Date: Sat, 20 Dec 2003 10:36:26 -0800
Reply-To: Pensioner <al_knoll@PACBELL.NET>
Sender: Vanagon Mailing List <vanagon@gerry.vanagon.com>
From: Pensioner <al_knoll@PACBELL.NET>
Subject: Re: vanagon Digest - 19 Dec 2003 - Special issue (#2003-1186)
In-Reply-To: <200312200458.hBK4woC8006658@mtac3.prodigy.net>
Content-Type: text/plain; charset="iso-8859-1"
> Date: Fri, 19 Dec 2003 21:53:37 -0600
> From: John Rodgers <jh_rodgers@BELLSOUTH.NET>
> Subject: (NVC) Vehicle Financing
>
> I mentioned this a while back, got some good responses, need some more
> input.
>
> I've a buddy who is trying to buy a spotless 2000 Silverado 4X4 King Cab
> pickup. 106,000 miles. Kelly Bluebook and NADA are within $300 of each
> other - retail value approx. $17,500 Purchase is from a private
> individual. Buddy has $11, 500 into the truck, needs to finance $6000.
>
> Problem:
> He can't get anyone to finance it. He has tried everywhere.Even the
> conventional finance companies. Part of the problem is his credit
> history.........he has none. He's good pay, but has always been a cash
> on the barrel kind of guy. Always on time with the rent, etc, He has a
> checking account, he has a good paying job, he has good references
> (house lease and all that sort of stuff), etc., but still no one will
> touch him.
>
> Reasons always given for the turndown. 1) He has no credit history. 2)
> the truck has over 55,000 miles,
> 3) Truck is three years old.
>
> He seems trapped in a bureacrattic fog or limbo.
>
> Anybody got any suggestions??
Buy a a truck that meets his financial means. You can get one fine truck
for ten grand. and have 1500USD spare to meet the inevitable "startup
costs" This fellow seems in need of some basic financial training. Bent
could borrow several mil on his various holdings and has an astronomical
credit "score". Your acquaintance needs to get a credit card, pay all of
everything on the card and pay it off religiously to zero balance every
month for two years or so. That would be a major plus on his credit
profile. My friend in Hood River and his girlfriend went to the bank to buy
a small sailboat. He owns a "pear farm", free and clear, grosses over a
million a year on premium pears, farmer style, no loans, pay as you go. The
bank in Portland wouldn't loan him a dime towards the 20K$ sailboat.
Fortunately, his girlfriend is a teacher in Oregon PSS. Makes a pittance,
but ... they loaned her the money. Sally said he thought paying cash for
something he didn't need but merely wanted was totally out of the question.
So john, loan him the cash from your pile, take a lien against the truck and
if he defaults you've got a 17000 machothing for six grand. If he doesn't
default you make 8% on your money backed by the truck.
Pensioner who owns a fine collection of 12+yr old cars free and clear,
albeit a smaller collection than fongball and perhaps not as well
maintained.
Or buy a beater truck, and a commuter box and still save money.
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