The home foreclosures, auto repossessions and bankruptcies that were the fallout of the recession meant that many Americans could not finance an auto through traditional lending institutions.
"When the economy melted down, people's credit took a hit, some dropping 50 to 100 points and a lot of bad things happened to good people," says Dave Fortney, who co-owns
Dipper Dave's Used Cars in Otsego with his wife, Colleen. "But they still needed something to drive. So last year, we started specializing in special financing for people who could not get approved by a bank or credit union."
Car sales took off rapidly -- allowing the Fortneys to add a sales associate and a mechanic to the roster of three they have employed since setting up shop in 2004. Now there are five.
"It's basically supply and demand," he says. "New car sales went from $16 million to $10 million (nationally) in 2009 because the people who used to buy new cars every two years didn't -- they kept driving them."
That trend took many used cars off the market, Fortney says, prompting a big spike in the price of the used cars that did make it to the lots. Interest rates are higher with the special financing available at Dipper Dave's Used Cars, at 15 to 20 percent, but nearly anyone with a job can walk away with an affordable payment, Fortney says.
"This can get someone on the road for as low as $200 a month," he says. "And if they make payments on time, it will help build their credit back up.
"Plus, we're gonna give them a fair deal -- no gimmicks and no secrets."
Writer: Kelle Barr, Second Wave
Source: Dave Fortney, co-owner, Dipper Dave's Used Cars
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