Dilemma

[DanS]

Not only is he undercharging on the rates, he's setting himself up to lose his friend (the girl).

This is just a bad piece of business all around.

But hey, it's neither my money nor relationships.

[Winston]

With two cars as collateral, he's virtually raping this guy by charging 15%. But I'm sure you'll be able to collectively convince him to charge 25%. He already went up from 10.

Heck, get an Uzi and a couple of tattoos on your neck and make it an even 50.

[JohnT]

Again... he's gotta claim the collateral.

Would you take the collateral (both cars) if the guy defaults on the first payment?

[DanS]

There's only 1 car involved in the collateral.

Edit: Rereading Spec's post, you're right. It's 2 cars.

[Winston]

I wouldn't lend money out. Didn't I mention this before?

[JohnT]

My point is that if Spec wants to come out of this deal at least even, financially, he will have to act in ways that will drive his friends away from him, anyway.

Who wants to go out with the guy whom you've just stiffed for $273... or $546... or $10,000? (2:1 says the first time he's late with a payment, she calls. Now I would put money on that. )

Who wants to be friends with the guy who took both of your cars? (Dan, Spec said something about now owning the title on two cars - not too sure what that was about).

The only way he's going to keep the friendship now is if the guy pays regularly. But once that first check doesn't make it on time, he'll find it easier to be slack on the next one... especially if Spec isn't forceful enough to do what needs to be done.

[DanS]

This is a ridiculous discussion. We're basically arguing whether Spec's an ******* as well as somebody with a judgment problem. Let's just agree on the judgment problem, shall we?

[JohnT]

(Dan apparently hasn't spent much time at the Straight Dope, where half the discussions in one sub-forum is about whether poster X is a ****. However, it sounds like Winston would be right at home there. )

[Winston]

Agree with both of you. But this is immaterial to the interest rate issue. It won't make Spec feel better about collecting, whether he's charging 10, 15, or 20%.

Edit: You seem to have gotten a tad personal toward me lately, JohnT. Any particular reason for this out of character behaviour? If you have a problem, I'd like to know about it.

[Timexwatch]

I wouldn't lend money out. Didn't I mention this before?

That's because you're a stingy Dane.

[Winston]

No, it's because the people I would likely be lending to are stingy Danes.

[Jon Miller]

I think this has to be a personal call

and Spec has made it

and 15% isn't too high as to be doing it to make money from it (although it isn't as freindly of assistance as 10% would be)

if Spec asked for 25% or so, than while the guy might take it, it wouldn't look like assistance

even this presses the bounds of assistance actually (but I think it could be judged as paying for the loss of the use of the money)

if it is assistance, than the relationship might survive (it won't if it isn't assistance)

also, if it is 'assistamce' than Spec is better served to be forgiving of late payments (the guy will pay based upon guilt and pressure from girlfreind), if it is making money.. than Spec has better be hard (because guy will try to get by without paying)

ouch, you can tell I am tired

anyways, I think you should consider this 'assistance' and be merciful, since that will probably (especially considering the girl) make it more likely you will get your money back with mimum pain

Jon Miller

[Timexwatch]

[ted striker]

If worse comes to worse he can trade cash for services....

[/ted striker]

[KrazyHorse]

Originally posted by Winston
15% is horrendous when there is collateral offered,

A car is not ****ing sufficient collateral, especially when you're talking about a loan on the order of the value of the car.

[KrazyHorse]

15% is a ****ing gift.

Market rates for that idiot would be upwards of credit card rates.

25-30% at a minimum.

Nothing less could pay for the assumed risk.