[Sand]

Atlanta area news: 20-year-old’s 2010 BMW repossessed despite making payments, family says...

$117 per week(about $500/month?) at 35% interest

[pbonsalb]

Good to learn these life lessons while young, with little to lose, and hopefully great resiliency.

[OC40]

You don’t let your kid get a loan with 35% interest to “establish credit and make a life for themself.” Co-sign on a cheap car for him.

And before anyone says anything, I grew up in a single parent, minimum wage household. My mom’s credit was not great. She co-signed on a 1994 or 1995 thunderbird for me. 8.50% or 8.75% interest on an $8,000 car in 1998.

Seems to be an ongoing issue of false repossessions at that “dealership”.

[Sand]

Originally Posted by pbonsalb

Good to learn these life lessons while young, with little to lose, and hopefully great resiliency.

it probably sucks for the young man. but hopefully it will act like a vaccine so he doesn't get scammed car dealers for the rest of his life!

as for his parents, well, dishonest car dealers are at least nice enough to treat everybody equally. they do not discriminate. they are happy to scam you with no regard to your age, sex, ethnicity, education, religion, politics, height, weight, or whatever.

[NickyC]

The sooner one becomes allergic to paying interest for anything, the better.

35% is out of this world insane.

[Sand]

Originally Posted by NickyC

The sooner one becomes allergic to paying interest for anything, the better.

35% is out of this world insane.

now that I think about it, there's something missing from the story.

by taking the car back, the dealer will not be collecting the 35% interest month after month.... the 20-year-old kid and his mother are actually demanding to get the car back so they can continue to pay it off at 35% interest. why is the dealer refusing to take their money? something just doesn't make sense here.

[Brandoch]

Or maybe stop financing.
Renting a vehicle from a bank while paying interest.
Live within your means, you don't need that new car.

[25 V8 IS]

That's why I always pay cash for my vehicles (although a 51 year old man is probably more financially sound than a 20 year old man).

[JTK44]

This is so bad on so many levels:

This is a failure in our education system: basic math, adding and subtraction and fractions would have taught this kid that no one pays 35% interest.

Who in their right mind, for their first car buys a BMW and to boot a 15 year old BMW???? My God this is a 20 year old kid buying a 15 year old BMW. Hasn't he heard of a Ford, Chevy, Honda or Toyota


The parents are equally to blame: They cannot deny knowledge of this ridiculous transaction as the sons bank account was linked to theirs


The sad thing is that if this kid does pay off the loan, as bad or non-existent his credit is now, by defaulting on the loan it will be worse and getting credit in the future will be even harder

How did this kid even find US Express: It has a better business rating of F!!!

[Terraphantm]

Originally Posted by JTK44

This is so bad on so many levels:

This is a failure in our education system: basic math, adding and subtraction and fractions would have taught this kid that no one pays 35% interest.

Who in their right mind, for their first car buys a BMW and to boot a 15 year old BMW???? My God this is a 20 year old kid buying a 15 year old BMW. Hasn't he heard of a Ford, Chevy, Honda or Toyota


The parents are equally to blame: They cannot deny knowledge of this ridiculous transaction as the sons bank account was linked to theirs


The sad thing is that if this kid does pay off the loan, as bad or non-existent his credit is now, by defaulting on the loan it will be worse and getting credit in the future will be even harder

How did this kid even find US Auto: It has a better business rating of F!!!

Technically my first car was a bmw. A e46 330 zhp. But it was only 4 or 5 years old at the time. I do miss that car.

I did not pay 35% interest though.

[Phillies8008]

At 35% they did him a favor.

[HCGxKaLiBeR]

If you are investing and have extra money for a full cash payment. You are doing pretty damn good.

If you are not investing but making a full cash payment. You are good but could be smarter.

If you can't afford a full or a good down payment but got a reasonable loan. It is what it is, you need a car to move on life.

If you can't afford anything, yet got expensive car while a 35% interest loan you are just stupid...

[erickonphoenix]

BMW gets the clicks for that video, but our mailroom manager has a $50k Ford Raptor. I doubt he makes that a year but like my pops said. Never count another mans money, maybe he's a saver.

[Phillies8008]

Originally Posted by erickonphoenix

BMW gets the clicks for that video, but our mailroom manager has a $50k Ford Raptor. I doubt he makes that a year but like my pops said. Never count another mans money, maybe he's a saver.

This is true. Assuming anyone else's situation is not a great idea; I've known people who with great salaries that are leveraged to the hilt, and people with modest salaries that save like crazy and stay within their means. It could be that your mailroom guy is way over his head with that Raptor, but it's also entirely possible that he's frugal in other places and chooses to put his money into something he feels really enhances his day-to-day happiness.

Given today's automotive climate, the former is probably more likely than the latter, but you know what they say about assuming...

[gee3]

3 weeks went by where payment wasn't made. They claimed "no funds", but I'm betting the person on the phone couldn't see anything related to the error and simply made a guess based on their typical clientele -- those who resort to 35% interest loans.

I had a similar problem with my HOA where they weren't taking funds. Had to call them a few times to sort that out and the error was on their end. If I hadn't sorted it out they would have undoubtedly sent my acct to collections.

The kid should have followed up and figured out a way to pay. Check or otherwise. Shitty outcome, but it's probably for the best.

Two lessons hopefully learned there for the kid:
1. Always pay on time
2. Don't do business with disreputable companies/people/assholes