Auto Finance Network & The “Crazy 88” Loan Program

Auto Finance Network (AFN) is a company that provides auto financing solutions to car dealerships and consumers. While not a direct lender, AFN acts as a conduit, connecting borrowers with various lenders to find suitable loan options. One program that has garnered attention, and occasionally criticism, is their “Crazy 88” loan program.

What is the “Crazy 88” Program?

The “Crazy 88” is essentially a high-risk, subprime auto loan program aimed at individuals with severely damaged credit or limited credit history. The name itself, drawing inspiration from the movie *Kill Bill*, hints at the program’s potentially aggressive nature. It’s designed for those who may have been turned down by traditional lenders due to bankruptcies, repossessions, or other credit issues. The program boasts about approving nearly everyone, regardless of their credit score.

How Does it Work?

The core principle is relatively straightforward: AFN partners with dealerships willing to work with high-risk borrowers. They present these dealerships with borrowers who are likely to get approved for a loan through a participating lender. The terms, however, are far from ideal.

The Drawbacks: High Interest Rates and Fees

The primary concern surrounding the “Crazy 88” program lies in its exorbitant interest rates. Borrowers can expect to pay significantly higher interest rates than those with good credit, sometimes exceeding 20% or even more. This translates to significantly larger monthly payments and a much higher total cost of the vehicle over the loan’s lifetime. The justification for these high rates is the perceived risk associated with lending to borrowers with poor credit. However, critics argue that these rates are predatory and designed to trap borrowers in a cycle of debt.

Beyond the high interest rates, “Crazy 88” loans often come with additional fees, such as origination fees, application fees, and other administrative charges. These fees further inflate the overall cost of the loan.

The Risks Involved

Taking out a “Crazy 88” loan is a significant financial risk. The high interest rates and fees can make it challenging to keep up with payments. If a borrower defaults on the loan, the vehicle can be repossessed, further damaging their credit and leaving them without transportation. The potential for a negative financial spiral is very real.

Is it Ever a Good Option?

For some individuals, the “Crazy 88” program might seem like the only available option to secure transportation. However, it should always be considered a last resort. Before pursuing such a loan, it’s crucial to explore all other alternatives, such as repairing existing credit, saving for a down payment, or seeking assistance from family or friends. If a “Crazy 88” loan is the only feasible option, carefully scrutinize the loan terms and be prepared for the financial burden it entails. Thoroughly understand the interest rate, fees, and repayment schedule before committing to the loan.