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To: Paul Senior who wrote (46670)	2/17/2012 7:23:24 PM
From: smaycs4	Respond to of 78728

Im not sure they call it an over/under reserve but thats the impression I get. Not saying they are doing anything wrong or shady, its just hard to exactly predict loan loss reserves. Thus, Im skeptical that current earnings are going to continue to grow & grow & grow. That article regarding BHPH is not really accurate. Sure, the cars are priced way high but its a very tough business because for every honest down on their luck customer, theres 2 who are professional con-artists. Not sure "forced" regulation is going to solve anything. Sure, most people would be better off not buying from a buy here pay here lot. But the liberals arent going to drive them to work everyday. NICK really deals in the higher end of the subprime market. People who have encountered a single issue that has now passed, like a divorce of job loss, and otherwise a great record of paying. Theres money to be made in the buy here pay here business but its just not as glamorus as the article makes it out to be. Indeed, the objective of the better lots is to NEVER repo a car. A paying customer is worth 2-3 repos. Its just hard to take $1200-2500 wholesale pieces and expect them to last 24-36 months without needing sometimes significant repairs. The better lots will often repair the cars of good payers & tack it on their note. The easy solution would be to close all the BHPH lots down. I guess they would go after the subprime lenders next. Yes, they all serve or prey on the credit & cash constrained customer. The liberals dont have any answers though.

To: Paul Senior who wrote (46670)	2/18/2012 11:24:26 AM
From: geoffrey Wren	Read Replies (1) \| Respond to of 78728

The way those lots work is this (learned from brother in law who once worked in such a lot for a month). They buy cars at auction. Say a Chevy for $2,000. They price it at $5,000, deal down to $4,000, and want $2,000 down, and finance the rest at 10% They put a GPS device in car telling you it helps you, but it is meant to help them repossess. But they do provide valuable service. They wash the car and do a minor tune-up before sale. I would not say so much that they are taking advantage of the poor as that they are taking advantage of the ignorant. After all, with a little effort one could get on Craig's list and buy a car for $2,000, and avoid the markup and interest fees.