they are not going to check and see if shes changed insurance companies. its been done alot...
U guys suggesting he call the news channels are crazy. No local news station will touch that story with a 10 foot pole. Those lots spend too much on advertising with locak stations. Including Saturday am paid programming filling up entire slots. No local station is going to publish a story they know will financially hurt one of their advertisers.
If u want to do business crooked and not get found out just sponsor some chamber function join the bbb and spend money advertising in local media.
If u want to do business crooked and not get found out just sponsor some chamber function join the bbb and spend money advertising in local media.
She's bent. Over. Way over.
Tell her what she's done. Try to explain why she shouldn't have, and show her the numbers she should have been looking at for that car, and what her payments would have been at a normal price, with a normal interest rate. If this thing is going to wind up bad, end it now. The sooner it's over, the sooner she gets to start rebuilding her credit.
I'm gonna get flamed for this, but most poor people are poor because they are stupid. They do stupid stuff like this, and it winds up costing them loads of money that they would have been able to do other things with, like save, and then it just spools itself up into a financial whirlpool that drags all their available money down into a never ending bottomless pit of financial ruin. Pay too much for a ****** car, have to maintain same, car quits, can't get rid of it, still have payment, and have to dump more money into an even shittier car that runs, now have two payments, can't buy a tag, can't afford insurance, get a ticket for driving with an expired tag an no insurance, ****** car that runs gets towed, have to come up with butt load of money to get car out of jail, can't pay fines, license gets suspended, gets arrested for driving with a suspended license, car goes to jail again, payment on both cars is still due, loses job because went to jail and missed work, and was on probation at work because couldn't get to work because no reliable transportation, etc. etc. etc. All because they don't or won't use the brains that the good Lord gave them.
I know there are exceptions, but every abjectly poor person I've ever known was an idiot. If someone is down on their luck, and just caught a bad break or two, they'll eventually come out of it. You can't fix stupid, and they are gonna die poor. I'm sorry. I believe it's true. Do the girl a favor, educate her. That will help her more than bailing her out will, but you might have to do that as well, but don't enable her, just get her out of the hole, and tell her not to do that kinda stuff again unless she at least runs it by you first. We don't throw our kids into a swimming pool and hope they can swim. We watch over them until we are sure they can. She can still have her independence, she just needs someone to check her work from time to time to make sure she isn't swimming around with her face down in the pool, breathing water instead of air. It's okay, it doesn't mean we don't trust them, we just want them to make good decisions, and until she's proven she's capable, she needs to talk over BIG purchases with someone that has proven they know how to swim (with sharks).
Good luck to her, and you. You're a good guy for being concerned.
Tell her what she's done. Try to explain why she shouldn't have, and show her the numbers she should have been looking at for that car, and what her payments would have been at a normal price, with a normal interest rate. If this thing is going to wind up bad, end it now. The sooner it's over, the sooner she gets to start rebuilding her credit.
I'm gonna get flamed for this, but most poor people are poor because they are stupid. They do stupid stuff like this, and it winds up costing them loads of money that they would have been able to do other things with, like save, and then it just spools itself up into a financial whirlpool that drags all their available money down into a never ending bottomless pit of financial ruin. Pay too much for a ****** car, have to maintain same, car quits, can't get rid of it, still have payment, and have to dump more money into an even shittier car that runs, now have two payments, can't buy a tag, can't afford insurance, get a ticket for driving with an expired tag an no insurance, ****** car that runs gets towed, have to come up with butt load of money to get car out of jail, can't pay fines, license gets suspended, gets arrested for driving with a suspended license, car goes to jail again, payment on both cars is still due, loses job because went to jail and missed work, and was on probation at work because couldn't get to work because no reliable transportation, etc. etc. etc. All because they don't or won't use the brains that the good Lord gave them.
I know there are exceptions, but every abjectly poor person I've ever known was an idiot. If someone is down on their luck, and just caught a bad break or two, they'll eventually come out of it. You can't fix stupid, and they are gonna die poor. I'm sorry. I believe it's true. Do the girl a favor, educate her. That will help her more than bailing her out will, but you might have to do that as well, but don't enable her, just get her out of the hole, and tell her not to do that kinda stuff again unless she at least runs it by you first. We don't throw our kids into a swimming pool and hope they can swim. We watch over them until we are sure they can. She can still have her independence, she just needs someone to check her work from time to time to make sure she isn't swimming around with her face down in the pool, breathing water instead of air. It's okay, it doesn't mean we don't trust them, we just want them to make good decisions, and until she's proven she's capable, she needs to talk over BIG purchases with someone that has proven they know how to swim (with sharks).
Good luck to her, and you. You're a good guy for being concerned.
One thing you might be able to do is to take her car shopping with you. My parents always left me at home when they went, so I have been learning on my own. Teach her to purchase a vehicle on HER terms, and if she can't that, don't buy the car!
I hate to inform you of this, but I have a patent on all the mistakes I have made in my life, including this one. At least now I can collect the royalties of all those who keep making the same mistakes in life and did not learn from our own mistakes.
Special thanks to: BadgeBunny, cowzrul, Cards81fan, mapcon1941, OKfella, benjamin-benjamin, jakeman, BadgeBunny
Thanks everyone else for the replies too, even the negative ones. It actually helped. I was going to do some individual response, but this thread had way more replies than I expected and I am tired.
As I mentioned in my earlier followup... The problem with the high cost of insurance is that she is needing to get her own policy and she is a young driver. She does not have any accidents, she has at least one reportable ticket and a couple of others (speeding under 10, seat belt).
Right now, I want her legal(ish). I am adding her to my policy for a week or so while her and her mother figure out an insurance policy between them. I really like the self service that Progressive provides, I should have an insurance verification in my hand 5 minutes after I get started. I am still not sure if it is legitimate for me or her mother to add her and a car to our policy. I know it will work to "appear" legal, but I don't want the insurance companies denying a future claim. For me I am not too concerned as it will be real short term.
To anyone that mentioned refinance, this seems like a good idea, but as several people mentioned due to horrible price, she is way upside down and there won't be a way to get a reasonable loan even with a co-signer until there is a large chunk of cash brought to the table to pay down the loan.
Right now it looks like if we can manage to get the insurance down she at least has a half a chance of making it. But if she goes under, at least I will get some satisfaction that if she files bankruptcy that the dealer will take a hit.
We are going to run the paperwork by the lawyer just in case there is something useful to be done. I don't expect so, but it should be worth the effort. I still need to reread some parts of it.
I am not going to try to discuss with the dealer, because I am a horrible negotiator and I will more likely just get hot under the collar, start saying gibberish and have a heart attack. I may try to find someone to do it for me, any volunteers?
As far as having the car repo'd or voluntarily turning in the car and defaulting. I know how this goes especially for the carry-the-note lots... They will take possession of the car, sell it at auction to themselves for super low dollars, then it will be up for sale again, a little worse for wear but ready to hook the next fish. Then there is still the outstanding loan balance that they will attempt to collect via debt collector and garnishment. This a crappy solution as you have no control on how much value there will be in the car. Now if the plan is to declare bankruptcy, then defaulting is a perfect plan.
BTW, the vehicle does have remote deactivation and a GPS. Easy-peasy to repo. Hey, she signed the papers to agree to it.
Thanks everyone else for the replies too, even the negative ones. It actually helped. I was going to do some individual response, but this thread had way more replies than I expected and I am tired.
As I mentioned in my earlier followup... The problem with the high cost of insurance is that she is needing to get her own policy and she is a young driver. She does not have any accidents, she has at least one reportable ticket and a couple of others (speeding under 10, seat belt).
Right now, I want her legal(ish). I am adding her to my policy for a week or so while her and her mother figure out an insurance policy between them. I really like the self service that Progressive provides, I should have an insurance verification in my hand 5 minutes after I get started. I am still not sure if it is legitimate for me or her mother to add her and a car to our policy. I know it will work to "appear" legal, but I don't want the insurance companies denying a future claim. For me I am not too concerned as it will be real short term.
To anyone that mentioned refinance, this seems like a good idea, but as several people mentioned due to horrible price, she is way upside down and there won't be a way to get a reasonable loan even with a co-signer until there is a large chunk of cash brought to the table to pay down the loan.
Right now it looks like if we can manage to get the insurance down she at least has a half a chance of making it. But if she goes under, at least I will get some satisfaction that if she files bankruptcy that the dealer will take a hit.
We are going to run the paperwork by the lawyer just in case there is something useful to be done. I don't expect so, but it should be worth the effort. I still need to reread some parts of it.
I am not going to try to discuss with the dealer, because I am a horrible negotiator and I will more likely just get hot under the collar, start saying gibberish and have a heart attack. I may try to find someone to do it for me, any volunteers?
As far as having the car repo'd or voluntarily turning in the car and defaulting. I know how this goes especially for the carry-the-note lots... They will take possession of the car, sell it at auction to themselves for super low dollars, then it will be up for sale again, a little worse for wear but ready to hook the next fish. Then there is still the outstanding loan balance that they will attempt to collect via debt collector and garnishment. This a crappy solution as you have no control on how much value there will be in the car. Now if the plan is to declare bankruptcy, then defaulting is a perfect plan.
BTW, the vehicle does have remote deactivation and a GPS. Easy-peasy to repo. Hey, she signed the papers to agree to it.
Last thing to check - if keeping the car see if she has GAP or residual debt coverage. This pays (some or all) of the balance between the vehicle value and loan value if the car is totaled. You can get if from the dealer (who knows, she may have it), or buy a stand alone policy online (just google and start clicking around), or add it as an endorsement through your regular auto insurance policy.
I am usually not one to support buying a bunch of things for "what if" scenarios, particularly if she is cash strapped, but this will save her butt if the car is totaled and not leave her on the hook for the balance on a car she doesn't own. I'd consider this a necessity at this point.
For the record, I am an insurance adjuster and have dealt with total losses and salvage for 8 years now. I've dealt with literally thousands of car deals and financiers, good and bad. Just reminder her: It sucks, but it's just a car and her credit score. If she can keep fed, sheltered, safe, and clothed, she shouldn't sweat this small stuff. Just trudge through it.
I am usually not one to support buying a bunch of things for "what if" scenarios, particularly if she is cash strapped, but this will save her butt if the car is totaled and not leave her on the hook for the balance on a car she doesn't own. I'd consider this a necessity at this point.
For the record, I am an insurance adjuster and have dealt with total losses and salvage for 8 years now. I've dealt with literally thousands of car deals and financiers, good and bad. Just reminder her: It sucks, but it's just a car and her credit score. If she can keep fed, sheltered, safe, and clothed, she shouldn't sweat this small stuff. Just trudge through it.
Hey Slack, how did this turn out?
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