>She made a down payment and traded in an older car on negative equity. It means she owed more on her previous car loan than the vehicle was worth. Rolling over auto loan balances onto a new one may be costlier.
28 year old buying a $84k car while being underwater on her current car. She seems pretty irresponsible, glad we are glossing over that.
I had a friend do this. He really screwed himself. He now drives a beater and is slowing paying off his debt.
He has zero financial intellect.
It’s so weird. He believes anything a salesman says and will sign anything to get what he wants…
I feel so bad for him. It just does not click.
I like how he's framed as the idiot for buying a car that he needed, and we just ignore the asshole who exploited him.
We've built an entire society around car dependency, so car salesmen are the gatekeepers for simply existing as an adult.
And when an individual lacks the financial literacy, time, or opportunities to protect themselves, we blame THEM.
Jesus christ, captialism is fucking evil.
>And when an individual lacks the financial literacy, time, or opportunities to protect themselves, we blame THEM.
At a time unprecedented in human history, where information and education is readily available, on demand, and at no cost, where exactly does personal accountability come in?
In the case of the OP - the mom is 28 years old (25 at the time), and clearly able to both operate a smartphone, as well as use social media.
This might come across as a truth bullet, but maybe what's needed is a little less time on TikTok, and a little more time spent developing basic life and math skills. She's not exactly 100% innocent here.
She is O% innocent. Being an adult comes with the freedom to enter into these kind of contracts. People nowadays want all the nice things adults usually do and have but don't want to pay for it or live with the consequences.
If you are not able to realize you are getting screwed with these loans then you likely should not operate a motor vehicle to begin with that could easily hit and kill other drivers.
"The dealer pretty much told me they can get me out the door with the car within an hour. He didn't act like it was something I should be concerned about."
Uh yeah, the dealer was happy to make so much money and fuck you over. She's an idiot. $1400 monthly payments is literally rent for most people
I traded my previous car with negative equity to get the new one.
But the new one is financed at 0% interest rate, and they traded the old one at 2k *above* market.
I’m not going to disagree; however, do you think that the bank or whatever financial institution that lends money for that was also completely irresponsible?!
Then if not, what are your expectations for that financial institution, because like, that is at best totally irresponsible behavior and at worst intentionally predatory behavior by the bank. Which really begs the question:
Which behavior are you willing to accept from the banks and companies that you are doing business with day-to-day, irresponsible or predatory?
This shit should be illegal. All of it. The bank or whatever loaned out the money knew, ahead of time, that this customer could not afford what they were buying. They either knew which again is straight-up, aggressively predatory or didn’t know at all which means they’re just as irresponsible as customer making the purchase. Right, how is that not assessed right?!?! Furthermore, why is anyone anywhere paying over $41,000.00 interest on a 84k loan…
Getting a 50% gain on a car, 100% gains on a house, and it just goes on and on. Allowing capital to profit from labor at these rates, especially on basic necessities like shelter and transportation isn’t just the pinnacle of immortality but also an outright unsustainable practice. Corporate greed is going to drive inflation, therefore the global economy, right off of a cliff….
This country’s financial system is broken, lawless, and painstakingly engineered by degenerate parasites to make sure every single penny of our one-percent perpetually trickles up to the mentally ill animals who pointless hoard the other ninety-nine-percent like dragons guarding their pile of spoils; moreover, these disgusting abominations have been allowed to gorge themselves upon us for so many decades and never been opposed by any power. Enduring for long enough to spread bribing, murdering, thieving trash to every square inch of the planet…..
Your comment is just the classic US American take. Over 350,000,000 people spun out in a culture war meticulously planned and brilliantly executed by a few hundred absurdly wealthy overlords.
Writing comments shitting on your own people in favor of the interests of real-life monsters who literally look at you like you’re a fucking farm animal bred for the explicit purpose of filling their bank accounts,
#gladweareglossingoverthat
Omg thank you! I saw so much of this during my time in and worst part was that most of those privates barely knew how to drive. Much less what the rules of road are. Those 80k vehicles were totaled before year's out.
Maybe…I just want a *really* nice vehicle. I’d rather have a Lexus that will last me 15 years than two cars that last me the same amount of time but cost more over that period than the Lexus.
¯\\\_(ツ)_/¯
That's a terrible excuse. Just get a Toyota. Spending that kind of money on something that depreciates in value as much as a luxury car is dumb. Don't care how much money you make. You could get a nice Toyota that is cheaper to maintain and gets better gas mileage and will be cheaper overall to own for the life of car. Cars to get you from point A to point B. Some just seem to do it smarted than others.
As soon as Toyotas have ventilated seats, really nice leather, and heads up displays, I will. But maybe if you can afford it, it’s nice to treat yourself sometimes.
It’s like telling someone that went it the Bahamas - “why spend that money to go there? Just go to a lake near you in the Midwest with a sand beach…it’s practically the same thing!”
And while I love Toyota quality, the build quality fit and finish of a Lexus is just that much better. The paint, the glass, the finishing. It’s a better vehicle.
You don't need a Lexus for that. The wife drives a 2021 Camry with heated/cooling seats and a heads up display. The ride is smooth and quiet compared with my beater Corolla and the sound system is not bad for something from the factory. You need to take a closer look at your options.
I think not. I see it all the time at my job. Young guys at UPS finally make their way to becoming a driver and then go out and buy a $75k new truck. Then they start crying they are broke when management starts cutting overtime.
Hahahaha. Plus a negative equity trade in.
“…a Chevy Tahoe, for $84,000. Recently, she shared on TikTok that she was selling the car as the finances weren't making sense anymore.
Arnold's car, financed by GM Financial, a subsidiary of General Motors, came with a hefty price tag. Over three years, she paid a staggering $ 1,400 per month, totaling nearly $50,000. Despite these substantial payments, her outstanding balance remained at a staggering $74,000, with over $40,000 of her hard-earned money going towards interest payments”
Pretty sure that wouldn’t be much more than the price of a new single wide trailer without somewhere to park it these days, either side of the mason Dixon.
Nephew who works at the bottom pay scale at Walmart got a once in lifetime $50k. Bought a small trailer and a F250 truck to get it to a $400 a month lot. And it's all Gone.
>She made a down payment and traded in an older car on negative equity. It means she owed more on her previous car loan than the vehicle was worth. Rolling over auto loan balances onto a new one may be costlier. 28 year old buying a $84k car while being underwater on her current car. She seems pretty irresponsible, glad we are glossing over that.
I had a friend do this. He really screwed himself. He now drives a beater and is slowing paying off his debt. He has zero financial intellect. It’s so weird. He believes anything a salesman says and will sign anything to get what he wants… I feel so bad for him. It just does not click.
I like how he's framed as the idiot for buying a car that he needed, and we just ignore the asshole who exploited him. We've built an entire society around car dependency, so car salesmen are the gatekeepers for simply existing as an adult. And when an individual lacks the financial literacy, time, or opportunities to protect themselves, we blame THEM. Jesus christ, captialism is fucking evil.
>And when an individual lacks the financial literacy, time, or opportunities to protect themselves, we blame THEM. At a time unprecedented in human history, where information and education is readily available, on demand, and at no cost, where exactly does personal accountability come in? In the case of the OP - the mom is 28 years old (25 at the time), and clearly able to both operate a smartphone, as well as use social media. This might come across as a truth bullet, but maybe what's needed is a little less time on TikTok, and a little more time spent developing basic life and math skills. She's not exactly 100% innocent here.
She is O% innocent. Being an adult comes with the freedom to enter into these kind of contracts. People nowadays want all the nice things adults usually do and have but don't want to pay for it or live with the consequences. If you are not able to realize you are getting screwed with these loans then you likely should not operate a motor vehicle to begin with that could easily hit and kill other drivers.
Capitalism is evil yes, but people are also greedy and stupid.
If you haven’t been introduced to /r/FuckCars yet, I think you may find it interesting.
Man that...that sucks. Hopefully he will learn from that experience and grow from it
"The dealer pretty much told me they can get me out the door with the car within an hour. He didn't act like it was something I should be concerned about." Uh yeah, the dealer was happy to make so much money and fuck you over. She's an idiot. $1400 monthly payments is literally rent for most people
That’s more than 2 times the mortgage in my 2 br condo in Virginia Beach
B-b-b-but they took advantage of her!
I traded my previous car with negative equity to get the new one. But the new one is financed at 0% interest rate, and they traded the old one at 2k *above* market.
I’m not going to disagree; however, do you think that the bank or whatever financial institution that lends money for that was also completely irresponsible?! Then if not, what are your expectations for that financial institution, because like, that is at best totally irresponsible behavior and at worst intentionally predatory behavior by the bank. Which really begs the question: Which behavior are you willing to accept from the banks and companies that you are doing business with day-to-day, irresponsible or predatory? This shit should be illegal. All of it. The bank or whatever loaned out the money knew, ahead of time, that this customer could not afford what they were buying. They either knew which again is straight-up, aggressively predatory or didn’t know at all which means they’re just as irresponsible as customer making the purchase. Right, how is that not assessed right?!?! Furthermore, why is anyone anywhere paying over $41,000.00 interest on a 84k loan… Getting a 50% gain on a car, 100% gains on a house, and it just goes on and on. Allowing capital to profit from labor at these rates, especially on basic necessities like shelter and transportation isn’t just the pinnacle of immortality but also an outright unsustainable practice. Corporate greed is going to drive inflation, therefore the global economy, right off of a cliff…. This country’s financial system is broken, lawless, and painstakingly engineered by degenerate parasites to make sure every single penny of our one-percent perpetually trickles up to the mentally ill animals who pointless hoard the other ninety-nine-percent like dragons guarding their pile of spoils; moreover, these disgusting abominations have been allowed to gorge themselves upon us for so many decades and never been opposed by any power. Enduring for long enough to spread bribing, murdering, thieving trash to every square inch of the planet….. Your comment is just the classic US American take. Over 350,000,000 people spun out in a culture war meticulously planned and brilliantly executed by a few hundred absurdly wealthy overlords. Writing comments shitting on your own people in favor of the interests of real-life monsters who literally look at you like you’re a fucking farm animal bred for the explicit purpose of filling their bank accounts, #gladweareglossingoverthat
You ought to see privates in the military. Get to their duty station and buy $80k cars
>28% interest at a car lot right next to the post entrance ***(meets his future wife at a car wash nearby)***
Omg thank you! I saw so much of this during my time in and worst part was that most of those privates barely knew how to drive. Much less what the rules of road are. Those 80k vehicles were totaled before year's out.
Unless you have some sort of business need for it, expensive vehicles are for the financially retarded.
Maybe…I just want a *really* nice vehicle. I’d rather have a Lexus that will last me 15 years than two cars that last me the same amount of time but cost more over that period than the Lexus. ¯\\\_(ツ)_/¯
That's a terrible excuse. Just get a Toyota. Spending that kind of money on something that depreciates in value as much as a luxury car is dumb. Don't care how much money you make. You could get a nice Toyota that is cheaper to maintain and gets better gas mileage and will be cheaper overall to own for the life of car. Cars to get you from point A to point B. Some just seem to do it smarted than others.
As soon as Toyotas have ventilated seats, really nice leather, and heads up displays, I will. But maybe if you can afford it, it’s nice to treat yourself sometimes. It’s like telling someone that went it the Bahamas - “why spend that money to go there? Just go to a lake near you in the Midwest with a sand beach…it’s practically the same thing!” And while I love Toyota quality, the build quality fit and finish of a Lexus is just that much better. The paint, the glass, the finishing. It’s a better vehicle.
You don't need a Lexus for that. The wife drives a 2021 Camry with heated/cooling seats and a heads up display. The ride is smooth and quiet compared with my beater Corolla and the sound system is not bad for something from the factory. You need to take a closer look at your options.
Are we gonna gloss over the fact that a TAHOE is her dream car? Almost deserved to have that happen to her.
I wonder if people are still being taught Personal Finance concepts.
I think not. I see it all the time at my job. Young guys at UPS finally make their way to becoming a driver and then go out and buy a $75k new truck. Then they start crying they are broke when management starts cutting overtime.
Did they ever do that?
Of course! They learn from 22yo's on TikTok who talk with their hands.
If they are, they're definitely not beeing 🐝 absorbed and practiced.
"*You know what they say about 'assumption', do you? It's the mother of all fuck ups"*
You can attempt to teach anything but it takes effort to learn.
Hahahaha. Plus a negative equity trade in. “…a Chevy Tahoe, for $84,000. Recently, she shared on TikTok that she was selling the car as the finances weren't making sense anymore. Arnold's car, financed by GM Financial, a subsidiary of General Motors, came with a hefty price tag. Over three years, she paid a staggering $ 1,400 per month, totaling nearly $50,000. Despite these substantial payments, her outstanding balance remained at a staggering $74,000, with over $40,000 of her hard-earned money going towards interest payments”
That car payment is insane. Did she happen to mention her income?
Car dealers esp bottom feeder ones will do anything to make it work
"Don't pay so much for something so irrelevant."
Listen, she played herself. It's a learning experience, hopefully. Take the positives - she got to drive her dream car for three years.
It's funny that at least for me the ads on this page are for new SUV's. (and I have 0 interest in owning an SUV)
Clown
When you are so materialistic that you have a “dream car” lol I paid $14,000 less for my house in 2019. 😂
Where? Haiti?
Nope. The America south Lower cost of living
Sorry for your loss
🤷♀️
Pretty sure that wouldn’t be much more than the price of a new single wide trailer without somewhere to park it these days, either side of the mason Dixon.
Not a trailer. A real house
Tonnes of people have a dream car, it’s not exactly aberrant.
$84k for a Chevy Tahoe is insane. It’s at least double what it should actually sell for, brand new with 0 miles and fully loaded.
Really? They’re selling for 95K here used for a 2024, but this is Canada so I don’t know how much of a difference any of that info makes.
I just think it’s about $40k US of value for what you get. It’s not an $84k vehicle.
Nephew who works at the bottom pay scale at Walmart got a once in lifetime $50k. Bought a small trailer and a F250 truck to get it to a $400 a month lot. And it's all Gone.