When Don Foss started his career as a car salesman, he recognized early on that most of his prospective customers had shaky credit, leaving them with few options for financing to buy a vehicle. So in 1972, he started subprime auto lending company Credit Acceptance Corporation to fill that void. He knew lending money to buyers with low credit posed an inherent risk, and he knew the business couldn’t solely be focused on closing sales. It had to excel at collecting loan payments too. “I began to realize that, even as I worked as hard as I possibly could at selling cars, we would have to do better on the collections side,” Foss said in 2009, reflecting on how he’d managed to grow and sustain a business that had provided financing to low-credit car buyers for nearly 40 years. It certainly ended well for Foss, who stepped down last year, netting $128 million upon retirement by selling off his company shares. Indeed, over time, the collections side of the business has … [Read more...] about How Credit Acceptance Consumed Detroit With Debt
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Jalopnik Reviews All of our test drives in one convenient place. We’ve been talking about Lynk & Co, the new Geely/Volvo venture to sell cars and SUVs and crossovers by not really selling them at all, for a couple of years now. Instead of selling cars, they want to use subscriptions to get you in their stuff instead—a new form of ownership and, if you can stand the buzzword, “mobility.” I was able to get to Sweden for a quick drive in the Lynk & Co 01, and, even better, talk with their CEO Alain Visser so he could explain to me just how this is all going to work. (Full Disclosure: Lynk & Co flew me out to Gothenburg, Sweden for some secret reasons, but they also let me drive the 01 and talk to their CEO. They thankfully refrained from shoving food in my mouth without my permission, for a change.) Unusually for me, for once I think the discussion about how they’re planning to get these cars to people proved to be a good bit more interesting … [Read more...] about 2020 Lynk & Co 01: Driving The Netflix Of Cars
As Jalopnik’s resident car buying expert and professional car shopper, I get emails. Lots of emails. Sometimes folks get into a tough spot or don’t know what to do, so I’ve decided to pick a few questions and try to help out. Let’s see what we have on deck for this week: I’m shopping for a new Honda Accord Sport 2.0T and I got an offer that was way less than all the other stores. No one was willing to match it and they all claimed this dealer was playing games. It turns out this car has 107 miles on it, but I feel like I got a good deal. Is that too many miles for a brand new car to have? Did I really buy a used car? As you have found out the concept of a “new car” isn’t the same for every vehicle. Some folks insist on having something with as few miles as possible. Though almost every new car has a handful of miles on them from transportation and dealer prep. However, some cars on the lot tend to rack up more miles than others. In … [Read more...] about Can a Dealer Sell a Car as ‘New’ If It Has Over 100 Miles On It?
It wasn’t just thousands of Browns fans that braved single-degree temperatures in January for the “Perfect Season Parade” after the Browns went 0-16 in 2017. There were a smattering of Steelers fans who came to point and laugh—all they can do for what was once one of the NFL’s great rivalries. There were a few Buffalo fans, sharing in the strange bond between the Browns and Bills, united by cold weather and heartbreak. And then there were Lions fans, including some with signs that said “Welcome to the Club.” The Browns and Lions are the only two teams in NFL history to lose every game in a 16-game season. It was near the extent of living memory, back in the 1950s, when their respective home cities were at their peaks and the Lions and Browns ruled the NFL; they met four times in a six-year span in the league’s pre–Super Bowl championship game. But after trouncing the Browns in the 1957 NFL title game, the Lions slid into … [Read more...] about The Browns And Lions Share A Whole Lot More Misery Than Just 0-16