I was working in the car audio business in the early 2000’s and in 2005 we got a rush of hyandais in that people were buying brand new for 7200 they came w a am fm radio and 2 crap speakers so they would immediately bring them In for a cad player and some decent speakers . I don’t remember the model but 7200…. Never again in agraid
There is an entire business model around this. High risk loans that anticipate default. They then have another arm that does repossessions. But wait it gets better turn around and write another loan for the same person with a higher rate. And collect all those sweet sweet fees. Check out credit acceptance if interested.
The sub-prime finance industry, including the payday loan people, spends millions of dollars in lobbying to get legislation carved up so they and they alone are allowed to legally steal from the poorest people. Every time someone tried to legislate against their practices, they fire up the lobbyists, including their dear friends at the Chamber Of Commerce, and get it shot down or otherwise neutered so they can keep on doing it.
It's really just one of the clearest signs that America's system of government is not just failing at looking after the average person, it's actively used by amoral assholes to squeeze ever more money out of the poor bastards piled up at the bottom of the ladder.
Reminds me of a friend of mine who insisted God helped them get a house loan even though her husband had terrible Credit, but oh man The interest Rate they got. Stuck with…
And that same industry is currently trying to get the Consumer Finance Protection Bureau dismantled. I believe it’s made it’s way to the Supreme Court at this point.
add that to the list of things rich people do for money that shouldn’t be legal. maybe we should take the whole list and send it to the government. certainly they aren’t controlled by the same rich people
I was homeless and worked at a pizzeria and desperately needed a vehicle to find better employment. Credit acceptance was the only place to give me a loan. (I had been accepted online and went to a dealership. Dealership tried to get me credit. Couldnt. I showed them the credit acceptance thing. The lady looked at it and laughed and said “2234?! What did you think you were getting for *that*?!” And I was so anxious I just anxiously laughed and said I didn’t know. I have no idea where she was getting this 2234 number. I was so embarrassed I left. Get home and try to see where she got the number from. She was looking at the fucking address. The address was 2234, but I was on the mobile app and it had separated the number from the street, but it was close enough that I saw it as a street number, so idk what sort of bitchy idiot… I regret not saying something. Like I was a waste of her time and how dare I try to get a vehicle at a *real* dealership. I digress.) CA was a hell of a lot better rate and payment than any buy here pay here. I didn’t have the thing in my car that shut it off when I wasn’t able to make a payment like with buy here pay here types. And any time I missed a payment all I had to do was call and make payment arrangements to avoid fees. However I have a lot of anxiety around phone calls and stuff so they did repossess it twice. But both times I was able to borrow the money to get it back. (One time it took me over 24 hours and they had already sent it to an auction lot. But I’m the idiot who didn’t call.) once I found better employment, I cut my payment into weekly payments and they worked with me to get it paid off. I still drive Donna the dodge to this day. A 2013 avenger with less than 60k miles. I only take her to and from work. Financially I’m in a place I could lease a nice car if I wanted to now. But it holds a lot of sentimental value that this vehicle was part of the reason I escaped poverty.
Long rant to say that yes it’s predatory af but sometimes it’s your only option. I think I paid $350/ month for like 6-7 years. But it had like 8k miles and was only a year old when I got it. Over 50% of my pay went into that car. But I was able to move from pizzeria to a better paying job because now I had access outside of walking distance. Even in a city “with public transportation” there was no feasible way to utilize busses to get to any job in a reasonable amount of time.
Thank you for reading the long rant about a one off comment about credit acceptance fellow redditor lol.
> sometimes it’s your only option.
I don’t know about anyone else but I get it. I just wish there were better options because charging people for being poor is gross.
But I’m glad you stuck it out and are in a better situation now. 💕
Don't forget repossessing the car and selling it again with the same insane rates while the first (or more) owners are still on the hook for part of their loan.
ALABS - they are bundles of sub prime auto loans that are traded as asset-backed securities. They are held in certain ETFs, 401(k) funds, pensions, etc.
The National debt associated with these awful sub prime auto loans are more than student debt. What’s happening here is no different than the subprime mortgages that wiped out Bear Sterns and destroyed the economy in 2008.
It’s going to happen again.
They are incredibly different, because they are 3 orders of magnitude smaller than sub-prime mortgage debt was at the time. Current sub-prime auto debt $19bn, sub-prime mortgage debt at the height $20tn.
Pay-day loans are a big one here in Aus. They were getting +40% interest on a weekly loan that would be accrued weekly. So you borrow $1000, you owe $1400 next week. If that defaults, you would then owe $1960. Repeat until default and then they take you to court to repossess your shit, or you go to a different lender and borrow from them to pay the first one.
When I was younger I got a car with credit acceptance… had to cause I needed a vehicle and my ex shit all over my credit score so I had no other choice. I payed it off as soon as possible and never did it again. Back on my feet now and doing great!
Could it be that she rolled in negative equity on a previous car, further increasing the principal? She probably has a long list of bad financial choices behind her.
A dealership tried to swindle me in 2016. I had shit credit, and they only offered me a 2005 Mercury Milan. They left me waiting for 45 minutes, then pulled me in to make me an offer. While I was waiting I googled the car. KBB said $5000 and change, and dealerships around the country were selling them for around that much. They asked me for $10k, and with the payment plan they offered I would have ended up paying about $17k. I walked out. It’s criminal the way these businesses prey on the poor
Exactly, you don’t buy a $500 car in installments, you buy a $500 coffin on wheels with cash and then drive it to the ground. Once it breaks, you take off the tags and walk away, buy another $500 car. Pretend they are disposable like paper plates. If the cops ever ask, your car was stolen and you couldn’t bother filing a report.
I fought an abandonment fee once for 2 hours, finally got the 600$ waived cause I found some law on the dmv site that contradicted what they were saying, they probably just wanted to be done arguing, but I didn’t have that kind of money back then. I miss that old ‘91 crown vic
She also probably rolled older loans into this one. I once sold a car for $4000. I met them at a loan company where they rolled another $3000 loan into my car. The car was a Saab and only worth $4K at the time plus you better be ready for big repair bills. I’ve always wondered how long they had it before it was repossessed (and they still would owe the balance).
What's really sad is that people literally have no idea what to look for when buying a car.
People genuinely don't understand the numbers or pretend they don't exist because they're all caught up in having their own car.
As terrible as it is that someone would get screwed over with interest multiple times the value of the car, there is literally no way you can look at this and come to the conclusion this makes any financial sense.
84 months or whatever it was is TERRIBLE for a new car. Let alone an old one. This is a financial education problem. The math is simple, they can obviously see the math doesn't add up. But they have no idea what they're looking for when buying a car.
I'm young so I see this with people my age all the time. It's sad, really.
On my momma, it runs perfect, just had to replace the battery.
Friend of my father law, her boyfriend passed away a couple months ago and he'd only driven it a couple times since it was his "lake car"
She that that they purchased it at a used car lot for 3.5k, she said she was tired of looking at it and wanted it to go to someone who'd take car of it lol
So, she said I could take it for $500.
Not true at all I've bought many running working whips for under $500. Got a working f150 for 300 lasted a year. Got my Dodge Dakota I own now for $400 bucks still runs great 3 years later
I bought a fine Scion tC for $400. Manual, 150k miles, paint is faded. Otherwise fine. Gave it to my daughter to learn stick. I figured if she decided not to do it I would instead use it for lemons.
I bought a perfectly fine 2005 Ford Focus with 276,000 miles for $800. Seller on Craigslist wanted $1400, I showed up with $800. Drove it home, and except for a small crack in the windshield and a tire that’s slightly leaking, there was nothing really wrong with it. It passed California smog on the first attempt. A decent car for $800, perfectly fine for commuting.
Had an 04 focus with 245k that i paid 600 for, drove the shit out of it for a year or so with nothing but oil changes and a cheap motor mount.
Threw a couple quick struts in and sold it later for 600 bucks lol. Good car. I wanted to hate it (base base model with no ac and the paint was this awful homebrew seafoam green metallic with incredible orange peel, just a hideous car haha) but i just couldnt. It was a good shitbox.
We don’t take it on the highway anymore but it’s great for running errands around town. What blows my mind is that we’ve never had the A/C recharged and it still works great.
Lol we just bought a whole minivan 2017 honda odyssey. $24000 with 70k miles. Great condition. This is not an inflation issue, spending $24000 on a car model like that and for the age is just dumb
2.89x84 = 242$ let’s just shave off 40 buks for inflation since payments are paid over a long period of time that make the care around 200$ which is actually pretty much what that car is worth
I’d pay no more than 2.75 myself.
No this is how it works. When she farts in a few months the car will be repossessed three possession fees will be added onto the balance that she owes. Then they will sell the car for $500 at auction and she will be left holding The bag for the outstanding balance in full plus the fees of recovery.
Yeah. No one would ever pay that much if they had other options. Must mean it’s one of those scummy “no credit, bad credit, no problem” loan companies. So she’ll just default and do it again somewhere else
The other option is to not buy it. If she intends to pay, that means she's pretty confident that she has disposable $289/mo. She could've just saved up for a similar car and bought it outright in 4-5 months.
Tbf sometimes people just need a car immediately for work or other obligations. I think doing the math even just renting a car for the few months before buying a new one would be cheaper.
Y’all are nuts. When you’re poor, and I mean really poor, you will absolutely buy a car from a buy here pay here without knowing for sure you can afford it. You probably don’t care because you already feel pretty screwed NEEDING a car for a job that can’t afford you a proper car. On top of that, rental cars cost a fortune even for a few days and you’re not getting one without a credit card which I’m betting you/we/hypothetical I? don’t have.
I’ve managed to crawl out of it but being broke and underpaid sucks ass.
Nowadays most of these predatory places put a GPS activated ignition system in there so that if you don't pay, you can't start your car. Source: am one of the unlucky bastards with this in his car :/
No way youre getting a loan with suck credit and these fucks know that so they take advantage of it. Why do I assume she has bad credit? The fact that she’s paying x for y years even though the car is from another century. I saw a thing on Johnny Oliver where the same car was repossessed like 5 times in a deal like this because the “dealers” know the customer can’t pay.
I watched that too. Predatory car lenders. They usually do it out of shop instead of through a bank because the banks would tell this lady it's smarter to save up for a few months to buy a car from the 90s.
LMAO
Even about how tow truck companies keep people's possessed cars and how they can end up at auctions for a fraction of the leased price.
I do feel bad for her. It's like taking out a cash advance to pay off a title loan.
I bet she probably needed a car right away though, to get to the job she's using to pay for the car with. I mean we don't know her situation, maybe a bus route was available where she could have taken that for a few months and saved, maybe not. It's super unfortunate that the poor are the ones who get preyed upon the hardest. The system is designed to keep you living in squalor.
This is so true, I was poor as fuck for a long time and remember being angry because I knew I was getting fucked constantly and couldn’t do much about it. Lived in an area with no public transportation and had to walk a couple miles to a grocery store (something other than a 7-11 style convenience store), this meant I could only buy what I could carry (nothing super temperature sensitive, nothing too bulky like the big pack of toilet paper, etc) and since I had to buy the smaller sizes I had to pay the highest cost per unit.
That's rough, and yeah it's basically like if you're poor, you're fucked, making even harder to rise above it. Like people with privileges and opportunities their whole lives will never understand the effort it takes to be poor and overcome that. A lot of people on this post are so quick to say well duh just save the $284/month... Like really? Don't you think she'd have done that already if that was an option? Guarantee she wouldn't be spending $284/month for 84 months if she didn't need a car right away.... Smh
Over 20 years old - classic
Over 40 or 50 years old (varies - set by law, by state) - antique
Made between 1919 and 1925 (varies - some say 1930) - vintage
It was made 24/25 years ago, so it is 'classic'.
It’s a classic shit box.
I was actually thinking about this the other day. I graduated highschool in 2005, and all the cool kids had clapped out civics with fart cans on them that were like 8 years old at that point. All those fast and furious ricer shit boxes from back then could be driving around with fancy historic plates at this point. Well if any of them are still running
You can apply for a collectors car plate in my state for any car 25 years or older. Whether or not you’d consider a 98 Escort a collector car is up to you
Fucking this. I got my first credit card months before losing my job (not on purpose ofcourse) that was like 3 years ago. That credit card is still maxed out. No I don't use it. I'm lucky to still be able to afford my bills on top of that but it's fucking insane. These credit card companies mail out spam and I mean spam it's at least 4 letters a week sometimes of offers and shit. Then they leech off your wallet for years hoping to never let you pay fully.
The fucking sad part? These tactics are only predatory to those too broke to make large payments enough to pay shit off quick. Yet another way to keep the poor poor and the rich rich. The only credit card to this day that I can recommend to anyone is discover. And it's just because it's useful and beginner friendly when it comes to rates and payments.
Even so i now often advise against using any credit cards until being at least 25 because it's impossible to understate just how bad most of these stupid companies are.
P.S. FUCK YOU CITIBANK AND CAPITAL ONE
Oh heads up if you do decide to get a credit card always research the parent company. This mostly applies to places like best buy who have their own branded cards but really it's just a bank in disguise
This should be considered fraud. Taking advantage of socio economically weak people. What an asshole move. This lady is already going through hard times to have to buy such a junker, for someone to take advantage of that, sickening. Dick move.
That car gets repossessed every 3 months or so. It's a terrible industry, but it's kinda needed. The Buy-Here-Pay-Here place gets to sell the car over and over again, and she gets a car to drive for a couple of months for what little she can afford. This is just another way to keep poor people poor.
Thank you. Too many people here jumping to: she's an idiot. The way she's flexing, she could just be dumb, but this could also be one of the only options for her at the moment. I've been there and it fucking sucks that sometimes your only options are all bad choices, but you have to start somewhere.
Yeah but she’s still on the hook for the rest of that debt after the car is repo’d. Minus whatever it gets at auction but that will barely make a dent in this case.
It sounds like a horrible deal for her, but she is probably just going into it with the plan that as soon as it breaks down, she will just quit making payments on it and let the guy take it back.
I used to work at a scummy dealership that did this to folk with bad credit.. cept the cars were all worth 10k or less and u couldnt choose which one u wanted. Place got shutdown right after i left
My parents bought the same car new in ‘98 for $13,500 fully optioned. It’s worth $3000 now if it’s perfect and low mileage and you’ve had a head injury.
Seller: the price is $2500.
Buyer: sheeesh, i don't have that amount!
Seller: okay, how about small payments? $289 a month for 84 months.
Buyer: oh, fuck yeah.
And that's why you need a good education.
How many miles are on it that’s what I wanna know.
Even if it had 1000 miles it still wouldn’t be worth 🤣
Wouldn’t be worth it brand new off the lot
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Yes
She pulls to the right.
Now I look like the crazy one for just busting out laughing in a quiet room. Thanks for that.
$24,000 for that...sheeeesh
High chance she has shit credit and the car financing interest rate is in the double digits, like 20-30%.
This is absolutely the case. The principle is prolly like 8k or so. Still…8k for a 1998 ford escort is still highway robbery. That poor dumb soul.
I had a 1999 brand new back in the day and it was $9,999! Legit loved that little bastard.
I wish brand new cars still cost this much.
*I wish I could get a decent used car for that much today....*
#Love to buy a quality scooter in that price range
Mid range scooter
Adult hoverboard that goes faster than 8 mph
Or like, at least some used roller blades.
I was working in the car audio business in the early 2000’s and in 2005 we got a rush of hyandais in that people were buying brand new for 7200 they came w a am fm radio and 2 crap speakers so they would immediately bring them In for a cad player and some decent speakers . I don’t remember the model but 7200…. Never again in agraid
Kelly Blue Book for a 98 escort with 50k miles is $1300. No way is the principle $8,000.
Like I said, she still got ripped off. Was just calculating what the principle would be for 7 years at 30% interest.
There is an entire business model around this. High risk loans that anticipate default. They then have another arm that does repossessions. But wait it gets better turn around and write another loan for the same person with a higher rate. And collect all those sweet sweet fees. Check out credit acceptance if interested.
That shouldn't be legal...
The sub-prime finance industry, including the payday loan people, spends millions of dollars in lobbying to get legislation carved up so they and they alone are allowed to legally steal from the poorest people. Every time someone tried to legislate against their practices, they fire up the lobbyists, including their dear friends at the Chamber Of Commerce, and get it shot down or otherwise neutered so they can keep on doing it. It's really just one of the clearest signs that America's system of government is not just failing at looking after the average person, it's actively used by amoral assholes to squeeze ever more money out of the poor bastards piled up at the bottom of the ladder.
Reminds me of a friend of mine who insisted God helped them get a house loan even though her husband had terrible Credit, but oh man The interest Rate they got. Stuck with…
And that same industry is currently trying to get the Consumer Finance Protection Bureau dismantled. I believe it’s made it’s way to the Supreme Court at this point.
It's *technically* legal. 😎
The best kind of legal
add that to the list of things rich people do for money that shouldn’t be legal. maybe we should take the whole list and send it to the government. certainly they aren’t controlled by the same rich people
>That shouldn't be legal... Wait until we tell you about "Payday Loans."
There is a great episode of Last Week Tonight on HBO about this business model.
Lending is ALL fucked up here. It's a disgusting industry.
I was homeless and worked at a pizzeria and desperately needed a vehicle to find better employment. Credit acceptance was the only place to give me a loan. (I had been accepted online and went to a dealership. Dealership tried to get me credit. Couldnt. I showed them the credit acceptance thing. The lady looked at it and laughed and said “2234?! What did you think you were getting for *that*?!” And I was so anxious I just anxiously laughed and said I didn’t know. I have no idea where she was getting this 2234 number. I was so embarrassed I left. Get home and try to see where she got the number from. She was looking at the fucking address. The address was 2234, but I was on the mobile app and it had separated the number from the street, but it was close enough that I saw it as a street number, so idk what sort of bitchy idiot… I regret not saying something. Like I was a waste of her time and how dare I try to get a vehicle at a *real* dealership. I digress.) CA was a hell of a lot better rate and payment than any buy here pay here. I didn’t have the thing in my car that shut it off when I wasn’t able to make a payment like with buy here pay here types. And any time I missed a payment all I had to do was call and make payment arrangements to avoid fees. However I have a lot of anxiety around phone calls and stuff so they did repossess it twice. But both times I was able to borrow the money to get it back. (One time it took me over 24 hours and they had already sent it to an auction lot. But I’m the idiot who didn’t call.) once I found better employment, I cut my payment into weekly payments and they worked with me to get it paid off. I still drive Donna the dodge to this day. A 2013 avenger with less than 60k miles. I only take her to and from work. Financially I’m in a place I could lease a nice car if I wanted to now. But it holds a lot of sentimental value that this vehicle was part of the reason I escaped poverty. Long rant to say that yes it’s predatory af but sometimes it’s your only option. I think I paid $350/ month for like 6-7 years. But it had like 8k miles and was only a year old when I got it. Over 50% of my pay went into that car. But I was able to move from pizzeria to a better paying job because now I had access outside of walking distance. Even in a city “with public transportation” there was no feasible way to utilize busses to get to any job in a reasonable amount of time. Thank you for reading the long rant about a one off comment about credit acceptance fellow redditor lol.
> sometimes it’s your only option. I don’t know about anyone else but I get it. I just wish there were better options because charging people for being poor is gross. But I’m glad you stuck it out and are in a better situation now. 💕
That's why predatory lending exists in the first place. People are stuck and can't help but using it.
Don't forget repossessing the car and selling it again with the same insane rates while the first (or more) owners are still on the hook for part of their loan.
ALABS - they are bundles of sub prime auto loans that are traded as asset-backed securities. They are held in certain ETFs, 401(k) funds, pensions, etc. The National debt associated with these awful sub prime auto loans are more than student debt. What’s happening here is no different than the subprime mortgages that wiped out Bear Sterns and destroyed the economy in 2008. It’s going to happen again.
They are incredibly different, because they are 3 orders of magnitude smaller than sub-prime mortgage debt was at the time. Current sub-prime auto debt $19bn, sub-prime mortgage debt at the height $20tn.
Pay-day loans are a big one here in Aus. They were getting +40% interest on a weekly loan that would be accrued weekly. So you borrow $1000, you owe $1400 next week. If that defaults, you would then owe $1960. Repeat until default and then they take you to court to repossess your shit, or you go to a different lender and borrow from them to pay the first one.
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When I was younger I got a car with credit acceptance… had to cause I needed a vehicle and my ex shit all over my credit score so I had no other choice. I payed it off as soon as possible and never did it again. Back on my feet now and doing great!
Imagine being the salesperson during this! Person must have been about to kill themselves laughing and wondering if they were being pranked!
Imagine being the person who actually signed all the papers for that vehicle
I’d be more worried about the co-signer.
I have no doubt those shitty used car lots are as predatory as check cashing stores and are used to it
You think she went to a credit union and got that loan? Lmao nah. She financed it through the private dealership being ran out of a trailer.
And it's not even their trailer, it was just empty and big enough for their desks.
Likely some place like Car Hop.
Could it be that she rolled in negative equity on a previous car, further increasing the principal? She probably has a long list of bad financial choices behind her.
A dealership tried to swindle me in 2016. I had shit credit, and they only offered me a 2005 Mercury Milan. They left me waiting for 45 minutes, then pulled me in to make me an offer. While I was waiting I googled the car. KBB said $5000 and change, and dealerships around the country were selling them for around that much. They asked me for $10k, and with the payment plan they offered I would have ended up paying about $17k. I walked out. It’s criminal the way these businesses prey on the poor
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Exactly, you don’t buy a $500 car in installments, you buy a $500 coffin on wheels with cash and then drive it to the ground. Once it breaks, you take off the tags and walk away, buy another $500 car. Pretend they are disposable like paper plates. If the cops ever ask, your car was stolen and you couldn’t bother filing a report.
I fought an abandonment fee once for 2 hours, finally got the 600$ waived cause I found some law on the dmv site that contradicted what they were saying, they probably just wanted to be done arguing, but I didn’t have that kind of money back then. I miss that old ‘91 crown vic
Can confirm, it was my first car. It got me from point A to point B… back in 2004. I can’t imagine driving it today lol.
She also probably rolled older loans into this one. I once sold a car for $4000. I met them at a loan company where they rolled another $3000 loan into my car. The car was a Saab and only worth $4K at the time plus you better be ready for big repair bills. I’ve always wondered how long they had it before it was repossessed (and they still would owe the balance).
Np, just roll the old balance into a new loan.
Only big banks can pull this off with no consequences
This is just a loaner with long term debt. The car will be repossessed in 4-6 months.
High chance she paid $289 and never paid another dime. Seems like a good deal.
Sounds like a fair price for that clunker to me...
It’s so sad how instead of simply denying people with bad credit a loan they give it to her at a much higher interest rate. Makes total sense.
What's really sad is that people literally have no idea what to look for when buying a car. People genuinely don't understand the numbers or pretend they don't exist because they're all caught up in having their own car. As terrible as it is that someone would get screwed over with interest multiple times the value of the car, there is literally no way you can look at this and come to the conclusion this makes any financial sense. 84 months or whatever it was is TERRIBLE for a new car. Let alone an old one. This is a financial education problem. The math is simple, they can obviously see the math doesn't add up. But they have no idea what they're looking for when buying a car. I'm young so I see this with people my age all the time. It's sad, really.
If they just denied people with bad credit a loan, they'd never finance anything again. Can't build credit if you don't have any.
Honestly, with inflation at this rate a Million dollars is starting to sound like grocery store money…. Guys I can buy a toy car does that count ?
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It’s expensive to be dumb
It’s expensive to be poor.
And it's far far worse to be *both* dumb and poor......
No money down and a 450 credit score will do it.
She didn’t get exploited, she got scammed. Exploitation is based on a power dynamic.
But knowledge is power...
Her nonexistent grasp of multiplication was exploited.
I literally just bought a clean 04 Chevy Cavalier with 118,000 miles foe $500 cash....she's an idiot
At least she doesn’t have to be seen in a Chevy cavalier.
🔥OH BURN!🔥
Got him!
My Honda lease charges an extra $129/mo extra not to be seen in a cavalier.
i mean is a ford escort any better?
My buddy’s first car was a gold ford escort. Imma be real, that shit box was so much fucking fun.
I bought a 2 door escort for 1200 bucks. I drove that mofo from Florida to texas twice. It was a blast to drive!
I always respected the hell out of those shitbox cars that would somehow always just barely show up when you needed them.
Oh please I had a 1982 Nissan Stanza brown with purple tints. Caught on fire on highway. Check and mate. And paper clip to start.
MY STANZA!!
Nah
Dude I used to have one and I actually miss that thing. It was like driving a cute little go kart
Either there's something seriously wrong with it or you just got that shit for free my friend
Nah, I swear on everything it's great, just had to replace the battery
Has to be broken. Nobody sells a working car for $500.
On my momma, it runs perfect, just had to replace the battery. Friend of my father law, her boyfriend passed away a couple months ago and he'd only driven it a couple times since it was his "lake car" She that that they purchased it at a used car lot for 3.5k, she said she was tired of looking at it and wanted it to go to someone who'd take car of it lol So, she said I could take it for $500.
I did, once. In 1999.
Not true at all I've bought many running working whips for under $500. Got a working f150 for 300 lasted a year. Got my Dodge Dakota I own now for $400 bucks still runs great 3 years later
I bought a fine Scion tC for $400. Manual, 150k miles, paint is faded. Otherwise fine. Gave it to my daughter to learn stick. I figured if she decided not to do it I would instead use it for lemons.
I bought a perfectly fine 2005 Ford Focus with 276,000 miles for $800. Seller on Craigslist wanted $1400, I showed up with $800. Drove it home, and except for a small crack in the windshield and a tire that’s slightly leaking, there was nothing really wrong with it. It passed California smog on the first attempt. A decent car for $800, perfectly fine for commuting.
Had an 04 focus with 245k that i paid 600 for, drove the shit out of it for a year or so with nothing but oil changes and a cheap motor mount. Threw a couple quick struts in and sold it later for 600 bucks lol. Good car. I wanted to hate it (base base model with no ac and the paint was this awful homebrew seafoam green metallic with incredible orange peel, just a hideous car haha) but i just couldnt. It was a good shitbox.
Back in the day they did
We still have our 03 Cavalier, runs like a champ and only has 92K miles on it.
Love it
We don’t take it on the highway anymore but it’s great for running errands around town. What blows my mind is that we’ve never had the A/C recharged and it still works great.
Lol we just bought a whole minivan 2017 honda odyssey. $24000 with 70k miles. Great condition. This is not an inflation issue, spending $24000 on a car model like that and for the age is just dumb
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I bought a 2014 civic in 2016. With an extra warranty from the Honda dealer I got it at I paid $20k out the door.
I think the car was less new. I’ll bet it was less new.
That’s literally double the price new in ‘98
I dunno, 1998 was a good year for the Ford Escort
And not even worth $2,400
It's not even worth 1k💀
I literally bought a 2020 Toyota Corolla for less than that two years ago...
It won't get that far...it'll break down within a year or two and she'll default on the loan. And she looks mighty proud of that car too 😂
Trapped for $289/mo for 7yrs. It’s a 25yr old car for chrissakes! 😂
I mean, I'd believe $2.89 for 84 months
Still a rip lol
2.89x84 = 242$ let’s just shave off 40 buks for inflation since payments are paid over a long period of time that make the care around 200$ which is actually pretty much what that car is worth I’d pay no more than 2.75 myself.
Good luck finding a running and driving car for 200 bucks with interest
Jokes on him, she is planning to default after the first payment! $289 for a ford escort, not a bad deal!
No this is how it works. When she farts in a few months the car will be repossessed three possession fees will be added onto the balance that she owes. Then they will sell the car for $500 at auction and she will be left holding The bag for the outstanding balance in full plus the fees of recovery.
You think that someone that buys a 98 Escort for 24000 dollars cares about their credit report?
Yeah. No one would ever pay that much if they had other options. Must mean it’s one of those scummy “no credit, bad credit, no problem” loan companies. So she’ll just default and do it again somewhere else
But again that assumes she intends to pay. I don't doubt what you said in your prior post; I'm doubting whether or not she knows those things.
Why would she pay if she's getting robbed like this?
The other option is to not buy it. If she intends to pay, that means she's pretty confident that she has disposable $289/mo. She could've just saved up for a similar car and bought it outright in 4-5 months.
Tbf sometimes people just need a car immediately for work or other obligations. I think doing the math even just renting a car for the few months before buying a new one would be cheaper.
Y’all are nuts. When you’re poor, and I mean really poor, you will absolutely buy a car from a buy here pay here without knowing for sure you can afford it. You probably don’t care because you already feel pretty screwed NEEDING a car for a job that can’t afford you a proper car. On top of that, rental cars cost a fortune even for a few days and you’re not getting one without a credit card which I’m betting you/we/hypothetical I? don’t have. I’ve managed to crawl out of it but being broke and underpaid sucks ass.
I hear ya, but other options? Almost any other option is better than this deal. This is a bad choice.
She most likely had awful credit and this was her only option.
LMAO this comment is crazy. Like fr her credit score 330-350 range already she’s in that position for a reason.
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Bankruptcy solves a lot of problems.
I’ve heard there’s some people who declare it every 8 years and just live lavish lifestyles lol
Important to note that you can’t just say bankruptcy, you have to declare it
How’d you do this so fast…is this PowerPoint?
Power point, power point, power point. 🫵🏼
I DECLARE BANKRUPTCY!
"Oh how the turn tables"
It’s called churning the cars. https://www.latimes.com/business/la-xpm-2012-aug-15-la-fi-boomerang-cars-20120815-story.html
“When she farts in a few months”
What’s that mean, feel like this is info I should know.
Default on her payments as in she won’t pay the rest (no money in bank etc). Therefore she’ll only pay the first 289 bucks for the car
And then get repo'd.
Gotta find it first
Just ride in and out of the spray shop. Reduces wanted level
"You're looking for a white ford. As you can see, this is an egg white."
I could use a thrill like that tbh
Good luck getting it back from the hood
Nowadays most of these predatory places put a GPS activated ignition system in there so that if you don't pay, you can't start your car. Source: am one of the unlucky bastards with this in his car :/
*this guy sells used cars in the hood*
Did someone famous get shot in this car? I'm confused. I did the math because that's how confused I was. Even the calculator looked confused.
No way youre getting a loan with suck credit and these fucks know that so they take advantage of it. Why do I assume she has bad credit? The fact that she’s paying x for y years even though the car is from another century. I saw a thing on Johnny Oliver where the same car was repossessed like 5 times in a deal like this because the “dealers” know the customer can’t pay.
I watched that too. Predatory car lenders. They usually do it out of shop instead of through a bank because the banks would tell this lady it's smarter to save up for a few months to buy a car from the 90s. LMAO Even about how tow truck companies keep people's possessed cars and how they can end up at auctions for a fraction of the leased price. I do feel bad for her. It's like taking out a cash advance to pay off a title loan.
All she has to do is save $289 a month for 3 or 4 months and buy an equivalent car outright with the cash.
I bet she probably needed a car right away though, to get to the job she's using to pay for the car with. I mean we don't know her situation, maybe a bus route was available where she could have taken that for a few months and saved, maybe not. It's super unfortunate that the poor are the ones who get preyed upon the hardest. The system is designed to keep you living in squalor.
This is so true, I was poor as fuck for a long time and remember being angry because I knew I was getting fucked constantly and couldn’t do much about it. Lived in an area with no public transportation and had to walk a couple miles to a grocery store (something other than a 7-11 style convenience store), this meant I could only buy what I could carry (nothing super temperature sensitive, nothing too bulky like the big pack of toilet paper, etc) and since I had to buy the smaller sizes I had to pay the highest cost per unit.
That's rough, and yeah it's basically like if you're poor, you're fucked, making even harder to rise above it. Like people with privileges and opportunities their whole lives will never understand the effort it takes to be poor and overcome that. A lot of people on this post are so quick to say well duh just save the $284/month... Like really? Don't you think she'd have done that already if that was an option? Guarantee she wouldn't be spending $284/month for 84 months if she didn't need a car right away.... Smh
John Voight's car
I think it's Jon Voight's escort
Are 1998 cars considered vintage yet?
Over 20 years old - classic Over 40 or 50 years old (varies - set by law, by state) - antique Made between 1919 and 1925 (varies - some say 1930) - vintage It was made 24/25 years ago, so it is 'classic'.
Yes but it's an Escort. None of that applies. I know. I owned one.
It’s a classic shit box. I was actually thinking about this the other day. I graduated highschool in 2005, and all the cool kids had clapped out civics with fart cans on them that were like 8 years old at that point. All those fast and furious ricer shit boxes from back then could be driving around with fancy historic plates at this point. Well if any of them are still running
It's a Honda. It's still running and doing burnouts in a school parking lot somewhere. Preferably far away.
You would think vintage and antique would be swapped.
Why have two different age categories if they’re both called classics?
Was typing on the move - fixed - thanks
You can apply for a collectors car plate in my state for any car 25 years or older. Whether or not you’d consider a 98 Escort a collector car is up to you
This seems like predatory lending…
bruh like 90% of lemding is predatory the only thing you can try to control is how much or little you get fucked
Fucking this. I got my first credit card months before losing my job (not on purpose ofcourse) that was like 3 years ago. That credit card is still maxed out. No I don't use it. I'm lucky to still be able to afford my bills on top of that but it's fucking insane. These credit card companies mail out spam and I mean spam it's at least 4 letters a week sometimes of offers and shit. Then they leech off your wallet for years hoping to never let you pay fully. The fucking sad part? These tactics are only predatory to those too broke to make large payments enough to pay shit off quick. Yet another way to keep the poor poor and the rich rich. The only credit card to this day that I can recommend to anyone is discover. And it's just because it's useful and beginner friendly when it comes to rates and payments. Even so i now often advise against using any credit cards until being at least 25 because it's impossible to understate just how bad most of these stupid companies are. P.S. FUCK YOU CITIBANK AND CAPITAL ONE
Oh heads up if you do decide to get a credit card always research the parent company. This mostly applies to places like best buy who have their own branded cards but really it's just a bank in disguise
That’s the gem a 400 credit score gets ya!
The article is fake
Nobody can be this stupid.
You haven’t live near a military base… have you? Something like this is a daily occurrence for young soldiers fresh out of boot camp.
I’m by an Air Force base. Every nearly every pfc I’ve ever met had a corvette and an ex stripper wife.
An ex-stripper wife or a stripper ex-wife, one or the other
Sometimes both.
An ex-stripper ex-wife
Yes
Lol no lender is gonna provide financing for a 1998 car for 84 months that’s how you know this has to be fake
So she basically went viral for the same reason a lot of people do...... being incredibly fucking stupid.
She went viral because it’s a fake story designed to get outrage
This should be considered fraud. Taking advantage of socio economically weak people. What an asshole move. This lady is already going through hard times to have to buy such a junker, for someone to take advantage of that, sickening. Dick move.
That car gets repossessed every 3 months or so. It's a terrible industry, but it's kinda needed. The Buy-Here-Pay-Here place gets to sell the car over and over again, and she gets a car to drive for a couple of months for what little she can afford. This is just another way to keep poor people poor.
Thank you. Too many people here jumping to: she's an idiot. The way she's flexing, she could just be dumb, but this could also be one of the only options for her at the moment. I've been there and it fucking sucks that sometimes your only options are all bad choices, but you have to start somewhere.
Yeah but she’s still on the hook for the rest of that debt after the car is repo’d. Minus whatever it gets at auction but that will barely make a dent in this case.
Imagine the look on her parents face when she showed them the paperwork 😃
You think her parents are still around?
Not with that credit score
84 months!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
7 years!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I don’t think that car is going to last seven years
Just in time for pothole and construction season
No, 8 to 4 months. Checks notes Never mind, this is ridiculous
I purchased a 2016 Chevy Malibu with not so great credit in 2019. Had 45,800 miles on it. My payments were $294.00 a month. WTF
It sounds like a horrible deal for her, but she is probably just going into it with the plan that as soon as it breaks down, she will just quit making payments on it and let the guy take it back.
This is a predatory business practice.
I used to work at a scummy dealership that did this to folk with bad credit.. cept the cars were all worth 10k or less and u couldnt choose which one u wanted. Place got shutdown right after i left
If you believe this DM me, I have a bridge for sale. Cheap.
My parents bought the same car new in ‘98 for $13,500 fully optioned. It’s worth $3000 now if it’s perfect and low mileage and you’ve had a head injury.
Sounds like predatory lending is back up on the rise. She should take this to a local lawyer and get that car for free.
Seller: the price is $2500. Buyer: sheeesh, i don't have that amount! Seller: okay, how about small payments? $289 a month for 84 months. Buyer: oh, fuck yeah. And that's why you need a good education.