02-02-2020, 07:46 PM
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#21
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Pent-up
Join Date: Mar 2018
Location: Plutanamo Bay.
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Whoa, nuking your credit over a Kia. Yikes.
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The Following User Says Thank You to Scroopy Noopers For This Useful Post:
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02-02-2020, 07:52 PM
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#22
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Powerplay Quarterback
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Quote:
Originally Posted by Scroopy Noopers
Whoa, nuking your credit over a Kia. Yikes.
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That’s why I asked the scam question.
Underwater on your current vehicle, roll the negative equity into a new vehicle, collect the cash back and let the current vehicle get repo’d without making any real payments. Bonus points if you had both vehicles in a single person’s name and only their credit gets nuked.
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02-02-2020, 07:52 PM
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#23
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Franchise Player
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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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The Following 3 Users Say Thank You to Fuzz For This Useful Post:
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02-02-2020, 07:53 PM
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#24
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Franchise Player
Join Date: Mar 2007
Location: Calgary
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Nuking your credit for $8k, sounds about right for dumb people.
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The Following User Says Thank You to burn_this_city For This Useful Post:
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02-02-2020, 07:59 PM
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#25
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Powerplay Quarterback
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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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Not only that, but they roll negative equity in a car into a new car loan. Sometimes more than once.
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02-02-2020, 08:03 PM
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#26
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Scoring Winger
Join Date: Dec 2011
Location: Calgary, AB
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Yes, these folks are about as financially literate as the situation sounds, so no scam possibilities.
They are like a lot of people and just don’t understand that just because they want the newest shiny toy doesn’t mean you can afford it.
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02-02-2020, 08:07 PM
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#27
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Franchise Player
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These days how badly would that nuke your credit? Especially if you have a good job?
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02-02-2020, 08:37 PM
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#29
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Pent-up
Join Date: Mar 2018
Location: Plutanamo Bay.
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Quote:
Originally Posted by Weitz
These days how badly would that nuke your credit? Especially if you have a good job?
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Not that long if you stop being an idiot.
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The Following User Says Thank You to Scroopy Noopers For This Useful Post:
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02-02-2020, 09:04 PM
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#30
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Franchise Player
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Quote:
Originally Posted by Weitz
These days how badly would that nuke your credit? Especially if you have a good job?
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6 years I think.
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02-02-2020, 09:51 PM
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#31
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Scoring Winger
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If you are already underwater and some banker is going to give you a new car and eight grand in cash, take it. The banker is the idiot.
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02-02-2020, 09:52 PM
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#32
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First Line Centre
Join Date: Mar 2006
Location: Edmonton, AB
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Quote:
Originally Posted by OMG!WTF!
6 years I think.
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Correct.
Your friend needs to review the documents of the credit agreement.
Conditional sales contract? Likely they can't sue for the difference.
Loan Agreement with a financial institution likely means they can.
For my source, I have managed a financial institution for years.
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02-02-2020, 09:54 PM
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#33
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First Line Centre
Join Date: Mar 2006
Location: Edmonton, AB
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Quote:
Originally Posted by bagofpucks
Sorry, the $8K cash back was just added to the car loan and they got the $8K in cash. When I bought a car earlier in the year the dealerships were really pushing the cash back piece of financing. It makes no sense to me, but apparently it appeals to some folks.
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They likely get paid a higher brokerage/reserve for higher lending. I haven't seen that side of the business for some time, but that used to be the case.
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02-02-2020, 10:12 PM
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#34
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Pent-up
Join Date: Mar 2018
Location: Plutanamo Bay.
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Quote:
Originally Posted by OMG!WTF!
6 years I think.
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The mark will be there yes (I actually thought it was longer). But you can fix your credit score much faster.
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02-02-2020, 11:48 PM
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#35
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Ate 100 Treadmills
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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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02-03-2020, 07:05 AM
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#36
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Scoring Winger
Join Date: Dec 2011
Location: Calgary, AB
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Thanks all for the additional information!
Interestingly, the debt is with a bank and they have said they will be coming for the full amount. The person who picked up the vehicle said they didn’t have to worry due to the sue or seize rules. So, they are getting a lot of conflicting and bad information and frankly they aren’t the best listeners or readers when it comes to details. They also have a lawyer friend looking into the contract and he has given them some false hope I think.
Crazy enough, they’ve already been back to another dealership and are back financing a used vehicle, so I can only imagine what their interest rate would be.
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02-03-2020, 07:39 AM
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#37
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Powerplay Quarterback
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Lol, Jesus Christ. Some people are just too dumb to have money. I’m guessing that buying an older car with cash never occurred to them? You know, instead of taking a third kick at the financing can, but with interest rates probably in the double digits this time
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The Following User Says Thank You to llwhiteoutll For This Useful Post:
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02-03-2020, 07:41 AM
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#38
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Franchise Player
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Ya, a $5000 Civic the first time around would probably have served them well, and kept them out of this debt hellhole.
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02-03-2020, 08:30 AM
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#40
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Ate 100 Treadmills
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Quote:
Originally Posted by bagofpucks
Thanks all for the additional information!
Interestingly, the debt is with a bank and they have said they will be coming for the full amount. The person who picked up the vehicle said they didn’t have to worry due to the sue or seize rules. So, they are getting a lot of conflicting and bad information and frankly they aren’t the best listeners or readers when it comes to details. They also have a lawyer friend looking into the contract and he has given them some false hope I think.
Crazy enough, they’ve already been back to another dealership and are back financing a used vehicle, so I can only imagine what their interest rate would be.
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If it was just a straight line of credit with the bank then they wouldn't be a able to repossess without security. Pretty sure the seizure or sue rules would apply as it will fall under the PPSA.
I don't get how they couldn't find a way to make a few more payments on the car but can make payments on the new car?
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