i like the title, car dealer ripoff!!!
Take it back? Will one thing is certain, she will need a vehicle and she will need to establish credit. Expensive lesson, but if she gets and extra job and deals with it, it will be a lesson not soon forgotten. Don't become and ATM.
+1
Buy her a copy of the Total Money Makeover if you think she'll read it, and if you think she won't then explain some of the concepts it contains yourself.
So ... first time one of your kids screws up you are just gonna abandon them??
I worked for bankruptcy attorneys, a bankruptcy trustee and the bankruptcy division of the Oklahoma Tax Commission. Not only will bankruptcy NOT ruin her life, it is no worse and sometimes a much better option than the other alternatives out there. I've known people who have bought homes while still in bankruptcy. I've known people who've gotten rid of clunker cars that some low-life dealer charged them way too much for and gotten a decent vehicle that could get them back and forth to work so they could pay their bills and keep a roof over their head while in bankruptcy. I've seen folks learn from their mistakes and go on to be better able to cope with their finances after bankruptcy. Not everyone who files for bankruptcy is abusing the system, though I saw plenty of that too. Not from folks like this girl, mind you, but from college educated doctors, lawyers, engineer, politicians, drug dealers, architects, etc. who knew better and had plenty of money but were gaming the system.
See, here's the deal. Folks screw up. Folks get screwed over by other folks. She got screwed over by both the car dealer and the insurance agent. That screwing has made it impossible for manage her financial situation without help. Now, I'm not saying two wrongs (or 4 or 5) make a right but I am saying that bankruptcy is not always the wrong thing to do.
Of course, some of you folks who are a tad bit more judgemental than I am will see it differently. Way of the world, sir.
+1 for personal accountability. We see gun stores all the time that have 600 glocks 400 lcps, we laugh and go get a good deal at sooner state pawn. You cant blame the dealer here, maybe it is a bit unethical, but it is up to the individual to educate themselves. This had to be a buy here pay here lot. Most banks will only lend 100% nada retail or 120% wholesale. Clean retail on that car is around 8. And that is guessing it is the top of the line spectra.
Oklahoma has a 3 day cool down period if you are within that period you can take it back no questions asked. If it is outside of that window you are screwed. You can either have it repoed take a hit on credit. Or finda way to make it work. Either way this will be a life lesson.
Advice to you, NEVER EVER consign for her or anyone else for that matter. I used to be a finance guy at a ford store, you would not believe the horror stories that came through that I could not get financed because a deal went bad. A lady consigned a loan for her son who later broke his back could not work so he could not afford the payment. She could not afford to float him so a repo showed on her report. She wasted years of perfect credit on that deal, I got her approved but it was at 13% apr. had it not been for the repo she would have been an 800 credit score. It's called life, things happen, job loss, injury, feuds, and you do not want someone's troubles to mess with your financial security. Another guy came in wanting to buy a car for his wife. He had his truck financed, and he also was a consigner on his sons jeep. His son was making the payments and was in good standing, however, when you consign a loan it shows up on the report as your loan. When you apply for the loan, the loan officer considers your obligations when determining your eligilibility. Cc debt, car payments, mortgage / rent. So when they take into account a $450 truck payment a $400 jeep payment and they are wanting to add a $450 car payment. Even though they were not making the payment their credit was extended as if they were and a majority of the banks declined them or required them to trade in one of the vehicles which of course was not on the table. I found a bank to finance them but it was at a higher rate than what they should have received based off their report... Lend money not credit
Oklahoma has a 3 day cool down period if you are within that period you can take it back no questions asked. If it is outside of that window you are screwed. You can either have it repoed take a hit on credit. Or finda way to make it work. Either way this will be a life lesson.
Advice to you, NEVER EVER consign for her or anyone else for that matter. I used to be a finance guy at a ford store, you would not believe the horror stories that came through that I could not get financed because a deal went bad. A lady consigned a loan for her son who later broke his back could not work so he could not afford the payment. She could not afford to float him so a repo showed on her report. She wasted years of perfect credit on that deal, I got her approved but it was at 13% apr. had it not been for the repo she would have been an 800 credit score. It's called life, things happen, job loss, injury, feuds, and you do not want someone's troubles to mess with your financial security. Another guy came in wanting to buy a car for his wife. He had his truck financed, and he also was a consigner on his sons jeep. His son was making the payments and was in good standing, however, when you consign a loan it shows up on the report as your loan. When you apply for the loan, the loan officer considers your obligations when determining your eligilibility. Cc debt, car payments, mortgage / rent. So when they take into account a $450 truck payment a $400 jeep payment and they are wanting to add a $450 car payment. Even though they were not making the payment their credit was extended as if they were and a majority of the banks declined them or required them to trade in one of the vehicles which of course was not on the table. I found a bank to finance them but it was at a higher rate than what they should have received based off their report... Lend money not credit
sorry no sympathy, she was aware of her payments before she signed anything, if she considered herself enough of an adult to go and buy a car, she should have known her budget and had insurance quotes etc already. She's going to learn a lesson one way or another. It sounds like she had no credit to begin with, so every other option besides paying for the car, will leave her in a bad situation for a long time.
I was told that was a myth. Do you have any more information on this?
Car salesmen are typically trained to sell you a car based on "why kind of payment can you afford a month". Extra expenses like insurance and gas are not readily apparent to a younger, inexperienced buyer. In that scenerio, the total cost of the car with financing is not even mentioned. If you want to drive salesmen crazy, tell them you are going to finance through your own lender, and need the lowest cash price. It throws a curveball in their "pitch". Also, when they say they are going to talk it over with the manager, but are really just out back smoking, find him/her and ask "what did he say?" Good luck on the tough-love decision.
What ever you do, don't ever co-sign for any loan you that are not prepared to assume yourself. Go into it from the get-go believing you will have to assume the payments. Was this a bank loan, dealer 'in-house' financing, or other? How long has she had possession of the vehicle?
If it was dealer 'in-house' financing... where the dealer carries the loan... you might just take it back and negotiate letting her return the car and walk away loosing all she has already paid on it. Some of these dealerships with in-house financing like for peope to default on the loan so they can get the car back & then resell it to another victim.
It might be benificial for you to take the loan papers to a attorney and let him / her read them.. you might have a escape you don't know about. Some Atty's don't charge a lot for a initial consultation.
If it was dealer 'in-house' financing... where the dealer carries the loan... you might just take it back and negotiate letting her return the car and walk away loosing all she has already paid on it. Some of these dealerships with in-house financing like for peope to default on the loan so they can get the car back & then resell it to another victim.
It might be benificial for you to take the loan papers to a attorney and let him / her read them.. you might have a escape you don't know about. Some Atty's don't charge a lot for a initial consultation.
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