Signs Of An Auto Bubble: Dealer Literally Offers "Low Credit Score Discount"

Tyler Durden's picture

If you're still on the fence about whether the auto market in this country is anything but a massive bubble being propped up by extremely loose credit underwriting standards, then we think we've just found some definitive evidence for you. 

As Jalopnik noted earlier today, at first glance the following advertisement for a $55,000 truck from a dealership in Texas looks fairly 'normal'...an extremely high starting MSRP at the top followed by a series of incentive offers that make the vehicle look "affordable."

But, take a closer look and we think you just might find something rather disturbing...that's right, a $1,500 discount offered only to people with "Low Credit Scores." 

Truck

 

Ordinarily, of course, lender/dealer financing incentives like these would be offered to folks with good credit, because...well, that's at least somewhat logical, but it seems as though this particular dealer has already sold a $55,000 truck to everyone with good credit and is looking to 'creatively' broaden it's addressable market. 

Meanwhile, looking at the fine print, it seems as though this incentive is particularly targeted at subprime borrowers with credit scores below 620.

"April 2017 Pricing on all new vehicles may include up to $1500 in finance rebates that have certain credit requirements to be able to claim this rebate. The finance office is Credit Score based and you must be below 620 to qualify. If you are over a 620 you must add up to $1500 to the price. Varies by make and model. Not all units are eligible for this rebate. Call Dealer for Details."

All of which helps to explain why this happened:

Subprime

 

And while we know that this will be perceived as cruel and unusual punishment by today's entitlement society, we have an idea we'd like to throw out there just for shits and giggles...for anyone out there with a credit score below 620, might we kindly suggest that it might not be the best idea to be shopping for a $55,000 vehicle...just a thought.

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montresor's picture

If you pay your bills you can't have this truck..

Mr Pink's picture

TICK TOCK MOTHERFUCKERS

Creative_Destruct's picture

The incentivization of shiftlessness has arrived... and will continue apace with further socialism...minimum guaranteed income, here we come!

Fuckerberg for Pres!

I wanna lie around, play video games and get paid.

Gotta get that credit score down below 620...

steelhead23's picture

CD said: "I wanna lie around, play video games and get paid."  Yeah, me too, only we gotta get laid and payed, get with the program.


playit's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.jobproplan.com

Sparehead's picture

You'll get lockjaw sucking that much cock.

pitz's picture

Its a Dodge, lol.  What do you expect?  Does anyone who can actually pay their bills even consider buying one?

az_patriot's picture

"MOPAR" - Mostly Old Parts And Rust.  :-)

realmoney2015's picture

Ha! Nice spot. Better dump the Dodge before 80,000 miles

aqualech's picture

Yeah, I've driven them a lot as new rentals.  The Hemis are REALLY NICE.  But, I would not own one for years after what I've heard about the reliability.

JuliaS's picture

They repo the car as soon as you make a payment.

takeaction's picture

I am telling you...this makes way more sense than you think........in my business.."these" people spend INSANE amounts of money.  I have an Electronics store......today 2 people dropped over $5000.00 on car audio.  Their cars were not worth $3K.  We see this EVERY DAY.  If you are in "Retail" your best customers are the ones that make bad decisions...over and over.  THey have kids they can't afford, they rent, they live paycheck to paycheck ......on and on.... If a Doctor with a BMW comes in.....he doesn't spend SHit...maybe buys a Radar for $400.00.  Maybe a Remote Start System for $500.00.  You get a person that falls into this link that I am about to show you.....GAME ON. I have had couples argueing in our parking lot saying "Rent isn't for 9 more days...Let's do this!"

 

 Our cameras have audio...

This link says it all my friends...

 http://www.marketwatch.com/story/low-income-families-spend-40-of-their-m...

.

NOTE....these people are not on Zerohedge....I bet all of you are some tight mother fuckers...LOL.  I am.

rent slave's picture

I have more experience with paying rent than does anyone else on this site,going into my 50th year.Congress really screwed single people in the late 1940's when,after seeing "It's a Wonderful Life',they decided that all single people lived in Ma Bailey's boardinghouse,and jacked up the tax rates on singles,along with trying to give every GI Joe a house.

Rent is the foulest of all 4 letter words.Don't look down upon these people.Congress caused that problem.

ASimpleTrader's picture

I beleive it! I've seen it first hand. Years ago I was dating a gal who's family was poor, the gal and her brother ans sister were still living at home (older than melenials) and they could bare make it month to month. The father was working as a local  Walmart sports department cashier. The mother was home bound and unable to work, and the siblings all had to pitch in just to keep going. Yet they had full Cable package with all the upgraded pay TV channels, frequently paid for Pay Per view shows, ate delivery most nights, nice new TV and a house full of pets. They couldn't make regular morage payments, or electic bills. For as bad off as they were, the Cable bill was paid and extra frivolus expenses were always being spent on. If your soo poor that you might lose your house becuase your missing mortgage payments, mebbe new TV's, computers and cable might not be the best choices?

Abbie Normal's picture

Never mind cable tv bills -- my spouse in the medical field has had dindus waiving their iphones in anger because they can't afford the prescription to improve their health.

Sparehead's picture

That's probably not the truck you'd be buying if you pay your bills by working for a living. Unless you're that rare guy that buys a new vehicle and keeps it for 20+ years, your income would need to be outstanding to justify the extra 20K over the base model for that top trim level.

Delving Eye's picture

That dealer knows something we don't. ;^P

Jimmy Jimmereeno's picture

Yes. 

"...the auto market in this country is anything but a massive bubble..." The auto market in this country is one of the biggest consumer scams in existence - maybe only exceeded by the eyeglasses market.

Unless your are an employee - if not an owner - of an auto dealership you have now idea of the bottom-line cost of a vehicle.  Even given the good on-line informational websites (e.g. truecar.com), chances are better than even money that you are going to be screwed when you buy a dealer sourced vehicle be it new or used.

az_patriot's picture

Use a third party broker who knows dealers and the shit they pull.  It can cost about $500 but save thousands when they skin the dealers alive because they know all the tricks.  Walk into a dealership on your own, and you're dead meat.

peopledontwanttruth's picture

When these bubbles pop they'll be heard from the other side of the galaxy.

Elguapo's picture

The aliens will be like  "WTF WAS THAT!?!?!"

The central planners's picture

That way they will be able to triangulate our position.

tmosley's picture

Yes, that he can offload that debt on chumps like they did with subprime mortgages and laugh all the way to his driverless EV Uber.

booboo's picture

yea but spread the upcoming bailout over thirty years and 300 million people, er, 150 mi...wait 20 million hard working taxpaying citizens and........yea, nevermind, it's going to be ugly.

ebworthen's picture

Fog a mirror, have $2 in a bank account, you qualify for a $35,000 loan!

Bubble 2.0 (3.0?) getting taut.

CHoward's picture

You have to be a certified dead beat to qualify. 

 

Nice.

Sonny Brakes's picture

It's gotten so bad that even people who have no intention of ever paying their bills have stopped buying.

Delving Eye's picture

Even dead people have stopped buying. But they're still voting.

Seasmoke's picture

Sweet. I qualify !!!!

cognitive dissident's picture

But CNBC auto sales honk Phil Lebeau said the industry is booming, and that Tesla's premium valuation is justified...

I Hate That Motherfucker

az_patriot's picture

The auto industry is doing this to themselves.  New cars are absurdly overpriced and everyone hates the skanky dealers and the stupid tricks they pull.  The only way I EVER buy a new car is through a broker service where they do the "haggling" for me and strike the deal.  Did it on my last purchase and I'd pay them again for the help next time.  Screw the dealers, they're a bunch of thieves.

RozKo's picture

The people who will go for this will have no intention of paying any loans back but if they can get a new truck for a while well, in their own minds, 'they desreve it'.

az_patriot's picture

It's worse.  The people who will go for this will not only not pay back the loan, but beat the crap out of the vehicle before it's reposessed and then resold to an unsuspecting buyer.

Yen Cross's picture

  LMFAO  

 * Helicopter Car Loans* - HCL's

 If that doesn't work, you can get NINJA interest only for seven years HCL loan on your new Cadillac Negroid.

  It comfortably seats 20 Illegals, and has air conditioned seats.

Txpl9421's picture

Try getting that discount on an F250 or Silverado 2500.

You will be laughed out of the dealership.

Miffed Microbiologist's picture

You couldn't pay me to have a F250. Ours burst into flames with my husband and daughter driving down a major road. We later found out about the lawsuit against Ford for faulty cruise control wiring. A local casino has footage of one spontaneously igniting in their parking garage. We bought an older Dodge Cummins Diesel and couldn't be happier.

Miffed

Farmerz's picture

I ll take the F250 anyday over the noisy dodge, can you hear the radio? Thats what a couple fires out of millions sold?

Blankone's picture

Recently went through the process. They all have or recently had problems. IMO

Ford 250 - Death wobble happens under 5k too often. The fire you mentioned. Other issue - and Ford during the 6.0 diesel episode developed a habit of fighting warranty claims.

Full size Chevy - Google the Chevy shake. And wax for rustproofing.

Dodge 2500 - Steering, steering, steering. (Also torque converter) Thought mine was a 25 year vehicle. Reworked the steering, shocks added sway bar, steering box brace and got it ok - until the camper went on. Plain dangerous, had it checked, aligned etc but could not find the problem so sold it. Love that 5.9 cummins, favorite engine ever! While the steering on them is less than perfect I think I just got a lemon.

Toyota - Seems to have fixed their little problem with frames rusting out. Took long enough.

My rant. No excuse they have these kinds of problems.

Fish Gone Bad's picture

1997 Nissan pickup with close to 400,000 miles on it. I finally changed the timing chain at 375,000 miles. Just a wonderful truck.  If it gets wrecked, I will buy another one.  Simple to maintain. God I love that truck.

Blankone's picture

Can't argue with that. Feel the same about my 94 toyota, although I do not have as many miles out of it as you do. And I do not worry about it being stolen :).

Considered a new Nissan and their hvy 1/2 ton truck. They were having new model issues, they were also pulling to the right new but figured that would get worked out. Problem was the cultural change that happened at the dealers in my region over the past 8 yrs. For some reason here they all went to being sleazy crooks with way too many horror stories that included dates and names of individuals involved. Started to deal with one and just decided to forget it.

Manipuflation's picture

No one is saying what years here but I assume pretty new.  That would be warranty work and stealerships don't like to do warranty work because they don't make any money.  No matter who makes any truck you have a control arm, tie rods, upper and lower ball joints, a wheel hub, a brake assembly, a rim and a tire.  Something is not correct with your suspension. 

If the tires and wheels will spin true and the bearing hubs are good as well as the rest of what I said then you have some wrong in your drive axles.  Does it do only in two wheel drive or when four wheel drive is engaged?  If this happens at 5K miles with any brand that can't be wear but rather piss poor parts that are part of the construction of the vehicle.  I have seen this happen on every brand including all of my own cars as well as hundreds of others.  I really think that is has to do with low quality remanufactured parts in my case.  If you only have 5000 miles on something and things are going wrong then that is something different then wear and tear. 

Fires I have not had to deal with.  My guess is a fuel rail gasket leaking on an exhaust manifold issue.  That should have a triggered a DTC/MIL.(service engine light)  All common brands flash you an OBD (on board diagnostic) code.  Pre-96 is OBD1 and 96 and beyond is OBD2.  I bought myself a nice code reader and I know how to use it.  What is does is communicate with your PCM/ECU.  i.e. Your's car's computer.  It is almost always emission related.  Usually a bad sensor but mine can measure much more than that.  Measuring fuel trim is interesting. 

Now figure it out.  Go get warranty for that and never neglect the "idiot light".      

 

 

Blankone's picture

In regards to the Dodge truck it was a 2007. I had it in both in warranty and out of warranty. Even out of warranty the dealership said it all looks good and the tires wore evenly. Also no shakes, etc. Also the miles were very low so tie rod ends and ball joints should have been ok but even then tie rods replaced along with all steering linkage. Shocks helped, anti sway help some more, steering gear brace helped some more and after market drag link did not seem to help, changing the steering linkage to the newer style linkage (with all new tie rod ends and pitman arm included) really made a difference when unloaded but still very bad loaded. Drove ok empty but with camper a nightmare. (Had it checked and aligned with the camper on.) Agree with you but that truck simply was some kind of lemon with no easy way to find the issue. Although, Dodges with the solid front axle seem to steer a bit off in general, some say due to frame flex. Not sure about the new trucks.

Also agree about the Ford death wobble. But it seems finding the culprit once it shows up is difficult and expense so Ford avoids it during warranty.

Chevy shake is now a known issue on the latest generation of full size trucks and even Chevy does not know the true cause.

Duc888's picture

 

 

I never had the steering wobble on my 1999 Dodge 2500 TD 4x4.  I even squeezed 37" tires on the stock aluminum rims.  I went 250,000 miles on the 1999 stock wheel bearings, stock ball joints, never once had the front end aligned.  Go figure. I did get the borgenson steering shaft to replace the stock one with the crap rag joint as well as a DT adjustable / rebuildable track bar though. 

My "new" 1995 Dodge 2500 4x4 12 Valve diesel with 240,000 miles on it has no death wobble.  It does have the typical "vague" Dodge steering though.... more like a 1970 Monte Carlo....LOL.

Manipuflation's picture

You bought a Dodge and are happy?  Let me know how that works out for you.  I have worked in a shop and have owned a lot a vehicles in my day including Mopars.  Not a big fan of Mopar.  I miss my 95 Lincoln Town Car though but the frame was too rusty to be trusty so she had to go.  If you can find a nice used Lincoln they worth it.  Old people cars.  I love those and I'm not a Ford guy.  I'm a Chevy rust guy.  I like Jap stuff too and have mixed feelings about Korean cars.  Owned them all.         

boattrash's picture

Damn, do I know how you feel! I got my '90 Merc Gran Marquis totaled a couple years ago...still miss it. 22 MPG, pure comfort and reliability, would have gone anywhere in it. Hell, I drive 500-600 miles one way to work.

Duc888's picture

 

 

I just sold my 1999 Dodge 2500 4x4 Cummins for $7500.  I paid $27K for it brand new in 1999.  I went totally retrograde and replaced it with a 1995 Dodge 2500 4x4 with the 12 valve Cummins.....

for $3200.00

Lovin it.  No electronics..