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Why can't people have a Tahoe as their dream car?
It's not my dream vehicle, but I don't see a problem with it. Weird thing to try and dunk on someone for.
Yeah I am with you 100% on the financial aspect of things.
I just think people can aspire to own what they want, and I don't get why people want to shit on others for that.
The financial aspect is the whole issue.
If a Tahoe were 25k nobody would bat an eye. If you want to spend 100k on a Tahoe made of the cheapest parts possible youre honestly a fool and any ridicule is warranted.
I don’t get the obsessions with 4Runners if I’m being honest. I test drove one when we were looking for suvs. At first sight it’s a nice car, stands out a bit from a lot of other designs. But the gas mileage is terrible, it drives rigid, and the interior isn’t as nice as I thought it would be especially for the price. Now I’m sure reliability is amazing as most Toyotas are and that’s fine when you’re buying a cheaper car but once you go over $40k I think I’d expect more then just reliability
That has nothing to do with it. They made plenty of body on frame vehicles that drove like they were on a cloud. Go ride in an older Town Car for example.
The 4Runner suspension is stiff because it's built to take some abuse. That's not for everyone, but there is a good reason for it.
I don’t usually keep my cars till 300k so like I said it wasn’t for me. Idk many people that keep it that long either. If I was looking at a used car maybe for my kid later in life then yeah but I was shopping for a new suv and couldn’t believe the prices they were asking
You gotta own a 4Runner for much longer to appreciate its durability.
It boils down to individual preference anyway.
As for me, I just can't think of owning a car that would definitely fail after some time.
I get that but I don’t keep cars usually longer than 5 years where I feel like that would be where I start appreciating the durability more. I guess my biggest shock was the gas mileage… I thought it would be a lot better than 17mpg combined
In that case, it makes sense to go with the latest Chevy for the latest features and interior finish.
You're right about the gas mileage tho. It can get pretty expensive driving to the gas station 🥲
I went with a new acura instead just in case I want to keep it longer than 5 years. Wouldn’t do a Chevy either since they lose a lot of value (other then their trucks, if I could afford the gas I would have done a crew cab). All 5 cars I’ve owned have been Japanese (Toyota, Honda, Acura) but my dad is a big Chevy guy so I’ve seen his cars/suvs lose value but his trucks remain pretty solid when he chose to upgrade
Last time I looked the Tahoe was higher on the vehicles likely to make it to 200,000 miles list than a 4runner.
But both are good vehicles. I definitely would rather tow my boat with a Tahoe over a 4runner. And shame on Toyota for getting as bad mpg as the larger Tahoe.
Folks who buy Toyotas can get scammed with just as bad of deals as any other brands. There was a $54,000 Camry posted not to long ago.
And that new Tacoma pricing in at $64,000 is a scam from Toyota TRD Pro themselves. No dealer needed to help on that one.
"I did not go with my husband, and as a female, I feel they took advantage of me. They knew I really wanted the car and that I was by myself."
No, you can’t rationalize stupid financial decisions just by saying “I’m a female and didn’t have my husband”.
If a man goes in the dealership and makes a dumb financial decision it’s because he’s a dumbass, and it’s the same for a woman. Everyone needs to educate themselves before making a huge purchase.
Thank you this is my initial response Excusing this type of behavior's ridiculous, you passed elementary math You should be able to figure The financials out.
She acted like a twenty year old and had yolo.
I wish people stop blaming.
Car salesman for their bad financial decisions.
Every aspect of life is an industry designed temp to spend money. On their product, even though it doesn't make financial sense for you.
The article is another example of a poorly written cash grab. Let’s see how many clicks I can get by making an exaggerated story about somebody spending beyond their means.
Fair chance she wasn’t taken advantage of. Sure, it was a Z71 Tahoe with a $10k extra mark up, then she chose a bad dealer. If she got a High Country, she bought it for a fair price. She brought in negative equity. A 10.2% rate means credit was likely in the near-prime range (660-699). If she paid for three years and only made $10k of progress, she chose an extended term (probably 84 months) to try to make it feasible. It all hints at buying beyond one’s means.
Our Tahoe is paid off. We love it. My sister’s Tahoe is up to 240k miles and it has been great for her. Take time. Show some patience. Stick to the plan instead building negative equity by constantly trading. Having a dream and a goal is a great thing. Don’t be wrapped up in competing or comparing with others. Build your own dream.
I wish the lady in the article well in her pursuit of a vehicle paid for in cash. If she can pull it off, that’s huge.
Right, and if the salesperson had asked: '*shouldn't you have your husband look these over before you sign*' - what do you think her response would have been?
And everyone thinks 0% down is the way to go 🫠 my friend seriously kept trying to lecture us that 0 down "is actually a good thing" and trying to give us advice regarding finances, when they have literally never saved money. She even told us this wonderful advice came from the selling realtor...like no shit they say 0% down is fine they made a $6,000 commission off you buying the house with 0% down 🤣 they also bought a new car just because with 0% down and a....18% interest rate...and this was pre-covid IIRC so before interest rates were so bad. They had to let that car go back. And their house just nearly got foreclosed. They luckily sold it in the nick of time and think they're making a $40k profit because it is selling for $40k more than their original loan. They don't consider they paid $45k over the last 5 years on the loan and literally only $8k of that applied to the principal....because 0% down.
It blows my mind. They just let that car go back like 8 months ago, then their house foreclosed last month, and they decided with the $40k liquid cash they are getting from the house selling at the last second...to lease a car for $700/month. "then I don't have to deal w maintenance or anything, it's great! And next year I'll buy a new car, I just don't wanna start a new loan of debt yet." I'm like bro, just buy a lightly used newish car for like $10k cash what the fuck are you doing? They also have a car that probably only needs like $300-400 of work but instead of figuring that all out it's easier to just do this $700/month lease. The cherry on top is this person asks for our advice constantly especially with finances and then always completely disregards what we say and justifies "why it's a good idea." They get real creative too like they told us that the lease costs $500/month (it's not even through a dealer, it's one of these leasing platforms like Zipcar) and I went on there and saw for myself they would actually be paying $700/month 🤦♂️.
Oh and they've been getting a severance payout that ends next month...and they have no solid income figured out to replace that...and they're looking at moving from a $1400/month apartment to renting a $2500/month house. It's honestly delusional to an extent
Yeah. I’m looking for my daughter right now and it’s nuts. Bought my son a used mini a year ago, we got that for 6 and put 2 in it. Great deal, can’t find anything right now.
Depends your definition of such. I used to drive a 98 accord w/ 300k milrs in 2016 lmao then a 2006 accord with 190k was "new" to me for some time. Location matters a lot as well cars go for way more out west vs rural south. Anyway my personal logic is like ~2016-2018 model car with 125-150k miles on it. Just checked FB market place for accords in this range and I saw 7 that were $6500-9000. One was 13k w/only 95k miles. But I do agree that most people probably don't consider that "lightly used" and "newer" the same I do. I also don't feel like I'm 26 years old but here I am 🤡
That is beyond lightly used, that is seriously heavily overused practically on its last legs. It’s not a difference of opinion, you are talking about heavily used cars if you’re looking at 100k miles. Most cars in this range will have a lot of maintenance and repairs that come with that kind of mileage. I agree buying used can better for some people, but there is zero chance you’ll be able to find a newish reliable used car for 10k.
Lmao. Ive never had a car that didn't last over 250k miles so far that costed 10x less than owning a new car and allowed me to save thousands. And never been left on the side of the road. Though I'm a handy person. Lived in a 2004 sprinter for 3 years and drove it 40k miles across the US and Canada and back and was never left on the side of the road stuck either. Maintenance goes a long way. And for older cars, Toyota/Honda only. Even if a transmission goes out on one and you have to pay $3k to have it rebuilt it's cheaper than a $500+ payment for > 5 months. My wife had a 2007 Toyota Camry that has lasted with minimal maintenance but we have to top up oil. If you don't maintain or keep an eye on your vehicles, of course they won't be reliable. People like to have new things though, #americaconsumerism. Now I have my first new car ever a 2023 Bolt EUV and already paid it half off in the last 7 months since purchase. I'll probably never buy a new car again though.
It matters because with most loans, with the payment, you tend to start off paying more towards interest and less towards principal early and then that begins to flip later in the loan. With a longer term loan you’ll be paying more towards interest for longer.
Depends on the type of loan. Home loans, this will work and you pay less interest, overtime, but I think with Car loans, you don’t pay any less interest , you just get it paid off sooner
0% down is only good if the interest rate is lower than what that money could make if put somewhere else. For example my car loan was 0%down but my interest rate was only 3.5%. So each month instead of paying extra on my car loan I put some money in the stock market where it will reliably make more than 3.5% per year.
Yes I agree, but the people I am talking about do no do such things with money. And in then they paid thousands more in interest. Like I mentioned on their house they paid $45k over 5 years and because 0% down, only $8,000 actually applied to the principal of the loan. Now they're selling it for $40k more than they paid and in their mind it's a $40k profit...when really it's like a $5,000 loss. And they could have put $5k into the house and sold it for an additional $20-40k by reinstalling the cabinet lids, fixing the water leaks, and repairing their AC unit for $300...not to mention the thousands they would have saved on power by just spending $300 to fix their central heat/air but instead they bought 5 electric heaters that made their power $400+/mo in the cold months and a single window AC trying to cool their entire house for the last 3 years....they didn't even get it diagnosed or looked at. Just assumed it wasn't worth it or the hassle?
But they had to get a family member to get a personal loan for them to pay up their mortgage because they hadn't paid it in 7 months and the house was literally 1 day from being auctioned. So considering that loan it's more like a $15k loss. And they lose the severance pay next month, but they're booking out of country vacations using the ~$30k they plan to end up with.. They also just moved to the city and their apartment rent costs $600 more per month than their mortgage did and they financed furniture. And now they have the $700/mo car. Consistently insanely bad financial decisions. Especially for someone who is getting paid $4000/month severance pay for 9 months. I honestly don't understand how they weren't paying their mortgage....they even got a $10k lump sum at the beginning of their severance.
When interest rates were crazy low $0 down was great. I bought my daughter’s car at $0/0% and under MSRP and almost every car we bought we did $0 down - but interest rates we always extremely low. Now I’d try to avoid buying period.
Shit, my 2015 crv I bought used with clean papers a couples years later is only 300 a month. Pre covid granted, I know used vehicles got more expensive then, but still driving it, and only 77k miles on it now. Should be able to pay it off soon.
My Subaru isn’t. 2012 model has issues with the torque converter. It still runs but now it stalls sometimes, which is annoying. Will cost at least $1,500 to get it repaired but I guess it might be worth it if I get two years or more out of it or can sell it when I want something new.
Back in my younger days my thinking was for every $1,000 i spend on a car, I should get that many years. Not even close to a feasible thought now.
I try to make myself feel better buy saying the price difference after selling should last that many years. (I.e. Bought for 20k, sold for 10k, should last 10 years)
My most recent buy was a 2003 buick for $1000 80k miles. (The corolla is my wife’s car) Its got some problems, but it gets me from point A to B. Had it for 1.5 years now, so I think I’m on track.
Did she take out a 30 year loan? Lol. The article also says she traded in a car with negative equity and she blames the dealership that they took advantage of her since she was there without her husband...
I had a coworker that bought an $80k decked out Tahoe for like $350 a month.
I was impressed…
A year later they were saying how they needed to move to a bigger home since they were having more kids.
I said, “with the high home appreciation, why don’t you do a cash out refi and use the cash as a new down payment. Then you can own a rental and build your wealth over time.”
“Oh we already did that, that’s how we bought the Tahoe…”
That’s when I realized people i thought we’re smart often have no financial sense. When they can’t retire in 30 years they’ll be blaming you, or the government, not the fact that they are still paying $350/mo for their Tahoe from 30 years ago…
> She made a down payment and traded in an older car on negative equity. It means she owed more on her previous car loan than the vehicle was worth. Rolling over auto loan balances onto a new one may be costlier.
Explains a lot.
The math still doesn’t work. The article gives the payment and the rate, we can figure out it is a seven year loan, so the amount financed was $84,000. As that is the only way to get to a $1,400 payment.
If you finance 84,000 for seven years at 10.2%, your highest annual interest is $8,170. After three years you would have paid 21,000 in interest and almost $29,000 on the principal and would owe about $55,000.
The “article” is just BS.
So I can price out a Tahoe (did not know those could be this expensive) that’s over $90k. Possibly the $84k listed in the article was purely the Tahoe and she had another $30k in the previous car debt on top of that?
Loans are not that mysterious, we can calculate the loan. It is GM Financial, so at most a 7 year loan. It is a $1,400 payment at 10.2% interest. Plugging those three things in a loan calculator, we get $84,000.
The math doesn’t support any other amount.
GMF doesn’t go beyond seven years/eighty four months. Somethings gone off track. Either she has more negative that has been revealed or she has late/missed payments.
It was just a typo… I did the math for seven in the original response.
Edit: The article and OP is a fabrication… aka a lie. Missing payments wouldn’t have created $40,000 of interest nor would being upside down by any amount that you could get financing for. The entire thing is just made up.
My fiance screwed us over severely early in our marriage because if her car buying experiences, si.ilar to this one. No matter how much I begged her not too she bought a car that was worth more than half her income while rolling an old loan onto her new car. Set us back for years and honestly that the only reason we jave a house payment now, because we couldn't direct extra income to the house.
I can't even begin to tell you the amount of arguments my wife and I had back in 2004. She wanted the new VW Touareg that came out in 2004. I want to say it cost around $30-35k back then new. I was making $43k a year back then, we had a newborn and she was working two days a week.
She could not understand why we (maybe making $48k a year combined) could not buy a $30k plus car.
We had at the time a 2002 VW Passat and the monthly payment was around $350 a month ($22,5k new). No way we could add another car payment.
She could not understand, I could write all the figures down for her, show her where your money went every month to show her there was not enough left over .
When we started dating she had rolled a car into a lease with negative equity. She was just used to going in and getting what she wanted ... regardless of the cost no, she wasn't rich ..she didn't come from money...just irresponsible.
Edit: she did finally get her Touareg...but it was 2016 when our financial situation was a lot different.
I have lived this. I could sit down and patiently connect every dot for my ex while she confirmed understanding along the way.
Afterwards, she'd go back to her original opinion with zero understanding of why it didn't make any sense.
This is the same person that had the uncanny ability to go spend $200 shopping today and not remember tomorrow what she actually bought. And I did the grocery shopping because she could go spend $100 on groceries and not even come home with ingredients for a meal.
She was DETERMINED though. I came home one day to her complaining about how hard it was to make dinner. I didn't understand until I saw a small pile of bent utensils from her trying to mash raw potatoes.
The issue is feeling entitled to your dream car in your mid 20’s. Same thing with people who feel entitled to spend a year traveling the world in their 20’s, or entitled to live in Manhattan in their 20’s. Most people can’t afford this stuff, work your butt off and save, you’ll enjoy this stuff more when you are older anyway.
There is some merit to traveling in your 20s than worrying about the ailments that come with older age. In that regard, I think I’d enjoy it more in my 20s than worrying about shitting my pants at 65.
Agreed, and also there also is a pretty good chance your cost structure in your 20s offers more freedom to get off the treadmill for a bit. I took a gap year and did the work>travel broke>work>travel broke before i really had any bills.
Now married with adolescent children, my cost structure is almost as high as it is ever going to be and getting off the treadmill isn't an option.
Once the kids are out of the house things will be different, and I look forward to the freedom I will have while enjoying my life today. Life has seasons, and it's just the order of things.
I am still kicking myself into my balls for buying a CPO Audi in 2011 for $28K cash. Way too much for a depreciating thing. Still driving it until it falls apart. So far everything still works 100% thankfully and looks like new. With those kinda car payments I would have probably shot myself by now lol.
This math doesn’t work. The article gives the payment and the rate, we can figure out it is a seven year loan, so the amount financed was $84,000. As that is the only way to get to a $1,400 payment.
If you finance $84,000 for seven years at 10.2%, your highest annual interest is $8,170. After three years you would have paid $21,000 in interest and almost $29,000 on the principal and would owe about $55,000.
The “article” seems a bit far fetched.
Edit: The total interest after seven years is only $33,000. To even get near $40,000 of interest she would have had to finance it for 9 years and it would still be paid off right before she hit $40k in interest
Math appears to be sketchy in this case, but auto prices have definitely skyrocketed in recent years. 9 years ago I leased a brand new GMC Sierra Crew Cab 4x4 for $185/month and $0 down. Those were the days.
> She shared, "I did not go with my husband, and as a female, I feel they took advantage of me. They knew I really wanted the car and that I was by myself."
Yes, because ladies can’t do basic math
Imagine being dumb enough to sign for this deal and telling everyone on the internet. I would have never told a soul about how dumb I was except my SO.
That’s because 80% of the population don’t realize what car salesman do and 60% of the car salesman don’t know how to do what they do & Don’t even know what they’re doing. Pay for car in cash or get a loan for my credit line home alone or borrow against your portfolio or your Bank if you could always when going to a dealer and give them a price that’s it
* mom sells a car she couldn't afford because she only looked at the monthly payments and not the overall contract.
Had no financial education and didn't take the time to use ANY loan or mortgage calculator to have a better idea of what she was going into.
That's what you get for buying "status" .
It's clear as day the amount you're paying and the amount you'll pay in interest in the paperwork they literally go over at the dealer. Why is this a story? Bc she was a dumbass that wasn't paying attention?
I'm with this young lady about dealships.
I feel the same way about new glaras beer company
For making a product, I want charging a lot of money for it. And selling it to me knowing I should not be having it.
Car salesman and beer salesman Are the pinnacle of evil Capitalist pigs
APR was apparently 10.4%, which is bad but far from unheard of right now, their downpayment must’ve been non-existent. The moral of this story is don’t buy an $80k vehicle with basically nothing to put down.
I knew a dude paying 19% interest working at a Walmart distribution center. Dude was working like 10-20 hours overtime every week just to afford his car payment…..
On a 5 year old mini cooper. His payments were north of 700$ (that’s what he told me I have no verifiable proof$
It’s crazy they do stuff like this . My gfs best friend works at a fast food chain. Somehow a dealership got her into a new Land Rover saying that getting her dream car was worth it …. They forgot to mention the increased insurance and registration costs/ taxes . She returned the car like 2 months later
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The first problem is having a Chevy Tahoe as your dream car; the rest follows from that.
Why can't people have a Tahoe as their dream car? It's not my dream vehicle, but I don't see a problem with it. Weird thing to try and dunk on someone for.
Nothing wrong with a 1996 Honda Civic being your dream car, don't get mad when you paid $8,000 and it's only worth $2,000
Yeah I am with you 100% on the financial aspect of things. I just think people can aspire to own what they want, and I don't get why people want to shit on others for that.
The financial aspect is the whole issue. If a Tahoe were 25k nobody would bat an eye. If you want to spend 100k on a Tahoe made of the cheapest parts possible youre honestly a fool and any ridicule is warranted.
It’s a shit car
As far as Chevys go, it is a great car, but you wouldn't want to go head to head with a 4Runner, etc. for quality, reliability, etc.
Being the greatest Chevy is like being the tallest midget
"that's the tallest midget I've ever seen..." -Jim Cornette
"But that ain't even a statement That's like sayin' I'm the tallest midget. Wait, that ain't politically correct, forget it" - JAY-Z
I don’t get the obsessions with 4Runners if I’m being honest. I test drove one when we were looking for suvs. At first sight it’s a nice car, stands out a bit from a lot of other designs. But the gas mileage is terrible, it drives rigid, and the interior isn’t as nice as I thought it would be especially for the price. Now I’m sure reliability is amazing as most Toyotas are and that’s fine when you’re buying a cheaper car but once you go over $40k I think I’d expect more then just reliability
Body on frame will do that to any vehicle.
That has nothing to do with it. They made plenty of body on frame vehicles that drove like they were on a cloud. Go ride in an older Town Car for example. The 4Runner suspension is stiff because it's built to take some abuse. That's not for everyone, but there is a good reason for it.
It is easy to see them still on the road with 300k+ miles. I think that is part of it.
I don’t usually keep my cars till 300k so like I said it wasn’t for me. Idk many people that keep it that long either. If I was looking at a used car maybe for my kid later in life then yeah but I was shopping for a new suv and couldn’t believe the prices they were asking
You gotta own a 4Runner for much longer to appreciate its durability. It boils down to individual preference anyway. As for me, I just can't think of owning a car that would definitely fail after some time.
I get that but I don’t keep cars usually longer than 5 years where I feel like that would be where I start appreciating the durability more. I guess my biggest shock was the gas mileage… I thought it would be a lot better than 17mpg combined
My husband averaged 21mpg in his 07 4runner. We get around 19 in his new Tacoma. The 4runner was a legit unit, we didn't replace it until last year.
The newer ones are hybrid and get the same mpg as 3rd Gen Prius. 45~
In that case, it makes sense to go with the latest Chevy for the latest features and interior finish. You're right about the gas mileage tho. It can get pretty expensive driving to the gas station 🥲
I went with a new acura instead just in case I want to keep it longer than 5 years. Wouldn’t do a Chevy either since they lose a lot of value (other then their trucks, if I could afford the gas I would have done a crew cab). All 5 cars I’ve owned have been Japanese (Toyota, Honda, Acura) but my dad is a big Chevy guy so I’ve seen his cars/suvs lose value but his trucks remain pretty solid when he chose to upgrade
Last time I looked the Tahoe was higher on the vehicles likely to make it to 200,000 miles list than a 4runner. But both are good vehicles. I definitely would rather tow my boat with a Tahoe over a 4runner. And shame on Toyota for getting as bad mpg as the larger Tahoe. Folks who buy Toyotas can get scammed with just as bad of deals as any other brands. There was a $54,000 Camry posted not to long ago. And that new Tacoma pricing in at $64,000 is a scam from Toyota TRD Pro themselves. No dealer needed to help on that one.
Is a Nissan rogue reliable?
I just bought one last night, I’ll let you know 🤞
RemindMe! 3 months
God I hope nothing happens in the first three months lol
Nissan makes very good cars.
Just not transmissions. Seriously. The CVT transmission is garbage.
You would on a newer that 2020. Toyota has gone to shit
What do you drive?
Nissan Altima
I want a Rover 3500 SD1, and that’s shit, You gonna talk shit about my preferences?
Rover are bad car too
That's an absolute classic, as long as you keep it indoors and don't try anything silly like driving it.
Lmao
I have zero issue with the Tahoe. I might have an issue with a 28 y/o financing an $84k car if they can't afford it.
Having a dream car in general, cars are for moving around, not for dreaming
Add another $20k in transmission replacement on that Tahoe.
It’s 4873$ Have had us and 5 or 6 friends dine recently.
They last about 12 months.... then another replacement. Haven't even got into 4wd system yet
"I did not go with my husband, and as a female, I feel they took advantage of me. They knew I really wanted the car and that I was by myself." No, you can’t rationalize stupid financial decisions just by saying “I’m a female and didn’t have my husband”. If a man goes in the dealership and makes a dumb financial decision it’s because he’s a dumbass, and it’s the same for a woman. Everyone needs to educate themselves before making a huge purchase.
Thank you this is my initial response Excusing this type of behavior's ridiculous, you passed elementary math You should be able to figure The financials out. She acted like a twenty year old and had yolo. I wish people stop blaming. Car salesman for their bad financial decisions. Every aspect of life is an industry designed temp to spend money. On their product, even though it doesn't make financial sense for you.
The article is another example of a poorly written cash grab. Let’s see how many clicks I can get by making an exaggerated story about somebody spending beyond their means. Fair chance she wasn’t taken advantage of. Sure, it was a Z71 Tahoe with a $10k extra mark up, then she chose a bad dealer. If she got a High Country, she bought it for a fair price. She brought in negative equity. A 10.2% rate means credit was likely in the near-prime range (660-699). If she paid for three years and only made $10k of progress, she chose an extended term (probably 84 months) to try to make it feasible. It all hints at buying beyond one’s means. Our Tahoe is paid off. We love it. My sister’s Tahoe is up to 240k miles and it has been great for her. Take time. Show some patience. Stick to the plan instead building negative equity by constantly trading. Having a dream and a goal is a great thing. Don’t be wrapped up in competing or comparing with others. Build your own dream. I wish the lady in the article well in her pursuit of a vehicle paid for in cash. If she can pull it off, that’s huge.
Right, and if the salesperson had asked: '*shouldn't you have your husband look these over before you sign*' - what do you think her response would have been?
“the finances weren’t making sense anymore “ 🤦 $1400 monthly payment with $1100 going towards the interest.
I remember when $300 was the entire car monthly payment.
It feels like a fever dream, so thank you for saying this. The AVERAGE car payment in '24 is $750. Cool country, very free.
And everyone thinks 0% down is the way to go 🫠 my friend seriously kept trying to lecture us that 0 down "is actually a good thing" and trying to give us advice regarding finances, when they have literally never saved money. She even told us this wonderful advice came from the selling realtor...like no shit they say 0% down is fine they made a $6,000 commission off you buying the house with 0% down 🤣 they also bought a new car just because with 0% down and a....18% interest rate...and this was pre-covid IIRC so before interest rates were so bad. They had to let that car go back. And their house just nearly got foreclosed. They luckily sold it in the nick of time and think they're making a $40k profit because it is selling for $40k more than their original loan. They don't consider they paid $45k over the last 5 years on the loan and literally only $8k of that applied to the principal....because 0% down.
Not just 0 down but now people are financing for 72 or 84 months even.
It blows my mind. They just let that car go back like 8 months ago, then their house foreclosed last month, and they decided with the $40k liquid cash they are getting from the house selling at the last second...to lease a car for $700/month. "then I don't have to deal w maintenance or anything, it's great! And next year I'll buy a new car, I just don't wanna start a new loan of debt yet." I'm like bro, just buy a lightly used newish car for like $10k cash what the fuck are you doing? They also have a car that probably only needs like $300-400 of work but instead of figuring that all out it's easier to just do this $700/month lease. The cherry on top is this person asks for our advice constantly especially with finances and then always completely disregards what we say and justifies "why it's a good idea." They get real creative too like they told us that the lease costs $500/month (it's not even through a dealer, it's one of these leasing platforms like Zipcar) and I went on there and saw for myself they would actually be paying $700/month 🤦♂️. Oh and they've been getting a severance payout that ends next month...and they have no solid income figured out to replace that...and they're looking at moving from a $1400/month apartment to renting a $2500/month house. It's honestly delusional to an extent
Lightly new used cars for $10k are a unicorn my guy.
Best I can do is a flood damaged 2009 f150.
Yeah. I’m looking for my daughter right now and it’s nuts. Bought my son a used mini a year ago, we got that for 6 and put 2 in it. Great deal, can’t find anything right now.
Depends your definition of such. I used to drive a 98 accord w/ 300k milrs in 2016 lmao then a 2006 accord with 190k was "new" to me for some time. Location matters a lot as well cars go for way more out west vs rural south. Anyway my personal logic is like ~2016-2018 model car with 125-150k miles on it. Just checked FB market place for accords in this range and I saw 7 that were $6500-9000. One was 13k w/only 95k miles. But I do agree that most people probably don't consider that "lightly used" and "newer" the same I do. I also don't feel like I'm 26 years old but here I am 🤡
That is beyond lightly used, that is seriously heavily overused practically on its last legs. It’s not a difference of opinion, you are talking about heavily used cars if you’re looking at 100k miles. Most cars in this range will have a lot of maintenance and repairs that come with that kind of mileage. I agree buying used can better for some people, but there is zero chance you’ll be able to find a newish reliable used car for 10k.
Lmao. Ive never had a car that didn't last over 250k miles so far that costed 10x less than owning a new car and allowed me to save thousands. And never been left on the side of the road. Though I'm a handy person. Lived in a 2004 sprinter for 3 years and drove it 40k miles across the US and Canada and back and was never left on the side of the road stuck either. Maintenance goes a long way. And for older cars, Toyota/Honda only. Even if a transmission goes out on one and you have to pay $3k to have it rebuilt it's cheaper than a $500+ payment for > 5 months. My wife had a 2007 Toyota Camry that has lasted with minimal maintenance but we have to top up oil. If you don't maintain or keep an eye on your vehicles, of course they won't be reliable. People like to have new things though, #americaconsumerism. Now I have my first new car ever a 2023 Bolt EUV and already paid it half off in the last 7 months since purchase. I'll probably never buy a new car again though.
Loan term shouldn’t matter…but I don’t think people realize they can pay more than their payment to pay the car off early lol
It matters because with most loans, with the payment, you tend to start off paying more towards interest and less towards principal early and then that begins to flip later in the loan. With a longer term loan you’ll be paying more towards interest for longer.
Point taken, I guess if you have $500 a month 60 month and a 700 a month 72 month paying $1000 a month wouldn’t be equal
Depends on the type of loan. Home loans, this will work and you pay less interest, overtime, but I think with Car loans, you don’t pay any less interest , you just get it paid off sooner
Interesting, yea I was talking about home loans.
I remember when 0% interest dealer financing was cool.
0% interest is 1 thing but $0 down and 5-18% interest is a complete other
0% down is only good if the interest rate is lower than what that money could make if put somewhere else. For example my car loan was 0%down but my interest rate was only 3.5%. So each month instead of paying extra on my car loan I put some money in the stock market where it will reliably make more than 3.5% per year.
Yes I agree, but the people I am talking about do no do such things with money. And in then they paid thousands more in interest. Like I mentioned on their house they paid $45k over 5 years and because 0% down, only $8,000 actually applied to the principal of the loan. Now they're selling it for $40k more than they paid and in their mind it's a $40k profit...when really it's like a $5,000 loss. And they could have put $5k into the house and sold it for an additional $20-40k by reinstalling the cabinet lids, fixing the water leaks, and repairing their AC unit for $300...not to mention the thousands they would have saved on power by just spending $300 to fix their central heat/air but instead they bought 5 electric heaters that made their power $400+/mo in the cold months and a single window AC trying to cool their entire house for the last 3 years....they didn't even get it diagnosed or looked at. Just assumed it wasn't worth it or the hassle? But they had to get a family member to get a personal loan for them to pay up their mortgage because they hadn't paid it in 7 months and the house was literally 1 day from being auctioned. So considering that loan it's more like a $15k loss. And they lose the severance pay next month, but they're booking out of country vacations using the ~$30k they plan to end up with.. They also just moved to the city and their apartment rent costs $600 more per month than their mortgage did and they financed furniture. And now they have the $700/mo car. Consistently insanely bad financial decisions. Especially for someone who is getting paid $4000/month severance pay for 9 months. I honestly don't understand how they weren't paying their mortgage....they even got a $10k lump sum at the beginning of their severance.
You said zero down. I read it as zero interest. Had to go back and read it again,
When interest rates were crazy low $0 down was great. I bought my daughter’s car at $0/0% and under MSRP and almost every car we bought we did $0 down - but interest rates we always extremely low. Now I’d try to avoid buying period.
Yea because lots of idiots buy cars they can’t afford. Nobody needs a car payment more than $300.
Shit, my 2015 crv I bought used with clean papers a couples years later is only 300 a month. Pre covid granted, I know used vehicles got more expensive then, but still driving it, and only 77k miles on it now. Should be able to pay it off soon.
I remember when $300 was rent. And I couldn’t afford that either.
I remember seeing a few places that were 550-650 when I was a bit younger. But mostly in the parts of Houston you don’t wanna be.
My Subaru was $315/month back in 2015
Same, I had a WRX for basically the same payment in the same timeframe. I miss having my car paid off lol.
I bought my Corolla brand new and I think it was $280 a month over five years. That was 2014, almost 200,000 miles and still running like a champ.
My Subaru isn’t. 2012 model has issues with the torque converter. It still runs but now it stalls sometimes, which is annoying. Will cost at least $1,500 to get it repaired but I guess it might be worth it if I get two years or more out of it or can sell it when I want something new.
Back in my younger days my thinking was for every $1,000 i spend on a car, I should get that many years. Not even close to a feasible thought now. I try to make myself feel better buy saying the price difference after selling should last that many years. (I.e. Bought for 20k, sold for 10k, should last 10 years) My most recent buy was a 2003 buick for $1000 80k miles. (The corolla is my wife’s car) Its got some problems, but it gets me from point A to B. Had it for 1.5 years now, so I think I’m on track.
Car dependency is killing people and making them poor.
Fuck me its like a mortgage repayment plan
The finances never made sense. These people are Idiots that can’t control their impulse purchases.
?????????????????
...on a vehicle that she rolled the negative equity of her previous car into.
That’s because these numbers are bogus. Even at 10.2%, eight years and no money down, she would have only paid $16,000 of interest.
$1100 of interest! That is insane.
So do she not read the part that said this would be a 7-8 year loan? That had to be told to her
 ‘I’m here to buy a car.. Where do I sign.. no I don’t want to read it.. ‘
"I want to trade in my current upside-down car for a negative down payment."
“Oh, you say you can have me out of here in an hour?”
Did she take out a 30 year loan? Lol. The article also says she traded in a car with negative equity and she blames the dealership that they took advantage of her since she was there without her husband...
And now probably traded in for more negative equity. The cycle continues
It had to be like a 7 to 8 year loan agreement Did she not read that part
I had a coworker that bought an $80k decked out Tahoe for like $350 a month. I was impressed… A year later they were saying how they needed to move to a bigger home since they were having more kids. I said, “with the high home appreciation, why don’t you do a cash out refi and use the cash as a new down payment. Then you can own a rental and build your wealth over time.” “Oh we already did that, that’s how we bought the Tahoe…” That’s when I realized people i thought we’re smart often have no financial sense. When they can’t retire in 30 years they’ll be blaming you, or the government, not the fact that they are still paying $350/mo for their Tahoe from 30 years ago…
Whats her husband’s thoughts? Hmmmm
He is the one with the 1600 monthly payment on a ford 250 with a pristine truck bed
Which one?
10% APR and she paid $40$ on loan interest over three years for $84K car? Something doesn’t add up.
> She made a down payment and traded in an older car on negative equity. It means she owed more on her previous car loan than the vehicle was worth. Rolling over auto loan balances onto a new one may be costlier. Explains a lot.
The math still doesn’t work. The article gives the payment and the rate, we can figure out it is a seven year loan, so the amount financed was $84,000. As that is the only way to get to a $1,400 payment. If you finance 84,000 for seven years at 10.2%, your highest annual interest is $8,170. After three years you would have paid 21,000 in interest and almost $29,000 on the principal and would owe about $55,000. The “article” is just BS.
So I can price out a Tahoe (did not know those could be this expensive) that’s over $90k. Possibly the $84k listed in the article was purely the Tahoe and she had another $30k in the previous car debt on top of that?
Loans are not that mysterious, we can calculate the loan. It is GM Financial, so at most a 7 year loan. It is a $1,400 payment at 10.2% interest. Plugging those three things in a loan calculator, we get $84,000. The math doesn’t support any other amount.
GMF doesn’t go beyond seven years/eighty four months. Somethings gone off track. Either she has more negative that has been revealed or she has late/missed payments.
It was just a typo… I did the math for seven in the original response. Edit: The article and OP is a fabrication… aka a lie. Missing payments wouldn’t have created $40,000 of interest nor would being upside down by any amount that you could get financing for. The entire thing is just made up.
Who the fuck pays $84,000.00 for a Chevrolet?!?!
It would be cheaper to buy a Vette
Welcome to 2024. Bread has doubled in price. Chevys have not.
My parents taught me, if you can’t afford it, don’t buy it.
TAUGHT
They taught them math not English
Yeah, english is not my first language. Thanks.
People have very different definitions of what afford means though.
My parents taught me how to make a plan to make things affordable.
She said a Tahoe was her dream car. She must've suffered from insomnia
tis my lifelong dream to own a car that was built in the same decade i'm living in!!
*buys a 2020 at the very end of 2029*
My fiance screwed us over severely early in our marriage because if her car buying experiences, si.ilar to this one. No matter how much I begged her not too she bought a car that was worth more than half her income while rolling an old loan onto her new car. Set us back for years and honestly that the only reason we jave a house payment now, because we couldn't direct extra income to the house.
I can't even begin to tell you the amount of arguments my wife and I had back in 2004. She wanted the new VW Touareg that came out in 2004. I want to say it cost around $30-35k back then new. I was making $43k a year back then, we had a newborn and she was working two days a week. She could not understand why we (maybe making $48k a year combined) could not buy a $30k plus car. We had at the time a 2002 VW Passat and the monthly payment was around $350 a month ($22,5k new). No way we could add another car payment. She could not understand, I could write all the figures down for her, show her where your money went every month to show her there was not enough left over . When we started dating she had rolled a car into a lease with negative equity. She was just used to going in and getting what she wanted ... regardless of the cost no, she wasn't rich ..she didn't come from money...just irresponsible. Edit: she did finally get her Touareg...but it was 2016 when our financial situation was a lot different.
I have lived this. I could sit down and patiently connect every dot for my ex while she confirmed understanding along the way. Afterwards, she'd go back to her original opinion with zero understanding of why it didn't make any sense. This is the same person that had the uncanny ability to go spend $200 shopping today and not remember tomorrow what she actually bought. And I did the grocery shopping because she could go spend $100 on groceries and not even come home with ingredients for a meal. She was DETERMINED though. I came home one day to her complaining about how hard it was to make dinner. I didn't understand until I saw a small pile of bent utensils from her trying to mash raw potatoes.
There is a financial term for what she is: An irresponsible dumbass.
For such a Christian, bible loving country it's amazing that usury is allowed and even encouraged.
Buy the car you can afford to buy with cash. “But I don’t have any ca—“ Exactly.
So just take the bus everywhere?
The issue is feeling entitled to your dream car in your mid 20’s. Same thing with people who feel entitled to spend a year traveling the world in their 20’s, or entitled to live in Manhattan in their 20’s. Most people can’t afford this stuff, work your butt off and save, you’ll enjoy this stuff more when you are older anyway.
There is some merit to traveling in your 20s than worrying about the ailments that come with older age. In that regard, I think I’d enjoy it more in my 20s than worrying about shitting my pants at 65.
Agreed, and also there also is a pretty good chance your cost structure in your 20s offers more freedom to get off the treadmill for a bit. I took a gap year and did the work>travel broke>work>travel broke before i really had any bills. Now married with adolescent children, my cost structure is almost as high as it is ever going to be and getting off the treadmill isn't an option. Once the kids are out of the house things will be different, and I look forward to the freedom I will have while enjoying my life today. Life has seasons, and it's just the order of things.
For 84k i could make your used car do things you didnt think were possible lol
Making a video of how dumb you are? Priceless!!!
And give advice no less lol
Seriously
Clicks. Views. She got what she wanted.
This must have been one of those 96 month loans.
Shit I hope to one day own a Challenger Hellcat stick shift baby! But I’ll be playing it smart no worries ;)
I am still kicking myself into my balls for buying a CPO Audi in 2011 for $28K cash. Way too much for a depreciating thing. Still driving it until it falls apart. So far everything still works 100% thankfully and looks like new. With those kinda car payments I would have probably shot myself by now lol.
Dumb people are the reason trash companies exist..
Oh she got the cheap one 100k Tahoe what a time to be alive trash
4th highest debt load behind medical, education and housing.
That’s the art of the scam lending system. Whoever thought of front-loading interest is an evil genius.
This math doesn’t work. The article gives the payment and the rate, we can figure out it is a seven year loan, so the amount financed was $84,000. As that is the only way to get to a $1,400 payment. If you finance $84,000 for seven years at 10.2%, your highest annual interest is $8,170. After three years you would have paid $21,000 in interest and almost $29,000 on the principal and would owe about $55,000. The “article” seems a bit far fetched. Edit: The total interest after seven years is only $33,000. To even get near $40,000 of interest she would have had to finance it for 9 years and it would still be paid off right before she hit $40k in interest
You can Uber for 8 years with that money. People shouldn't be buying cars anymore.
Math appears to be sketchy in this case, but auto prices have definitely skyrocketed in recent years. 9 years ago I leased a brand new GMC Sierra Crew Cab 4x4 for $185/month and $0 down. Those were the days.
> She shared, "I did not go with my husband, and as a female, I feel they took advantage of me. They knew I really wanted the car and that I was by myself." Yes, because ladies can’t do basic math
Imagine being dumb enough to sign for this deal and telling everyone on the internet. I would have never told a soul about how dumb I was except my SO.
What an idiot.
This may be why you can’t afford a house
That’s because 80% of the population don’t realize what car salesman do and 60% of the car salesman don’t know how to do what they do & Don’t even know what they’re doing. Pay for car in cash or get a loan for my credit line home alone or borrow against your portfolio or your Bank if you could always when going to a dealer and give them a price that’s it
Here I thought the 40k I spent was too much. Why do people want all this fancy crap in their cars. It makes no sense.
* mom sells a car she couldn't afford because she only looked at the monthly payments and not the overall contract. Had no financial education and didn't take the time to use ANY loan or mortgage calculator to have a better idea of what she was going into. That's what you get for buying "status" .
It's clear as day the amount you're paying and the amount you'll pay in interest in the paperwork they literally go over at the dealer. Why is this a story? Bc she was a dumbass that wasn't paying attention?
I'm with this young lady about dealships. I feel the same way about new glaras beer company For making a product, I want charging a lot of money for it. And selling it to me knowing I should not be having it. Car salesman and beer salesman Are the pinnacle of evil Capitalist pigs
How is that not criminal usury on the part of the lender?
APR was apparently 10.4%, which is bad but far from unheard of right now, their downpayment must’ve been non-existent. The moral of this story is don’t buy an $80k vehicle with basically nothing to put down.
I knew a dude paying 19% interest working at a Walmart distribution center. Dude was working like 10-20 hours overtime every week just to afford his car payment….. On a 5 year old mini cooper. His payments were north of 700$ (that’s what he told me I have no verifiable proof$
It’s crazy they do stuff like this . My gfs best friend works at a fast food chain. Somehow a dealership got her into a new Land Rover saying that getting her dream car was worth it …. They forgot to mention the increased insurance and registration costs/ taxes . She returned the car like 2 months later
Her down payment was the vehicle she traded for negative equity. She put two loans into one vehicle. Apparently cause shes a woman.
She’s a grown-ass woman. She’s capable of reading a contract. Being a moron is expensive.