by "LJ909" (lj909)
Published 12/18/2017 at 13:36
by "LJ909" (lj909)
Published 12/18/2017 at 13:36
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STARS: 1
He just came in on Saturday but I didn’t get to start processing his app till today. 58 years old. Makes just over $8600 a month as an asset protection manager at a major retailer. Literally just bought a 2017 CTS V Sport just like the one in the pic above. Hasn’t even made a payment on it yet. He got financed though Ally (which I hope he got a good rate) for $63,900 which tells me he got no options on the V Sport. His terms? $919 for 84 months. That comes out to $77,196. And in 2 years and 30 thousand miles its going to be worth less than half of that.
"DaftRyosuke - So Long and Thanks for All the Fish!" (daft-ryosuke)
12/18/2017 at 13:51, STARS: 3
Man that’s a good looking car.
I’m sorry what was this post about, money or something?
"BKosher84" (bkosher84)
12/18/2017 at 13:51, STARS: 1
"Spanfeller is a twat" (theaspiringengineer)
12/18/2017 at 13:51, STARS: 1
Thats horrible!
"diplodicus" (diplodicus)
12/18/2017 at 13:53, STARS: 0
Why would someone making that much take out a loan for 84months?
"Dr. Zoidberg - RIP Oppo" (thetomselleck)
12/18/2017 at 13:54, STARS: 9
It is but consider the thought process of these kinds of people:
“$919 a month for a Caddy? That’s only 10% of my income!”
“84 months? But I’ll only be making MORE money in the future!... Surely!”
“Depreciation? More like I sure APPRECIATE having a nice car!”
“Opportunity cost? What’s that? Me no care.”
“Loan? More like, I OWN a Caddy!”
"LJ909" (lj909)
12/18/2017 at 13:54, STARS: 0
It really is. Especially in person. But yea. Its about an old man and his shitty financial decision on said good looking car.
"Party-vi" (party-vi)
12/18/2017 at 13:55, STARS: 4
That’s what, 5.5%? A seven year loan at $919 makes me think you should probably just get something you can afford.
"LJ909" (lj909)
12/18/2017 at 13:55, STARS: 0
Because even though he makes good money, he got a shitty rate. And anything less than 84 months would have the payments be over a grand and then I think he would struggle to pay them.
"Chariotoflove" (chariotoflove)
12/18/2017 at 13:55, STARS: 3
If you need a loan that long, you can’t afford the car. If you don’t need a loan that long, but you choose it on purpose, you don’t deserve the car.
"CarsofFortLangley - Oppo Forever" (carsoffortlangley)
12/18/2017 at 13:57, STARS: 7
I like these posts. They make me feel better about my own financial decisions
"LJ909" (lj909)
12/18/2017 at 13:57, STARS: 2
Whats funny is this is exactly how some people, too many people think. Stupidity is all it is. All this does is put into perspective that most newer Cadillac’s are better used buys anyway. That same V Sport could be had with 27k on it for 31 grand for a 2014. I’ve seen them. But some people just HAVE to have a new car.
"LJ909" (lj909)
12/18/2017 at 13:58, STARS: 0
Exactly. But impulse buying trumps rationality when it comes to new cars.
"LJ909" (lj909)
12/18/2017 at 14:00, STARS: 1
Anyway you cut it, he had no business doing this. Whats weird is he should know better. His score is about 720 and all his payments on all his trades are on time. But then you look closer and realize hes just bad when it comes to cars: he has another car he paid off in 2010. $36,300 at $797 a month for 72 months.
"Chariotoflove" (chariotoflove)
12/18/2017 at 14:01, STARS: 0
Maybe he has a terminal disease and figures, “fuck ‘em”.
"benjrblant" (benjblant)
12/18/2017 at 14:01, STARS: 1
He could also have a ton of other expenses not mentioned here.
"LJ909" (lj909)
12/18/2017 at 14:02, STARS: 0
Im glad you do. I do them to put into perspective the highs that auto companies have been riding with record sales. A lot of those sales probably went to people that shouldn’t be driving the cars or should be into something cheaper. I also like to high light consumer stupidity and to always tell people know wtf you’re getting into before you sign. Dont let the sales manager and 2 sales people standing over you push you into signing.
"BeaterGT" (beatergt)
12/18/2017 at 14:03, STARS: 2
How do you struggle paying a grand when you bring in 8600 a month though? Not asking you specifically, just typing out loud. Well, I’m sure the dealer is happy, and Ally is probably happy too. If this guy is happy, oh well so be it.
"LJ909" (lj909)
12/18/2017 at 14:03, STARS: 1
Nah hes very much healthy and seems to be a Cadillac guy judging from his email address.
"LJ909" (lj909)
12/18/2017 at 14:05, STARS: 2
The very fact that hes one of our customers tells me everything I need to know. He’s applying for a personal loan of $2500. And hes about to get paid next week. Nothing makes sense.
"diplodicus" (diplodicus)
12/18/2017 at 14:06, STARS: 0
Ya but that doesn’t mean he needs to get a cadillac and finance it for 84mo
"Yowen - not necessarily not spaghetti and meatballs" (yowen)
12/18/2017 at 14:08, STARS: 0
While Ally isn’t what I’d consider a predatory lender, they aren’t much better in my book.
And while i think $900/mo is a crazy amount to spend on a car, with an income of $8600 a month it is affordable, I suppose... I wouldn’t recommend it, but it’s affordable. That’s purely based on the monthly amount, the 84 months is pretty much nuts. If he’s got a stable job and plans to hold on to the car for a long time, he’ll be okay. It WILL be under water.
"Highlander-Datsuns are Forever" (jamesbowland)
12/18/2017 at 14:10, STARS: 3
I sometimes wonder how certain people are driving really nice cars because I know how much income they have and how much these cars cost. Apparently they just make really bad financial decisions.
"Decay buys too many beaters" (decay)
12/18/2017 at 14:10, STARS: 1
Well, you assume 40% goes to taxes. Then we’re at 5160
Maybe the guy is making max contributions to a 401k plus some catch up, so 20% off the top, we’re now at 3440 useable take home
Maybe he has a mortgage, let’s guess low $1000/month, 2440
Additional incedentals, food, bills, insurance, etc, ~$1000
That leaves $1500
"jimz" (jimz)
12/18/2017 at 14:11, STARS: 2
probably has a bunch of other shit he financed. you know the type; decent house, new-ish car, in the garage is an ATV, snowmobile, boat, bike, etc.
and not a penny left over after bills/expenses.
"fintail" (fintail)
12/18/2017 at 14:11, STARS: 0
Leasing seems like a better deal, although if your credit sucks, it won’t happen for something like this.
Odds that he trades it before the loan is paid, and has negative equity?
"LJ909" (lj909)
12/18/2017 at 14:11, STARS: 0
They’re ok but not great. I’ve seen enough questionable auto loans through them to know to avoid them though. But at the same time I’ve seen some enticingly low rates.
"LJ909" (lj909)
12/18/2017 at 14:13, STARS: 3
I wonder this every single day. And I dont like to judge people, but I see too many of my fellow millennials in cars I know for a fact they either shouldn’t be in, are struggling to avoid, or just outright cant afford.
"benjrblant" (benjblant)
12/18/2017 at 14:13, STARS: 1
YOU TELL EM!
"Party-vi" (party-vi)
12/18/2017 at 14:15, STARS: 2
I’m sure I could afford to buy new, but I don’t want to spend all the money on it. My next car is going to be a couple years old and hopefully under $25k.
"WilliamsSW" (williamssw)
12/18/2017 at 14:16, STARS: 1
Actually for $64k, the car damn well better be the top trim level. Above is a Premium car advertised for $56k. Granted, it’s a 2016, but these are slooooooow movers.
And FFS, you can’t spend 7+ months of your annual income on a car!!
"LJ909" (lj909)
12/18/2017 at 14:20, STARS: 0
From his credit, my bet is that he keeps it and bites the bullet while making on time payments. He seems to be ok with getting bad car loans but paying them ontime until they are paid off. In the past 14 years, including this one hes had a total of 6 cars:
One opened July of ‘03 and closed January of ‘10
Another one opened Septemper of ‘05 and closed August of ‘10
Another Opened March of ‘09 and closed June of ‘10
Another one opened right after the last one was closed, June of ‘10 and closed January of this year
And another one opened September of ‘11 and closed March of this year.
He’s crazy.
"WilliamsSW" (williamssw)
12/18/2017 at 14:20, STARS: 3
Well I think we know where $919 of that $2,500 is going...
"LJ909" (lj909)
12/18/2017 at 14:21, STARS: 0
Thats the goal for me and my next car in a few months.
"WilliamsSW" (williamssw)
12/18/2017 at 14:21, STARS: 1
I’d bet this dude isn’t maxing out his 401k...
"WilliamsSW" (williamssw)
12/18/2017 at 14:22, STARS: 1
And you will be able to retire sooner than the Cadillac guy as a result.
"LJ909" (lj909)
12/18/2017 at 14:22, STARS: 1
Right? But it was a V Sport. Saw him pull up in it myself and had to sit here with him annoyingly brag about it as well in the office. But you’re right. These things dont move to the point you can either get a good deal on one that’s been sitting, like the one you linked to, or like I mentioned to someone else, but one used for 2 years old with under 30 thousand miles for 30 grand.
"Party-vi" (party-vi)
12/18/2017 at 14:23, STARS: 1
eeeeh maybe. I’m still not sure how that’s going to shake out.
"LJ909" (lj909)
12/18/2017 at 14:23, STARS: 1
Thats exactly what my supervisor said when he left.
"Decay buys too many beaters" (decay)
12/18/2017 at 14:26, STARS: 1
Oh I truly doubt he is, just putting out an example of how he would have to finance even if he handled money reasonably responsibly. In reality, I bet you replace that 401k contribution with some other random high interest debt and have a more accurate picture of the situation.
"WilliamsSW" (williamssw)
12/18/2017 at 14:26, STARS: 1
Yeah, the one I linked to is a V-sport, too - already $15k off of sticker and it’s still new!
And yep, you can cut that number in half on a 2014/15, they just take a little effort to find is all. I really like these and am considering one for my next car - but I sure as hell am not going to pay 64k or finance for 84 months!!
"WilliamsSW" (williamssw)
12/18/2017 at 14:27, STARS: 1
You never know, but this guy sounds like the type who will never retire.
And regardless, saving yourself 35k every 5-7 years will add up eventually.
"LJ909" (lj909)
12/18/2017 at 14:28, STARS: 1
I like the CTS period and I’m considering one too. A lowly 2.0 T but still its a great car. And for that 2.0 trim, they can be had under 20 grand if you can deal with 60 thousand miles.
"WilliamsSW" (williamssw)
12/18/2017 at 14:29, STARS: 1
I’ve driven every drivetrain in the CTS *except* that TTV6, and they’re all a lot of fun to drive.
"gmctavish needs more space" (gmctavish)
12/18/2017 at 14:31, STARS: 1
Holy fuck. I can’t imagine doing that kind of shit while making that kind of money. $8600 US a month would be amazing.
"WilliamsSW" (williamssw)
12/18/2017 at 14:38, STARS: 1
“misc. gambling expenses”
"Yowen - not necessarily not spaghetti and meatballs" (yowen)
12/18/2017 at 14:42, STARS: 0
yeah, my current auto loan is with them. It’d have to be a pretty damn tempting rate for me to want to get another loan with them. My main complaint is that they don’t have a mechanism in place to make additional payments to principle, it’s practically impossible.
"LJ909" (lj909)
12/18/2017 at 14:47, STARS: 1
Yea the chassis is excellent. Seeing how long they are in person you wouldnt think so but they can corner.
"LJ909" (lj909)
12/18/2017 at 14:47, STARS: 0
Most of the customers I have make excellent money. They are just exceptionally bad with money.
"Future next gen S2000 owner" (future-next-gen-s2000-owner)
12/18/2017 at 14:51, STARS: 0
V sports aren’t even a V though....... I confuse.
"ZHP Sparky, the 5th" (e30s2k)
12/18/2017 at 14:51, STARS: 1
Curious, is the $8,600 pre- or post-tax that you’re talking about? If pre-, this guy should be nowhere near a car that expensive. If post-, sure the expense is probably affordable given his budget but he is shit poor at making decisions and has just made a really horrible one paying way too much for a car for way too long.
"WilliamsSW" (williamssw)
12/18/2017 at 14:51, STARS: 1
Yes, they’re nicely balanced and don’t feel heavy relative to how big they actually are. Kinda like how BMW’s used to be (albeit heavier).
"LJ909" (lj909)
12/18/2017 at 14:52, STARS: 0
How can that be where they dont let you make additional payments to the principal? Is there some kind of fee in place or something?
"TheRealBicycleBuck" (therealbicyclebuck)
12/18/2017 at 14:55, STARS: 1
There are a couple of these running around my area whose owners have hot-rodded them with aftermarket exhaust and lumpy cams. They are loud. No, I mean LOUD. Like, cover my ears as they drive through the gas station loud.
Yeah, dude, I get it. You have a really loud car. No need to blip the throttle while I get some petrol.
One of them is black, the other white like the picture above.
"LJ909" (lj909)
12/18/2017 at 14:55, STARS: 0
If you honestly dont know what a V Sport is: its pretty much similar to Mercedes AMG Sport and Audi S Line trims, except that the CTS V Sport actually is show and some go unlike their all show and no go trims. It has a TT V6 putting out 420 horses.
"LJ909" (lj909)
12/18/2017 at 14:57, STARS: 0
He’s just made a horrible mistake of paying for a car he shouldnt be in and dealers just ran with him and looked at his gross. That $8600 is his gross. His net is a little under half that, about $4200 every 2 weeks.
"LJ909" (lj909)
12/18/2017 at 14:58, STARS: 1
The current CTS and ATS out BMW BMW now. Thats saying a lot. Sadly not many people care enough to notice.
"Future next gen S2000 owner" (future-next-gen-s2000-owner)
12/18/2017 at 14:59, STARS: 0
I know. I’m just amazed the CTS’s can command north of 60K without being a V.
"LJ909" (lj909)
12/18/2017 at 15:01, STARS: 0
I like loud. But not obnoxious loud where you blip the throttle going through parking garages and gas stations to be seen. These things can be seriously fast though besting first gen CTS-V numbers and coming close to stock second gen numbers. I bet they look sound good though when they aren’t loud.
"BeaterGT" (beatergt)
12/18/2017 at 15:02, STARS: 0
Unfortunately, I do know the type.
"LJ909" (lj909)
12/18/2017 at 15:03, STARS: 0
Yea its really easy. GO mess around with the build on their site. Once you hit the next trim up from the base, the Luxury trim, add on either the Carbon Black Package or the V Sport package and you’re already at nearly 50 grand. And thats before adding any interior options.
"BeaterGT" (beatergt)
12/18/2017 at 15:09, STARS: 0
$1500?! Should have got the V!
"Decay buys too many beaters" (decay)
12/18/2017 at 15:17, STARS: 1
Right!?!? such a waste :,(
"Yowen - not necessarily not spaghetti and meatballs" (yowen)
12/18/2017 at 15:18, STARS: 0
No there’s no fee, there just isn’t a good way of doing it.
"WilliamsSW" (williamssw)
12/18/2017 at 15:21, STARS: 2
No, and to prove your point, just look at BMW’s sales going through the roof despite the fact they’ve lost their way...
"gmctavish needs more space" (gmctavish)
12/18/2017 at 15:22, STARS: 1
That is impressive
"LJ909" (lj909)
12/18/2017 at 15:24, STARS: 1
Sounds like good ole bullshit to me. I wouldnt get financed with them.
"Yowen - not necessarily not spaghetti and meatballs" (yowen)
12/18/2017 at 15:30, STARS: 0
I online-chatted them about it and I called them as well, both at considerable expense of my time. I came to the conclusion that it just wasn’t really possible, not easily.
"LJ909" (lj909)
12/18/2017 at 15:32, STARS: 0
Which goes to show what kind of company they are. Its to keep making money off of you with all that interest. I would report them to the CFPB.
"TheRealBicycleBuck" (therealbicyclebuck)
12/18/2017 at 15:35, STARS: 1
I remember my first autocross. Some of the cars were so loud that I had to cover my ears. The most fascinating car there to me was a Buick Grand National. It wasn’t the fastest car there, but it was one of the quietest. It was kind of eerie watching it quietly go about whipping the best times of much louder cars. That was when I learned LOUD does not necessarily mean FAST.
As for the CTS-V, I agree that they look pretty sharp, but I like a car where I can see out the back window. I have to back my car several times a day and I’ve seen what it’s like to try to back a modern car with tiny little mirrors and a porthole for a back window when the backup camera stops working.
"Yowen - not necessarily not spaghetti and meatballs" (yowen)
12/18/2017 at 15:38, STARS: 0
Just for fun, I asked them again, this is their response:
In reference to your concern, you can always add extra amount on top of your monthly payment or make an additional payment each month. Please be advised that any extra amount you send is automatically applied to reduce your amount financed or principal and at the same time, it anticipates the next payment due.
To which I said:
So in other words, I can’t make a payment to JUST principle?
Ally:
Our apologies because we currently do not have the option for you to specify and make the payment towards the principal only. However, there is no need to call us each month, or indicate anything special on your payment. Each payment follows this process automatically, so you can just continue to make your payments as usual, including any extra amount you like.
"wafflesnfalafel" (wafflesnfalafel1)
12/18/2017 at 15:55, STARS: 1
58 yo... maybe some mid life crisis going on? Stupid financial move but maybe he really needs it... He should have just leased one.
"SilentButNotReallyDeadly...killed by G/O Media" (silentbutnotreallydeadly)
12/18/2017 at 16:01, STARS: 0
Maybe he’s terminally ill and a Caddy was on his bucket list? That’d be just about the only justification for a loan that mad...
"LJ909" (lj909)
12/18/2017 at 16:08, STARS: 0
What bullshit. So basically, anything you pay extra they can apply to either interest or principal as they see fit. I would refi and not look back. I have never seen something like that.
"Yowen - not necessarily not spaghetti and meatballs" (yowen)
12/18/2017 at 16:10, STARS: 1
I’m close enough to the point of being paid off that it wouldn’t make sense to refinance.
They went on to call it a missing option, or something like that, to which my response was: no, it’s a “conscious omission”.
I also made sure tell them I will not be a repeat customer because of this, and I certainly won’t recommend them to anyone.
"LJ909" (lj909)
12/18/2017 at 16:13, STARS: 0
Nah hes fine. Hes just dumb.
"LJ909" (lj909)
12/18/2017 at 16:16, STARS: 0
And I’ll be doing the same of not recommending them to anyone and pointing out this fact to anyone that currently has a loan out with them. This is one of those things companies like to conveniently not let consumers know about, then once the consumer finds out about it, you get a bullshit reason as to why its like that which really says tells you nothing. How can they keep you from paying down your principal? This is the same as pre payment penalties.
"Yowen - not necessarily not spaghetti and meatballs" (yowen)
12/18/2017 at 16:33, STARS: 1
Yeah, she said the only way to do it is to make an additional payment and then call them to specify that you want it applied to principle. That’s insane. The payment will first be applied how you DONT want it to be applied, then you have to call them and wait for someone to come on the line to then explain to them that you want your payment applied differently than you just made it.
"LJ909" (lj909)
12/18/2017 at 16:38, STARS: 0
And then you probably have to wait 2 payment cycles for that payment to be reflected on your principal. I dont get how no one has brought this up to me before.
"Yowen - not necessarily not spaghetti and meatballs" (yowen)
12/18/2017 at 16:41, STARS: 1
yeah, it’s quite a scam. I don’t have experience with a lot of auto lenders. But with my home loan for instance, it’s very easy to make a payment to principle. Same for when I had student loans.
"nermal" (nermal)
12/18/2017 at 16:53, STARS: 1
That works out to about 5.25% according to my math. So, not great, but not terrible either. He probably has decent credit, but not top tier. The dealer probably marked up the rate as much as possible as well.
Who knows what his personal financial situation is. He could be sitting on $100k+ in investments that make him > 20% return in the past year, in which case he’s better leaving the investments to grow and paying 5.25% on his Caddy.
"LJ909" (lj909)
12/18/2017 at 16:57, STARS: 0
Yea it could be way worse. But still. 84 months at 919 is no way to go about it. His score is above 700 though. I think about 715 and he has good payments on everything, but everything is all maxed out or at the limit. And like I said to someone else, hes just not good with money. Hes currently applying with us for a personal loan of $2500. Someone making well over 100k a year like him has no reason to be doing that.
"nermal" (nermal)
12/18/2017 at 17:04, STARS: 3
Yep, gotta take a loan out for those Christmas presents!
The way to become wealthy is to spend less than you earn. It doesn’t matter if you earn $25k or $250k, it how much you spend in relation to what you earn that’s important.
"fintail" (fintail)
12/18/2017 at 17:59, STARS: 2
Funny, so he has questionable impulse control, yet holds on to some cars for the long run. Oh well, as long as he pays the bills.
"dannyzabolotny" (dannyzabolotny)
12/18/2017 at 18:01, STARS: 2
Meanwhile I recently bought a RWD, V8, 6-speed manual sedan for $1500 cash. It’s got leather seats and plenty of nice amenities to make it a great daily. Cheers to not financing myself into a lifetime of debt!
"ranwhenparked" (ranwhenparked)
12/18/2017 at 21:10, STARS: 2
7 years is an absurdly long time to finance a car. I absolutely don’t understand who does that. 5 years is pushing it.
"ranwhenparked" (ranwhenparked)
12/18/2017 at 21:10, STARS: 0
7 years is an absurdly long time to finance a car. I absolutely don’t understand who does that. 5 years is pushing it.
"LJ909" (lj909)
12/18/2017 at 21:15, STARS: 0
Its the industry norm now. 72 and 84 months are what auto companies and other finance companies are pushing. Go on any build and price and when you get to the finance terms most automatically default to 72 months. Some weirdly will go 66 months. But no more 60.
"ranwhenparked" (ranwhenparked)
12/18/2017 at 21:19, STARS: 1
I had no idea, I was uncomfortable doing 4 years on my Challenger, since I had only done 3 years on my two previous cars, but it was the only way to make the math work and it didn’t seem like that bad of a stretch. Of course, I’m a year and a half in now, and the car’s got 37,000 miles, so you know there’s not going to be much residual left when the note’s paid off.
"gmporschenut also a fan of hondas" (gmporschenut)
12/19/2017 at 23:46, STARS: 0
it really is bonkers. I recently got a car and the default term was 72 months. “Uh thats longer than I was expecting” “what are you thinking?”
“uh 36 or 48 months, maybe 60 at the most”
I can’t comprehend pushing something that far out to 84 months. I’m going to do what I did with my last one and pay off early.
"gmporschenut also a fan of hondas" (gmporschenut)
12/19/2017 at 23:54, STARS: 0
there was a senior guy at work and people were gossiping about a guy in the office next door and the senior guy goes whats the big deal he got a truck. “Uh that truck is worth more than your lexus”