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#1
04-23-2010, 10:05 PM
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Buy Here,Pay Here Car Lots
So, I sent the sellers of this 560SEL an email asking what they were smoking to come up with the price, and got an interesting response.
The ad: http://kansascity.craigslist.org/ctd/1706995602.html 1990 Mercedes-Benz 560SEL Black with silver rockers Loaded including reclining back seat Absolutely flawless Only 139k miles Financing available w.a.c. Can apply over phone $12995 (913)515-4421
  The email response: The price represents a price for credit rats,as I have $440,000.00 in uncollectable rat paper. Are you a credit rat ? If not make me a cash offer that you will honor that is if you are a man of honor,which I doubt because of your drug reference. I will be more than happy to meet with you in person. If you respond to this email in a hostile manner you will just confirm my judgement. I would like to be your friend and do business with you at a greatly reduced price. Regards, Michael. Interesting strategy. Buying a car for 2k and selling it for 12k to losers would still be profitable if 5 out of 6 quit paying. Then you can repo and start all over. 
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1985 500SL Euro w/ AMG bits 130k  1984 300SD Turbodiesel 192k  1980 240D Stick China 188k  2001 CLK55 AMG 101k  2007 S600 Biturbo 149k Overheated Project, IT'S ALIVE!!! 
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#2
04-23-2010, 10:16 PM
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That's exactly how it works, they jack up the price so they break even after only a couple of payments. Just think of the tax write-off he must take for uncollected debt.
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#3
04-23-2010, 10:30 PM
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Slime, dealing with scum.
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2006 CL500 2009 C300 4matic 1969 280SE 2023 Ram 1500 2007 Tiara 3200
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#4
04-24-2010, 02:09 AM
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His Uncollected Debt is also Imaginary.
This is a Repo man with a car lot on the side.
'Be REALLY interesting how much of an actual allowance the I.R.S. gives him on his "Un-Collected Debt" ,Once they've been alerted to his scam.
__________________
'84 300SD sold 124.128
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#5
04-24-2010, 02:24 AM
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Quote:
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'06 E320 CDI '17 Corvette Stingray Vert
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#6
04-24-2010, 06:18 AM
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He would probably throw in his sister if your offer was good enough!!! ~ nice clean girl !!!
Maybe the $440k was for his investment in a deal that became a DEA bust & thats why he cant recover it!!
__________________
Grumpy Old Diesel Owners Club group I no longer question authority, I annoy authority. More effect, less effort....  1967 230-6 auto parts car. rust bucket. 1980 300D now parts car 800k miles 1984 300D 500k miles  1987 250td 160k miles English import  2001 jeep turbo diesel 130k miles  1998 jeep tdi ~ followed me home. Needs a turbo. 1968 Ford F750 truck. 6-354 diesel conversion. Other toys ~J.D.,Cat & GM ~ mainly earth moving
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#7
04-24-2010, 08:59 AM
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In Ohio there is a law that you cannot adjust a price higher once a customer requests buy here pay here. The advertised price must be the highest possible price on the car. So on a car you expect to buy here pay here, and at the risk of being offensive... certain groups of people love to buy too much mercedes benz with not enough money and do a buy here pay here. On cars you KNOW will go buy here pay here you price up, you build extra wiggle room into the car. It helps you and it helps to get your bank to buy the loan from you, etc. Since some buy here pay heres could take you two years to get your money back are paying your bank on your floorplan or however you are doing your buy here pay here. He doesn't have $440,000 in uncollected notes, HIS BANK DOES and they want it from HIM. $440,000 sounds a little ludicrous. Most small car dealers don't even have a floorplan near $1,000,000 so leveraging half of it against buy here pay here sounds stupid. What is the book value on that SEL? Some benzes book ridiculously high and he is pricing just out of book.
Edit, it books in EXCELLENT condition for $4,725. There is wiggle room then there is dancing room. I'd expect that car to be priced at like $5,995 given the numbers I am looking at now.
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68 280SL - 70 280SL - 70 300SEL 3.5 - 72 350SL - 72 280SEL 4.5 - 72 220 - 72 220D - 73 450SL - 84 230GE - 87 200TD - 90 190E 2.0 - 03 G500 Nissan GTR - Nissan Skyline GTS25T - Toyota GTFour - Rover Mini - Toyota Land Cruiser HJ60 - Cadillac Eldorado - BMW E30 - BMW 135i
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#8
04-24-2010, 09:25 AM
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the real tragedy...that a nice looking 126 is sitting on the lot, about to be sold by "slime" to "scum", as someone else put it (or was it scum to slime?
 ) when in really belongs... here with me! tho, considering the seller, maybe the car might merit a closer inspection,... starting with the odometer? 139K?
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"The law, in its majestic equality, forbids the rich as well as the poor to sleep under bridges, to beg in the streets, and to steal bread."
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#9
04-24-2010, 10:18 AM
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Getting some ideas for a business model?
__________________
 1980 300TD-China Blue/Blue MBTex-2nd Owner, 107K (Alt Blau) OBK #15 '06 Chevy Tahoe Z71 (for the wife & 4 kids, current mule) '03 Honda Odyssey (son #1's ride, reluctantly) '99 GMC Suburban (255K+ miles, semi-retired mule) 21' SeaRay Seville (summer escape pod)
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#10
04-25-2010, 11:14 AM
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Buy here, pay here? What does this mean? I typically buy and pay for things at the same location, and I pay the seller, etc....
__________________
1982 240 D, 308,000 - 321,127 miles (sold) 1982 300 TD,166,500 - 226,000 miles 1998 E 320, 120,000 - 144,000 miles 2005 C 230 K, 26,000 - 77,000 miles (sold)
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#11
04-25-2010, 11:53 AM
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Quote:
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#12
04-25-2010, 12:51 PM
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Big business around St Louis, but they can't charge interest, so they get a big down payment, probably more than they have in the car to start with, then whatever payments they collect, are gravy.
Example, there was a 93 SAAB 9000s on one of these lots for months, advertised on CL. $1200 down, balance $1200, payable at a rate of $200 bi-weekly. It was a rough car, and would have sold for $750-1000 from a private seller, but some genius must have finally paid $2400 for it, because the ad is gone...finally.
__________________
2002 Ford ZX2 2 x 2013 Honda Civics
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#13
04-25-2010, 02:30 PM
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Why can't they charge interest?
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1998 C230 330,000 miles (currently dead of second failed EIS, yours will fail too, turning you into the dealer's personal human cash machine) 1988 F150 144,000 miles (leaks all the colors of the rainbow) Previous stars: 1981 Brava 210,000 miles, 1978 128 150,000 miles, 1977 B200 Van 175,000 miles, 1972 Vega (great, if rusty, car), 1972 Celica, 1986.5 Supra
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#14
04-25-2010, 04:57 PM
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They can't charge interest because there are different licenses involved, they would effectively have to become a lender like a bank or credit union, as opposed to a car dealership.
They just over-charge for the car and leave it at that. My x-father in law ran a buy here lot in the 70s in East St Louis, IL, he repo'd and resold the same car 3 or more times, took weekly payments, and if you got 7 days late, he'd grab the car. If you wanted it back, it would cost you all past due payments, plus a $100 cash reinstatement fee, or he'd resell it to the next sucker. He'd buy a car for $500, clean it up, sell it for $750 down, and weekly payments, made all kinds of money, but got tired of dealing with people on the fringe of society.
__________________
2002 Ford ZX2 2 x 2013 Honda Civics
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#15
04-25-2010, 08:58 PM
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Quote:
Personally, I would have said it was a misprint and dropped the price so low you would have been compelled to come see the car. Once we had a little face to face time you would know not to mettle in other people's business.
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