Car repossession question

[Sylvanfan]

My wife and I bought a new car last fall. With the rate we got and the incentives, plus what we wrangled for a trade on our Wagon Queen Family Truckster...it was not much more than what a used one was going to be. But it did cost more, still a choice we were comfortable with.

But damn they do try the hard sell at the finance on all that other stuff. Their opening offer was $110 more biweekly than what the base payment as going to be on a 48 month loan. I asked them what the hell they planned to sell me that was worth $11 grand or about 30% of the purchase price of the vehicle. You do get to a point where you want to tell them that their Jedi mind tricks won't work on you. I mean they're trying to tell me that they'll give me a $500 gift card if I tack on $30 of payments....great deal for me. My advice for anyone financing a vehicle at a dealer, know what gives you bad gas....consume it before you go to do this paperwork and let loose in the office frequently. It might let you sign what you need in the 5 minutes it should take than saying no for 40 minutes until they finally give up.

[bagofpucks]

Slight update...it turns out that defaulting on a $60K vehicle makes it quite difficult to qualify for a mortgage...shocking I know.

The couple is dead set on home ownership come hell or high water and they are having all sorts of issues getting approved. Their perception of the details is always interesting, so I don’t know the full story, but it sounds like the “cash back” portion of the vehicle loan is tripping them up. Again, it only makes sense that you can’t just keep that money when you default the vehicle, but they definitely feel like victims in this situation somehow.

[afc wimbledon]

Originally Posted by bagofpucks

Slight update...it turns out that defaulting on a $60K vehicle makes it quite difficult to qualify for a mortgage...shocking I know.

The couple is dead set on home ownership come hell or high water and they are having all sorts of issues getting approved. Their perception of the details is always interesting, so I don’t know the full story, but it sounds like the “cash back” portion of the vehicle loan is tripping them up. Again, it only makes sense that you can’t just keep that money when you default the vehicle, but they definitely feel like victims in this situation somehow.

I often feel I'm the victim of my own stupidity, I am at least smart enough to realise I have only myself to blame

[jayswin]

It blows me away what middle income people/families purchase in terms of vehicles. $40-60k vehicles seem very standard for much of our population these days, and I just can't believe it.

They're often the same people who purchase a new build in a far out Calgary suburb in the $450-$600k range and then just precariously live their life with a big smile and good "appearance" just praying even one thing doesn't go wrong and blow it all up.

[bagofpucks]

The worst part is these folks would love to be middle income! They are a single income family that probably are close to $50K household annually. We have tried to explain to them all the solid low income housing options available today, but they won’t accept the stigma attached to them. It is very frustrating to say the least. They live in a fantasy world for sure.

[nik-]

Originally Posted by bagofpucks

The worst part is these folks would love to be middle income! They are a single income family that probably are close to $50K household annually. We have tried to explain to them all the solid low income housing options available today, but they won’t accept the stigma attached to them. It is very frustrating to say the least. They live in a fantasy world for sure.

If they spent that much more than their household income on a car I can only imagine how expensive the house they want to buy is.

Budget: 1.6 million.

[bagofpucks]

Super sketchy rent to buy situation and the home is $350Kish. They have very limited down payment, so not sure what the hell they are thinking.

[Weitz]

Originally Posted by jayswin

It blows me away what middle income people/families purchase in terms of vehicles. $40-60k vehicles seem very standard for much of our population these days, and I just can't believe it.

They're often the same people who purchase a new build in a far out Calgary suburb in the $450-$600k range and then just precariously live their life with a big smile and good "appearance" just praying even one thing doesn't go wrong and blow it all up.

I was surprised when we moved into our neighborhood and I had 3 people ask me if we made a good decision in buying a “house in their neighborhood, it’s not cheap you know”

Uh. Yah the minute you bring up affordability is the minute I realize you are living pay check to pay check.

[Jacks]

I had a guy working for me for about 8 years, always had a way nicer vehicle than me. I usually buy 2-3 year old vehicles for cash, it generally costs me 3-5K every 2-4 years to upgrade. He would roll his truck into a new one every 2 years and tack the debt onto the new lease, last time I asked him he was paying $1300/month for a Chev Silverado 3/4ton. The guy is buried in debt and has 4 boarders living in his (rented) house to make ends meet, lives paycheque to paycheque. People make their own decisions.

[Snuffleupagus]

Originally Posted by Jacks

I had a guy working for me for about 8 years, always had a way nicer vehicle than me. I usually buy 2-3 year old vehicles for cash, it generally costs me 3-5K every 2-4 years to upgrade. He would roll his truck into a new one every 2 years and tack the debt onto the new lease, last time I asked him he was paying $1300/month for a Chev Silverado 3/4ton. The guy is buried in debt and has 4 boarders living in his (rented) house to make ends meet, lives paycheque to paycheque. People make their own decisions.

People with no cash always seem to be the ones with the new expensive vehicles, I know a fella who's had 3 new trucks in 6 years, the new one he got this year was because he needed new tires on the previous one and didn't have the cash to buy them. I would bet his new $70k truck has a loan of at least $110k by now.

It amazes me how easy it is to add previous huge dept to a car loan(s) but buying a house/condo is impossible without a good down payment and proof it's actually your money in the bank.

[Jacks]

Originally Posted by Snuffleupagus

People with no cash always seem to be the ones with the new expensive vehicles, I know a fella who's had 3 new trucks in 6 years, the new one he got this year was because he needed new tires on the previous one and didn't have the cash to buy them. I would bet his new $70k truck has a loan of at least $110k by now.

It amazes me how easy it is to add previous huge dept to a car loan(s) but buying a house/condo is impossible without a good down payment and proof it's actually your money in the bank.

Yeesh, If you can't afford $900-$1200 for new tires you probably shouldn't be driving a $70K truck.

[btimbit]

Yeah always sad to read about. But those are the same people that will finance a TV and couch at 37% interest, end up paying $3000 for something worth $1200.

All about whether it can fit in the monthly budget. Even barely. Big picture? Ah who cares

[jayswin]

Yep, most of our society operates on "does it fit in my monthly budget" and nothing more. If they can make $700,000 worth of houses vehicles and toys fit their take home pay in a month with a few hundred left over for groceries and going out, they consider that living within their means.

One of the two loses their job? Cross that bridge when we get there! Major house repair? That's what the line of credit is for.....oh wait we already used that as the down payment on the second SUV!

[zarrell]

Sadly, a lot of these same people run our governments as we will see on Monday.

[Johnny199r]

Originally Posted by jayswin

Yep, most of our society operates on "does it fit in my monthly budget" and nothing more. If they can make $700,000 worth of houses vehicles and toys fit their take home pay in a month with a few hundred left over for groceries and going out, they consider that living within their means.

One of the two loses their job? Cross that bridge when we get there! Major house repair? That's what the line of credit is for.....oh wait we already used that as the down payment on the second SUV!

This ^. They can cover the monthly bill if nothing changes, which they don't ever consider. Divorce? impossible. Job loss? Impossible. Major illness? impossible? Disability? Impossible. Interest rates could rise? No way! 1 vehicle only for our family? We're not poor!!! No way! A cottage? We owe it to our kids! Plus, they'll be paying the mortgage off until age 70, with really nothing saved for the retirement. How is that going to work?

Then what happens? A whole bunch of people complain to the government that they don't have enough to comfortably retire on, and that somehow it is the government's fault, due to "taxes and other things" and demand the gov't cater to them, which they will, because old people are vocal and vote, then the new policies/programs ends up punishing people who have lived responsibly their whole lives.

Hell, look at the power of the senior vote, there is no full OAS clawback until $129,075. You can make $125,000 in income a year as a senior and the government will pay you money just because you are old! You are entitled to the full OAS benefit if you had less than $79,054 income in 2021. The government will give you $7,362.36 for the year if you make $79,000, just because you're old!

That's right, the government gives money to seniors making more than $100,000 a year, for no other reason than they are old. How does that make any sense???!!!???It's because they vote.

It starts in university - for example - friend can live at home with their parents in the same city as the university, but wants to move out near university with their friends so they can party and "get the college experience" including for some, but not all, going out several nights a week, and then posting pictures of their spring break trip to Mexico.

Universities raise tuition every year but promise more money for "needs based bursaries". Guess who gets those needs based bursaries because they are really in debt now? The person who chose to live the "adult life at 19" when they had other more fiscally prudent options.

Who gets punished with tuition getting raised and have no access to needs based bursaries? The people who are responsible.

I remember being 18, and having a friend who said they spent all their money from their part time job on clothes, food and partying, because "What else is there to spend it on". I remember thinking, how about saving it for university (which they were going to attend after summer). I just thought, am I living on a different planet than this person?

I'd say our schools needs to teach personal finance to all students, but it would have no effect. They will ignore it and just do what their parents do.

One of my favorite new developments is using the term "for my mental health" as a blanket answer for fiscal irresponsibility.

Why'd you quit your job with no backup? "for my mental health". Why'd you quit your summer job 3 weeks early before school started, don't you have a big student loan? Everyone else is working until the day before school? "but my mental health". How did you afford to go to Mexico for a week when you said you were broke and could only eat kraft dinner every night "I needed it for my mental health". How did you spent $700 on new clothes at the mall when you are up to your eye balls in debt "I needed it for my mental health"

Is mental health a legit concern for some people these days? Absolutely! Is it increasingly now used a blanket justification to dismiss something that is fiscally ridiculous? You bet.

[RichieRich]

Originally Posted by Johnny199r

This ^. They can cover the monthly bill if nothing changes, which they don't ever consider. Divorce? impossible. Job loss? Impossible. Major illness? impossible? Disability? Impossible. Interest rates could rise? No way! 1 vehicle only for our family? We're not poor!!! No way! A cottage? We owe it to our kids! Plus, they'll be paying the mortgage off until age 70, with really nothing saved for the retirement. How is that going to work?

Then what happens? A whole bunch of people complain to the government that they don't have enough to comfortably retire on, and that somehow it is the government's fault, due to "taxes and other things" and demand the gov't cater to them, which they will, because old people are vocal and vote, then the new policies/programs ends up punishing people who have lived responsibly their whole lives.

Hell, look at the power of the senior vote, there is no full OAS clawback until $129,075. You can make $125,000 in income a year as a senior and the government will pay you money just because you are old! You are entitled to the full OAS benefit if you had less than $79,054 income in 2021. The government will give you $7,362.36 for the year if you make $79,000, just because you're old!

That's right, the government gives money to seniors making more than $100,000 a year, for no other reason than they are old. How does that make any sense???!!!???It's because they vote.

It starts in university - for example - friend can live at home with their parents in the same city as the university, but wants to move out near university with their friends so they can party and "get the college experience" including for some, but not all, going out several nights a week, and then posting pictures of their spring break trip to Mexico.

Universities raise tuition every year but promise more money for "needs based bursaries". Guess who gets those needs based bursaries because they are really in debt now? The person who chose to live the "adult life at 19" when they had other more fiscally prudent options.

Who gets punished with tuition getting raised and have no access to needs based bursaries? The people who are responsible.

I remember being 18, and having a friend who said they spent all their money from their part time job on clothes, food and partying, because "What else is there to spend it on". I remember thinking, how about saving it for university (which they were going to attend after summer). I just thought, am I living on a different planet than this person?

I'd say our schools needs to teach personal finance to all students, but it would have no effect. They will ignore it and just do what their parents do.

One of my favorite new developments is using the term "for my mental health" as a blanket answer for fiscal irresponsibility.

Why'd you quit your job with no backup? "for my mental health". Why'd you quit your summer job 3 weeks early before school started, don't you have a big student loan? Everyone else is working until the day before school? "but my mental health". How did you afford to go to Mexico for a week when you said you were broke and could only eat kraft dinner every night "I needed it for my mental health". How did you spent $700 on new clothes at the mall when you are up to your eye balls in debt "I needed it for my mental health"

Is mental health a legit concern for some people these days? Absolutely! Is it increasingly now used a blanket justification to dismiss something that is fiscally ridiculous? You bet.

Simple answer: Entitlement.
In other words they see so-and-so have some material good, or experience, and without realizing the actual cost (or opportunity cost) feel they should also be allowed. Because, after all, The Man should have it stuck to them. As I keep saying to people, it's consumerism and materialism that's killing most folks these days. It's not how much you make, it's how much you spend. Just look at all those who "upgrade" their phones every year or two, or vehicles, or homes, or whatever toy, or eat out all the time, or have a sh*t ton of clothes.



My kid, at school, did apparently go through some class for "financing life"... OMG was it ever useless and over simplified. Part of the problem is that the teachers don't even know this stuff. Yeah money isn't all for spending, and it isn't all for saving either, however why do so many have problems with money management??!! Because our society is ALL about spending and then blaming others for their self-selected life choices. Go figure...