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

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' 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." 



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:



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.


takeaction montresor (not verified) Fri, 06/30/2017 - 00:07 Permalink

I am telling you...this makes way more sense than you my business.."these" people spend INSANE amounts of money.  I have an Electronics 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...… people are not on Zerohedge....I bet all of you are some tight mother fuckers...LOL.  I am.

In reply to by montresor (not verified)

rent slave takeaction Fri, 06/30/2017 - 09:58 Permalink

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.

In reply to by takeaction

ASimpleTrader takeaction Fri, 06/30/2017 - 14:24 Permalink

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?

In reply to by takeaction

Jimmy Jimmereeno Delving Eye Thu, 06/29/2017 - 22:28 Permalink

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., 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.

In reply to by Delving Eye

az_patriot (not verified) Thu, 06/29/2017 - 22:27 Permalink

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 Thu, 06/29/2017 - 22:29 Permalink

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'.

Yen Cross Thu, 06/29/2017 - 22:51 Permalink

  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.

Miffed Microbi… Txpl9421 Thu, 06/29/2017 - 22:52 Permalink

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.


In reply to by Txpl9421

Blankone Miffed Microbi… Fri, 06/30/2017 - 00:46 Permalink

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.

In reply to by Miffed Microbi…

Blankone Fish Gone Bad Fri, 06/30/2017 - 14:11 Permalink

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.

In reply to by Fish Gone Bad

Manipuflation Blankone Fri, 06/30/2017 - 05:26 Permalink

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".        

In reply to by Blankone

Blankone Manipuflation Fri, 06/30/2017 - 13:58 Permalink

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.

In reply to by Manipuflation

Duc888 Blankone Sat, 07/01/2017 - 18:15 Permalink

  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.

In reply to by Blankone

Manipuflation Miffed Microbi… Fri, 06/30/2017 - 01:42 Permalink

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.         

In reply to by Miffed Microbi…