Topic: Upside Down Major

[safristi]

Even body painting a naked super model gets old......SO I AM TOLD .....ya want it upside this time Major .....but i am sure we all could hold out for 3 years if pushed....

[tooscoops]

yeah, it's the people more than the car... but people get scared when they hear bad things about resale/reliability of the koreans, so they figure they will take a bath anyway, why not buy now when "the deals are so good and my trade in is in such good shape".... unfortunately, them doing this is a big part of what makes the resale and such take a hit...

the other reason people do the trade in so early is that they are super cash poor... they know it's a mistake, but they can now only afford 125 bi-weekly, not the 200 they are currently paying (which they probably got upsold from 125 biweekly on a lower model)... so they have to take a bath to stretch a term, get a crappier car and drop payments a bit. those ones know what a dumb thing they are doing, but just need to (or so they think).

anyway, this elantra deal seems to be going through... what she doesn't know is that this hyundai has cost her over 1300/month when the loss is taken into consideration....

[tooscoops]

she just called because she knows a guy, so she wants supplier pricing... told her she was already getting it (she really is), but that we put all the discount into the trade value to at least make the paperwork not look completely crazy to the bank... she doesn't believe me.

[mmret]

I don't know how you do this day in and day out

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[carcrazed]

I don't know how you do this day in and day out

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I would have quit within a week.  Good thing I don't deal with outside customers. Otherwise I'd be in jail or on the street.

[Jaeger]

seeing how many kia/hyundai's are for sale by owner within a year or two of buying it is scary... they must be approving deals that are super risky.

So, is it the cars or the owners that are the problem?   I agree that is always seems someone with a relatively new Hyundai/Kia no longer wants it, but is the the type of person who buys that brand or is the the actual cars that quickly lose their shine?

Probably a bit of both.

They sell those cars based on getting a ton of features (heated rear seats leather led headlights) at a price people can afford (because they stretch the payments out at like 80 months at 0%.

Problem is all those fancy features that seem so great on a test drive or to brag about to your friend..."My car has heated rear seats..does YOUR car have heated rear seats...no...you should have bought one like mine" quickly lose their luster. If you drive the car from the front who cares if the unoccupied rear seat is warm. The car the features are attached to is not really anything special. It all seems very nice compared to your 10 year old beater on the test drive.

Then there are the people who will buy a car based on low payment and fancy features. They tend to not pay attention to the actual car they buy. They tend to have a short term outlook.

Generally I think it's the people (who want to get rid of them after 6 months) just full of it lie to themselves and everyone else. I have had it for 6 months and just want something different...BS. You just realized you need to pay for this thing for another 7 years and realize you made a huge mistake .

I think it is more based on the people. What car is so finely tuned as to look great on the test drive and then utterly collapse within 12 months to the point that someone would want to get out and take a huge hit?

Now obviously people are doing this ... but I find it far more likely that it's the people rather than the car.

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I quite agree.  Trade in pretty much any car in the first year or two and you take a bath - particularly if your loan is 5 years or more - and it's not just the Koreans offering low financing and extended terms.  Heck, even on a 3-4 year loan, trying to trade that early will be painful.  People who don't take the time to make an informed decision in the first place (or are just facking stuipid) are the ones who, for the most part, find themselves in this situation.

Earliest I have ever traded a new car was three years and that happened exactly once.  Average is 5-7.

[neil]

Just got a 2015 F350 Lariat 34k, guy paid $88k for it a year ago after typical lift kit murders and Rollin coal exhaust.   They gave him 53k, which is about $13 too high imo.

[johngenx]

FFS, on those 84 month loans the people have maybe paid the taxes off in the first year.

[revalations]

Just got a 2015 F350 Lariat 34k, guy paid $88k for it a year ago after typical lift kit murders and Rollin coal exhaust.   They gave him 53k, which is about $13 too high imo.

That'll be south of the boarder in no time....48-52K USD is the price range at auction in the US for a 350 lariat.

[rrocket]

Just got a 2015 F350 Lariat 34k, guy paid $88k for it a year ago after typical lift kit murders and Rollin coal exhaust.   They gave him 53k, which is about $13 too high imo.

That'll be south of the boarder in no time....48-52K USD is the price range at auction in the US for a 350 lariat.

We have a guy here at work.  His B-I-L buys pickup trucks.  And commercial trucks.  And sells them in the US.  If they don't sell there he sells them in Mexico.  And he's making a killing.

I wonder if dealers over here are paying high trade in on trucks and selling them down south?

[revalations]

Just got a 2015 F350 Lariat 34k, guy paid $88k for it a year ago after typical lift kit murders and Rollin coal exhaust.   They gave him 53k, which is about $13 too high imo.

That'll be south of the boarder in no time....48-52K USD is the price range at auction in the US for a 350 lariat.

We have a guy here at work.  His B-I-L buys pickup trucks.  And commercial trucks.  And sells them in the US.  If they don't sell there he sells them in Mexico.  And he's making a killing.

I wonder if dealers over here are paying high trade in on trucks and selling them down south?

Absolutely. Every used car manager has to have a US buyer on speed dial. The used market has been on the up ever since the CDN $ dropped, the auctions here are sellin a few hundred per week to US buyers, they are definitely driving the prices up. I've been quite content buying trucks and selling them to my buyer in Kansas.

[tooscoops]

I don't know how you do this day in and day out

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I would have quit within a week.  Good thing I don't deal with outside customers. Otherwise I'd be in jail or on the street.

it is tough... as i have morals and ethics... i like cars... i generally like to talk to people. other than the first thing, car sales is made for me right?! heh...

... but yeah, i have to turn a blind eye to the stupidity sometimes...


oh, and the elantra girl. she thinks just by telling me the company a friend of hers works for, she gets supplier pricing. suuuuure... it's that easy. no proof needed or anything.. and why would his name have to be on the contract? [/sarcasm]

today... a guy i sold a van to two years ago... at the time told him not to do it this way, but whatever... 96 month finance on a used town and country. wife left, so now he needs out of it. doesn't want to trade, just sell it to us. i tell him how crazy that is, but he wants the numbers. i say it's worth about 16 ('13 cloth t&c with 85k) and he tells me i'm way off... he has it listed on kijiji for 23750... even though i told him i sold the same car with a couple extra options and 10k less kms two weeks ago for 19800. i just said good luck selling it and let me know if i can help... only owes about 25, so not the worst i've seen by far.

[Sir Osis of Liver]

I don't know how you do this day in and day out

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I would have quit within a week.  Good thing I don't deal with outside customers. Otherwise I'd be in jail or on the street.

I thought some of my clients were demanding/irrational. After reading some of these anecdotes, I've re-assessed. They aren't so bad after all.

[KD]

I guess I should consider myself really lucky.  Other than having to lean on the occaisional construction crew, or other contractor, I never get any grief of the human kind.  Most of my issues deal with logistics.  I rarely hear from my boss other than monthly scheduled meetings. 

[Davep]

today... a guy i sold a van to two years ago... at the time told him not to do it this way, but whatever... 96 month finance on a used town and country. wife left, so now he needs out of it. doesn't want to trade, just sell it to us. i tell him how crazy that is, but he wants the numbers. i say it's worth about 16 ('13 cloth t&c with 85k) and he tells me i'm way off... he has it listed on kijiji for 23750... even though i told him i sold the same car with a couple extra options and 10k less kms two weeks ago for 19800. i just said good luck selling it and let me know if i can help... only owes about 25, so not the worst i've seen by far.

I would think it would be really difficult to sell privately with a lien on it. Or don't buyers bother to check for liens and such things?

[johngenx]

Nope.  You search and find the lien holder and make arrangements to pay out the loan as part of the transaction.  I've bought a couple used cars with liens and had no issue as long as you know what's up.

[tooscoops]

knowing what's up is the main thing... a lien is no big deal at all... an upside-down lien is tougher.

and a lot of the people doing these things aren't the sharpest... they just think they'll keep making a few payments after selling the car or something... no bank will keep the loan going without the collateral of the vehicle... you'll need to apply for a new loan.

best thing to do is do the used car pack thing... see who the loan is through and pay that bank in person with the seller beside you. then they can pay the remaining balance, give you a lien release form, or do whatever they need to do. hopefully the seller has already arranged this kind of stuff and either has the cash or credit arranged, but rarely is that the case.

[safristi]

Be upside the Major is my takeaway...... ....a nice schwarmaaah  or a quarter dinnaaah mit special sauce....

[tooscoops]

had a good'un...

old liberty was worth maybe 2-3k... no big deal. she said she still owed some money... a bit of a surprise, but couldn't be much... right?... she thought it over and said sadly... "i think i still owe close to 10"....

well, not great, but lets give em a call and find out! maybe we'll get lucky...


..... got the accurate number.... 19800 owing.

[Fobroader]

had a good'un...

old liberty was worth maybe 2-3k... no big deal. she said she still owed some money... a bit of a surprise, but couldn't be much... right?... she thought it over and said sadly... "i think i still owe close to 10"....

well, not great, but lets give em a call and find out! maybe we'll get lucky...


..... got the accurate number.... 19800 owing.

Holy chit man.....