I’m refinancing this terrible loan and the bank person grimaced when they saw this.
hey millenials: car dealers are not a good choice of bank. please tell your generation about credit unions: www.logixbanking.com/rates/vehicle-loans
Based on a true story
Submitted 20 hours ago by Orangutanion@lemmy.world to [deleted]
https://lemmy.world/pictrs/image/2dba28d3-2fc7-41f0-9609-5e1f18eda8c0.jpeg
Comments
Num10ck@lemmy.world 13 hours ago
Bassman1805@lemmy.world 4 hours ago
Definitely shop around, but sometimes the dealership does have an actual competitive offer. Especially if you threaten to use external financing (and have the pre approval in hand), they might knock down their interest rate to save the deal, as the loan is where the money actually is.
Hansae@lemmy.dbzer0.com 11 hours ago
And maybe buying something that isnt sold by a dealer…
froggycar360@slrpnk.net 5 hours ago
Always buy from a person not a dealer. Look for a model known to be reliable and cheap to fix and maintain. I bought a 95 Ford Ranger for $1,800 and am still driving it 5 years later. I’ve maybe put another 2k into it from oil changes, tires and brakes. People pay way too much for bells and whistles.
Jakeroxs@sh.itjust.works 4 hours ago
I did this in my younger years and the cars I got always had some hidden fucked up problem.
The most notable was cemented in spark plugs, rip that Honda Civic
froggycar360@slrpnk.net 2 hours ago
Lol yeah there’s always that risk. Feel like you want to find some boomer that’s selling his daughters car that just went to college or something.
The2b@lemmy.vg 19 hours ago
I was sold a car with a 14% interest rate after being told I wouldnt be charged for interest if I paid it off in the first month, so I could pay it off when my CD popped that week. The bank then told me that I had to wait to pay it off until it “appeared in their systems”. Turns out that happened right when interest ticked! Funny how that works
whostosay@lemmy.world 15 hours ago
I seriously pray every single day that nuclear war breaks out or that a fucking astroid just hits me right on my head when I’m on the way to my car.
technocrit@lemmy.dbzer0.com 6 hours ago
Don’t buy cars. Ban them.
timmy_dean_sausage@lemmy.world 4 hours ago
A lot of us wage slaves live in areas that are too spread out to bike, have no public transportation, and we can’t afford to move to a higher COL area that has those amenities. For example, my commute to work is typically 70ish miles, one way. There aren’t better job prospects within my niche industry that are available to me. I’m working towards moving closer to work, but I’ll be moving to a smaller town that is even less bike-able/walk-able. IMO, your position requires an amount of privilege I don’t have.
Zetta@mander.xyz 1 hour ago
My commute is 117 miles one way :(, return to office has really fucked me. I won’t be moving anytime soon but am working on getting a job closer to home.
Comrade_Spood@slrpnk.net 3 hours ago
Facts. I live in Maine. I dare anyone that says to ban cars to come live here without one. The only form of public transportation here is a very shitty public bus system. If you live outside of its route, you are shit out of luck. Its why you have a lot of old people driving here that honestly should have had their license revoked a decade ago. Can’t take their license away cause they will have no way to access the resources they need to survive. But shouldn’t let them keep their license cause they are a major danger on the roads.
LodeMike@lemmy.today 18 hours ago
Interest rates above like 10% should be illegal.
massacre@lemmy.world 17 hours ago
Wait until you see the payday loan usury rates!
lazycouchpotato@lemmy.world 16 hours ago
I’ve gotten mail that have checks that you can immediately deposit if you’re in a pinch, but when you need to pay it back the APR on them is 89% 💀
ChilledPeppers@lemmy.world 10 hours ago
Fun fact: in Brazil it is made illegal by the constitution, but the federal government itself ask for more than that in interest…
needanke@feddit.org 15 hours ago
As a non-American it seems wild to me that you would take out a loan for a car.
fluffykittycat@slrpnk.net 2 hours ago
We got rid or public transit because of racism so we are totally dependent on driving to go anywhere
ameancow@lemmy.world 5 hours ago
The so-called “wealth” you see in the American middle-class is mostly just debt.
Orangutanion@lemmy.world 3 hours ago
The process of dying involves lots of debt too because of our corrupt funeral and burial industry
thespcicifcocean@lemmy.world 6 hours ago
how are you buying cars? Because I’m in Europe and they’re expensive here too.
bier@feddit.nl 5 hours ago
You save up and get a second hand car you can afford. Why buy a new one, even a car with 30K miles or 50K KMs is a lot cheaper, while its still new enough to drive for a while without major repairs.
scoobford@lemmy.zip 6 hours ago
Cars are expensive and necessary in areas without good public transit (read: basically everywhere except a couple of areas in specific cities). Most of us don’t have a year’s salary just sitting in the bank, especially when you’re young.
If you need a car to get to work, you’ll pay what you have to because the alternative is no job which means no home, no healthcare, and no food.
LodeMike@lemmy.today 12 hours ago
Americans are bad with money.
ameancow@lemmy.world 4 hours ago
We’re not given much choice.
You simply don’t exist as an American without a car and a phone and internet and an address with your name on it. Anything below that is considered fringe, poverty or societal reject. Good luck getting a job without a smartphone and your own car, don’t expect public transportation to be of any help, it doesn’t generally exist outside the larger cities and what there is of it, often sucks and takes hours out of your day. Our “public” internet is mostly coffee shops who make you buy something to sit there using their slow-ass wifi. If you fall on hard times, you have to apply for aid, which comes with stacks of provisions, like having an address and a phone, and this kind of aid is only available temporarily and if you accidentally make too much money they will cut you off.
If you’re savvy you can learn to use things like libraries and carpools and food banks and other resources for the needy. But it’s really, really hard to get out of poverty once you fall down. Most institutions and companies that provide services of any kind charge you more and more the less money you have. You need to have over a certain amount in your bank or you pay fees. You need to pay your bills on time or they charge you twice as much, you need to keep a credit history maintained even if you’re broke, because most employers include credit checks in their hiring process.
Most of the “middle class” you see here are suburban families working multiple jobs 6 days a week or more. Two people working often requires two cars, now your monthly transportation costs outpace your living expenses. Have kids or want to have kids? Good fucking luck figuring out childcare or daycare and paying for that too. It’s okay, smartphones and tablets will raise your kids. Keep the machine moving.
Cocopanda@futurology.today 12 hours ago
Country is car centric. You can not live here without a car. It’s next to impossible. Especially for the handicapped. They can’t get anywhere easily without personal transportation. We suck at mass transit.
Dozzi92@lemmy.world 2 hours ago
I have a three year loan at 1.9%. Why would I cough up an additional $20k now, when I could hang on to my cash and, at the very least, leave it in an account that earns twice that (and then some) in interest?
Paddzr@lemmy.world 15 hours ago
Where are you that cars are affordable to a point where this is an usual thing?
belastend@slrpnk.net 15 hours ago
Yeah, u buy a used one for like 2,000 - 3,000€. Or you lease. But taking on a loan with 16.9% interest would not cross my mind.
photonic_sorcerer@lemmy.dbzer0.com 14 hours ago
Buy the car you can afford. If you can’t buy it outright or make a significant down payment (20-30%), don’t take out a loan, look for a cheaper option. Those interest rates are insane, I’m amazed how anyone would accept them.
needanke@feddit.org 14 hours ago
You have the option of not buying one if you cant afford it.
pseudo@jlai.lu 5 hours ago
As a Europeans it seems wild to me that my peer would pay loan for cars. But they do. That’s crazy…
satans_methpipe@lemmy.world 5 hours ago
“American” here. We are obsessed with financing depreciable assets.
We are also obsessed with appearances and status.
I’m sure you can see from this thread some of us cannot comprehend driving a $5000 car. They will whine and come up with tons of excuses for why that just cannot happen.
fluffykittycat@slrpnk.net 2 hours ago
Reliability is a problem when car trouble can mean losing your job. $5000 doesn’t buy that much car anymore
ameancow@lemmy.world 5 hours ago
I cannot comprehend owning a $5000 car.
That’s insane that some people have 5k to spend.
callouscomic@lemm.ee 12 hours ago
Check with and get pre-approval from a credit union or two near you. Go with that pre-approval for the car you want.
Rarely do the dealers find or provide a better deal. DON’T let them focus you on your monthly payment. Look at the complete picture.
theunknownmuncher@lemmy.world 19 hours ago
Is cash for a beater car no longer an option? I don’t want to be a “less avocado toast more bootstraps” person but a loan for a used car sounds wild to me. Maybe I’m out of touch. My vehicle is old enough to drink
Avg@lemm.ee 19 hours ago
Cars have been expensive for a few years now, bought an 08 Subaru in 2020, it’s worth more now than what I bought it for.
SARGE@startrek.website 18 hours ago
I paid 1k for my shitty pickup in 2018, it’s in worse condition than when I got it, and about 100,000 more miles on it.
It’s supposedly worth 3500 now. It needs about $300 worth in parts alone to get it into what I would consider a condition worth buying.
adhocfungus@midwest.social 17 hours ago
I have a good '08 car that I bought with cash 10 years ago for $3000. I got it from a guy who exclusively sells and fixes this model of car. I went back last year to get my car fixed and looked at the cars he was selling. '08s were starting at $5000.
fluffykittycat@slrpnk.net 17 hours ago
And this is gonna get wse with the new car tariffs o
theunknownmuncher@lemmy.world 19 hours ago
Older subarus are a high value and age well. I would expect it to hold decent value but that is crazy to be worth more 5 years later
frickineh@lemmy.world 19 hours ago
Not often. Used cars, at least where I am, are all pretty pricey, and with rent and shit being out of control, I’m not surprised younger people can’t afford to save enough to buy one outright. I’m lucky to be older and I bought my current car at 0% interest in 2012. I’m keeping it until it gives up because I know we’ll never see that kind of deal again.
Aurenkin@sh.itjust.works 17 hours ago
I would strongly advise against drinking your vehicle regardless of how old it is.
Orangutanion@lemmy.world 19 hours ago
there are a lot of used ~2018 to 2022 cars on the market with not a lot of miles, most go for around $20k (like what I got). True beaters still go for like $10k.
Pavidus@lemmy.world 18 hours ago
Personally, I agree with your mindset, but I’m pretty handy with fixing/maintaining my own vehicles. For someone needing something to reliably get back and forth to work/school/daycare, I understand why people don’t go this route. Shop lead times have skyrocketed in the last few years, as have repair prices. Sometimes you just need something you don’t have to worry about.
ch00f@lemmy.world 18 hours ago
a loan for a used car sounds wild to me.
Predatory car loans has entered the chat.
I don’t know about Carvana, but plenty of scummy dealers will give insane rates to people with no credit check, repo the car while they’re still underwater on the loan, and sell it to someone else. You can have two or three people paying off the same car.
Oh, also, they somehow encourage the most gullible people who can’t afford their loans to just let the car get reposessed instead of attempting to sell it back to the dealer.
db2@lemmy.world 18 hours ago
Cash for clunkers removed a significant portion of the used cars from the market. It was a while ago but its effects are still very much being felt even if people don’t realize exactly what it is.
fluffykittycat@slrpnk.net 17 hours ago
That was back in 2009 those cars would.be dead already by now
Tikiporch@lemmy.world 19 hours ago
A car that is the current model year is “used” as long as it’s had an owner. That’s what these loans are for. You can’t even get a loan for cars past seven years old with most lenders.
theunknownmuncher@lemmy.world 19 hours ago
I mean yeah, that’s why I said beater. I just wouldn’t expect someone young or looking for a first car to be buying a current model year with low miles anyway.
Kaboom@reddthat.com 18 hours ago
Buy from the owner, not a dealership. Plenty of people selling beaters on Craigslist and Facebook marketplace.
some_guy@lemmy.sdf.org 8 hours ago
Allero@lemmy.today 14 hours ago
Wait until you hear about mortgage in Russia
26% APR. On a mortgage. No, seriously.
Vorticity@lemmy.world 13 hours ago
Jesus… Are the prices low due to the interest rate? Or is all property owned by people who can buy cash?
drathvedro@lemm.ee 11 hours ago
Prices are crazy, too. The key interest is at 20% and inflation is way over that as everyone expects rouble to crash as govt is printing bajillions to hand out to dead soldiers families.
Allero@lemmy.today 13 hours ago
The latter. Even without mortgage, it would take 150 months of an average salary to buy a fairly modest apartment, and we’re speaking average, which is very far from median.
Also, government tries to step in to compensate a bit for the families with children. But overall, the insane interest rate reflects in everything. I currently pay out a loan at 35% APR.
ICastFist@programming.dev 8 hours ago
That’s just typical brazilian interest rates
aninnymoose@lemm.ee 18 hours ago
Carvana is a sister company of drivetime. Drivetime’s target customer base is sub-prime. Putting 2 and 2 together, this doesn’t surprise me at all. Their lowest interest rate might be 16% (for their target customer base) and goes upwards of 30%
st3ph3n@midwest.social 18 hours ago
Wild. I bought a car from Carvana in 2022 and the interest rate back then was 6% on a 3-year loan, which was on the high side of normal for the time period.
aninnymoose@lemm.ee 4 hours ago
At drivetime, I’ve been told that my rates might be lower if I got a pre-approval from my bank instead of going through them (if I have the credit score for my bank/credit union to give me a loan)
Kolanaki@pawb.social 17 hours ago
I’d be more impressed with their car vending machines if the cars were the same price as a bag of chips.
kipo@lemm.ee 5 hours ago
Loans with interest rates above inflation are weapons. They are violence. Why should we all have to pay more than something is worth for our education, our transportation, our housing? Why are we paying directly for these things at all?
Government should be providing all this for its people. Higher education should be provided. Starter housing should be provided. Public transportation should be provided.
ajikeshi@lemmy.world 3 hours ago
considering that you likely live in the US, just wait 6 months and this loan would be below monthly inflation
kipo@lemm.ee 3 hours ago
Lol…that’s funny and also so depressing.
Bassman1805@lemmy.world 4 hours ago
You pay for the ability to access capital you do not currently have. Nobody owes you thousands of dollars with which to but a car. If you want to buy a car with money you don’t have, then you have to give the bank something in return. That something almost always is “more money than we initially lent you, over the course of the loan period” and if you shut that down, banks just won’t give loans anymore. Suddenly poor and middle class people have lost their biggest tool for accessing capital.
Lack of public transport is a separate problem. The US has dropped the ball across the board there. Only a handful of cities have any reasonable public transport and even those systems are old and often shitty.
Education being so expensive that it needs to be financed, is a separate problem. Education is too important to leave to the free market, letting our system metastacize to this extent is the result of decades of compounding failures.
Cataphract@lemmy.ml 2 hours ago
See, that whole entire thought process just doesn’t hold me prisoner anymore like it used to.
I don’t think this is true economical theory anymore. It’s corrupted greed that’s overtaken institutionally in every facet of life including academia. It’s like saying nuclear war is the best peace keeping practice.
kipo@lemm.ee 4 hours ago
Well I’m hoping to live in a world where banks don’t provide loans anymore. I’m demanding a better world than this nightmare that is unregulated capitalism in the US.
I’m demanding a better world than any economic system that incentivizes and rewards screwing each other over and hurting one another in a race to get ahead.
Aux@feddit.uk 2 hours ago
A car is not a right, it’s a privilege. You have a right to walk with your own two feet. If you don’t want to - then you have to pay.
Schmoo@slrpnk.net 1 hour ago
It’s a good thing we have a robust public transportation system and pedestrian infrastructure then. /s