is there any recourse that can be taken. Essentially he is a 19 year old kid that got roped into a bad deal 25% interest rate on a 2008 Mustang Convertible. The car itself was sold for 19000 dollars. It goes without saying that the kid didn't tell any of us that he was going to go buy a car until after the fact. The slimball used car dealer wont take the car back. Need advice: Is there anything that car be done? And laws in place for this sort of thing?
He is 19 not 9. Thats not a kid anymore. The dealer is not at fault here. Your nephew probably really wanted the car this high interest was the only thing he could get. He could have walked away but he signed the paperwork and now he should be stuck with this car and pay on it.
Might as well have. A 19 year old kid and the dealer dangles a Mustang Convertible out there. He might as well dangled Kate Upton's boobs in front of him. He was going to sign on the line no matter what the cost.
Try and refinance through someone else and get the interest rate down. And to think I got pissed when the dealer tried to pass 9% off on me!
your nephews only 19 so hes probaby got a crappy credit score which means he probably wouldnt even get approved for a loan at most places. refinancings not an option unless someone else is co-signing for it. best thing he can do right now is sell the car and take whatever loss from the sales tax on it. he will wind up paying a lot more in interest. also how the hell does a 19 year old get insurance on a sports car on his own without paying through the nose for it? in NYS hed be paying 9k a year just for insurance.
My new car I bought (don't be envious) but my interest rate: 1.9%. And I don't have 800 + credit rating either. My credit rating was 664. But what I had in my favor was that I made every payment on my honda accord for 5 years from american honda financing.
Let him learn a lesson instead of overprotecting him? I hope I'm not assuming too much, but maybe if people didn't try to help him so much he would have developed the street smarts to look out for himself by now.
he's paying 400 a month in insurance. he's a kid and he don't know any better. hell. my first new car was a full loaded dodge daytona sports car that I was paying 15000 for in 1988, working at a car wash for 3.75 per/hr. At the time you couldn't tell me it wasn't a smart move. :grin:
This is about the rate I got on my first car at 22 out of school, with my parents in the room. Loans and full credit card balances with little to no income history, not impossible.
Sell the car and just take the hit. If he is going to keep the car, than tell him to make his car payments more than he is suppose to. Any extra money paid on his car note will go directly off his principle.
just pay for the car right now for him, then make a payment plan where he pays you out of his own pocket, take it straight from his paycheck no questions asked.
Some things you just have to learn on your own. If he doesn't learn now, his financial mistakes will be even bigger later on, such as a crazy mortgage interest rate and foreclosure.
I got 7.5% without a job on my first car loan. He was eaten by a shark. Might as well used a credit card.
I would have some folks in the family sit down with him and go over his NEW monthly budget on paper. Run through some before and after scenario's to be sure he understands. If you think he understands but wants to keep it, well, he's an adult now. If he has an ah ha moment, then offer some kind of help so it doesn't ruin his future but leave the choice up to him. If the family can pay off the car in cash and he makes payments back to the family, then great. Or refinance with a consignee at a better rate, or just sell the car for a loss. It should be HIS choice ...the family just helps.
