Underwater on a car loan (1 Viewer)

[ren hoek]

3.99 is not a bad rate for a 75 month note, especially 2.5 years ago.  

Unless I am reading this wrong and there is a sexual undertone to explain how she got such a low interest rate for that long.

I feel like she was just taken advantage of in a way. The interest rate really isn't that bad.  But she could have easily bought something equally serviceable for way cheaper than a $22 thousand dollar grocery gator.  

 

[worrierking]

she is probably paying $30-$50 monthly on GAP insurance.  Another reason never to go upside down.

 

[chet]

Chet even bothering to talk used cars.  I like it...

I only buy used.

eta:  I may make an exception to that rule in the next year or so if I get offered something special.

 

[Nugget]

she is probably paying $30-$50 monthly on GAP insurance.  Another reason never to go upside down.

So you think GAP insurance was sold at 2k-3k. Why?  Where did you get that number?

 

[cstu]

I feel like she was just taken advantage of in a way. The interest rate really isn't that bad.  But she could have easily bought something equally serviceable for way cheaper than a $22 thousand dollar grocery gator.  

But those are pretty cool.

 

[worrierking]

So you think GAP insurance was sold at 2k-3k. Why?  Where did you get that number?

That's based on what I have seen other people pay when they get it from the dealership. It's less when you go through private financing. Is that number too high?

 

[culdeus]

That's based on what I have seen other people pay when they get it from the dealership. It's less when you go through private financing. Is that number too high?

Yeah, that's high unless they really jack the rate on a long note.

 

[dickey moe]

$18k for a 2011 Hyundai? Holy ####

 

[Rattle and Hum]

That's based on what I have seen other people pay when they get it from the dealership. It's less when you go through private financing. Is that number too high?

Wait, dealers are allowed to sell a car for way more than market value and then profit more by selling you "gap" insurance? I didn't know that was a thing. That's like an insurance agent with aids screwing you and then selling you over-priced cancer insurance.

 

[Juxtatarot]

That's based on what I have seen other people pay when they get it from the dealership. It's less when you go through private financing. Is that number too high?

I usually see GAP sold at a dealership around $500 to $800. (Cost to the dealership is probably around $200.)

 

[Doctor Detroit]

Wait, dealers are allowed to sell a car for way more than market value and then profit more by selling you "gap" insurance? I didn't know that was a thing. That's like an insurance agent with aids screwing you and then selling you over-priced cancer insurance.

Well that's a creative analogy. 

 

[cstu]

$18k for a 2011 Hyundai? Holy ####

Hope it's the fully loaded Limited.  Either way, pay it off and drive it for 10 years.

 

[Nugget]

I feel like she was just taken advantage of in a way. The interest rate really isn't that bad.  But she could have easily bought something equally serviceable for way cheaper than a $22 thousand dollar grocery gator.  

I don't think the dealership can win here. Would you prefer they not sell cars to young women?  "Honey, even though you qualify, we just don't think this is how you should spend your money.  Maybe you should look at a 6 year old used car instead."  Do you want car salesman telling you that your choices are unwise?  I don't see the guy at best buy asking if you can really afford the 80" TV.

 

[Otis]

I suggest she make good on her promise and pay her debt. 

 

[Vanilla Guerrilla]

I would rather owe $12,000 on a 3 year old car with 26K miles, than owe $5,000 on a 14 year old car with 220K miles on it.

 

[The Z Machine]

Either change your insurance and then leave the keys in the car with the windows rolled down in a bad neighborhood, or live with the car until the wheels fall off.

 

[Brownsfan]

You can get gap insurance from your auto insurer for less than $100 a year

 

[Nugget]

Do you have a copy of the contract and what you bought?   If you sold the car, you may get some money back on any service contracts or insurance policies on the vehicle. Plus, the payoff on the loan is less than the sum of the remaining payments.  You would still need to write a large check to make this go away, but you may have a better idea of where you stand.