House of cars representing a buyer - is it legit?

[bigboom]

Had the exact same discussion last week from HOC with a car I was selling. In the end a buyer from Kijiji purchased the car for more than what HoC offered me but I was tempted to go down this route with them as they told me all I had to do was drop the car off and I would have a cheque (i requested bank draft) waiting there for me.

[Mitsu3000gt]

Is HoC selling these cars to people before inspection, carproof, etc. if all you guys had to do was drop it off and hand over the keys?

[rx7boi]

Probably, because inspection and carproofs aren't their job, it's buyer's diligence.

[max_boost]

Whoa plot twist. This might be legit!?

[ercchry]

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Probably, because inspection and carproofs aren't their job, it's buyer's diligence.

I could easily see them having this conversation:

Hey, what’s your dream car?

Oh man, I would totally love a :insert horrible financial decision:

What if I told you I could get you that car, for $400/month?

SOLD!

Okay, sign this... :gets on kijiji and starts trying to find said car, within parameters of what he can pull off for that payment with the products his lenders offer:

Boom, 15% financing, 84 month term, 5-10 year old car with unknown history

[you&me]

Bingo

[RX_EVOLV]

Should I feel bad about going through with this? lol

I'll keep you guys posted within 24 hours if this is legit or not...

[rage2]

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I could easily see them having this conversation:

Hey, what’s your dream car?

Oh man, I would totally love a :insert horrible financial decision:

What if I told you I could get you that car, for $400/month?

SOLD!

Okay, sign this... :gets on kijiji and starts trying to find said car, within parameters of what he can pull off for that payment with the products his lenders offer:

Boom, 15% financing, 84 month term, 5-10 year old car with unknown history

That’s literally what happens. HoC wouldn’t even be doing the predatory lending, they just get commission for setting it up.

[ExtraSlow]

The subprime automotive market is bigger than most of us would ever guess. And more profitable than "regular" dealerships by far.

[ercchry]

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That’s literally what happens. HoC wouldn’t even be doing the predatory lending, they just get commission for setting it up.

Yup, sprinkle in some setup fees, dealer markup on the car, nitrogen tire fill... and the ~150bps on the lending and it’s not a bad day’s work! Haha

[Sugarphreak]

...

[corsvette]

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Is HoC selling these cars to people before inspection, carproof, etc. if all you guys had to do was drop it off and hand over the keys?

They Can't sell the car without a AMVIC inspection or Carproof as per regulations. Unless this is some sneaky loophole.....

[Skrilla]

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The subprime automotive market is bigger than most of us would ever guess. And more profitable than "regular" dealerships by far.

Exactly. 10 or so years ago I worked for a dealership for a little while and they had a sales guy that just targeted sub-prime people. He made money hand over fist, and the banks then would put an 84-96month loan on almost anything. I remember one couple who was $35k in the hole on a Malibu. I think banks have gotten more stringent now, but those 25-30% interest rates and $900/month payments for a Cobalt are not that uncommon. Best part is they always want to trade it in a year or so later on something more expensive but don't realize they owe 6x what it's worth and haven't paid off jack shit.

EDIT: OT, I only ever had the pleasure of being at HoC in Medicine Hat once. Friend was looking at a car there and the only thing the sales guy kept saying is how is manager is a "race driver" and was saying how fast this car was, even for him...the "race driver" It looks like a scene from The Goods there.

[dj_rice]

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The subprime automotive market is bigger than most of us would ever guess. And more profitable than "regular" dealerships by far.

Very true. My dealership started their own Auto Loans company to cater to the sub-prime people. I've seen them install GPS trackers on some of the "high risk" customers/loans.

[RX_EVOLV]

Well. It's done. They walked around the car. Pulled the carproof, signed the Bill of Sales and cut me a cheque. Whole process was maybe 10 mins. Took the cheque to the bank and it was deposited immediately without hold. The teller was very aware of them and said she sees these cheques/deals all the time.

[Disoblige]

Whoa nice. A happy ending.

[revelations]

Holy crap - great insight into these clowns ..... glad to hear it worked out for OP, but someone is paying dearly now.

[spikerS]

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Well. It's done. They walked around the car. Pulled the carproof, signed the Bill of Sales and cut me a cheque. Whole process was maybe 10 mins. Took the cheque to the bank and it was deposited immediately without hold. The teller was very aware of them and said she sees these cheques/deals all the time.

Man, you are more trusting than I. I don't mind them cutting me a cheque, but I would want it certified before I sign the bill of sale. But that is just my paranoia.

Glad it all worked out for you man.

[ercchry]

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Holy crap - great insight into these clowns ..... glad to hear it worked out for OP, but someone is paying dearly now.

You can’t fix stupid... those type of people will always find away, better to have a properly structured loan with an accredited company, than the alternative

[NissanFanBoy]

That's awesome, assuming OP got a figure he can live with, sounds way less stressful and time consuming that kijiji. Who cares how much House of Cars makes, that's on the idiot who buys it.

House of Cars seems to be really good at what they do, they've opened so many locations. Good on them. They can't be that sleazy to be this successful. They're just taking advantage of a market that exists. No different than a lot of other types of businesses...and I assume there's nothing wrong with OP's car, at least they sell cars that're actually decent.

I've never walked into a House of Cars, but from all their marketing and ads, they seem professional....we only think they're shady because we're car people and we know more than the average person but overall, I don't think they're actually that bad.