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Originally Posted by blankall
In their defence the cash back is typically not part of the loan. It comes from the manufacturer, and you don't have to put it towards the vehicle, although it's typically a good idea.
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Quote:
Originally Posted by Fuzz
Is this a thing people do? Roll an $8000 cash loan into a depreciating car loan? No wonder there a debt problems...
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Quote:
Originally Posted by llwhiteoutll
Not only that, but they roll negative equity in a car into a new car loan. Sometimes more than once.
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Yes and Yes!!! Obviously both horrible decisions but I see people, often times several per week, wanting to trade in their truck owing much then it was new, meaning they haven't paid off the vehicle(s) they previously owned before wanting to trade in their current truck (of course when you trad ein your old one the lien is paid out by the new loan, however you are still paying for it). Some of the verbiage you hear is priceless; "Well the last dealer said they would take care of my whole loan" well they took care of it by adding it to your current loan. "They paid off the whole loan when I bought this truck", yes they loan was paid off and added to this one, thats why your lien is currently $55,000 when this car brand new was $42000.
The cash back scenarios are worse. "they gave me $10,000 cash back....." No sorry they added $10,000 to your loan and you are paying it back at 8% over the next 7 years, "but they said it was included..." Yes included on the loan, I hope you plan on driving this 2015 Ram Quad Cab 2wd with 189,000 km on it for the next 6 years because that's what you'll be doing.