Feds warn drivers about auto loan modification scams
24.05.12
Washington (CNN) -- After years of focusing on home mortgage scams, the Federal Trade Commission is turning its sights on what it calls bogus auto loan modifications. The FTC says fraud artists are moving from mortgage loan modification schemes and targeting consumers who are underwater on their auto loans.
In a motion filed in a U.S. District Court in California, the FTC asked the court to stop two California companies, "Auto Debt Consulting" and "Hope for Car Owners," from allegedly deceiving consumers. The government alleges both companies have racked up hundreds of dollars in up-front fees for loan modifications that were never performed for customers. Additionally, the FTC hopes to force the companies to cease what it says are deceptive marketing tactics.
Authorities allege the companies told customers to stop making payments on their vehicles, and in some cases told victims to "hide [their] car[s] to avoid repossession."
NEW YORK (AP) — The recession and its hangover may have turned bill-paying habits upside down. Cash-strapped Americans are paying off their car loans before they pay credit card bills and make mortgage payments, a study finds.
It used to be that Americans would pay their home loans first, then their credit card and car loans. After all, homes have been the most valuable possession for most people for decades, and nobody wanted to jeopardize that.
But TransUnion, a credit information company, studied the payment patterns of 4 million Americans with at least one car loan, one credit card and a mortgage and found a clear priority for staying current on the car loan.
Among Americans who were late on payments last year, 39 percent were delinquent on the mortgage while current on the car loan and credit cards, and 17 percent were late on credit cards while current on the other two.
Only 10 percent were late on the car loan while current on the other two.
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Are repossessed cars worth taking a look at?
Sep 13, 2008 by macmod18 | Posted in Buying & Selling
I am a teen and need a used car for less.I heard that repossessed cars are cheap but are they worth looking at or are they just all scams?
Sure they are worth looking at. Most of the time people just cannot afford them anymore and let them go back to the bank.
jumbobret | Sep 13, 2008
Sometimes you can get a really good deal on a repo but most of the time the bank just sells them in an auction to a used car dealer.
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E-vangelist | Sep 13, 2008
A repossed car could be a good value.
Just consider that a person who can't or won't make payments on time will not be responsible enough to maintain the car properly
Most new cars can be driven for at least 6 months before any maintenance is needed. So if the car is still fairly new, it's probably okay.
My biggest concern would be, will the former owner be able to find the car and drive it away using his spare key?
gearhead4 | Sep 13, 2008
Sometimes banks and finance companies sell repo vehicles themselves and sometimes they send them to professsional auction companies. And sometimes you can get good bargains and sometimes not. It's certainly not a scam because cars are being repossessed every day and the banks have to get rid of them. Here is an article with more details:
My best friend just recently came into some money, and shes looking to buy an inexpensive car. I figured repossessed cars are cheap right? So how do we go about finding all of these cars? Are there lots somewhere?
There are really two ways to get the cheap cars without joining auctions or being a dealer. And, 99% of repos are not sold only at dealer auctions.
Look up repo companies on the internet and in the yellow pages. They often sell cars to the public. (most do). Call local credit unions. They sell their own repos. They do send them to auction if they have them too long, but they operate at smaller margins and try to sell them themselves. But, the best and cheapest deal will be to buy from repo companies directly. BTW, I sell them CHEAP all the time. (Just sold a 98 Explorer with 120k miles for $375 and in nice shape.)
Chris Z | Jul 18, 2009
call ur states highway patrol agency and they will give u all the information u need to buy repossessed cars
Meg | Jul 17, 2009
98%+ of all repos are sold at dealer only auctions.
I have seen a number of banks & credit unions TRY to sell them before they go to auction but they want TOP DOLLAR and are not worth it.
Finally, repos are cheap for a reason, they have not been taken care as well as normal cars. At least for the last few months.
N | Jul 17, 2009
Hi!
There are a lot of repossessed vehicles at Copart Auto Auction. Try to search there. Here you can get the access http://www.easyexport.us/?a_aid=49e6f684 c12b9
Racer | Jul 17, 2009
Repossessed car auctions:Anyone make money buying cars at repossessed car auctions and selling them again?
Jun 04, 2009 by Mr. S | Posted in Buying & Selling
I sorta had an idea the other day about repossessed car auctions. I know someone who purchased a car at one of these places for like next to nothing, and it's worth like 10 times what he purchased it for. Is there any money in reselling the cars you purchase at repossessed car auctions?
those cases are extremly rare and remember repossed vehicles are usually in bad shape because the people know they are getting repo so they don't take care of them .. now a days with the bad economy its not a good idea remember you go to the auction to get a deal and so will everyone else..
TAF187 | Jun 04, 2009
Usually a repossessed vehicle is either really dirty or a ticking time bomb that dealers rig up just to get rid of it. If you have the extra cash to invest in something like that, be careful of what you buy. and get a bunch of "AS-IS" forms. lol
MandaKaye17 | Jun 04, 2009
You can make a lot of money buying an selling the cars you buy from an auction. But most states put a cap on the number of cars you can sell each year. After that you have to get a dealer's license, which can be pretty expensive, depending on where you live.
CarmelKM | Jun 04, 2009
Where can I find a list of repossessed cars/trucks that are available for purchase?
Aug 16, 2009 by David | Posted in Buying & Selling
I'm moving across country, and its essential that my wife and I have a second vehicle. I would prefer to buy a newer car for less, and a repossessed car/truck seems to be the way to go. Where can I find a list?
The best place to buy repossessed cars is at a car auction. I have put together a resource of information on repossessed cars, so that you can find a car auction close to you. Be careful when buying as cars are sold "as is" so there are no refunds. It's recommended go on a trial run to see how the auction works to avoid being ripped off. Also when you do decide to buy, you should take a mechanic with you so you don't end up buying a lemon. Most importantly, when bidding, make sure you have a mximum price and STICK to it.
isxrc | Aug 18, 2009
where can i find repossessed cars on the internet without anyone charging a fee?
Nov 07, 2006 by princessbelle1388 | Posted in Buying & Selling
i have been looking on the internet to take a look at repossessed cars that are on sale, but there is a charging fee just to look at the rest of their cars...
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They do this by auctioning the cars off and you can purchase them, usually at a reduced price. These repossessed cars are often in a very good condition. and more »
My car got repossessed since I chose to pay the rent instead of the car to keep a roof over our heads. I emphasize the word RENT, because we already LOST and more »
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FOX 9 NewsThe website claimed to sell repossessed cars at prices well below market value. Buyers were supposed to wire a deposit, typically around $5000, Better Business Bureau warning of online car scamsScammers Posing As Auto Dealers Onlineall 10 news articles »
