$1,000,000,000,000 in Auto DEBT

S2000_guy

Veteran Member
Joined
Sep 4, 2013
Location
ohio
TDI
2014 Sportwagen TDI
A young female friend of mine just got herself into a predatory loan on a 2017 Jeep Patriot. She has no credit history and doesn't really have a concept of financing or banking. Unfortunately, she decided to replace her aging Explorer with a brand new vehicle rather than consulting with anyone about what the best course of action was. She went down to the Jeep dealer and signed her life away on what is one of the worst loans I've ever seen. $600/month for 72 months at 27% APR. :eek: She's going to end up paying $43,000 for that turd if they don't repossess it first. She's also going to be so upside-down that she'll never be able to get rid of it. It's frustrating.

Oh - to add insult to injury, they talked her into a $2,200 maintenance plan that covers oil changes and tire rotations for 2 years or 24,000 miles. :eek:
There's an old saying to the effect that when someone with money meets someone with experience, the usual result is the the person with money gains experience and the person with experience gains money.

Check the consumer laws in your state. Ohio has a three-day "cooling off" period on new car purchases during which the deal can be unwound. It's possible that some other states have similar laws.
 

S2000_guy

Veteran Member
Joined
Sep 4, 2013
Location
ohio
TDI
2014 Sportwagen TDI
And he didn't have to lose his ass either. I was in tech mutual funds in '00 when the market crashed. I was back to par within 18 months, IIRC.
Correct: I "lost my shirt" on paper during the 2008 crash; today I'm much better off than I was in 2007 without doing anything but waiting. (DOW average went from 14k to about 7k to over 20k.)
 

2015vwgolfdiesel

Top Post Dawg
Joined
Jan 1, 2016
Location
Oklahoma
TDI
2015 VW Golf S DSG Silver
Correct: I "lost my shirt" on paper during the 2008 crash; today I'm much better off than I was in 2007 without doing anything but waiting. (DOW average went from 14k to about 7k to over 20k.)
21,800+

12 straight days up

More to come ~~ hope
 

IndigoBlueWagon

TDIClub Enthusiast, Principal IDParts, Vendor , w/
Joined
Aug 16, 2004
Location
South of Boston
TDI
'97 Passat, '99.5 Golf, '02 Jetta Wagon, '15 GSW
Bottom in the most recent recession was in '09. Pretty significant correction (more than 10%) in 2015. But a pretty solid upward trend since '09 otherwise.
 

2015vwgolfdiesel

Top Post Dawg
Joined
Jan 1, 2016
Location
Oklahoma
TDI
2015 VW Golf S DSG Silver
INFO via Commodity Charts ~~ DOW

DOW

From the (DOW) low at election (time) = 17,360

To resent (DOW) high = 20,834

Gain APPROX 220 points per week:D
 

VeeDubTDI

Wanderluster, Traveler, TDIClub Enthusiast
Joined
Jul 2, 2000
Location
Springfield, VA
TDI
‘18 Tesla Model 3D+, ‘14 Cadillac ELR, ‘13 Fiat 500e
There's an old saying to the effect that when someone with money meets someone with experience, the usual result is the the person with money gains experience and the person with experience gains money.

Check the consumer laws in your state. Ohio has a three-day "cooling off" period on new car purchases during which the deal can be unwound. It's possible that some other states have similar laws.
Virginia has no such law. At this point, her only option is to sell it and recover as much money as she can to pay down the loan balance. Unfortunately, I don't think this is an option that she is going to consider.
 

S2000_guy

Veteran Member
Joined
Sep 4, 2013
Location
ohio
TDI
2014 Sportwagen TDI
We can only hope she learns a lesson and doesn't repeat this fiasco; unfortunately, not everyone is intelligent enough to learn this lesson. Some repeat it ad infinitum.
 

VeeDubTDI

Wanderluster, Traveler, TDIClub Enthusiast
Joined
Jul 2, 2000
Location
Springfield, VA
TDI
‘18 Tesla Model 3D+, ‘14 Cadillac ELR, ‘13 Fiat 500e
We can only hope she learns a lesson and doesn't repeat this fiasco; unfortunately, not everyone is intelligent enough to learn this lesson. Some repeat it ad infinitum.
Unfortunately, she decided to learn it on a big car loan rather than a little credit card. We'll see - I've known her for a while and I don't have high hopes for lesson-learning. :eek:
 

S2000_guy

Veteran Member
Joined
Sep 4, 2013
Location
ohio
TDI
2014 Sportwagen TDI
Unfortunately, she decided to learn it on a big car loan rather than a little credit card. We'll see - I've known her for a while and I don't have high hopes for lesson-learning. :eek:
Well, at a certain level you have to accept that (her) decisions have consequences. That's part of a free society: some people choose to screw up. It's their right as Americans to make their own decisions and live with the consequences.
 

2015vwgolfdiesel

Top Post Dawg
Joined
Jan 1, 2016
Location
Oklahoma
TDI
2015 VW Golf S DSG Silver
Well, at a certain level you have to accept that (her) decisions have consequences. That's part of a free society: some people choose to screw up. It's their right as Americans to make their own decisions and live with the consequences.


Her screw ups effect her ~~ yes ~~ and you ~~ and us

...... when (if) she BK(s) it effects all.

Nothing is free

BK(s) are a little like shop lifting ~~ People who DO pay ~~ pay more.
 

VeeDubTDI

Wanderluster, Traveler, TDIClub Enthusiast
Joined
Jul 2, 2000
Location
Springfield, VA
TDI
‘18 Tesla Model 3D+, ‘14 Cadillac ELR, ‘13 Fiat 500e
Why can't she get the loan refinanced, just lack of credit?
I'm sure she can - at some point when her creditworthiness is at a point that it allows her to. Right now, this is literally the only thing on her credit history, so the chances of being able to refinance right now are slim to none.
 

pkhoury

That guy with the goats
Joined
Nov 30, 2010
Location
Medina, TX
TDI
2013 JSW, 2003 Jetta Ute, 2 x 2002 Golf, 2000 Golf
A young female friend of mine just got herself into a predatory loan on a 2017 Jeep Patriot. She has no credit history and doesn't really have a concept of financing or banking. Unfortunately, she decided to replace her aging Explorer with a brand new vehicle rather than consulting with anyone about what the best course of action was. She went down to the Jeep dealer and signed her life away on what is one of the worst loans I've ever seen. $600/month for 72 months at 27% APR. :eek: She's going to end up paying $43,000 for that turd if they don't repossess it first. She's also going to be so upside-down that she'll never be able to get rid of it. It's frustrating.

Oh - to add insult to injury, they talked her into a $2,200 maintenance plan that covers oil changes and tire rotations for 2 years or 24,000 miles. :eek:
Oh f***! I thought I was bad when I bought my Prius. Similar payments, 13% APR, but I also paid it off in full a few years early and was never upside down. VW rewarded me with 1.9% APR when I bought my Mk6. And those FIAT engines/transmissions in the new Jeeps are crap. PURE CRAP! Had one as a rental - got a CEL and turned out it was a transmission fatal fault. Glad the Jeep's engine shut off when I was on my street/driveway and not on the highway.
 

pkhoury

That guy with the goats
Joined
Nov 30, 2010
Location
Medina, TX
TDI
2013 JSW, 2003 Jetta Ute, 2 x 2002 Golf, 2000 Golf
I'm sure she can - at some point when her creditworthiness is at a point that it allows her to. Right now, this is literally the only thing on her credit history, so the chances of being able to refinance right now are slim to none.
If she can scrape together enough money, tell her to get a secured card, ideally from a reputable company like Capital One or her bank. $300, spend $100 each month on fuel and pay in full. After about 6 months, she might have a good shot to refi and potentially cut the interest rate down to under 15%. Many many years ago, I started out with a $500 secured card and ultimately ended up with over $80K LOC a few years later.
 

turbobrick240

Top Post Dawg
Joined
Nov 18, 2014
Location
maine
TDI
2011 vw golf tdi(gone to greener pastures), 2001 ford f250 powerstroke
A young female friend of mine just got herself into a predatory loan on a 2017 Jeep Patriot. She has no credit history and doesn't really have a concept of financing or banking. Unfortunately, she decided to replace her aging Explorer with a brand new vehicle rather than consulting with anyone about what the best course of action was. She went down to the Jeep dealer and signed her life away on what is one of the worst loans I've ever seen. $600/month for 72 months at 27% APR. :eek: She's going to end up paying $43,000 for that turd if they don't repossess it first. She's also going to be so upside-down that she'll never be able to get rid of it. It's frustrating.

Oh - to add insult to injury, they talked her into a $2,200 maintenance plan that covers oil changes and tire rotations for 2 years or 24,000 miles. :eek:
Ouch. That sounds like a case file on predatory loans. I agree she should sell that thing asap, and get something like a decent economy car.
 

FordGuy100

Veteran Member
Joined
Apr 13, 2011
Location
Silverton, OR
TDI
2004 Jetta TDI
Amex use to backdate if you added a authorized user to your Amex. So if you have had one since the 80's, and you added someone as an authorized user, it would magically show up on their credit as them opening it up back in the 80's. They might still do this.
 

Jetta SS

Veteran Member
Joined
Oct 30, 2006
Location
Grand Bay, AL
TDI
'98 Jetta
Amex use to backdate if you added a authorized user to your Amex. So if you have had one since the 80's, and you added someone as an authorized user, it would magically show up on their credit as them opening it up back in the 80's. They might still do this.
I've read of there being companies that will pay you to add someone as an authorized user to a CC to boost their credit. Good idea.
 

2015vwgolfdiesel

Top Post Dawg
Joined
Jan 1, 2016
Location
Oklahoma
TDI
2015 VW Golf S DSG Silver
Ouch. That sounds like a case file on predatory loans. I agree she should sell that thing asap, and get something like a decent economy car.
predatory loans exist because some one is soooooo horrible in their pass pay records. Their FICO is in the tank

Personally I would loan her a dollar with a $5 bill as collateral ~~ not worth the hassle
 

VeeDubTDI

Wanderluster, Traveler, TDIClub Enthusiast
Joined
Jul 2, 2000
Location
Springfield, VA
TDI
‘18 Tesla Model 3D+, ‘14 Cadillac ELR, ‘13 Fiat 500e
If she can scrape together enough money, tell her to get a secured card, ideally from a reputable company like Capital One or her bank. $300, spend $100 each month on fuel and pay in full. After about 6 months, she might have a good shot to refi and potentially cut the interest rate down to under 15%. Many many years ago, I started out with a $500 secured card and ultimately ended up with over $80K LOC a few years later.
Yep - that's what I did after I screwed up my credit back in the mid-2000s. Credit score is knocking on 800 now.
 

VeeDubTDI

Wanderluster, Traveler, TDIClub Enthusiast
Joined
Jul 2, 2000
Location
Springfield, VA
TDI
‘18 Tesla Model 3D+, ‘14 Cadillac ELR, ‘13 Fiat 500e
Thanks. Just trying to do the right thing. :)
 

DSL HED

Veteran Member
Joined
Aug 14, 1999
Location
S. Portland, Maine
TDI
2012 Jetta wagon DSG
This is why I'm holding on to my wagon until the end of 2018. My credit is currently over 800 and I don't want another car payment. Might as well wring as much life out of the TDI as I can.

Some people unfortunately don't get educated on money at home or at school and they pay the price for it when they're thrown out into the real world through ridiculous interest rates. I hope the Jeep buying friend is able to get out of that 27% loan insanity.
 

2015vwgolfdiesel

Top Post Dawg
Joined
Jan 1, 2016
Location
Oklahoma
TDI
2015 VW Golf S DSG Silver
NOW $1,000,000,000,000 in Credit Card Debt

... and Credit Card debt is a garbage debt.

... nothing to repo

... hang on to your self
 

dhangejr

Veteran Member
Joined
Mar 1, 2017
Location
PNW is my home
TDI
mk4 Jetta
This is the American way...it you think giving people the power to spend 90% more than their income is like a certain socialism, which allows people to live outside their means.
It allows us to compete (as Thomas Hobbes might suggest) and in turn this allows marketing to compete. Then many people feel compelled to get a new car despite the insane cost.besides if you default they will sell you another in high interest...gotta do what ya gotta do?
People are like ants running around all doing the same thing without realizing it. Self included. People fall victim to marketing and do things they probably should know in a probably should but they get caught up in this power struggle social competition if you will. Man, if I had money I would be on the Internet right now.
Finally, I always pondered what if everybody were to not pay the banks for one month?
I mean the people deserve their bill that money back right? Haha I realize it's not that simple.
 

2015vwgolfdiesel

Top Post Dawg
Joined
Jan 1, 2016
Location
Oklahoma
TDI
2015 VW Golf S DSG Silver
This is the American way...it you think giving people the power to spend 90% more than their income is like a certain socialism, which allows people to live outside their means.


It allows us to compete (as Thomas Hobbes might suggest) and in turn this allows marketing to compete. Then many people feel compelled to get a new car despite the insane cost.

besides if you default they will sell you another in high inerest...gotta do what ya gotta do?


People are like ants running around all doing the same thing without realizing it. Self included. People fall victim to marketing and do things they probably should know in a probably should but they get caught up in this power struggle social competition if you will.

Man, if I had money I would be on the Internet right now.
Finally, I always pondered what if everybody were to not pay the banks for one month?
Default?

When your FICO is in the can ~~ you do not get another car (always)
 
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