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View Full Version : Rich investors targeting minorities ... for real.



LWW
12-06-2011, 03:54 AM
http://www.qualitycards.com/pictures/30706861.jpg http://www.absolutecelebrities.com/i/mugshot//JacksonJesse.jpg

MEL AND JESSE IN 2000: (http://findarticles.com/p/articles/mi_m1365/is_6_30/ai_58411600/)

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Hope is now in the driver's seat, thanks to some Wall Street capital, a not-so-subtle push by the Rev. Jesse Jackson and the business acumen of Mel Farr. ...

In part, the funds from this deal will enable the Oak Park Michigan, domestic and import auto dealer to bridge a "transportation gap" by <span style='font-size: 14pt'>enabling inner-city residents to travel to suburban jobs. Employing a computerized on-board device and software that disables an automobile's starter if weekly payments aren't logged on time, Farr will sell used cars to urbanites immobilized by poor credit.</span> ...

"To qualify for this market, Mr. Farr has produced an asset that has a predictable cash flow and credit characteristics that the market will purchase and believe in," says Frederick O. Terrell, managing partner and CEO of Provender Capital Group L.L.C., a private equity investment firm focusing on financial institutions and consumer-related industries. <span style='font-size: 14pt'>"He's enhanced the credit perspective by the innovative approach he's taken with technology. That's what really separates him from others. He has addressed credits that may be more prone to be delinquent and created a way to mitigate losses."</span> ...

"If my portfolio performs the way we think it will perform," says Farr, "it would give me access to that capital to grow my finance company, which would enable me to grow the dealerships in the urban marketplace to provide basic transportation to the urban dweller."

Expansion in Detroit will precede used-car superstores in the nation's top 20 markets. Survival of these new businesses will challenge even Farr's ingenuity. Serving used-car buyers with marginal credit, he pays double the interest for capital, as do competitors such as GMAC, asserts Jackson, so customers bear higher dealer charges and pay triple the mainstream auto insurance rate. Jackie Robinson desegregated baseball, and Farr may integrate capital access.

"This can be duplicated," says Jackson, president of the Rainbow/PUSH Coalition and the Wall Street Project. "We will keep pushing doors open to the vaults." Capital is like oxygen, and while helping make welfare-to-work a reality, Mel Farr could make plenty of money resuscitating an urban market suffocated by lack of credit. </div></div>

LWW
12-06-2011, 04:10 AM
A couple years down the road: (http://billiardsdigest.com/forums/ubbthreads.php?ubb=newreply&Board=3&Number=373101&what=showflat&fpart=1)

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">There were legal problems surrounding Farr's controversial On-Time Device,[2] which prevented drivers of leased vehicles from starting the car if they missed payments.</div></div>

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">He is a local celebrity in the Detroit area, well known for appearing in his dealerships' TV commercials, wearing a Superman-like cape and billing himself as “Mel Farr Super Star.”

But in the last couple of years, he faced bad press and class action lawsuits for allegedly charging high interest rates and selling used cars of low quality to people of low means. </div></div>

LEAPIN LIZARDS! (http://wardsdealer.com/ar/auto_super_star_mel/)

LWW
12-06-2011, 04:25 AM
To break it into easy terms:

- Mel bought a Ford dealership under Ford's minority dealer development program.

- Mel took in Jesse as a minority ... no pun intended ... partner.

- Every time Mel needed a credit line extended, Jesse would threaten to picket Ford ... and Ford caved in.

- Jesse and Mel expanded the business on debt, not profit.

- They bought rough cars at auction for well below average wholesale book value.

- They installed a device which caused your car to quit as soon as the timer said you were late on a payment. Make a payment, and they gave you a new code good for another month.

- They polished up their turdmobiles and marketed/sold them to poor inner city credit challenged minorities and poor whites ... collecting as much of a down payment as possible. Usually enough to get their initial investment back.

- They would then sell the loan to Ford Motor Credit, representing the cars as being in average or better condition ... collecting huge profits.

- They paid each other, and family members huge salaries ... so that nothing would be left when the bubble burst.

- Their kill switch device caused numerous issues with cars stopping in traffic, sometimes causing accidents.

- When Ford's losses starting getting out of hand they cut the credit lines to his lending company and Mel retreated.

- Jesse cried racism.

- The leftist media gave them a complete pass.

Soflasnapper
12-06-2011, 11:42 AM
Maybe you could fix the broken links that lead back to this thread, so as to make some showing that what you say is true.

Almost all of this you say is unsupported by anything linked here.

The kill switch is one of the things mentioned. Nearly nothing else is.

Was Jesse Jackson his minority partner in the business? Maybe, I guess, but there's no evidence for that here. More leaning to a conclusion that he helped make the deal happen, not that he ended up with a piece of the company. If I missed that, in which link does it appear (I read them all).

Similarly with your description of their business model. It's possible what you say is so, but there is no showing of that.

Mainly, it would seem these are false points, based on your assumptions based on the career in used car lots I am now convinced you had. I noticed this before when you gave a very detailed, but impossible, explanation of the Mercedes strategy in the '80s.

It seems that the 'easy terms' you mention are figments of your imagination.

Did Mel 'get credit lines extended [from Ford]' or did he raise $37 million in a bond issue? Did he sell the entire bond issue to Ford?

If he's buying wholesale well below blue book, and you say (with impossible knowledge, I would say) that he 'usually' got enough FROM A DOWN PAYMENT to get his initial investment back, how is it that he needed credit lines extended?

Would they have been extending lines of credit for his import car lot as well?

Maybe there is reporting supporting what you've written, but you haven't linked to anything for over 80% of your claims.

I believe you've imagined it, based upon your own shady dealings in used cars.

Gayle in MD
12-06-2011, 11:51 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Soflasnapper</div><div class="ubbcode-body">Maybe you could fix the broken links that lead back to this thread, so as to make some showing that what you say is true.

Almost all of this you say is unsupported by anything linked here.

The kill switch is one of the things mentioned. Nearly nothing else is.

Was Jesse Jackson his minority partner in the business? Maybe, I guess, but there's no evidence for that here. More leaning to a conclusion that he helped make the deal happen, not that he ended up with a piece of the company. If I missed that, in which link does it appear (I read them all).

Similarly with your description of their business model. It's possible what you say is so, but there is no showing of that.

Mainly, it would seem these are false points, based on your assumptions based on the career in used car lots I am now convinced you had. I noticed this before when you gave a very detailed, but impossible, explanation of the Mercedes strategy in the '80s.

It seems that the 'easy terms' you mention are figments of your imagination.

Did Mel 'get credit lines extended [from Ford]' or did he raise $37 million in a bond issue? Did he sell the entire bond issue to Ford?

If he's buying wholesale well below blue book, and you say (with impossible knowledge, I would say) that he 'usually' got enough FROM A DOWN PAYMENT to get his initial investment back, how is it that he needed credit lines extended?

Would they have been extending lines of credit for his import car lot as well?

Maybe there is reporting supporting what you've written, but you haven't linked to anything for over 80% of your claims.

I believe you've imagined it, based upon your own shady dealings in used cars. </div></div>


<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> <span style='font-size: 14pt'>Mainly, it would seem these are false points, based on your assumptions based on the career in used car lots I am now convinced you had.

I believe you've imagined it, based upon your own shady dealings in used cars.</span> </div></div>

<span style='font-size: 17pt'>LMAO! Perfect!</span> /forums/images/%%GRAEMLIN_URL%%/grin.gif

LWW
12-06-2011, 01:56 PM
MY BAD ON THE LINK (http://en.wikipedia.org/wiki/Mel_Farr)

And the rest of your childish accusations are, well, childish accusations.

I knew when I posted this thread that you would be among the first that went hard charging to defend Jesse's honor.

LWW
12-06-2011, 02:05 PM
FROM THE REICH WING NEW YORK TIMES (http://www.nytimes.com/1999/08/30/us/auto-dealer-has-an-offer-for-drivers-with-bad-credit-but-there-s-a-catch.html?pagewanted=all&src=pm)

Soflasnapper
12-06-2011, 02:16 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: LWW</div><div class="ubbcode-body"> MY BAD ON THE LINK (http://en.wikipedia.org/wiki/Mel_Farr)

And the rest of your childish accusations are, well, childish accusations.

I knew when I posted this thread that you would be among the first that went hard charging to defend Jesse's honor. </div></div>

I am not defending Jesse Jackson, I am challenging your truth-challenged presentation.

Now that you've fixed your links, and admitted a problem with them, guess what you still do not show? Any ownership by JJ. Guess what else you still do not show? Any bit of confirmatory information considering the entire rest of what you claim (except for the kill switch concept).

As for whether or not you base your business model claims on your own life experiences, have you or have you not ever been employed in, or owned, new or used car lots? You certainly have plentiful insider information about how these things work.

Just as in the case of the prior Mercedes dealership incentives explanation you gave, nothing you've claimed about the inner workings of those businesses showed up in any reporting you ever linked to. It appears to be your own experience, recycled and repurposed to claim it of others for whom there is no evidence extant that it is the case for them. (Just for you in the past, I guess.)