$1,000+ a month for new vehicles: Car payments "look more like mortgage payments"

[NFG19]

Wow! 20% apr?!?! LOL Good luck with those payments and God forbid you miss a payment or are late with a payment. lol

Yes it was 20%+ some were even at 30% with very poor credit! plus at 96 months to boot!

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[Bikeman315]

Wow! 20% apr?!?! LOL Good luck with those payments and God forbid you miss a payment or are late with a payment. lol

Interesting article.

https://www.weitzlux.com/consumer-protection/car-loan-usury-unfair-and-illegal-interest-rates/

 

[Stage_3]

Interesting article.

https://www.weitzlux.com/consumer-protection/car-loan-usury-unfair-and-illegal-interest-rates/

Wow, that's interesting. I wonder if anyone has won any of those cases?

 

[Shifting_Gears]

Interesting article.

https://www.weitzlux.com/consumer-protection/car-loan-usury-unfair-and-illegal-interest-rates/

I have mixed feelings on that. The problem with these absurd rates is, people are willing to sign for them all day long. People either don’t care, or have no financial literacy and don’t question it. Then you have the issue of living beyond your means. The dealer is there to provide a service and can’t force you to do anything.

The industry I work in is sales based as well and I can tell you that those that want something the most and will do ANYTHING to get it are people with bad credit. In our case, what we sell is not anything that can ever be considered a necessity, yet people still make financial decisions like their life depends on it.

People buying new or near new cars paying a 20% interest rate should be looking at well maintained, older used vehicles. Pay cash or at least greatly minimize the financial damage if you HAVE to finance at a stupid rate. But people want the newest and flashiest thing. Had an acquaintance that bought a used BMW (about 3 years old) and put it on his credit card with a high-teens APR because his credit was trash and he wouldn’t qualify for a loan. I about slapped the crap out of him.

 

[NFG19]

I have mixed feelings on that. The problem with these absurd rates is, people are willing to sign for them all day long. People either don’t care, or have no financial literacy and don’t question it. Then you have the issue of living beyond your means. The dealer is there to provide a service and can’t force you to do anything.

The industry I work in is sales based as well and I can tell you that those that want something the most and will do ANYTHING to get it are people with bad credit. In our case, what we sell is not anything that can ever be considered a necessity, yet people still make financial decisions like their life depends on it.

People buying new or near new cars paying a 20% interest rate should be looking at well maintained, older used vehicles. Pay cash or at least greatly minimize the financial damage if you HAVE to finance at a stupid rate. But people want the newest and flashiest thing. Had an acquaintance that bought a used BMW (about 3 years old) and put it on his credit card with a high-teens APR because his credit was trash and he wouldn’t qualify for a loan. I about slapped the crap out of him.

Damn put it on a credit card!
I think it’s like you said they don’t understand how it works! I bet a lot of them think it’s just like a flat interest rate. They don’t understand APR%. I wish finance was mandatory in schools. Like start in the 4th grade! It’s sooo vital to everyday life! Even teach about investing in stocks.

 

[Shifting_Gears]

Damn put it on a credit card!
I think it’s like you said they don’t understand how it works! I bet a lot of them think it’s just like a flat interest rate. They don’t understand APR%. I wish finance was mandatory in schools. Like start in the 4th grade! It’s sooo vital to everyday life! Even teach about investing in stocks.

Yeah. It truly should be a core subject that’s taught from an early age forward.

I have plenty to learn myself about finances but I know I am ahead of many others, especially when I hear about stuff like in my example. Lol.

 

[ice445]

I have mixed feelings on that. The problem with these absurd rates is, people are willing to sign for them all day long. People either don’t care, or have no financial literacy and don’t question it. Then you have the issue of living beyond your means. The dealer is there to provide a service and can’t force you to do anything.

The industry I work in is sales based as well and I can tell you that those that want something the most and will do ANYTHING to get it are people with bad credit. In our case, what we sell is not anything that can ever be considered a necessity, yet people still make financial decisions like their life depends on it.

People buying new or near new cars paying a 20% interest rate should be looking at well maintained, older used vehicles. Pay cash or at least greatly minimize the financial damage if you HAVE to finance at a stupid rate. But people want the newest and flashiest thing. Had an acquaintance that bought a used BMW (about 3 years old) and put it on his credit card with a high-teens APR because his credit was trash and he wouldn’t qualify for a loan. I about slapped the crap out of him.

Low credit score = poor impulse control. Pretty much always. So it's not surprising those with the least impulse control are overextending themselves buying the new shiny.

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