by "LJ909" (lj909)
Published 12/07/2017 at 19:11
by "LJ909" (lj909)
Published 12/07/2017 at 19:11
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STARS: 2
We got a customer today, has a good income. She gets almost 8 grand a month in survivors benefits. Credit is scrap though. Late payments on nearly all her trades. But her car, my god. She has a 2012 Chevy Traverse LTZ she got in November of 2012 for $37,200 through GM Financial. As of today, shes paid it down to $22,300. But her loan terms? $890 a month for 81 months. That comes out to $72,090 for a fuckin Chevy Traverse. I could only imagine what her APR is. Like I always say, KNOW WHAT YOU’RE GETTING INTO BEFORE YOU SIGN. Sheesh
"mazda616" (mazda616)
12/07/2017 at 19:34, STARS: 6
Wow. $890 is my mortgage payment. For a 3 bedroom 2 bath house. Can’t imagine paying that for a damn SUV.
"LJ909" (lj909)
12/07/2017 at 19:37, STARS: 3
I wish I could say that was the case here in California but its not. $890 is barley rent.
"Nibbles" (nibbles)
12/07/2017 at 19:46, STARS: 4
Ho
Lee
Shit
"HFV has no HFV. But somehow has 2 motorcycles" (hondasfordsvolvo)
12/07/2017 at 19:49, STARS: 4
My first auto loan was at 17%. Ended up selling the car 9 months later when I realized that only about 70 dollars of my 140 dollar a month payment was going towards my balance. My last auto loan was 1.9% #progress
"LJ909" (lj909)
12/07/2017 at 19:53, STARS: 0
Thats a hell of a progression.
"shop-teacher" (shop-teacher)
12/07/2017 at 19:55, STARS: 2
Gadamn!
"TheTurbochargedSquirrel" (thatsquirrel)
12/07/2017 at 20:01, STARS: 6
Who sees $890 a month for 81 months and thinks “That sounds perfectly reasonable for this $37k car”.
"HFV has no HFV. But somehow has 2 motorcycles" (hondasfordsvolvo)
12/07/2017 at 20:06, STARS: 1
Yup. My wife has helped my credit score immensely.
"LJ909" (lj909)
12/07/2017 at 20:08, STARS: 1
Thats the problem. They dont see.
"CarsofFortLangley - Oppo Forever" (carsoffortlangley)
12/07/2017 at 20:10, STARS: 2
$890 is fuck all in Vancouver
"RPM esq." (rpm3)
12/07/2017 at 20:11, STARS: 2
Her APR is roughly 24%, and whoever underwrote that loan should be in prison.
But the real killer here is the term. If her income is $8,000 a month and the best interest rate she can get is over 20% (doubtful), it would make a huge difference to make a higher monthly payment over a shorter term. It would still be a terrible loan, but she wouldn’t end up paying for the car twice.
"RPM esq." (rpm3)
12/07/2017 at 20:15, STARS: 0
So, like a $150,000 loan? I don’t think there’s an empty lot in my county that would buy.
"Rust and Dust - Oppositelock Forever" (rustanddust)
12/07/2017 at 20:18, STARS: 1
Holy shit.
Hope she’s got gap insurance, that thing is only worth $16k or so (assuming average mileage and options).
"SilentButNotReallyDeadly...killed by G/O Media" (silentbutnotreallydeadly)
12/07/2017 at 20:18, STARS: 2
The ones who only see $890/month and a new car....
”I can get a new car for $890 a month!”
”Yes. But... nevermind...”
"themanwithsauce - has as many vehicles as job titles" (themanwithsauce)
12/07/2017 at 20:26, STARS: 2
I really wish you could sit these people down and explain it to them in terms they might understand. In this case - “You paid for a cadillac but got a chevy!”
"LJ909" (lj909)
12/07/2017 at 20:29, STARS: 1
Yea that is criminal and one of the reasons the car loan industry is shitty right now.
She could make bigger payments and it would be in her interest to, but from her payment history, shes bad with money.
"LJ909" (lj909)
12/07/2017 at 20:30, STARS: 0
I highly doubt it. Most people are clueless on what gap insurance is. I talked to a lady the other day who thought it was literally another type of accident coverage for her car.
"LJ909" (lj909)
12/07/2017 at 20:31, STARS: 0
I wish I could be there when they were about to sign to stop them. But impulse buying gets to people and they end up in things like this.
"Highlander-Datsuns are Forever" (jamesbowland)
12/07/2017 at 20:39, STARS: 0
Shit I can’t even get that in Montana.
"Vicente Esteve" (vicente-esteve)
12/07/2017 at 20:42, STARS: 1
If you have any more of these stories, please share them.
"LJ909" (lj909)
12/07/2017 at 20:48, STARS: 1
Of course. But I have before:
http://oppositelock.kinja.com/heres-yet-another-horrible-auto-loan-1820773626
http://oppositelock.kinja.com/heres-another-from-the-file-of-bad-automotive-decisions-1820200268
http://oppositelock.kinja.com/heres-another-one-of-the-fine-examples-of-bad-financial-1819300269
http://oppositelock.kinja.com/so-i-just-probably-seen-the-worst-auto-deal-i-have-ever-1796661302
"theloudmouth" (theloudmouth)
12/07/2017 at 20:48, STARS: 3
Once again proving personal finance should be a requisite class through all years of high school....
"LJ909" (lj909)
12/07/2017 at 20:51, STARS: 2
This is what Ive been saying since I was a senior in high school back in ‘07. No one teaches you anything about financials or student loans.
"Vicente Esteve" (vicente-esteve)
12/07/2017 at 20:54, STARS: 1
I’ve read every one of them, all equally amusing and massively entreating.
"LJ909" (lj909)
12/07/2017 at 20:58, STARS: 1
Thanks. I find it sad though but then I quickly get out of that because these people should know what they are getting into. But I got plenty more so I will keep em comin’.
"functionoverfashion" (functionoverfashion)
12/07/2017 at 22:39, STARS: 1
Holy hell, I can’t even. If I put $890/mo into an account I could buy a WHOLE OTHER CAR JUST LIKE MINE every 4-5 months. I barely spend $890 a YEAR on repairs.
Wow
"I like cars: Jim Spanfeller is one ugly motherfucker" (qaaaaa)
12/07/2017 at 23:00, STARS: 0
Better than that, because people will forget all that shit a week after graduating, would be to require lenders to tell customers what the total cost is over the life of the loan. $72k for a $37k car... Wow.
"mazda616" (mazda616)
12/08/2017 at 09:35, STARS: 0
Yeah. $140-ish. Kentucky home prices are cheap.