Author Topic: BMW Aus Finance loaned $27k to single mum of 10 with negative disposable income  (Read 3774 times)

mustachepungoeshere

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http://www.smh.com.au/business/want-a-bmw-no-disposable-income-no-problem--have-a-loan-anyway-20160815-gqswtd.html

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A scathing review of BMW Australia Finance found the company had loaned $27,000 to a single mother of 10 children even though she was in casual employment and had negative disposable income. It gave $23,300 to a refugee aged 21 who had been employed for just one month and whose income was overstated. And it loaned nearly $50,000 to a 76-year-old man based on earning projections rather than real income. The loan was almost twice the value of the car.

Why these people were anywhere near a BMW or Mini dealership is beyond me.

stylesjl

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It also makes me think why on earth anyone lend money to these people anyway, I mean who is taking the risk here if the loan is defaulted on, the dealership, the bank?

marty998

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How does she find the time to fuck with someone and make a baby when she has so many other children to look after???

I bet she does have the 'income' though. Centrelink payments must be huge for 10 kids.

marty998

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It stated BMW Financial Services was "fully committed to implementing a business model which reflects the industry's best practice compliance, business processes and customer service."

I hate PR hacks. What a load of corporate bullshit garbage.

TheGrimSqueaker

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How does she find the time to fuck with someone and make a baby when she has so many other children to look after???

I bet she does have the 'income' though. Centrelink payments must be huge for 10 kids.

Generally they seduce prospective meal tickets in order to make another baby and keep the man on the hook for life. It's a process that only takes a few days here and there and can mostly be accomplished online while the kids are put in front of the TV or dumped on someone else who does not agree to babysit. The target usually screams and runs away once he experiences a horde of poorly socialized young monsters, but that happens well after sperm meets egg, so he's already stuck. Enough child support payments, and I hear a person can get by.

Chris22

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It also makes me think why on earth anyone lend money to these people anyway, I mean who is taking the risk here if the loan is defaulted on, the dealership, the bank?

Likely neither, they'll get a couple payments, then she'll stop paying, they'll repo the car, and they'll sell it again.  This isn't like credit card debt, or even mortgage debt.  There is collateral here, and it's highly moveable.

Making Cookies

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Why these people were anywhere near a BMW or Mini dealership is beyond me.

Because they deserve it!!! They think they deserve the car. I think they deserve the loan terms. Well actually, I don't anyone deserves loan terms like that but I throw out the link to the John Oliver video which ought to at least get them to thinking about their situation. If they still want to give their money to the "man" then they can't be helped.

Could we please encourage people like this not to reproduce? Perhaps HELP them not reproduce?

https://www.youtube.com/watch?v=4U2eDJnwz_s

I can't help imagining all the debt we share the roads with these days. Wish I had a Google Glass gadget that would let me see the debt numbers of people, loan terms on property and types of jobs/incomes people have.  I'd just drive around with my mouth agape at the world around us.
« Last Edit: August 16, 2016, 08:50:06 AM by Joe Lucky »

FIREby35

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Why these people were anywhere near a BMW or Mini dealership is beyond me.

Because they deserve it!!! They think they deserve the car. I think they deserve the loan terms. Well actually, I don't anyone deserves loan terms like that but I throw out the link to the John Oliver video which ought to at least get them to thinking about their situation. If they still want to give their money to the "man" then they can't be helped.

Could we please encourage people like this not to reproduce? Perhaps HELP them not reproduce?

https://www.youtube.com/watch?v=4U2eDJnwz_s

I can't help imagining all the debt we share the roads with these days. Wish I had a Google Glass gadget that would let me see the debt numbers of people, loan terms on property and types of jobs/incomes people have.  I'd just drive around with my mouth agape at the world around us.

I totally have the same thought. That would be an amazing app.

Tyrist

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It also makes me think why on earth anyone lend money to these people anyway, I mean who is taking the risk here if the loan is defaulted on, the dealership, the bank?

They are not loaning them money they are selling them a car with debt attached to it.  When the buyer ultimately defaults the dealer gets to keep the down payment (which is often more than they bought the car for) gets the used car back which hasn't depreciated much and resells it over and over.

nobodyspecial

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It also makes me think why on earth anyone lend money to these people anyway, I mean who is taking the risk here if the loan is defaulted on, the dealership, the bank?

They are not loaning them money they are selling them a car with debt attached to it.  When the buyer ultimately defaults the dealer gets to keep the down payment (which is often more than they bought the car for) gets the used car back which hasn't depreciated much and resells it over and over.
Wasn't that the model for the US mobile home company that Warren Buffet owns?
They were doing the same thing, but were also tacking on $10-15K fees on moving in. So they were relying on a lot of people failing to make the first mortgage payment because it was vastly more profitable to repo and resell, collecting more fees, than to actually have a "good" customer pay the full mortgage.

kayvent

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How does she find the time to fuck with someone and make a baby when she has so many other children to look after???

I bet she does have the 'income' though. Centrelink payments must be huge for 10 kids.

Generally they seduce prospective meal tickets in order to make another baby and keep the man on the hook for life. It's a process that only takes a few days here and there and can mostly be accomplished online while the kids are put in front of the TV or dumped on someone else who does not agree to babysit. The target usually screams and runs away once he experiences a horde of poorly socialized young monsters, but that happens well after sperm meets egg, so he's already stuck. Enough child support payments, and I hear a person can get by.

The government is a better for child support. My daughter's mother is absentee and so far has refused to pay child support. If she made 15$/hr full-time, she'd only need to pay 250$/month in child support. The Canadian government for individuals making <60000 would pay more in CCB alone.

Making Cookies

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Wasn't that the model for the US mobile home company that Warren Buffet owns?
They were doing the same thing, but were also tacking on $10-15K fees on moving in. So they were relying on a lot of people failing to make the first mortgage payment because it was vastly more profitable to repo and resell, collecting more fees, than to actually have a "good" customer pay the full mortgage.

So how does that work - do they repo the lot too? Is the mobile home and the land sold together? Just curious...

nobodyspecial

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Wasn't that the model for the US mobile home company that Warren Buffet owns?
They were doing the same thing, but were also tacking on $10-15K fees on moving in. So they were relying on a lot of people failing to make the first mortgage payment because it was vastly more profitable to repo and resell, collecting more fees, than to actually have a "good" customer pay the full mortgage.

So how does that work - do they repo the lot too? Is the mobile home and the land sold together? Just curious...
Don't know but I'm guessing you are selling/leasing the land as well.
People who are going to fail to make the first payment on a mobile home are unlikely to have a family estate to put it on.

Of course the thing about mobile homes is ... they are mobile. So probably easier to repo than bricks and mortar
« Last Edit: August 22, 2016, 09:53:05 AM by nobodyspecial »

Making Cookies

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I asked b/c in our town there are a couple of mobile home dealers. They have a lot on the edge of town where the repo'd trailers sit waiting to be bought/auctioned/whatever. I can't imagine two separate halves of a trailer with a layer of plastic sheeting keeping out the weather is going to age well.