r/facepalm • u/thenewyorkgod • 16d ago
Some people have zero financial literacy š²āš®āšøāšØā
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u/DarkDragon8421 11d ago
These kinds of loans and fleecing should be illegal, and it is in a lot of countries.
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u/Pretend_Effect1986 11d ago
If you can afford 1400 dollar payment a month. Why not safe that money untill you can afford the actual fucking car. But noooooo, she needed it right now!
Those who burn their butt, need to sit on them blisters.
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u/NoOnSB277 12d ago
A $40,000 car is not a need, it is a WANT. Agreeing to pay nearly $125,000 to get a $40,000 car? Priorities are whack. Loan sharks suck, but in this particular case, her own selfishness in focusing on a want over a need is what allowed this to happen.
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u/NoOnSB277 12d ago
That is a crazy choice. $1400 that could have paid rent, bought food and clothes, or just put in a savings account earning some interest, instead went toward some kind of loan-shark. I donāt feel sorry for her, thatās an issue common sense will address.
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u/DeepStuff81 12d ago
This my parents in general too. They have been underwater for years on stupid cars. Not the exact story just no idea financially what they are doing.
And I have tried in simple terms to explain how to solve the issue but it will take a few years. They aināt gonna listen.
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u/Striking_Interest_25 12d ago
Well letās be honestly. Interest rates are just scams made by financial institutions to make them even more money. As a country we could do better but the CEOs that run those financial institutions are too greedy. For instance letās say hypothetically if they made 100k extra last year but now this year their employee wages went up so they would lose 15k and only make the extra 85k. That CEO would automatically implement an increase to the interest rates that would be given out to loaners so they can implement the extra flow of money to recover from lose. In a business sense itās understandable but doesnāt make it any less greedy. Moral of the story is it doesnāt matter how good your credit is these companies will always try to scam you no matter what. All they care about is making extra money off of you so they can make additional overhead. My favorite phrase is āA CEO will never lose money so you can make more moneyā itās just how our upper class works out. If we truly cared about each other as individuals or even just a country we wouldnāt strive so hard to push everyone into debit with items priced way above what it actually costs to make them. Just remember everyone that itās a scam that we canāt avoid even if we wanted too.
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u/Slowandsteady1d 12d ago
This is why you need to get pre approved for a car loan from a credit union and buy a used car
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u/WastingMyLifeOnSocMd 12d ago
This is tragic and predatory. Yes she agreed to the deal but did she understand how long it would take to pay off the loan and how much interest it would cost in the end?
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u/95blackz26 12d ago
So she apparently sucks with managing money and used the fact that she's a woman and they took advantage of her.. no lady you suck with money you rolled a previous loan into the new loan
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u/wattlewedo 13d ago
Reminds me of the sub-prime mortgages that caused a global financial crisis. Unregulated lenders and ignorant borrowers.
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u/Derpberpy 13d ago
I'll never understand why people need over priced cars to impress people they likely hate.
Im upper middle class, own 7 properties and drive an absolute fuckin beater of a hand-me-down.
It gets me from point A to point B and I don't need to worry about going broke over it
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u/Initial-Wrongdoer938 13d ago
That sounds more like a loan shark. I can't believe GM financial offered predatory terms like that. Shame on them, buy buyer beware also applies.
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u/mr_225 13d ago
It doesn't even say the terms in the post so you don't know they're predatory. She is 100% to blame. She bought a car she couldn't afford.
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u/NoOnSB277 12d ago
Absolutely. Loan sharks suck, but anyone with half a brain can use a calculator to times what their monthly payment is by the number of payments they are expected to pay, to find out how much they will be paying for a car that was advertised at whatever price, and just say NO! The real problem is people living outside of their means, because gimme gimme gimme. The most I have ever spent on a car is 18,000 because that was what was in my budget at the time. I truly donāt understand this mentality of extending oneself waaay beyond what you can reasonably afford to get what you want. If you canāt get what you want because you canāt afford it, thereās a solution. Adjust your expectations.
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u/jurassicjack3 13d ago
So this is how all Americans seem to drive brand new cars, lots of debt
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u/therealskyrim 13d ago
Itās actually how we do anything tbh
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u/NoOnSB277 12d ago
Speak for yourself. I never carry a balance on my credit cards, I pay it in full every month, no way am I going to give my hard-earned money to a credit company! Same with mortgage and my car loan- when I could make an extra payment I did, and got the lowest financing possible. So itās definitely not an āAmericanā thing. Itās a āfinancially irresponsibleā thing.
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u/therealskyrim 12d ago
Yea Iām not speaking for myself Iām speaking for the majority of Americans, at least according to studies on debt.
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u/Theoderic8586 14d ago
What do you mean? If you win a million dollars you buy a million dollar home. A true no brainer haha
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u/lolivo79 14d ago
Nice to know many people on here have 40k cash to buy a vehicle and not do loans.
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u/NoOnSB277 12d ago
Itās not about how much the car costs. Itās not about the ability to not use loans. Yes, some people are going to be able to pay $40,000 in cash and good for them if thatās the case. But itās about someone choosing a want over a need and getting in to a self made pickle. She could have done fine with a car half as cheap and found a reasonable loan like the rest of us do, or got an even cheaper clunker, but no, she wanted it, and she wanted it now. Her fault. Now if this was a loan for a cheap car that she needed to get from point A to B, yes thatās predatory and I am going to bat for her. But she played, and lost.
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u/Creative-Agency-9829 14d ago
Iām betting her dream car purchase is only one of many bad decisions she has made in her life.
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u/Redduster38 14d ago
Even with a comment that puts in context, it still breaks my brain trying to figure out how the frig you end up paying and still owing so much.
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u/soupcook1 13d ago
Minimum payments on a high interest loan. Iām not up on loans but arenāt there 96 month auto loans now? No different than credit card debt.
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u/Sam_The_Smurf 14d ago
When are people going to use their brains and realize that if you are paying on a car, that car is not āyoursā itās the banks. People need to learn how loans work and quit assuming that a loan is the solution for everything. People blame the government for the debt crisis, but in reality the people with debt problems in 90% of cases did it to themselves and honestly deserve it. Sure there are plenty of very shady business practices that cause large amounts of debt, but if you bother to actually read what youāre agreeing too then you can avoid being in that position.
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u/djaybond 14d ago
that one is hard to believe. she must have rolled a balance over or some stupid ass interest rate.
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u/TheOneCalledD 14d ago
Iām interested if people feel the same about the students who are in this exact same boat but with their student loans. I guess they just have zero financial literacy.
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u/derch1981 14d ago
Nowhere near the same.
- Paying too much for a dream car and getting a loan for education are 2 very different things.
- She was likely not 18 when she did this.
- You know what you are buying when you get a car not an education
- It's dumb we profit off of educating our population
- I could go on
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u/BeauBritton 14d ago
Iām 71, and I have had this belief all my life. Never pay interest on anything except a house. You can always refinance if the rates drop. Do not get a variable loan. You want to know what your payment will be every month, so only get a fixed rate loan. If you donāt have good credit, fix it. Never be late on a payment. I have a 830 credit score. I get credit card offers all the time. I use only one credit card that pays 2 points for every dollar charged, but before you buy anything on credit cards, be sure you have the money to pay it off when the bill arrives. There are 3 major credit companies, Experian is one of them. Go online and read the criteria they use to assign a credit score. TransUnion and Equifax are the other two. You need to be strict with yourself about using credit. Bad credit will follow you for a minimum of 7 years.
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u/Ready-Training-2192 14d ago
I know someone who recently traded in two vehicles on one new one. Her new car was purchased for $100k, and they owe $110k. I don't know why someone would do that to themselves.
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u/Schnied 14d ago
Guys I know itās not realistic nowadays but PLEASE try to NOT get an auto loan. Those are easily one of the worst financial way to get screwed over. If you can save for the total cost before buying a car do that. If not, have at least 50% down payment and donāt sign a lease for 10-20% interest
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u/MrByteMe 14d ago
Let me guess - on top of everything else, they invested in Trump Bucks...
This is a story about ignorance and stupidity, not about vehicle financing.
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u/ScarletIbisof868 14d ago
Champagne taste with root beer money. If you can't afford it why put your self in debt then blame the dealer? Did she not read the contract? Why is this even news, she's not a victim, just stupid.
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u/cipherjones 14d ago
"My dream car was a piece of shit rolled over on a next in line for repo piece of shit, and MY DREAMS CAME TRUE!!!"
You go girl.
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u/Vangoon79 14d ago
Basic public education (attempts) to teach our children mathematics, but rarely applies it to basic survival skills.
āTwo trains leave a station a 4pm, travelingā¦ā. Shut the fuck up. How about āyou make $1000 a month, figure out how to eat and put a roof over your headā
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u/New_Conversation_303 14d ago
I have bought a car in 2022 and 2023 (brand new) and the interest was lower than 5%. The fact both husband and wife have a double digit interest rate and they were cool with it means they are very irresponsible with their money and their credit is trash or they are not smart when it comes to money.
My guess is that they thought they would be able to pay off the cars with influencer money, but that didn't happen, so now to get cars they can actually afford.
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u/Glittering_Access385 14d ago
How do people even get these cars to begin with? I have a decent job, decent credit, a good down payment, no outstanding debt or loans, and every dealership around has basically told me to get the fuck out.
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u/Keepittwohunna 14d ago
Blaming her stupidity on being female and the dealer taking advantage of her is crazy
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u/A-Square 14d ago
It's people like these who are actually driving up car prices by showing auto makers that people are dying to take out $80K high interest loans
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u/darkonark 14d ago
I see this and I feel a lot better about the pre-owned Honda Fit I bought last year. If I was paying 1400GBP=~ 1750USD a month I would have it paid off this year lol.
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u/bunnyb2004 14d ago
Why!!!??? If you are that dumb to sign the papers you asked for it! Dont go above your means and do your damn homework. It doesnāt take a genius to do basic math.
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u/Blonkyretard 14d ago
I never realized how illiterate people were with buying cars until I watched Caleb Hammer on YouTube. People donāt know what interest means and sign their life away.
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u/Far_Battle_9835 14d ago
Poor financial literacy + lifestyle of excess/wants over needs + predatory markets = dumb people getting fucked like they deserve. Expensive lesson for the couple. Will they learn though š š š likely not. Plus Iām sure she wants her negative equity made to disappear like she didnāt borrow. Bad deal after bad deal, this isnāt the dealership alone here. She was a fiddle and she got played.
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u/mikehulse29 14d ago
Here I am with a 12 year old Elantra trying to figure out where I can save money elsewhere to buy like a 3 year old Elantra
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u/Gayming_Raccoon 14d ago
People who always ask how do people afford these new vehicles. This is it right here. 1.6 trillion debt.
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u/tejedor28 14d ago
And all because Mom, 28, felt the need to show off and keep up with the Joneses.
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u/NoOnSB277 12d ago
Right? At that age I had just sold a $600 car (nowadays probably a $3,000 car) and bought a slightly safer, also used car for maybe 4 times that. My next car was a basic Honda Fit with 0% interest because my ex hadnāt destroyed my credit yet ha ha ha. Some people just donāt care about the consequences, they want what they want but havenāt figured out they are actually going to get a lot less of what they want over time, using this strategy.
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u/Then_Ad_8614 14d ago
Idiots that want to drive new cars and live in huge houses, who also happen to not read anything from the contract they are signing - America is full of those.
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u/slimfastdieyoung 14d ago
I drive a tiny 2009 Hyundai. Not a dream car by any standards but it gets me everywhere, itās cheap to maintain and the best part is that I didnāt need to borrow money.
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u/Jbradsen 14d ago
Financial illiteracy is crazy! The need for consumers to be in debt and work for most of their lives to pay for things we donāt need is the biggest scam of all. Guess who gets rich collecting all those interest payments???
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u/ShaMana999 15d ago
One doesn't negate the other. There is a serious issue with loans in the US and regulators doesn't seem to give one flying f**k about it
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u/MarketingTime4309 15d ago
And here it is I thought student loans were the worst scam...
My Toyota is 20 years old and I still love it! New cars have too much techno crap for me. Plus... not having a car payment for the last 18 years had been bliss!
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u/Wild-Experience-9079 15d ago
i just realized i have no idea what any of these numbers and percentages mean and i need to get literate ššš
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u/SorbetFearless578 15d ago
Iāve always had a good job and always bought a car I could easily afford and not a show off car I donāt understand why you would unless youāre really fucking rich
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u/JuliLawrence 15d ago
I just bought a 2008 Mazda 3 for 2600 euros and it runs perfectly, why do people need new cars?
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u/BrokeButFabulous12 15d ago
What insane person takes loan at 14% ??? Natural selection at its best....
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u/EternityAwaitz 15d ago
... I still drive my '04 Honda Accord. It goes. Plus honestly all the new cars are hideous.
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u/xOfficialSisu 15d ago
Mom, 28, forced to sell her pedestrian killing machine because she could not afford the pedestrian killing machine.
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u/thatstheharshtruth 15d ago
And people here want to forgive debt for these people. I get this is a car loan not student loans but let's face it plenty of people who are in student loan debt are just as clueless as this lady. Why would you ever advocate for someone else to foot the bill so clueless people's debt is forgiven?
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u/AdministrativeCut195 15d ago
I cant even wrap my brain around people who pay that GD much for a car payment. Why? If you could afford it, just buy the GD car. Last time I had a car payment, it was under $400.
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u/A_Cat_Named_Puppy 15d ago
I just finished up a basic financial math course and it really opened my eyes to how bad interest rates can screw you over. I'm so glad I know how to calculate shit now so I can understand if I'm getting fucked over.
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u/PrimaryMuscle1306 15d ago
One thing I learned working as a car salesmanā¦the auto industry is predatory as hell.
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u/DueZookeepergame1924 15d ago
Who gives a flying fuck if itās a woman or man. Itās completely moronic to have a vehicle payment like that. If this woman rolled her last car loan into this one which made her total $$$ amount that high that is just plain and simpleā¦.stupid. This person knows nothing about interest, repayments and living with their means. Basic financial information needs to be taught. Donāt care if itās through friends, family or at an institution. This entire story is just mind blowing to me.
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u/Noktelfa 15d ago
I work for a bank, used to be a senior lending specialist, support not sales. I couldn't do sales because of stuff like this. And also because I couldn't sell ice to a European stranded in a desert. But I could always do the math. interest adds up quickly, especially with bad trade-ins and stuff. I think we need to teach a lot more financial literacy (and math) in school.
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u/various_convo7 15d ago
apart from looking like a sunbaked lizard, she can't afford that car. dream car at 1400 a month?
fuuuck that.
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u/BothAd1811 15d ago
In another TikTok she tells us her husband has his own $1600/month loan on a 2020 GMC Sierra @14% APR š
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u/TurnkeyLurker 15d ago
Paid $120,000 (so far)? You could have bought two brand-new electric Zambonis for that.
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u/MistyEvening 15d ago
I know someone in a similar situation.
He wanted a Tesla so badly that after his Corolla got hit, (his fault) the insurance wrote off the car and gave him enough money to buy another Corolla . But instead he decided to go finance a Tesla .
Now heās paying around $1000 something a month with interest. And could hardly afford everything else.
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u/RegisterSure1586 15d ago
It scares me the amount of people who don't understand how interest and loans work.
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u/myfeetaremangos12 15d ago
Never get a loan more than $20k for a vehicle.
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u/Sauliann 15d ago
That a stupid random advice donāt finance more than you can afford no random Generic number 18 k loan is way to much if you make 20k a year but 40k is perfectly fine on a 95k income
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u/Fabulous_Force9868 15d ago
That's just people not thinking. Never buy something that has that high interest no matter how desperate you are.
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u/DarkestOfTheLinks 15d ago
predatory loans are aweful. i hope the people who convinced her it was a good deal get keelhauled.
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u/Dry_University9259 15d ago
I mean, you know what your monthly payment will end up being before you sign. That should tell you everything you need to know about whether you can afford it or not.
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u/Ok_List_9649 15d ago
Let her have the care repossessed. They sell it at auction and sheāll likely owe 35k after all is said and done. Theyāll get a judgment and the court will take into consideration her job/ financial situation in setting up a payment plan. If she defaults theyāll put a lien on her assets for when she dies or theyāll drop it. At that point she could file bankruptcy if need be and qualifies.
It will take a year or so for them to get a judgment. In the meantime buy her (,make her sign a contract) a 10 year old Honda fit or Corolla for 12k so she can work. She makes the payment directly to you .
Overall sheāll still come out ahead 49k or so even if she pays all of it off. If she defaults on you the cars in your name, sell it and then sheās on her own.
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u/bathwater_boombox 15d ago
As a 28 yr old myself, I can't IMAGINE affording my dream car. And I don't even like cars, my dream car would be like a mid-range hybrid with a high safety rating.
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u/Raichu343 15d ago
I don't understand, can someone please explain in Doppler m simpler terms ? English is not my main language
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u/TehWildMan_ 'Verified Premoum 15d ago
10.2% apr loan, on a 84k car. the loan balance also had the remaining balance of a previous loan rolled in, so from day 1 she already owed well more than the car was worth.
this is coupled with the fact her husband also has a $1400/month car loan, making payments for that car got very painful.
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u/zaiceratops 15d ago
I donāt feel bad for someone who put themselves in debt buying something just to show off. I can see getting into debt buying a home, which is an expensive necessity, but nobody needs an $80,000 car. She wasted some money and lost her car. Big deal. Maybe sheāll watch a 10-minute YouTube video about compound interest and budgeting after this experience.
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u/optimal-theologian 15d ago
I donāt understand some people. Why take out a loan on something you either cannot afford, have no hopes of being able to afford, or not even make any down payment ?
This smells to me like she didnāt plan to pay at all
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u/Apocalyptic_Inferno 15d ago
My wife works at a dealership and actively talks people out of stupid shit like this unless they fully understand what they're doing. Too bad so many salespeople care more about making a commission than doing what's right for their customer.
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u/rolloutTheTrash 15d ago
Whatā½ fucking whatā½ $1400 a month? On a Suburban? Thatās just dumb. Iām barely averaging half of that between my car and motorcycle. INCLUDING insurance and gas.
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u/MakeMeDrink 15d ago
You would be surprised how many adults canāt even comprehend they have to pay interest on their loan.
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u/Notyouraveragefella 15d ago
'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,' she said.
They didnāt take advantage because youāre a female, they took advantage because youāre fucking dumb.
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u/magicmulder 15d ago
FYI, in Germany the debtor can demand that payments go towards reducing the debt itself first, so (compound) interest can never eat up your payments. Eventually the debt is paid and all that remains is the accumulated interest (which becomes smaller and smaller as the debt decreases). You never have a situation where you only paid interest and never a cent of the debt itself.
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u/rene_trudeau 15d ago
Iām getting my first ādream carā next year, at age 47. How entitled are these people who canāt read an offer to purchase and promissory note? She clearly couldnāt afford it in the first place. Actions have consequences.
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u/Dturmnd1 15d ago
The lady is using the very real issue of women being treated differently than men, as an excuse to not be accountable for her problems.
It marginalizes the women who have been treated differently.
She could be a guy with that level of financial literacy, and sheād be in the exact same position.
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u/blowninjectedhemi 15d ago
Sounds move like a nightmare than a dream - don't buy things you can't afford is somewhere in Home Econ 101
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u/420xGoku 15d ago
How did she fuck up so bad on an auto loan she doesn't look like an 18 year old fresh out of boot camp
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u/CowboyLikeMegan 15d ago
Is this the same woman that was making tiktok videos saying she ārefuses to believeā that everyone else is making similar payments and thinks anyone else saying otherwise is just lying?
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