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UPDATE: Vehicle financing issue posing Ribbis problem, Poskim warn

See the Kol Koreh below.

kol koreh ribbis final w

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There are 7 Comments to "UPDATE: Vehicle financing issue posing Ribbis problem, Poskim warn"

  • Isaac says:

    I don’t understand, this is a new issue, not the old issue of credit unions from a few years ago? Also, what if I already have a loan from ally, will these halacha eitzas help for me?

  • Mutty says:

    There are many Yiddishe used car dealers, but new car dealers only a few: Pine Belt is owned by an Israeli; Drezdner (formerly Krieger’s) Chevrolet in Woodridge is owned by a Satmar Chasid, Freehold BMW was owned by a Mr. Koenig which was called King Cadillac BMW or King Cars before it was sold to DCH whom are Chinese, David Michael Mercedes Audi Porsche in Freehold was owned by a Yid before it was sold to Italians, But one thing is guaranteed that a Ford Dealer is not owned by a yid; from day one Ford will never allow any of their dealerships to be owned by a Yid. Freehold Mercedes called me today to see if my decade old 229,000 mile Mercedes sports vehicle is still running, I told him I’m still enjoying it, I don’t know if I can handle a new Mercedes as they’re very computerized and complicated to use, they’re good for young people, but I doubt if I’ll go to them anyways, I’ll probably go to a Yiddishe broker.

  • Too late? says:

    What if I already have a loan from Ally and bought the car from Lakewood Auto? Is there any Eitza?

  • eli says:

    Can i be mediak that this is only a problem for financing a purchase, or is a lease the same?

    What can be done if Im in a lease already?

    • ss says:

      You do not pay interest on a lease as far as I know, so this only applies to financing… but ask your local rabbi – not TLS to confirm.

      • Yitz says:

        Every lease payment does include a small interest amount. That’s what Honda Financial told me.

  • my2cents says:

    Read the letter again. my understanding of it is: they are not saying Ally is the problem and they are not talking about credit unions.

    The problem is the “dealer” that sells the car (finance not lease). When a dealer sells a car the financing agreement is signed with the dealer and the dealer than “sells” that agreement to a bank. so, for a short amount of time the loan is in the possession of the dealer.

    Lease is different because legally you are “renting” the car not owning it. (the bank has a calculation in figuring out the monthly payment by multiplying interest etc. but the end result is a monthly “rent” payment)