I saw an advertisement online just a minute ago. It surprised me.
Consolidate Using Vehicle
Consolidate Bills & Reduce Monthly Payments Using Your Vehicle-Apply!
Now you can refinance your used car, which is not a new thing, companies have been doing this for years. But this is the first time I can remember that a major bank will refinance a used car and give you cash back.
From my point of view the Wells Fargo ad is deceptive. I can’t imagine that unless you have a car with a clear title or a spare Bentley in the garage that the average person is going to get enough cash back to “consolidate” bills. Now you might be able to get some cash back to pay off a bill but let’s get real here. If you can’t make the payment you lose your ride.
And I doubt that clearing two dentist bills and a past due storage space bill is going to be very helpful in the face of pending financial turmoil.
This new Wells Fargo ad also strikes a raw nerve with me after reading the disclaimer. After passage of new credit card reform legislation which makes it harder for people under the age of 21 to get a credit card, apparently you only need to be 18 to pledge your car as collateral for cash in your pocket.
In order to qualify for an auto loan, our minimum requirements are that you be a U.S. resident, be at least 18 years of age, and have a consistent source of income.
Very clever Wells Fargo. This product will strike an itch in many desperate for cash and the result will be repossessions when the cash back is spent perpetrating a bad financial position a little bit longer.