Car finance nightmare

[Darkstar]

@jim

I’ve worked at quite a few dealerships and they love people like this girl. She probably did ZERO homework before she walked into the dealership, paid way more than invoice (and probbaly didn’t even know what the amount was), she probably didn’t have loan from her own bank lined up and she probably bought the overpriced rust-dust-fab package too. If she had a trade in, they made any value of it go away in the paperwork so she got owned big time. Worst yet, she doesn’t like the car any more and wants something completely different (flavor of the month car shopper).

Sadly, this stuff happens everyday.

Since she is so upside down, she’s going to have to keep the car until it’s paid off. No way should she try to get out from under it. Even though it’s a Mitsu (probably the worst Japanese car company there is) the thing will certainly last another 3 years and 100,000 miles provide she maintains the car properly. Once the car is paid for, she should have learned her lesson well enough to NOT buy another new car.

New cars/trucks are the worst investment a person can make. PERIOD. That goes double for young people (just out of school trying to pay bills, furnish an apartment and get a career on track) who should be saving towards a house which is the best investment a person can make. Unfortunately, young people are loathe to take advice from us older folks who have been there and done that so they end up making the same mistakes countless other people have. Most vehicles do down in value while most real estate goes up. You wouldn’t invest in a chronic loser stock, would you?

Another way of saying all that is that depreciation is a bitch so why not let some other fool take the hit and buy a 2 year old car that has leveled off in value? It’ll be new enough to be reliable but used enough to be affordable. Internet loans are all over for next to nothing if you have good credit and with the recent sales war by the big three there are crap loads of used cars out there for insanely low prices. Sure it’s not a new car but so what? Unless you’re so vain that you just HAVE to get the newest and hottest car out on the market that month any previously owned vehicle will be good enough.

If you care about this person you will advise her to tough it out and not make the same mistakes on her next vehicle.

i dont know who you are, but that was an exceptional post. I couldnt have said it better myself. :bigthumb:

[Pewter]

ask gray05 how he does it?

[JDMCivicSm21]

Great post Jim. Described new car sales from the sellers point perfectly. We have on several occasions actually talked people outta of buying cars here in similiar sitiuations.

I will say it again New cars are the worst investment you can make. In almost all cases car depreciate huge amounts in the first couples years(although some hondas in recent time were worth more after they were sold new IE 99-00 Si actually went up in value as did first year S2000s) . Those are rare instantences.

[Old_Dirty_Georg]

@SMort38

was this one of those mitsubishi no payments for one year deals? those people were upside down instantly.

There it is. It probably was. A buddy of mine did the same thing and now realized he does not like his car. He’s too upside down in it, but every now and again he starts thinking and I have to remind him about the situation he is in.

From what I can remember, it’s a 6 year loan that you make 5 years worth of payments on so the payments are kind of high once they start. I think it was 0 down and 0 percent?!?!

[SVshine03]

@Darkstar

i dont know who you are, but that was an exceptional post. I couldnt have said it better myself. :bigthumb:

x2

[Pewter]

@SVshine03

x2

x pics

[77rednecktruck]

@PewterSS

x pics

[imported_jim]

i dont know who you are, but that was an exceptional post. I couldnt have said it better myself.

I’m a chronic lurker who isn’t into post whoring and telling people or their cars suck which makes me unlike 90% of the people on this board. I do have boatloads of car experience at dealerships, parts stores and the like and have owned many racecars in the past that have ranged from 11 second daily driven Mustangs to open wheel formula cars.

[77rednecktruck]

@jim

I’m a chronic lurker who isn’t into post whoring and telling people or their cars suck which makes me unlike 90% of the people on this board. I do have boatloads of car experience at dealerships, parts stores and the like and have owned many racecars in the past that have ranged from 11 second daily driven Mustangs to open wheel formula cars.

your cars all suck :booty:

:D:D:D:D

where do you live in Whitehall, I grew up in Whitehall by South Hills Country Club?

[2toneishot]

wreck it into a telephone pole and collect the insurance or my favorite…get rearended by a state trooper and have insurance pay off the loan. all else fails have it stolen…

[imported_jim]

@77rednecktruck

your cars all suck :booty:

:D:D:D:D

where do you live in Whitehall, I grew up in Whitehall by South Hills Country Club?

I live almost within sight of Cool Springs, just off Baptist road.

wreck it into a telephone pole and collect the insurance or my favorite…get rearended by a state trooper and have insurance pay off the loan. all else fails have it stolen…

I could be wrong but doesn’t insurance just pay for the book value and not the loan value? Otherwise you’d have shady people “selling” each other cars at inflated prices and having “accidents” to make money. If I’m wrong, then I think I’ve just hit upon a great money making scheme.

[slowcamaro]

i lived a few doors down from the cotrahans off prospect rd till i moved to the north hills

[SVshine03]

@PewterSS

x pics

:booty: lol

[Pewter]

@SVshine03

:booty: lol

now urs! :naughty:

[SVshine03]

@PewterSS

now urs! :naughty:

Do you have to whore up every thread with pic requests? HAHA

[Pewter]

@SVshine03

Do you have to whore up every thread with pic requests? HAHA

yup,till u post’em!!!

[2toneishot]

@jim

I live almost within sight of Cool Springs, just off Baptist road.

I could be wrong but doesn’t insurance just pay for the book value and not the loan value? Otherwise you’d have shady people “selling” each other cars at inflated prices and having “accidents” to make money. If I’m wrong, then I think I’ve just hit upon a great money making scheme.

well you probably have to justify the price…ie blue book. aftermarket parts etc. but i could be wrong as well who knows.

[newchic]

@Darkstar

an Eclipse wont last to 6 years old? Even if she puts another 75K on it? :ugh:

I had an Eclipse that was 10 years old… 180,000 miles and it ran great… Sold it for $100 bucks to someone else.