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They should pay a higher interest rate because they are a greater risk but 23%? They should know better but many of these banks and dealerships are taking advantage.
The person needs transportation and doesn't care about the rate. Hell, they're going to default and destroy the car anyway.
I wouldn't call that car I listed basic. Granted it's almost 15 years old but a comparable model now is about $25K. That car has power everything, reasonable amount of power and can comfortably fit 4. etc.
There are tons of used cars out there. People are buying new cars and used cars are sitting on lots or in driveways. Or good used cars are being kept and driven longer. Tons of new cars, too. Yes, there's a bubble of cars
Lowball an offer for a used car at a dealer and they may just take it.
Yes, paying $15-20K for an 8 year old low end car is very surprising aside from the interest rate. Plenty of basic transportation around for less.
You could easily buy a much-newer Honda or Toyota that's drastically better-made than a Mitsubishi for less than 15k. Maybe the Mitsu in question is an Evo...?
I sold cars for a few years during the credit bubble and would have people balk at a sensible, $8k Mazda or Chevy minivan for their family and instead insist on getting a loans for a $35k Tahoe, when they made 20k/year. At that point, the banks were happy to give the loan.... Literally, I remember trying to convince a young couple with two kids who had a combined $1600/mo to buy a three-year old, low mileage, fleet-maintained Chevy Venture that would have been less than $150/tmo, but they insisted on a Tahoe that ran $600/mo, plus insurance and gas on a V8 SUV. It was repoed after three months...
Hey, don't be trashing the Mitsubishis here. I've been driving them for years, little to no repairs and never been in a recall. Can't say that for Hondas and Toyotas.
Still, no sympathy. Buy what you can afford, not what you think you deserve.
Hey, don't be trashing the Mitsubishis here. I've been driving them for years, little to no repairs and never been in a recall. Can't say that for Hondas and Toyotas.
Still, no sympathy. Buy what you can afford, not what you think you deserve.
I had a '91 Galant VR4 that was a blast to drive drive but the engine grenaded at about 75k, and even before that it gave me grief with oil consumption, electrical glitches, etc. We got lots of Mitus in on trade when I sold cars and most of them were fairly problematic relative to other cars.
My Honda S2000 is 14 years old and I drive it hard, but all its ever needed was fluids and wear and tear items like tires, brake pads, and a new clutch. Radiator broke and needed repair last summer. About $1000 in maintenance over a decade and a half is acceptable
So he bought a car he knew he couldn't afford, signed his name to a loan agreement he knew he couldn't satisfy the terms of of, and now this is somehow the lender's fault?
Questions:
1) Why sign for something you know you can't possibly afford? Could it be that in 2014, it's the other guy's fault for not protecting you from yourself?
2) If you are "disabled" and living off Social Security since the age of 37 (if he quit working in 1991 and is now aged 60, he dropped out of the work force at 37), why the pressing need for a car such that you'll take a subprime loan?
3) How did he make it this far without a car loan for $15k+? What did he do before this that we're only now hearing about this loan?
If you read through the article some of the used car prices are more like new car prices, also one purchaser paid 23%.
That's less than buying a new car.
Quote:
Originally Posted by Goodnight
They should pay a higher interest rate because they are a greater risk but 23%? They should know better but many of these banks and dealerships are taking advantage.
You pay 29% for your new car loan. Don't knock it.
Quote:
Originally Posted by freemkt
??? What part of "subprime" do you not understand?
Sub-prime is people acting stupidly and then getting upset because there are consequences when you act stupidly.
Quote:
Originally Posted by Volobjectitarian
So he bought a car he knew he couldn't afford, signed his name to a loan agreement he knew he couldn't satisfy the terms of of, and now this is somehow the lender's fault?
Questions:
1) Why sign for something you know you can't possibly afford? Could it be that in 2014, it's the other guy's fault for not protecting you from yourself?
2) If you are "disabled" and living off Social Security since the age of 37 (if he quit working in 1991 and is now aged 60, he dropped out of the work force at 37), why the pressing need for a car such that you'll take a subprime loan?
3) How did he make it this far without a car loan for $15k+? What did he do before this that we're only now hearing about this loan?
4) Caveat emptor?
Good questions.
I'm guessing he was selected for the sympathy vote being disabled and on Social Security and "elderly."
Another example of slanted reporting by a heavily biased and dishonest media....
Mircea
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