Do car companies blindly finance customers?

[bigbadboss101]

Someone I know purchased a brand new Mitsubishi couple months ago. He told me the deal was too enticing because you didn't have to pay for three months. Anyways his work hours got cut a bit and now things are a bit tense.

I did ask myself how did Mitsu decide to finance this guy?! A mutual friend of ours told me buddy has less than $1,000 in savings and have various credit card debts. The financial responsibility of this individual is sad and previously I had giving him advices to be more diligent with spendings.
So what would happen if he is late on a payment? Would he get a bit of grace and get away with one or two late payments or will Mitsubishi take back the car right away and buddy get a black mark on his credit rating?

[jdmXSI]

I would think after 3 missed car payments your friend would be without a car and a nice little blemmish on his credit... My advice would be for your friend to call the finance company who loaned him the money to buy the car and tell them his story and that he needs to make alternate arrangements to make his payments... Maybe they could show him some flexability since he is contacting them before he misses a payment. I hope everything works out for your friend.

[Nigel Mansell]

He's screwed. Drive the car until they repo it, take the credit rating hit and buy a used Civic for two or three grand, they get your around town just as well as a new car.

[bigbadboss101]

I suggested to him to post and ad in Autotrader to see if someone will take over payment. Thing is he didn't put in any down payment so there's no incentive for one to take over purchase. He said if he get someone to take over payments he doesnt have $ to get a replacement car.
Duh no car and taking the bus is better than having the repo man come knocking and the subsequent credit hit. Nor is it good to go into further deficit.

If any of you want a new blue Eclipse GT pm me!