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Long time lurker - first post. My blood pressure is just a wee bit high now.
My son, who just turned 18 and has NO job, NO money, NO savings, and NO credit history just pulled into the driveway with a new Ford Mustang! Well it's not 'brand new' it's a leftover from last year 2015.
I kept telling myself this must be a joke. No bank would give him a loan. Well, an "investment firm" out of Los Angeles did. His APR on the loan... 29.99%
Oh, and he bought the $3,000 extended warranty. And paid a $500 dealer doc fee.
The payment is $650/month. And we live in northern NJ and the insurance is around $350/month.
He has NO JOB and NO MONEY and NO INCOME. Zero, nadda, zilch.
After the screaming stopped I told him he must sell the car back to the dealer at a bit of a loss, sell it privately, or mail the keys back to the bank (loan shark). Of course it was "no" from him. he then goes on about how he has applied for jobs and will surely get hired. He starts college in 2 weeks and he "needs a car". While he has always been a good student and never been in trouble, he has always been terrible with handling money. For every $1 he gets, he spends $1.50.
I'm sure I'm not the first parent to go through this. Since he is 18 now he is an adult per the law and the contract was in his name. So it's his problem. But as a parent I still want to make sure he is ok.
Are there any avenues I can take to get rid of this car (even though he refuses) quickly? I'm afraid this is going to end in a loan default and his credit report will be destroyed.
Not sure about your state, but ours has a law that says you can undo any car sale within a certain time frame. I think it's 1-3 days. March him right back to the dealership and see if you can just return it.
I can't help but think there is more to this story. Somewhere between 0-18 years of age, someone failed to educate their "baby boy" on a thing called "consequences"....Think back Mom and Dad....how many times in the past 18 years have you bailed him out....He intentionally buried himself knowing or thinking that someone was going to bail him out.
This is one of those optimal "teaching moments"....don't blow it !
Long time lurker - first post. My blood pressure is just a wee bit high now.
My son, who just turned 18 and has NO job, NO money, NO savings, and NO credit history just pulled into the driveway with a new Ford Mustang! Well it's not 'brand new' it's a leftover from last year 2015.
I kept telling myself this must be a joke. No bank would give him a loan. Well, an "investment firm" out of Los Angeles did. His APR on the loan... 29.99%
Oh, and he bought the $3,000 extended warranty. And paid a $500 dealer doc fee.
The payment is $650/month. And we live in northern NJ and the insurance is around $350/month.
He has NO JOB and NO MONEY and NO INCOME. Zero, nadda, zilch.
After the screaming stopped I told him he must sell the car back to the dealer at a bit of a loss, sell it privately, or mail the keys back to the bank (loan shark). Of course it was "no" from him. he then goes on about how he has applied for jobs and will surely get hired. He starts college in 2 weeks and he "needs a car". While he has always been a good student and never been in trouble, he has always been terrible with handling money. For every $1 he gets, he spends $1.50.
I'm sure I'm not the first parent to go through this. Since he is 18 now he is an adult per the law and the contract was in his name. So it's his problem. But as a parent I still want to make sure he is ok.
Are there any avenues I can take to get rid of this car (even though he refuses) quickly? I'm afraid this is going to end in a loan default and his credit report will be destroyed.
He is very smart. If he gets $1 and spends $1.5, he probably got the missing $.5 by ... YOU .....every time?? He got away with it in the past. Why wouldn't it work now?
Time to teach him a lesson. DO NOT PAY FOR HIS CAR.
By a very odd coincidence of timing, my husband was just watching this John Oliver video on the subprime auto lending market less than 30 minutes ago....
"take advantage of unknowing buyers by providing them with interest rates that average between 19 and 29 percent. These vehicles are also being bought at approximately two to three times Kelley Blue Book's listed value."
This is where my issue lies with this piece. The % rate is right in the contract, reading turns into knowing. Do these people not have access to kbb.com, to check the value. I'm betting even that they cannot afford a car, but they have a brand new smartphone that gets the internet.
It's hard to use the terms "take advantage," and "unknowing," when technology has put the information at your finger tips, you just have to take the smallest of steps to look for it.
I have no problems with these dealerships, if people want a car that bad and haven't even taken the tiniest step to gain information, or simply don't care, then let them make stupid decisions.
Not sure about your state, but ours has a law that says you can undo any car sale within a certain time frame. I think it's 1-3 days. March him right back to the dealership and see if you can just return it.
Just the first in a long line of life lessons for this young man! He created his problem, let him solve it or it will solve itself! He is expecting you to step up and take care of it guaranteed!
100% agree. Do not save him from this failure. I know it will be very hard, but he needs to learn how to manage his money. Better at a young age then later in life.
I wonder what he is going to do when he "needs a car for college" and this one has been repossessed. I'm betting the parents will fix things once again.
Long time lurker - first post. My blood pressure is just a wee bit high now.
My son, who just turned 18 and has NO job, NO money, NO savings, and NO credit history just pulled into the driveway with a new Ford Mustang! Well it's not 'brand new' it's a leftover from last year 2015.
I kept telling myself this must be a joke. No bank would give him a loan. Well, an "investment firm" out of Los Angeles did. His APR on the loan... 29.99%
Oh, and he bought the $3,000 extended warranty. And paid a $500 dealer doc fee.
The payment is $650/month. And we live in northern NJ and the insurance is around $350/month.
He has NO JOB and NO MONEY and NO INCOME. Zero, nadda, zilch.
After the screaming stopped I told him he must sell the car back to the dealer at a bit of a loss, sell it privately, or mail the keys back to the bank (loan shark). Of course it was "no" from him. he then goes on about how he has applied for jobs and will surely get hired. He starts college in 2 weeks and he "needs a car". While he has always been a good student and never been in trouble, he has always been terrible with handling money. For every $1 he gets, he spends $1.50.
I'm sure I'm not the first parent to go through this. Since he is 18 now he is an adult per the law and the contract was in his name. So it's his problem. But as a parent I still want to make sure he is ok.
Are there any avenues I can take to get rid of this car (even though he refuses) quickly? I'm afraid this is going to end in a loan default and his credit report will be destroyed.
Let him learn this lesson the hard way.The car isn't in your name so don't stress.He has to learn this the hard way.
No such thing.
However, most dealers would unwind such a deal just to avoid bad press. But it should be done the next day.
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