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Old 11-10-2019, 02:40 PM
 
189 posts, read 121,625 times
Reputation: 693

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Quote:
Originally Posted by SWFL_Native View Post
Average or Median?
Probably both. As the writer H. L. Mencken once wrote, "Nobody ever went broke under estimating the intelligence of the American people."
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Old 11-10-2019, 05:52 PM
 
Location: Oregon, formerly Texas
5,565 posts, read 3,916,107 times
Reputation: 9502
Yeah this is common for used cars especially (people with credit that bad usually can't get approved to borrow enough for a new car).
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Old 11-11-2019, 05:35 AM
 
Location: Minnesota
1,048 posts, read 918,977 times
Reputation: 1611
Quote:
Originally Posted by hunterseat View Post
What's a car loan?
A auto loan is way for a consumer to get a vehicle. A finance company will loan the consumer the money and the consumer will pay the money back in monthly installments. Because the banks need to make money, they will charge an interest rate. A vehicle costing $30,000 may cost $40,000 when the loan is paid off.

Of course just google Auto Loans and you will find lots of information on the subject.
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Old 11-11-2019, 05:43 AM
 
Location: Colorado Springs
5,093 posts, read 5,223,776 times
Reputation: 18192
Quote:
Originally Posted by RationalExpectations View Post
Some 50% of people have below-average IQs.
You can't fix stupid.
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Old 11-11-2019, 07:19 AM
 
Location: annandale, va & slidell, la
8,293 posts, read 3,343,665 times
Reputation: 7396
Financing a used car guarantees being upside down. I remember in the dot.com era when Range Rover buyers would roll 30-grand negative into their new purchase loan.
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Old 11-11-2019, 08:06 AM
 
5,798 posts, read 3,089,165 times
Reputation: 10520
Quote:
Originally Posted by finalmove View Post
Financing a used car guarantees being upside down. I remember in the dot.com era when Range Rover buyers would roll 30-grand negative into their new purchase loan.
Hmm that seems counterintuitive as the depreciation curve is steepest from year 0 -> 1 then 1 > 2 and so on. So if taking out a 5-7 year loan one would think having negative equity would be most likely where the depreciation occurs fastested (e.g. year 1).
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Old 11-11-2019, 08:08 AM
 
Location: DFW - Coppell / Las Colinas
33,380 posts, read 37,667,470 times
Reputation: 40321
Next there will be a Govt study that shows that Minorities are affected more by these programs, there are abuse of these programs, the borrowers are duped and we taxpayers should bail them out.
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Old 11-11-2019, 08:09 AM
 
5,798 posts, read 3,089,165 times
Reputation: 10520
Quote:
Originally Posted by rbwpi View Post
Probably both. As the writer H. L. Mencken once wrote, "Nobody ever went broke under estimating the intelligence of the American people."
I think you’re missing the point as it’s a Yoga Berra like comment. Be definition 50% of the population has an IQ that falls below the median. The commenter said Avergage thus he was implying that was a skewness biased towards a higher value or a few very smart people were bringing the average up above the median. I’m not so sure that is the case.
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Old 11-11-2019, 12:51 PM
 
Location: In a vehicle.
5,354 posts, read 3,422,355 times
Reputation: 8756
Quote:
Originally Posted by Vision67 View Post
Today, the WSJ has a story (free access) about negative equity car loans:


Consumer lawyers say borrowers are typically trading in their vehicles because they have to—often because their needs change, or because the vehicles have problems."

I'll admit that I didn't know this was possible.
Well, I can assure you it's possible. I once bought a car as my small van was toasted. It Wasn't worth $300, but they gave me $1K trade in. I later gave it back to them when I moved back to the west coast. I knew of others who have buried their cars and had to pay $1-$3K balance, which they did happily as they were $12K-$15K upside down.

When people are desperate, they don't think hard when faced with either having to ride the bus, or make payments on a vehicle with 29% interest........Believe it or not. At that rate, a $9K vehicle would cost you $377 a month for 36 months.
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Old 11-11-2019, 02:20 PM
 
Location: Living on the Coast in Oxnard CA
16,122 posts, read 27,317,549 times
Reputation: 21220
Quote:
Originally Posted by Bobdreamz View Post
I have a cousin of mine asking me for advice who is upside down on his vehicle.
He owes $19k and Blue Book value is half that.
Car is 4 years old with 100k miles on it and he has terrible credit to boot hence a high interest rate and a large monthly payment.
Any suggestions?
Yes, I suggest he make the payments on the car every month. Take care of it. Having 100,000 miles is not a problem today for many cars. In addition make the payments on any other debt that he has. Make it a goal to improve his credit. As soon as the car is paid off continue to have him drive the car and then pay off any other debts that he may have. After all debts are paid his credit should be sparkly clean with a 700+ credit score. Any bad credit problems will drop off within 7 years or so.

If the car does break down then take the bus to get to work. Maybe ride a bike. Paying off the debt should be the goal.
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