• Report: #648329

Complaint Review: drive financial

  • Submitted: Wed, October 06, 2010
  • Updated: Thu, October 07, 2010

  • Reported By: colinpoconnor — grand coulee Washington United States of America
drive financial
8585 n.stemmons freeway dallas, Texas United States of America

drive financial ripped me off dallas, Texas

*Consumer Comment: You are confusing the car note/loan with the sales price

*Consumer Comment: Advice? Yes...here's some advice!

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In 2005 I attempted to get a car loan to repair my credit and at the same time aquire reliable transportation. The car dealer Marshall Ford East in a Cleveland Ohio suburb hooked me up with Drive financial. At first the dealer did a bait and switch by telling me my payments with a decent down payment would be in the low 300's. At that point is when I should have walked away, but I didn't and ended up with a 450 dollar per month payment with Drive financial. The car was 16,500 dollars before taxes, 19,000 dollars after taxes and fees, I put 2,500 dollars down payment, paid 450 dollars per month for 2 years and still owed 15,000 dollars and change. I would say in that 2 years I made 25 percent of my payments over 30 days but never over 60, I tried to do the math at the end of 2 years I was up to date with my payments but still owed 15,000 dollars after paying around 14,500 dollars on this car loan. Every one I told this to said it didn't sound rite and I agreed with them that my concern where justified! when I talked with the rep for drive I got the same rude responces as others on this site! I was at the end of my tolerance level with this bottomless pit rip off financial institution called drive financial.

I told the guy to either make this loan manageable or come and pick up the car. He told me to be a man and pay my loan payment. I told him what the heck does that have to do with anything? So he threatoned me he would call the local police and claim the car stolen, even knowing I told him to come and pick it up! So I called the local law enforcement for him, haha then called drive back to let them know they didn't have to bother, that I already called for them! So after 2 years of paying on this car loan they pick the car up, never hand me or mail me pay-off ammounts or what they got at auction but it showed zero ballance on my credit report and of coarse with a repo status! To this day I still don't have a receipt for anything except my payments. 6 months to a year later I try to really work on my credit and come to find out they sold the car at auction, had a remaining balance of 6 thousand something, they sold my dept to another creditor and the balance sits on my credit report. So how much does that add up to now? lets see, at the time they picked the car up I paid close to 15,000 dollars, with a remaining balance after auction of 6,000 and change, that would bee around 21,000 dollars and I don't even have the car! what a bargain! DOES ANYONE HAVE ANY ADVICE ON THIS ONE BESIDES DON'T DO THIS AGAIN?

This report was posted on Ripoff Report on 10/06/2010 08:15 PM and is a permanent record located here: http://www.ripoffreport.com/r/drive-financial/dallas-Texas-75247/drive-financial-ripped-me-off-dallas-Texas-648329. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 Consumer Comment

You are confusing the car note/loan with the sales price

AUTHOR: MovingForward - (United States of America)

I understand your point. However, when you borrow money to finance anything, in this case your car, the loan itself has a value that essentially has no relationship to the car's value. Once you sign that note, then the entire note needs to be paid. That is the balance that is showing on your credit reports (plus fees and default interest). This is why you find so many cars that are upside down in value (the loan amount is greater than the vehicle value). Once you sign a note/loan - you owe it. The note/loan stands on its own.

When the loan is a high interest loan, you can see that very little of your payment is applied to the actual principal balance of your loan. The payments are applied to interest and fees first, then to principal. If you make your payment late, as you stated, then the amount of interest taken out of your payment is higher. In some cases, if you are extremely late your balance can actually increase because your payment is not enough to retire the interest due plus the late fees.

The best way to avoid this trap is to buy an inexpensive car for cash. You put $2500 down before when you purchased this vehicle and it bought you nothing but a high interest loan. Buy from a private party. You will avoid the high car payment trap.

As to fixing your credit with this repo, you can make payment arrangements to pay it off or settle with the company. I have never had a repo - but I had something similar. I had totalled my car many many years ago and the insurance only paid off the current value leaving a remaining balance of about $6500. I had to make arrangements with Ford Credit to pay off the balance of the loan - even though the car was totalled! That's how I learned the car loan value and the vehicle value are two entirely different things.

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#2 Consumer Comment

Advice? Yes...here's some advice!

AUTHOR: Jim - (USA)

Get yourself out of this subprime way of life by paying your bills on time! The reason the balance was taking so long to get down was because you had a high interst rate loan. You had such a high interest rate because you made yourself a subprime borrower beccause you gave yourself a reputation of not paying your bills on time. Then you treat a repo so casually. Giving up the car in a repo does not make the balance magically vanish. You are on the hook for the contracted amount, period. There is nothing shady or ripoff about this. You and only you can avoid this by developing a positive credit reputation. But since you treat a repo so casually who knows when that will happen especially if this repo adds to the collection of other repo actions.
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