Predatory financing?

Sure, I'm in management at a great credit union. It doesn't mean that I think EVERYTHING needs to be financed.

As soon as something "breaks," it doesn't need to be replaced. Is it worth it to fix? That's a pretty dumb question coming from a woman who happily drove her 1996 Jeep Grand Cherokee Laredo to nearly 300,000 miles over 9.5 years!

Please know that many recreational vehicles are being financed on lines of credit...AKA "credit cards." Fewer dealerships are offering even motorcycles as collateralized loans. The interest rate is often astronomical with a LOC and are viewed as UNSECURED financing.

THIS IS HUGE!

The approx monthly payment for an $8000 credit card at 18% (standard 3% of balance owed/minimum payment) will take about 21.5 YEARS to pay off and the first payment is $240. Interest paid will be almost $7800!
(Thank you Bankrate credit card calculator.)

The approx monthly payment for an $8000 fixed-rate loan at 12% for 5 years is $178. Interest paid will be almost $2700.
(Thank you Bankrate loan calculator.)

Many people don't even know how they financed because all they care about is "low" the monthly payment! YIKES! They haven't a clue who they are paying or what a good rate is. Customers haven't shopped for rates, they don't know that dealers get kickbacks for using them and usually look just at that, instead of trying to get their customer the best rate! It is the customer's job to not just find what they want to buy, but also the best rate they can get! Shop the banks and credit unions, worry about the dealership later!

Please, warn your friends, warn your family...beware and BE AWARE!
The Last of Sheila (Coburn)