INSANE Car Market FRAUD | Lenders COLLAPSE | Episode 985
About this episode
The episode dives into the shocking collapse of TriColor, a car dealership group accused of massive fraud involving double pledging of auto loan collateral. Hosts discuss how this scandal has led to lender collapses and potential long-term impacts on the auto market, including tighter credit availability. They also touch on the broader implications for car sales, as Cox Automotive forecasts a decline in new vehicle sales due to an affordability crisis. The conversation highlights the interconnectedness of fraud, lending practices, and market trends in the automotive industry.
power booking
"And in many, many cases, dealerships do what is known as power booking. They will produce a document for the bank that shows that the vehicle is worth X because"
Dealers sometimes exaggerate a car’s value on loan documents to get better loans. They claim the car has extra parts that might not be there.
Power booking is a practice where dealers inflate the value of a vehicle in paperwork to secure better financing terms from banks, often by listing features that may not actually be present.
leather interior
"it has a moonroof, it has leather interior, it has all types of accessories and trim levels"
Leather interior means the car’s seats, steering wheel, and other inside parts are covered in leather, giving a more upscale look.
Leather interior refers to seats, steering wheel, and other cabin surfaces covered with leather for a premium feel and aesthetic.
trim levels
"it has a moonroof, it has leather interior, it has all types of accessories and trim levels"
Trim levels are like different editions of the same car, each with its own set of features and price. One might have more gadgets or nicer seats than another.
Trim levels are different versions of a car model that vary in features, equipment, and styling to cater to various customer preferences and price points.
moonroof
"it has a moonroof, it has leather interior, it has all types of accessories and trim levels"
A moonroof is a glass window in the car’s roof that you can open to let light or fresh air inside.
A moonroof is a glass panel on the vehicle’s roof that can be opened or closed, allowing light and sometimes air into the cabin.
Tri-Color
"And so when you see a company like Tri-Color, I can assure you that without even being involved in this..."
Tri-Color is a company that sells used cars. They have many stores across the U.S., and people often buy or sell vehicles through them.
Tri-Color is a large used‑car dealership chain that operates across the United States, known for selling pre-owned vehicles through a network of retail locations and online platforms.
Jeep
"[1088.6s] Jeep focuses, here it is, Jeep focuses on simpler and cheaper to break sales slump."
Jeep makes cars that are good for off‑road driving, like the Wrangler and Grand Cherokee.
Jeep is an American automobile brand known for its off‑road vehicles, especially the Wrangler and Grand Cherokee.
auto finance
"[1105.8s] We've got the first story, which is all about fraud and auto finance and that can have a negative impact on approvals and getting people auto loans."
Auto finance is how people get money to buy a car, usually through loans or leases.
Auto finance refers to the process of obtaining loans or leases to purchase a vehicle, including approval, interest rates, and payment terms.
Carfax
"[1421.1s] Carfax. [1422.1s] Yeah, this is actually going to be our lead story."
Carfax is a service that gives you a report about a used car’s past, like how many times it was owned or if it had any accidents.
Carfax is a company that provides vehicle history reports, detailing ownership, accidents, and mileage records for used cars.
odometer rollback
"[1427.8s] United States with their odometers turned back with the use of this device purchased [1432.1s] off the internet, grift, maybe grift, yeah, dad, we're going to be talking about that [1435.6s] all day tomorrow."
Odometer rollback means someone has changed the number on a car’s mileage gauge to make it look like the car has driven less than it really has.
Odometer rollback refers to the illegal practice of reducing a vehicle’s mileage reading by tampering with the odometer, often to make the car appear newer and more valuable.
pre-purchase inspection
"[1541.8s] to really check things out and you know, this is why for used vehicles, we always say get a pre‑purchase inspection. [1546.7s] There's no reason, no reason not to..."
Before you buy a used car, have someone look it over to make sure everything works right and there are no hidden problems. This can save you money and headaches later.
A pre‑purchase inspection is a thorough check performed by an independent mechanic before buying a used vehicle. It examines the car’s mechanical condition, bodywork, and any hidden damage to help buyers avoid costly surprises.
electric vehicle
"They're also dad now talking about the recon, which is their new electric vehicle, and maybe they're going to make that a gas vehicle as well."
An electric vehicle runs on electricity instead of gasoline. It charges from a power outlet and doesn’t produce exhaust fumes.
An electric vehicle (EV) is a car powered by one or more electric motors using energy stored in rechargeable batteries, producing zero tailpipe emissions.
Porsche
"That's right. Ray six figures, no power seats. Porsche. That seems reasonable."
Porsche makes fancy cars that are fast and fun to drive. They’re famous for models like the 911 and Cayenne.
Porsche is a German luxury sports car manufacturer known for its high-performance vehicles, iconic designs, and engineering excellence.
power seats
"There is a lot of you need power seats. You can manually adjust those seats almost equally as well as if they were power seats."
Power seats let you change where the seat sits with a button, so it’s easier to get into the car and sit just right.
Power seats are seats that can be moved up, down, forward, or backward using electric motors, allowing drivers and passengers to adjust their seating position quickly and comfortably.
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