I'm going to start this off by saying that I am far from an expert when it comes to how certain types of loans work.

In Fargo, Jerry seems to have multiple schemes to get money. One of which is $320 000 he tries to get from GMAC. That being said, I don't understand how this type of loan works. How do the fake cars and fake customers play into the loan? Would anybody be able to explain it to me?


It seems Lundegaard is running a small scale version of a fraudulent business scheme that actually happened in the 1980s and involved GMAC.

The basic scheme would be to "sell" the vehicles to a shell business or front, and arrange finance that would be settled when the shell "sold" the vehicles a month later. The original scheme simply increased the value of "sales" (and therefore a larger loan) each month, to cover the previous month's loan and also provide money to the fraudster to support his other business activities and lifestyle.

Unlike the real life fraudster (who was not uncovered for 11 years), Lundegaard seems to be a bit of an idiot and has been caught out by faking vehicle ID numbers, or had not planned to continue the fraud in the same way.

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  • That answers my question. Thanks! – Nathan Douglas Apr 29 '19 at 13:56
  • @NathanDouglas you should accept the answer. – Silver Bebs Jul 15 '19 at 13:16

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