Car Czar: Auto Title Loans


TUESDAY. IF YOU ARE THINKING OF SECURING AN AUTO TITLE LOAN FOR A LITTLE EXTRA MONEY, WHY THIS QUICK CONCEPT IS A RECIPE FOR DISEASE. HEY, DOUG. Reporter: IT REALLY IS, IT IS BECOMING INCREASINGLY POPULAR, ESPECIALLY DURING THE HOLIDAY SEASON WHERE EVERYBODY COULD USE A LITTLE EXTRA CASH. IT SEEMS LIKE NOT SUCH A BAD IDEA. LET’S SAY YOU HAVE AN OLD TRUCK. IF YOU DON’T DRIVE IT EVERYDAY, YOU CHECK OUT ONE OF THESE AUTOTITLE LOANS. HERE IS PREMISE. YOU CANBOROUGH UP TO $10,000, THESE LOANS START AS LOW AS $100. YOU DON’T NEED A PAYCHECK. YOU DON’T NEED PROOF OF EMPLOYMENT. HECK, THEY DON’T EVEN ONE A CREDIT CHECK. SO WHAT CAN BE THE PROBLEM? YOU HAVE EXTRA MONEY FOR THE HOLIDAYS, GIVE THEM THE TITLE TO YOUR TRUCK? WELL, HOLD ON. IT CAN GET BAD AND IT CAN GET BAD QUICK. WE READ THE STORY OF A WOMAN THAT WANTED A $1,500 LOAN AGAINST HOREHOUND. SHE GAVE THE — HYUNDAI. SHE GAVE THE LONE COMPANY HER LOAN TITLE. IT WAS SUPPOSED TO BE A 30 DAY LOAN. SHE WAS CRIED TO PAY IT BACK LUMP SUM IN 30 DAYS. SHE JUST MISSED A COUPLE DAYS. BY THE TIME SHE WAS THROUGH GETTING RID OF ALL THE FEES, PAY OFF THE $1,500 LOAN. HERE IS THE PROBLEM, MARIANNE. THE CAR WAS ONLY WORTH $3,000. SHE COULD HAVE ABSOLUTELY BOUGHT A NEW CAR. LET ME GIVE YOU ANOTHER EXAMPLE REALLY QUICKLY. THIS IS BEST CASE SCENARIO. I AM NOT KIDDING YOU. LET’S SAY YOU WANT $1,000 FOR EXTRA CHRISTMAS PRESENTS. THE BEST CASE IS THE 30 DAY LOAN. YOU PAY IT OFF ON TIME, LUMP SUM WITH THE FEES AND THE INTEREST. THE BEST ONE I CAN FIND IS THE $1,000 LOAN WILL COST YOU $1,750. THAT IS THE BEST DEAL I COULD FIND IN JUST 30 DAYS. THESE LOANS ARE CONSIDERED BY MANY TO BE PRE-TRIALTORY BECAUSE THEY PREY ON — PREDATORY BECAUSE THEY PREY ON INCOMES WITH LESS THAN $40,000 THAT DON’T HAVE ACCESS TO TRADITIONAL CREDIT. A LOT OF THE FOLKS FEEL LIKE THEY ARE IN A BIND. I UNDERSTAND THAT, BUT WHAT YOU CAN’T MAKE SENSE OF ARE THESE KINDS OF INTEREST RATES. SO HERE IS THE BOTTOM LINE THIS HOLIDAY SEASON. BEG, BORROW, BUT NOT FROM THESE GUYS. WATCH OUT. THESE TITLE LOANS ARE ALMOST COMPLETELY, TYPICALLY BAD IDEAS. YOU HAVE TO BE CAREFUL, READ ALL THAT FINE PRINT LIKE WE DID IN THE OLD DAYS. SOMETIMES A FAMILY MEMBER IS YOUR BEST CHOICE. HOWEVER MY SISTER STILL OWES MY $20 FROM 1978 AND I STILL CAN’T GET IT BACK! [ LAUGHING ] THAT SAID, WHEN WE WOMAN BACK WE WILL TALK ABOUT STATE — WHEN WE COME BACK WE WILL TALK ABOUT STATE OF THE BUSINESS. WHAT CARS ARE HOT, WHAT CARS ARE NOT, AND EVERYTHING CARS FOR 2017. IT LOOKS CHILLY WHERE YOU ARE! Reporter: IT IS 26 BELOW. ROCKY IS POUNDING MEAT IN THE BACK STOREROOM! WOW! [ LAUGHING ] I KNOW. AS WE GET OLDER, DOUG, WE CHILL FASTER. WE HAVE TO BUNDLE UP AS WE AGE I FIND THIS WHOLE COMMENTARY PARTICULARLY OFFENSIVE WHEN BEAUTIFUL WOMEN SITTING IN A WARM STUDIO! [ LAUGHING ] I MISS A DOUG BRENNER RANT EVERY NOW AND THEN. I LOVE THE WHOLE INSTRUCTOR LOOK, TOO. THE GLASSES — ALL RIGHT. WE WILL GO. FINE. YOU CAN FIND THEM AT TWO

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