Junk Cars Being Resold

Cash 4 Cars Akron, a unit who scraps cars and promptly coordinates junk car towing of vehicles and other auto junk throughout New Franklin, Kenmore, and the Chapel Hill area. Recently we have reported extensively on the decreasing value of a scrap car that has been plaguing those of us who scraps cars and facilitates junk car towing. The goal in working with auto junk is to recycle the maximum amount possible of the materials that compose the automobile. Much of the value of a scrap car is quantified by the values of certain commodities, such as steel, which has declined significantly within the global economy lately. In this article we investigate another form of auto recycling, specifically looking at how retail dealers operating within the secondary finance segment of the industry routinely end up selling the same vehicle over and over again. In an October 29, 2015 Action 9 (A9) investigation on wftv.com they reported the following: “Some ‘buy here pay here’ (BHPH) car dealers keep reselling the same vehicles that leave customers stranded & broke. Dealers make big money putting cars they’ve repossessed because the last buyer couldn’t afford repairs and/or payments, back on the selling block.

Action 9 tried to purchase a 2002 SUV at AutoMax (AMAX) in Melbourne, FL on camera. It’s the same car they sold to Laurie Wessel just 4 weeks prior. She says it had a rough engine, bad brakes & a collapsed window. Her son pried off the door cover to see the problem and a rotten stick had been used to prop the window open. She had to return the car & lost a $700 deposit. Channel 9’s Todd Ulrich found the same SUV at AMAX & a salesman stated it cost $5,000 and was in good shape. Still undercover, A9 got an inspection on the car before the purchase. Repair expert Howard Fulton found what A9 suspected–it’s horrible. There was a failed water pump and all the water drained out in an hour. Fulton said A9 would have trouble had it bought the car & driven away. He found brake pads so worn, one fell off. And he found that same stick propping up a busted window.

Fulton said critical problems were covered up. It’s called ‘churning’ when a dealer recycles vehicles with mechanical issues. When it breaks down and you can’t make payments it’s repossessed & the dealer sells it again. Ulrich went to AMAX in Melbourne for answers. Later AMAX said the SUV was not supposed to be for sale, and someone made a mistake. The dealership also said its “as is” cars come with a 50% voucher to cover repairs. Automax response:

We at AMAX would like to thank you for the opportunity to respond. During your September 25th 2015 visit to our establishment, the owner was not present due to the fact that it was his son’s 13th birthday. Unfortunately at this time, the 2002 vehicle with over 140,000 miles in which we spoke about on October 27th 2015, was mistakenly allowed to be taken for a test drive and a to a mechanic. The 2002 vehicle had been inadvertently parked up front as it was awaiting delivery for repair. We have hundreds of vehicles, some of which are rotated throughout the day each week for various reasons i.e. detailing, repairs, test drives, auctions, etc. With that said, we would like to assert that we encourage each customer to have their vehicle inspected by their mechanic. During the point of sale we offer each customer the option of purchasing a warranty for select vehicles in inventory. The inventory that does not qualify for the extended warranty purchase is sold “as is”. Customers that choose these vehicles are given a 50% voucher to a mechanic for our customers in the event that their “as is” vehicle needs attention. The voucher is outlined in the paperwork and the buyer is in receipt of a copy of the voucher with their paperwork upon completion of the sale.
The article can be viewed in its entirety here.

The BHPH segment of the auto market certainly deals in a lot of auto junk type cars. Their customers are less desirable and have bad credit and low income. The car inventory is more likely to be composed of used vehicles with high mileage. The dealer acts as the bank and in most cases has the customer physically visit the dealership to make payments. Often the dealers affix GPS type tracking devices to the vehicle to assist with locating the cars for repossession. The interest rates on these loans are very high and default is much more common. The BHPH dealer can frequently sustain losses such as if during the term of the loan the vehicle suffers a major mechanical failure, costing $1,500 – $3,000 to fix, such as with a motor or transmission repair. In these instances, the borrower is likely to abandon the agreement and begin trying to obtain another vehicle.

Junk Cars Being Resold

Are you wondering who scraps cars in Cuyahoga Falls, Copley or Springfield Township? Are you seeking to determine the value of a scrap car in Mogadore, East Akron or Kent? We give you a quote for an old car right over the phone and the junk car towing in included regardless of whether you are located in Peninsula, Firestone Park or Highland Square. Those in Barberton, Ravenna or the Merriman Valley that are looking to sell my car for cash should simply contact our junk vehicle buyer today. Even if the car is sitting at a repair shop such as Conrad’s, Midas, Firestone or Goodyear, we can pick it up the same-day in most cases.