Pwnage by car finance

Smurfen

Smurfen

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The United State Of Norway
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I knew a kid who payed 28% interest on a used Cadillac. Then proceeded to finance rims for the Cadillac. Too many kids running around with brand new cars who can't do math. I don't know whatever happened to the kid, but we calculated he was ultimately paying $15,000 in interest for a 6 year old Eldorado and $2,000 interest for the rims. He made minimum wage working 30 hours a week and was fired for stealing a candy bar after a couple months, he also just had a kid and was living with his 17 year old girlfriend at her parents house. I have no doubt he will do great things.

If you have a car payment and don't know what your paying in interest, or why your 48 month loan is stupid wave and say, "Hi, I'm slightly retarded and I helped cause the financial meltdown."
 
And this is why the world is in debt.....
 
Had a friend who bought a year old mid-range Chevy Cobalt, paid $20k plus a metric shitton of interest, and then the engine went after a month.

I remember having to stop myself from calling her a dumbass, since I know she has awful credit, especially since GM was selling the damn things for $5k less than what she was paying new before her extreme interest rate.
 
I may be a bit stupid but what exactly is Carcraft? I just took a quick peek at their website and it seems it's a network of second hand dealers. So, are they shady second hand dealers? That arrange their own finance with stupid interest rates? And why couldnt he go to a regular dealer, and get a new car. Like the one below. Oh wait, he's an idiot. I just answered my own question.

But I have another one! One thing peeked my interest over at http://www.renault.co.uk/cars/scrapoffer.aspx?oi=10000, 10% interest? That's really high, more than double what is the norm over here. Must be a difference in formulas used for calculating interest rates no? Is it just the UK being weird or is it us?

Also, best quote from the thread
MY CAR WAS OVAAAAH NIIINE THOUUUSSAAAAAAND!!!!
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Damn interest screws people. I'm only loosing around $1500 or $2000 (can't remember off the top of my head) over 5 years.
 
AiR said:
But I have another one! One thing peeked my interest over at http://www.renault.co.uk/cars/scrapoffer.aspx?oi=10000, 10% interest? That's really high, more than double what is the norm over here. Must be a difference in formulas used for calculating interest rates no? Is it just the UK being weird or is it us?
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I have never been too interested in car loans etc., but in general, interest rates on Pounds have always been higher than in the Eurozone (and in many European countries outside the Eurozone). In fact, I've got the stats open in another window, as I've been using it for my thesis: http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&plugin=0&language=en&pcode=tec00035
 
And his forum title is "Wise Guy." :rofl:

Why don't people read the fine print? Or, as what I plan to do (because I have little idea on how financing works), save up for the money first when buying a cheapo car?

Edit: 10,200 pounds is $16,695 in US Monopoly money. Man, the British pound sure looks deceiving. He must be the world's biggest optimist. Pretty ignorant for an appliance driver.
 
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That's the worst part. He read everything, had everything explained, agreed to it, and is actively defending it 10 pages in (stopped reading).
 
2Billion said:
Had a friend who bought a year old mid-range Chevy Cobalt, paid $20k plus a metric shitton of interest, and then the engine went after a month.

I remember having to stop myself from calling her a dumbass, since I know she has awful credit, especially since GM was selling the damn things for $5k less than what she was paying new before her extreme interest rate.
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They depreciate like stone too, we're lucky if we can sell the base cars for even $6000(that's a 2 year old car with just 60,000kms), normally they're sold for $5000.
 
AiR said:
I may be a bit stupid but what exactly is Carcraft? I just took a quick peek at their website and it seems it's a network of second hand dealers. So, are they shady second hand dealers? That arrange their own finance with stupid interest rates? And why couldnt he go to a regular dealer, and get a new car.
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For the former, yes pretty much. People like them buy bangers for peanuts, ex-taxi cabs and the stuff that nobody else wants and doesn't sell for much. They offer easy easy finance to lure in people that have the "want now, will not wait" attitude. The buyer ends up paying twice or more what they should for a third rate piece of shit. For the latter, because it's harder to get finance from a regular dealer and he is too impatient to save up a little and buy a cheap car.

Just for reference, ?10k in the UK would buy you (aside from a shagged out 1.2 base model clio);

TWO of these;
mediaid925003724.jpg


or
One and a bit of these, if this is more your thing;
mediaid931988886.jpg


Perhaps sir would prefer one of these, with ?10 change to spent on sweets;
mediaid911951471.jpg


All with sensible mileage.

No, a 1.2 Clio is a much better choice, what am I thinking.
 
GraemeH said:
For the former, yes pretty much. People like them buy bangers for peanuts, ex-taxi cabs and the stuff that nobody else wants and doesn't sell for much. They offer easy easy finance to lure in people that have the "want now, will not wait" attitude. The buyer ends up paying twice or more what they should for a third rate piece of shit. For the latter, because it's harder to get finance from a regular dealer and he is too impatient to save up a little and buy a cheap car.

Just for reference, ?10k in the UK would buy you (aside from a shagged out 1.2 base model clio);

TWO of these;
mediaid925003724.jpg


or
One and a bit of these, if this is more your thing;
mediaid931988886.jpg


Perhaps sir would prefer one of these, with ?10 change to spent on sweets;
mediaid911951471.jpg


All with sensible mileage.

No, a 1.2 Clio is a much better choice, what am I thinking.
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Well, in all honestly, the Clio is very probably a better runaround than that bentley..

BUT, still 10k? for one is just ridiculous :)
 
I could have bought my car twice and insured it twice for a year and still had ?2000 odd change from what he paid for that :lol:

Also my Corsa's better equipped.
 
He keeps going on about "I needed a car fast", but what's so hard about picking up a newspaper, looking in the classifieds, calling an owner, going down next day or maybe even that afternoon, giving the man couple thousand pounds and driving off in a perfectly good, no-baggage runaround car?

I don't really feel bad for him, he seems completely fine with the deal, but seriously, I'd want blood if I got ripped off that bad.
 
Around here, we have Car Credit of America, aka J.D. Byrider. Anyone can buy a car from there, and I mean anyone. So it is mostly illegals who buy 2-3 year old cars at 20-40% (I kid you not!) interest.
And at work we get call from repo places to get keys made, and they fax the info on the person; some people are owing $30,000 for a three year old vehicle worth $15,000.

I guess I cannot grouse about paying the princely sum of 5.5% interest on my car. :D
 
jayhawk said:
Around here, we have Car Credit of America, aka J.D. Byrider. Anyone can buy a car from there, and I mean anyone. So it is mostly illegals who buy 2-3 year old cars at 20-40% (I kid you not!) interest.
And at work we get call from repo places to get keys made, and they fax the info on the person; some people are owing $30,000 for a three year old vehicle worth $15,000.

I guess I cannot grouse about paying the princely sum of 5.5% interest on my car. :D
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Heh, just yesterday I was looking at pricing and thought to myself "5.9%? That's ridiculous! I won't be getting one of those!"
 
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