U. S. families does not have or have access to a car. Without access to mass transit whether, those people are left with no form of transportation; no way to find work.
Studies have shown that low-income individuals and the entire family who have access to a car are more likely to work, have an increased money, get off public assistance, have better access to healthcare and involved in community activities.
The inability for low-income individuals in addition to families to buy a car from a traditional car dealer has got driven them into the arms of “buy here pay for here” car dealers. These dealers are often times known for reselling cars at outrageous prices with stiff markups plus unreasonably high interest rates.
A large portion of people who come to those dealers to buy a car eventually default on their loan transaction and inevitably get their car repossessed. The car dealer then simply resells the car with the same unreasonable loan terms. Some cars are resold several times over as a result of being repeatedly repossessed.
Ken Shilson, founder of the National Alliance of Shop for Here Pay Here Dealers in Houston states “If we don’t finance these people, they have no way to get to most of their job” and claims they are providing a service that not everybody else will. But if people are buying cars from many of these dealers, spending a large portion of their paycheck to make the monthly payment, and eventually defaulting on their loan and having their automotive repossessed, how are these dealers helping?
When a person insert into buy a car at a “buy here pay here near me” car dealer, not only do they need to make sure they understand their loan terms, should be seriously consider whether or not they can afford the car and the payment that gets here with it. In a desperate attempt to have some form of transportation to get at work, and in so many words “survive”, consumers are being deluded because they have no other choice.
Taking out any kind of loan usually requires serious thought and some homework on the part of the borrower. When tough as it is to try and go through life without a car, it’s actual even harder when you risk your savings and take-home pay to buy a car that will eventually be taken back.
The same benefits car and auto title loans that are taken out according to the equity of a person’s car or truck. These loans can come with a high price in the way of interest and fees. When taking out an auto title loan product for whatever reason, the lender asks for the pink slip to the car or truck. If the borrower defaults on their payments, the lender has the directly to repossess the car. At the time it may seem like you can handle the transactions, just like purchasing a car, but if you think you are making a urgent decision, think twice; it could end up costing you your car.