I’m refinancing this terrible loan and the bank person grimaced when they saw this.
Interest rates above like 10% should be illegal.
Based on a true story
Submitted 3 weeks ago by Orangutanion@lemmy.world to [deleted]
https://lemmy.world/pictrs/image/2dba28d3-2fc7-41f0-9609-5e1f18eda8c0.jpeg
Comments
LodeMike@lemmy.today 3 weeks ago
massacre@lemmy.world 3 weeks ago
Wait until you see the payday loan usury rates!
lazycouchpotato@lemmy.world 3 weeks 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 2 weeks ago
Fun fact: in Brazil it is made illegal by the constitution, but the federal government itself ask for more than that in interest…
Num10ck@lemmy.world 2 weeks ago
hey millenials: car dealers are not a good choice of bank. please tell your generation about credit unions: www.logixbanking.com/rates/vehicle-loans
Hansae@lemmy.dbzer0.com 2 weeks ago
And maybe buying something that isnt sold by a dealer…
Bassman1805@lemmy.world 2 weeks 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.
General_Shenanigans@lemmy.world 2 weeks ago
That is, if they approve you at all. Their requirements are higher, which is why you would get a better rate through them. If you can’t, you may need to go through a different company with a higher interest rate. Should that be the case, it’s best to consider getting a car significantly less in cost than what you’re approved for.
needanke@feddit.org 3 weeks ago
As a non-American it seems wild to me that you would take out a loan for a car.
Paddzr@lemmy.world 3 weeks ago
Where are you that cars are affordable to a point where this is an usual thing?
belastend@slrpnk.net 3 weeks 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 3 weeks 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 3 weeks ago
You have the option of not buying one if you cant afford it.
LodeMike@lemmy.today 2 weeks ago
Americans are bad with money.
Cocopanda@futurology.today 2 weeks 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.
ameancow@lemmy.world 2 weeks 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.
ameancow@lemmy.world 2 weeks ago
The so-called “wealth” you see in the American middle-class is mostly just debt.
Orangutanion@lemmy.world 2 weeks ago
The process of dying involves lots of debt too because of our corrupt funeral and burial industry
thespcicifcocean@lemmy.world 2 weeks ago
how are you buying cars? Because I’m in Europe and they’re expensive here too.
bier@feddit.nl 2 weeks 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 2 weeks 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.
fluffykittycat@slrpnk.net 2 weeks ago
We got rid or public transit because of racism so we are totally dependent on driving to go anywhere
Dozzi92@lemmy.world 2 weeks 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?
pseudo@jlai.lu 2 weeks 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 2 weeks 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 weeks ago
Reliability is a problem when car trouble can mean losing your job. $5000 doesn’t buy that much car anymore
ameancow@lemmy.world 2 weeks ago
I cannot comprehend owning a $5000 car.
That’s insane that some people have 5k to spend.
theunknownmuncher@lemmy.world 3 weeks 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 3 weeks 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 3 weeks 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 3 weeks 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 3 weeks ago
And this is gonna get wse with the new car tariffs o
theunknownmuncher@lemmy.world 3 weeks 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 3 weeks 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.
db2@lemmy.world 3 weeks 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 3 weeks ago
That was back in 2009 those cars would.be dead already by now
Orangutanion@lemmy.world 3 weeks 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.
Aurenkin@sh.itjust.works 3 weeks ago
I would strongly advise against drinking your vehicle regardless of how old it is.
ch00f@lemmy.world 3 weeks 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.
Pavidus@lemmy.world 3 weeks 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.
Tikiporch@lemmy.world 3 weeks 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 3 weeks 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 3 weeks ago
Buy from the owner, not a dealership. Plenty of people selling beaters on Craigslist and Facebook marketplace.
General_Shenanigans@lemmy.world 2 weeks ago
Since this is aimed at Gen Z, if you can buy a car outright or close to it, I would recommend still financing, but paying it off easily to build credit.
kipo@lemm.ee 2 weeks 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.
Bassman1805@lemmy.world 2 weeks 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 weeks ago
See, that whole entire thought process just doesn’t hold me prisoner anymore like it used to.
If you want the capital to survive (buying a car is survival in most places) or to try and get ahead, you must pay more capital than you have. If the banks don’t make money this way, the poor and middle class will fail.
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 2 weeks 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.
ajikeshi@lemmy.world 2 weeks ago
considering that you likely live in the US, just wait 6 months and this loan would be below monthly inflation
kipo@lemm.ee 2 weeks ago
Lol…that’s funny and also so depressing.
Aux@feddit.uk 2 weeks 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 2 weeks ago
It’s a good thing we have a robust public transportation system and pedestrian infrastructure then. /s
callouscomic@lemm.ee 2 weeks 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.
technocrit@lemmy.dbzer0.com 2 weeks ago
Don’t buy cars. Ban them.
timmy_dean_sausage@lemmy.world 2 weeks 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.
Comrade_Spood@slrpnk.net 2 weeks 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.
Zetta@mander.xyz 2 weeks 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.
lka1988@lemmy.dbzer0.com 2 weeks ago
Yes, let’s ban the single most common form of transportation in the country because you’ve never had to live in an area with zero public transport.
Great line of thinking, there.
froggycar360@slrpnk.net 2 weeks 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 2 weeks 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 weeks 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.
lka1988@lemmy.dbzer0.com 2 weeks ago
I did this in my younger years and the cars I got always had some hidden fucked up problem.
My minivan is (well, was) like this. The person I bought it from said the roof-mounted DVD player was professionally installed. I got it home, pulled the interior apart (I was installing a new headunit, backup camera, and some other things), and found the “professionally installed” wiring crossed in front of the side curtain airbag. It wasn’t secured anywhere at all, either. Just flopping around. I fixed that up along with some other issues I found.
Allero@lemmy.today 2 weeks ago
Wait until you hear about mortgage in Russia
26% APR. On a mortgage. No, seriously.
aninnymoose@lemm.ee 3 weeks 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%
some_guy@lemmy.sdf.org 2 weeks ago
Kolanaki@pawb.social 3 weeks ago
I’d be more impressed with their car vending machines if the cars were the same price as a bag of chips.
ICastFist@programming.dev 2 weeks ago
That’s just typical brazilian interest rates
lka1988@lemmy.dbzer0.com 2 weeks ago
I paid %17 interest on a car with a 6 year loan (don’t do that, kids). Refinanced to 4% a year later, knocked another year off the loan (5 years to 4 years), and still ended up paying less per month than the original payment.
I miss that car sometimes. 2012 Kia Soul, and I really liked it. I went on a 3-week business trip a few years ago, and my rental happened to be a 2021 Kia Soul in mustard yellow. I loved every minute of it.
The2b@lemmy.vg 3 weeks 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 3 weeks 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.