People make dumb car buying decisions.

"mazda616" (mazda616) 10/21/2016 at 21:42 • Filed to: Car loans

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And they inadvertently make me feel better about mine.

A friend of a friend recently bought a completely base model brand new 2017 Ford Escape. Why?

Well, he had a Kia Rio. The hatchback. Like this:

He decided he wanted a Scion xB, because he had one as a company car at a former job. So, he found one as a trade-in at the local Ford dealer. Test drove it, loved it.

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But...they couldn’t approve him. Why? Too much negative equity on the Kia. They couldn’t roll it over onto a loan for the Scion.

Instead, they said if he wanted anything, he’d have to buy new. So, he took the Kia’s negative equity and rolled it into the loan for this:

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Dude is starting out upside down on a totally base model Ford Escape, after being upside down on a Kia Rio for God knows how long.

Stresses me out just to think about it!

At least I feel less silly regarding my own car loan...

E90M3 > mazda616 10/21/2016 at 21:47

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I tired to pay $1k per month for this because reasons.

mazda616 > E90M3 10/21/2016 at 21:50

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Coincidentally enough, that’s more than my monthly mortgage.

DC3 LS, will be perpetually replacing cars until the end of time > mazda616 10/21/2016 at 21:52

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The absolute worst automotive purchasing decisions are made my new soldiers. They’re straight outta basic with lots of cash and no financial knowledge. I knew one guy, a few years ago, who bought a Dodge Avenger with 80,000mi on it. For $12k and over 20% interest.

This isn’t even the worst I’ve heard of by far. Just the worst I’ve know of first hand.

TheTurbochargedSquirrel > E90M3 10/21/2016 at 21:54

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But you are having fun. I don’t think you would be having much fun with an Escape.

DC3 LS, will be perpetually replacing cars until the end of time > TheTurbochargedSquirrel 10/21/2016 at 21:56

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He wouldn’t be having fun when it gets repoed though.

shop-teacher > DC3 LS, will be perpetually replacing cars until the end of time 10/21/2016 at 22:00

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My best friend is an officer in the army. When I visited him at Ft Bragg several years ago, I toured “The Lemon Lot” where soldiers were trying to unload whatever vehicle they blew their enlistment bonus on and couldn’t afford. It was a hell of a thing.

thebigbossyboss > mazda616 10/21/2016 at 22:05

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He should have just stuck with the Kia. I still can’t believe people roll over equity to other loans. I am gonna try like hell to avoid that. I owe about $10K on a 2012 Focus and about $18.5K on a 2010 Mustang though. I am not a good decision maker.

The Crazy Kanuck; RIP Oppositelock > thebigbossyboss 10/21/2016 at 22:33

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I carried over $1600 from my previous loan, could have been way worse.

Eric @ opposite-lock.com > mazda616 10/21/2016 at 22:35

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Insanity. People make such terrible financial decisions... I couldn’t fathom rolling negative equity between cars. That’s just digging your hole so deep you’ll never get out.

wafflesnfalafel > mazda616 10/21/2016 at 22:48

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“There’s a sucker born every minute”

Birddog > mazda616 10/21/2016 at 23:13

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Payment buyer.

I can’t judge. I’ve made mistakes too.

E90M3 > DC3 LS, will be perpetually replacing cars until the end of time 10/21/2016 at 23:14

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I could have easily afforded it

thebigbossyboss > The Crazy Kanuck; RIP Oppositelock 10/21/2016 at 23:16

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$1600 isn’t so bad. I mean, I guess I get it if you had an accident. It’s some of these guys who carry over $10K which worries me.

The Crazy Kanuck; RIP Oppositelock > thebigbossyboss 10/21/2016 at 23:21

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I traded it for car that had AC. I did not need to trade it, I just really wanted a Juke. Not my most smart decision.

thebigbossyboss > The Crazy Kanuck; RIP Oppositelock 10/21/2016 at 23:46

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My Mustang convertible has A/C. Why? It’s a convertible. LOOOL>

Stephenson Valve Gear > mazda616 10/21/2016 at 23:47

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In the late 90's a friend of mine traded vehicles once a month for 4 months in a row. The vehicle he ended up with was a used S-10 with a loan for about twice what it was worth, and for considerably more than what a new S-10 cost at that time. I was amazed that anyone would even loan that much money on it... the finance guy at the local dealer must have been a whiz at negative equity. Play stupid games, win stupid prizes...

The Crazy Kanuck; RIP Oppositelock > thebigbossyboss 10/21/2016 at 23:48

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Mine was a base model chevy hatch back, I called the cheap american sweat lodge.

Tristan > DC3 LS, will be perpetually replacing cars until the end of time 10/22/2016 at 00:22

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Knew a kid in Air Force tech school who bought a base model John Deere green V6 1999 Mustang (in 2007) with 130,000 miles for $12.9k with a 29% loan at one of those dealers in Wichita Falls, TX with the giant neon “E1 E2 E3 APPROVED!” signs out front.