Car dealers seem to be giving some bad credit advice to customers who bought a car above their pay-grades. The advice? Buy another car, then turn the first car over to the repo guy. The dealer makes two sales instead of one. The buyer has a more affordable car. And the lender is stuck with the repo.
Dealers deny the practice. But the Wall Street Journal offered data: Transunion says that there were 24 million auto loans in the US in 2018. About 300,000 of those cars were repossessed — up 17% since 2018 despite a booming economy. Just think of the ethical issues in this practice.
The credit experts tell consumers not to do it because it is bad for their credit score. And destructive to their souls.