Topic: Upside Down Major

[Ex-airbalancer]

It was over 22% for a mortgage rate in the early '80's

[johngenx]

I had a car loan at 17% then another around 1990 for 14% and was grateful it wasn't 20%!

Governments had messed up monetary policy - omg.  "Stagflation" was a nightmare.  I always wonder why people pine for the "good old days" of Reagan and horrendous economic uncertainty?

[tooscoops]

oh god... that would be ridiculous.

The issue in this day and age if rates were so crazy, people trading in cars after a year or two would have hardly put a dent into their loan. but then, maybe they wouldn't be so silly with their money if rates were so high... hmmm...

todays wasn't even upside down as they paid off their car... but it was a 14 highlander... i wanted the truck, but she had thought since hers was kept nice, she could get higher than what people were selling them for on trader (plus the tax savings). she wanted at least 37000, i told her 31000... 

that is something that people with cash forget... though you aren't technically upside down, buying a car for 45k plus tax (nearly 51k), then trading it for a total value of 35 a year and a half later is still losing a tonne of cash.

[dkaz]

that is something that people with cash forget... though you aren't technically upside down, buying a car for 45k plus tax (nearly 51k), then trading it for a total value of 35 a year and a half later is still losing a tonne of cash.

That's a month's worth of stock dividends to them. No big deal.

[Ex-airbalancer]

oh god... that would be ridiculous.

The issue in this day and age if rates were so crazy, people trading in cars after a year or two would have hardly put a dent into their loan. but then, maybe they wouldn't be so silly with their money if rates were so high... hmmm...

todays wasn't even upside down as they paid off their car... but it was a 14 highlander... i wanted the truck, but she had thought since hers was kept nice, she could get higher than what people were selling them for on trader (plus the tax savings). she wanted at least 37000, i told her 31000... 

that is something that people with cash forget... though you aren't technically upside down, buying a car for 45k plus tax (nearly 51k), then trading it for a total value of 35 a year and a half later is still losing a tonne of cash.

With out telling us the trim level and mileage how do we know whether that was a good deal
What did they want to buy ?

[johngenx]

Selling a 2014 Highlander now means you're going to lose bucks - lots of them.  Even those cars lose a lot in the first 2-3 years.

[2JDM]

oh god... that would be ridiculous.

The issue in this day and age if rates were so crazy, people trading in cars after a year or two would have hardly put a dent into their loan. but then, maybe they wouldn't be so silly with their money if rates were so high... hmmm...

todays wasn't even upside down as they paid off their car... but it was a 14 highlander... i wanted the truck, but she had thought since hers was kept nice, she could get higher than what people were selling them for on trader (plus the tax savings). she wanted at least 37000, i told her 31000... 

that is something that people with cash forget... though you aren't technically upside down, buying a car for 45k plus tax (nearly 51k), then trading it for a total value of 35 a year and a half later is still losing a tonne of cash.

With out telling us the trim level and mileage how do we know whether that was a good deal
What did they want to buy ?

Yeah who would trade their Highlander for a Dodge? 😂

Sent from my Nexus 4 using Tapatalk

[tooscoops]

heh... yeah, true enough.... grand cherokee overland was what they wanted and a highlander xle was what they had...

and as for not telling you packages and such... if i am posting it in here, you can assume it isn't a 'good deal'... at least not for them!

[safristi]

natures do-over!


... or at least that's how my customers seem to see it... then they are back in a month wondering why i can't get them approved.

just love do'over sole...just need the Down Payment

[neil]

2014 Challenger SXT with 70k-   Books around $17k.

$41710

 

[Fobroader]

2014 Challenger SXT with 70k-   Books around $17k.

$41710

 

 

[OliverD]

The scary thing is, you can price an SXT out to $44,645.

[SaskSpecV]

2014 Challenger SXT with 70k-   Books around $17k.

$41710

 

That's a fair bit of clicks for a 2014.  Challenger does make a great highway cruiser, but still...

When someone is that upside down and wanting to get rid of it, is it usually "I absolutely have to get rid of this vehicle" (can't afford the payments anymore), or "I want another vehicle and don't realise how much money I owe on what I currently drive"?

[neil]

2014 Challenger SXT with 70k-   Books around $17k.

$41710

 

That's a fair bit of clicks for a 2014.  Challenger does make a great highway cruiser, but still...

When someone is that upside down and wanting to get rid of it, is it usually "I absolutely have to get rid of this vehicle" (can't afford the payments anymore), or "I want another vehicle and don't realise how much money I owe on what I currently drive"?

Pretty sure it's an ex-rental.

[tooscoops]

so bought used, bought everything in the box, have made no payments, rolled old loan in... man...

and for sask, it is both... just had one today that is about 9k upside down, but the payments are nearly identical, so for them, it was just a "good deal" (used at higher rate, to new at 0%). usually though, they need a lower payment and end up in something that is a bigger mistake financially.

people just don't get it... had one today that i knew was screwed... wanted lower payments, but wanted a car WAY nicer than what they drove now(which they owed the moon on)... i showed them how much the payments would be just normally so they would see how high they would be and out of the question it would be... their reply?, "well, yeah, but you haven't put my trade in, so that should bring it down"....

... and that is a person who KNEW they were severely upside down. they just couldn't grasp that their trade-in brought up their payments. trying to explain it to them was like hitting my head on a wall.

[Cord]

people just don't get it... had one today that i knew was screwed... wanted lower payments, but wanted a car WAY nicer than what they drove now(which they owed the moon on)... i showed them how much the payments would be just normally so they would see how high they would be and out of the question it would be... their reply?, "well, yeah, but you haven't put my trade in, so that should bring it down"....

... and that is a person who KNEW they were severely upside down. they just couldn't grasp that their trade-in brought up their payments. trying to explain it to them was like hitting my head on a wall.

Oh yeah, that is definitely a "type" I've run into many times as well. They know that their car is worth something. But they just can't get their head around the idea that their lien makes the payments go up when the trade is added.

[safristi]

Lien times for many and many more to come when the financial house of cards comes down upon us all..to quote Weird Al......we are living in an Amish Paradise   NOT,,,,

[Cord]

Today I witnessed an attempt to trade in a four day old 2016 Focus ST with NWT plates. The reason? Apparently the middle-aged woman that bought it didn't think it would work well for the moose hunting that she enjoyed. On that point, I wholeheartedly agreed.

The attempt to purchase a used truck didn't go too well, what with her being $25,000 upside-down and all. How, you ask? Well, $11,000 upside-down on the old truck she traded in, plus $7500 in warranties and insurance, plus taxes, plus the wholesale depreciation on the ST.

It turned out that the car hadn't even been registered yet. So we advised her to go back to the selling dealer to try to have them unwind the deal.

[johngenx]

$7500 in warranties and insurance

 

[mmret]

Insurance....for what?