r/facepalm Apr 28 '24

Some people have zero financial literacy 🇲​🇮​🇸​🇨​

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52.5k Upvotes

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u/Flavious27 Apr 28 '24 edited Apr 29 '24

Oh this is worse on her than it seems.

https://www.dailymail.co.uk/yourmoney/consumer/article-13302555/auto-loans-debt-car-ownership.html 

She was underwater on her trade in and the the amount owed on the prior vehicle was rolled into this loan.  And she had an APR around 10%.  So the loan was likely structured that payments went towards the amount rolled in and the interest on the loan.  So once the prior loan was paid, then payments started to go towards the principal on their current vehicle.

Edit. It gets worse somehow. 

https://jalopnik.com/tiktoker-got-rid-of-her-chevy-tahoe-after-paying-over-1851443078 

Her husband in August of 2022 got a $78k loan for an used 2020 GMC Sierra 1500 AT4 truck with a $1,600 payment and an interest rate of 14%.  Balance is at $72 or $74k.  That truck would not have cost close to $78k new, let alone used after one or two years.  With the balance left, they probably rolled over a loan into this one.  

I really don't want to know how bad the loan they have for their new Audi.  

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u/Hollayo Apr 28 '24

'I did not go with my husband and as a female I feel they took advantage of me. They knew I really wanted the car and that I was by myself,' she said.

The $84,000 loan was issued to her by GM Financial, the financial services arm of General Motors and the only lender to approve her on the day.

'The dealer pretty much told me they can get me out the door with the car within an hour. He didn't act like it was something I should be concerned about,' she said.

Yeah that's all on her. She's willfully ignorant of personal finance. 

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u/Cute-Aardvark5291 Apr 29 '24

as a woman, that has nothing to do with her gender. that has everything to do with her being completely ignorant. I had one dealer try pull something like with me when I was 22 and I walked out of the dealership. I had 740 credit.

And there are plenty of men that get suckered into such deals.

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u/SoftWindAgain Apr 29 '24

Right? I wanted to buy a bike and it was so tempting to look at monthly repayments of $200. Then I did the math and realised I'd be paying 50% more than the sticker price over time.

As much as it's predatory, you have to be pretty dumb to go for it. Don't buy things you can't afford.

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u/Serafim91 Apr 29 '24

You can take the loan then overpay. You'll get to spread it out over a few months/a year so you don't have to drop all that cash at once and not pay a lot more. I'm paying about 2.5x on my car will be done in 1.5 years total and the interest will be minimal.

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u/[deleted] Apr 29 '24

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u/wtfreddit741741 Apr 29 '24

Agreed.  As a woman, reading that just made me angry.

This asshole couldn't afford the car she had so what did she do? She went out and bought an even more expensive one!

The problem is not her vag, it's her ignorance and her entitlement.  

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u/Embarrassed-Town-293 Apr 29 '24

I’m not saying that it was because she’s a woman but certainly some sales people will treat women differently. My wife prefers to drive almost an hour to our trusted mechanic because the guy is a small business owner who runs his mechanic shop on the principle of how he would want his sisters to be treated. After being hustled so much compared to me, I completely understand.

That being said, she is clearly financially illiterate and definitely was foolish if she was rolling negative equity to buy this vehicle. She wanted to buy a vehicle she couldn’t afford and her ignorance is the reason for her situation, not her sex

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u/wtfreddit741741 Apr 29 '24

I agree with all of that.  I as a woman have had issues with mechanics trying to tell me shit needed to be fixed that didn't.  But as you said... If she was underwater on the cheap car, then she absolutely knew she couldn't afford "her dream car". Yet she went ahead and bought it anyway because Veruka Salt Syndrome.  And blaming it on the fact that she's a woman minimizes the issues we as women actually DO have when it comes to bias.

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u/SkinnyGetLucky Apr 29 '24

Woman with unnecessary cosmetic procedure caught paying for an unnecessarily expensive car.

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u/Philthycollins215 Apr 28 '24 edited Apr 28 '24

This is a common theme I hear with a lot of women I know. They feel like they'll be taken advantage of for not having a man with them. Now that might be somewhat true to a point, but as an adult you're still responsible for doing adequate research and knowing your financial limits before buying a car. You tell them what you're willing to pay and if you can't come to an agreement you leave. It's literally that simple.

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u/Mike312 Apr 29 '24

One of my SOs friends went to a dealership to trade in her old Jeep she didn't need. Somehow, she ended up coming home with a brand new Jeep Compass that she absolutely couldn't afford.

Why? Because they asked her how she was going to get home. And for some reason, calling any of a dozen friends in town, a cab, an Uber, or walking 3mi never occurred to her.

She also claimed they took advantage of her, but, I mean, c'mon.

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u/beepbeepitsajeep Apr 29 '24

I'm convinced that people with excuses that dumb aren't giving the real reason. That's just the best thing they could come up with and the real answer is at least 75% "I wanted it"

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u/praefectus_praetorio Apr 29 '24

She's an idiot. Plain and simple. When you get the quotes, and they tell you $1,400 a month, you know then what you're paying. It's up to you to determine if you have the money to afford it. She failed math class.

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u/StarryEyed91 Apr 29 '24

I do feel like, as a women, I’m often treated differently than if my husband is with me when I am at car dealerships or body shops. But I agree, you leave if you can’t get to an agreement! One of my cars I leased I went to the dealership alone and told the guy my absolute top price I’d pay and he kept trying to get me to go higher so I said sorry can’t and walked out and across the street and the guy ran through traffic to get me and tell me that ok they’d do it at the price I said. 😆

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u/Ahrithul Apr 29 '24

It's pretty wild. I went with my wife to buy her car, but I'm not a negotiator. I never have been and never will be. She's really good at it, knows her shit, knows what she wants to pay and what she wants to walk out on.

The goobers at the dealership all kept looking to me. Finally after the fourth or fifth time I told them, Hey this is her deal. It's her car, she makes the money, and you need to be asking her these questions. I'm just along for the ride as moral support and a second opinion.

I know it's frustrating for her and any woman in that type of situation because it happens all the damn time. I do get a kick out of telling people I'm not the primary decision maker here.

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u/StarryEyed91 Apr 29 '24

Good for you! It’s very accurate what you’re saying, that they won’t even look at the woman or ask her the questions. My husband and I are into wine and we recently did a trip in France at all these wineries and I’d say 95% of the time we were with a male winemaker they would not look at me and if I asked a question they’d answer it but looking mostly at my husband!

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u/lxm333 Apr 28 '24

The line that pisses me off the most is how she feels they took advantage of her because she's female. No. They took advantage of you because you were stupid (for the second time) and really wanted something that you couldn't afford.

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u/Flavious27 Apr 29 '24

$1,400 loan payment should have been enough.  

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u/CastleofWamdue Apr 28 '24

She was underwater on her trade in and the the amount owed on the prior vehicle was rolled into this loan

Why was she even allowed to take out that loan?

I am just over 15 months into a 2 year contract for my Pixel phone, it was a good deal. However I am getting fed up with Google and other companies trying to sell me a new phone before I even paid this one off.

Why is it even allowed?

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u/Mu-Relay Apr 28 '24

I'm constantly several generations behind on phones because I just can't bring myself to have a cellphone payment. It just seems wrong.

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u/Choice_Blackberry406 Apr 28 '24

I used to hold onto phones for 4 or 5 years until a few years ago. Bought a Pixel 6 for $600 cash then traded it in to Best Buy when the 7 came out and got $450 plus a $100 bb gift card. Then last year I traded the 7 in for an 8 and got another $450 and a free pair of Google earbuds worth $199. My out of pocket costs for 3 years of new phone usage is at $300, but I got the gift card and the earbuds.

Never thought I would be someone that gets a new phone every year, but imo it makes sense if you can 1. Pay up front 2. Get the max trade in value. Just something to consider!

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u/Flavious27 Apr 28 '24

$$$$$$$$$

The salesperson got a commission.  The dealership meets their sales quota.  GM Financial makes more.  And if she defaults, her vehicle is repossessed, she will likely owe something after the vehicle is sold.  The collateral and interest rate allows it to make sense for the business. 

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u/double_ewe Apr 28 '24 edited Apr 29 '24

I work in an adjacent industry and this happens a lot. With an 84mo loan it's almost impossible for your principal payments to keep up with depreciation, so you're basically guaranteed to be underwater at trade-in.

It's not uncommon to see Loan to Value ratios of 130%+ (e.g. borrowing $130k to buy a $100k car).

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u/Potatoe999900 Apr 28 '24 edited Apr 28 '24

Based on all the newer model jacked 4x4s I see in our neck of the woods I gotta believe there are millions of these idiots all across the country.

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u/Maxwell_Jeeves Apr 28 '24

They are part of the problem with why new vehicle prices aren't coming down. When I bought a certified pre-owned car a few years ago the dealer he was talking about other cars on the lot and was pretty straight forward about it. He didn't even pretend like the prices they were charging was a good deal. He said that is what the market is accepting right now, so we are going to price it that way. To quote the big short, "he was so transparent in his self-interest I kind of respect it"

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u/CassadagaValley Apr 29 '24

I don't get why prices aren't coming down still. After COVID it was all about the chip shortage which made sense, new cars were missing chips to function which caused a shortage but that was 2+ years ago.

Why are so many people still going out and buying new cars at MSRP + $5k dealership fees? All the dealers I see around Atlanta have fully stocked lots so it's not like there's a shortage of new vehicles.

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u/Mental_Cut8290 Apr 29 '24

Because people are dumb, and they've had two years to get accustomed to the high prices.

Like the last comment said, it's what people are paying so they keep charging it. Sucks for anyone smart enough to know it's a rip off.

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u/beldaran1224 Apr 29 '24

Or who have no choice. My car was totaled just before the pandemic. I held off for a while because I was working from home...now I paid a reasonable amount still. But if I was in that same situation but shifted, what a year? I'd be screwed.

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u/Whyamibeautiful Apr 29 '24

That doesn’t mean you gotta go pay 50k for a new car lol. Mine was 10k 8 years old at the time and less that 70k miles never had an issue with it

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u/Correct_Routine1 Apr 29 '24

It’s all kinda screwed up, looking at used cars near me there’s a 2018 Tiguan with 40k miles for $22k. Or a 2017 forester w/ 57k miles for $20k. Or this 2015 forester w/ 63k for $19k.

Pretty much everyone needs a car, and whether it’s dealers or used sellers everyone is trying to screw buyers as much as possible.

Then they just keep increasing loan terms so now we’ve got financing for 84 freaking months just so buyers can say ‘oh it’s just $500/month.’

Feels like they effectively want to make cars a subscription service by raising the prices so much people have to keep increasing their term until we’re paying $500/month for 10 years before trading it in.

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u/MrNature73 Apr 29 '24

Saw 15k for a early 2,000s Toyota with 300,000 miles. Insane shit.

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u/foursevenalpha Apr 29 '24 edited Apr 30 '24

My friend with no financial literacy, or car buying experience wanted a 4runner from 2006 with a salvage title, and 270k miles. But the bank wouldn't approve the value of the loan at 20k, thank God. That salvage title saved her ass. But that's not how she sees it.

Edit: the reason for the high price was a bunch of upgrades such as a lift kit and a light bar, but it still was a terrible deal.

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u/Choice_Blackberry406 Apr 28 '24

My neighbors get new vehicles every 12 months. The wife gets a new Tahoe or Expedition and the husband gets a jacked-up F-350 with all of the bells and whistles.

Then there's me with my 8 year old Prius lol.

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u/Waderriffic Apr 28 '24

Same here in FL. People are either very wealthy or they are drowning in debt to have a new car. So dumb, but dumb people do dumb things.

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u/SpaceAzn_Zen Apr 29 '24

I'll give you a hint, well-off people aren't usually buying F350s and Suburbans...it's people who want to seem like they're well off and don't want people to know that they're swimming up shit's creek without goggles on.

Source; I'm also in FL.

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u/Waderriffic Apr 29 '24

I live in an area with more families and fewer retirees so I see endless fleets of Suburbans, Tahoes, Grand Wagoneers and Expeditions all day every day. These all can range from 70-100k. Then tons of dudes driving brand new Sierras (Denali of course), Silverados and F-150s. These are also the same people that complain about how expensive gas is.

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u/HASHTAGTRASHGAMING Apr 29 '24

They also complain about the cost of their registration. I drive an 01 2500HD with a duramax, and it only cost me $150 a year to register.

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u/electricsheepz Apr 29 '24

Yeah I’m in Florida and I cannot believe the number of $65k+ vehicles in my neighborhood. People are paying as much for two cars as I do for my house, it’s obscene.

My wife and I bought our second ever brand new car a couple of years ago (we’re in our mid 30s). It was a $42k car that we put $15k down ($5k cash and $10k equity from a trade in) on the note and financed for 48 months at 1.9 percent. With the way interest rates are now I would never dream of shopping for a new car unless it was a major need.

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u/bigwetdiaper Apr 29 '24

A lot of my neighbors in Florida leased their bougie ass cars

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u/TheBlindDuck Apr 28 '24

Got to keep up with the Joneses

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u/healthybowl Apr 28 '24

They probably look down on you and say things like “are you poor?” While absolutely drowning in debt

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u/thentheresthattoo Apr 29 '24

There is a culture around monthly payments, where people seem to think that they are doing well if they can pay the minimum required. No assets, debt, no fall back for contingencies...

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u/M7489 Apr 28 '24

My 16 year old Prius is now the teens' car. not getting the mileage anymore, but we're up to 215,000 miles on it and runs great

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u/OutWithTheNew Apr 28 '24

The theme of the article is the out of control value of auto loan debt. $1.6 trillion in the US alone apparently.

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u/singlenutwonder Apr 28 '24

This thread is making me so grateful to have a paid off vehicle. I’ll drive it until it dies

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u/[deleted] Apr 29 '24

I've never had a car payment. The concept of that is wild to me. First used car 18yrs old $2k. Second used car 20yrs old $2.5k. Third used car at only 1yr old, $15k. Dealer couldnt believe i was paying cash.

Cars are supposedly status symbols. But when you can get them a $82 biweekly for 100 months, what is the big deal?

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u/pafrac Apr 28 '24

Jesus Christ, what kind of deal did she sign up for?

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u/Brittany5150 Apr 28 '24

In the Army, when I got to my first duty station they gave us a seminar on businesses to avoid and how to buy a car without getting ripped off. This is a real problem in the army as it's mostly young kids who have never had a paycheck like that in their lives. Even after all that we had one private go and buy a 15yr old jeep at like 19% interest from one of the dealerships that was blacklisted on the paper handout they give during the seminar. Some people just cannot help themselves but be stupid...

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u/Logical-Recognition3 Apr 28 '24

Let me guess, payday lenders set up shop right outside the gate of the base,right?

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u/Brittany5150 Apr 28 '24

Yup. Pawn shops, liquor stores, shady dealerships. All the usual suspects.

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u/PM_me_your_whatevah Apr 28 '24

Strip clubs, tattoo shops, women at bars looking for money/travel/child support opportunities. 

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u/yinzreddup Apr 28 '24

It’s a single 20’s year old man’s paradise.

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u/Brittany5150 Apr 28 '24

Until you get back from deployment with PTSD and your bank account is empty and you lost the house and car and your wife left you. Other than that it's pretty great.

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u/mashyj Apr 28 '24

Got the PTSD and angries, but my wife stood by me the entire time and saved my life. Sorry to be the soppy one but I love her more today than when we married.

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u/YeahYeahOkNope Apr 29 '24 edited Apr 29 '24

How did you deal/see to the PTSD and angries and how long did it take roughly?

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u/mashyj Apr 29 '24

To be honest I didn't deal with it very well at the start. Years of substance abuse and being angry at the world. Then something clicked and I was able to be thankful for what I have. Not exactly sure the source of the change but I had been doing a lot of work with a psychologist and the PTSD courses at the Repeat hospital in Heidelberg. Trying so hard to get back to being me, maybe my wife saw how hard I was trying so it gave her hope? Anyways 5 years now with no drugs or alcohol, I still have symptoms but am better equipped at managing them. Are you, or a loved one, suffering from PTSD?

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u/FightingAgeGuy Apr 29 '24

My experience took ten years, it wasn’t until I became suicidal that I sought help. I first saw a military therapist who down played everything, then I called the vet center and the therapist I had there was awesome. She was no bullshit and very direct, she told me that I will never be the same but she will teach me how to cope and understand my feelings. I still get angry but it has become a rare occurrence.

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u/Shard-of-Adonalsium Apr 29 '24

Good for you, and good for her! Glad you were able to stick together 🥰

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u/runnfly Apr 29 '24

Reminds me of one our guys that wanted out of the dorms so bad he married the first local girl that said yes, think she was 18 (he asked a few before her). He gets deployed and gets told by 1st Sgt and Supervisor that his checks are bouncing at base establishments and apartment rent not getting paid. Turns out Ol' girl was partying with all her friends and supporting a boyfriend on the husbands paycheck...shocked not shocked.

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u/yinzreddup Apr 28 '24

Got the PTSD part from deployment but thank the gods I never got married. Seen it sooooooo many times end badly.

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u/Brittany5150 Apr 28 '24

My fiancée did me the honor of at least leaving me one month before deployment, so that was nice. Came back from that first deployment with a lot of pocket change. Oh and a crippling drinking problem but I got that sorted now so weeee!

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u/yinzreddup Apr 28 '24

Very close to me too! I thankfully stopped getting drunk everyday once I got out the corps. Weed helped with that, and the ptsd

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u/11BMasshole Apr 29 '24

Within 3 months of being stationed at Bragg there were 4 guys I came into the unit with getting married. I noticed the trend over my time there that it was always the Southern kid from Hicksville getting hitched to the trailer park queen with 3 kids already in tow. Then they’d run out and finance that Mustang GT. After about a year or 2 they’d be divorced with a new crotch goblin running around. Broke because the Trailer park queen is getting child support and the cars getting the rest. It’s pretty sad but we watched it happen over and over again.

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u/yinzreddup Apr 29 '24

You hit on nail on the head there. I had a buddy who found out 2 years AFTER the fact that his kids were not really his….

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u/myonkin Apr 28 '24

This hits hard.

You are not alone.

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u/Brittany5150 Apr 28 '24

Luckily this didn't happen to me. She left me just before deployment so I came out ok. Can't say the same for several other guys in my unit though... I had the PTSD and drinking problem though. I got the help I needed before I got out thankfully. The new Army had some upsides to it.

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u/SlapHappyDude Apr 29 '24

Hilariously, hobby gaming stores (Magic The Gathering, Warhammer, Pokemon, Yu Gi Oh) also thrive right off base. There's this whole group of nerdy service members who would rather spend their money on cardboard crack than strippers and tattoos.

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u/yinzreddup Apr 29 '24

Ah see I was in the marine corps infantry. Don’t get me wrong we got some nerds, but all my buddies and I were just trying to fight or fuck anything that will let us.

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u/Prior_Emphasis7181 Apr 28 '24

I lived in Pensacola and I feel this thread deeply. The entrance road to the Navy base used to be the trashiest place in the world. Squid row!

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u/PM_me_your_whatevah Apr 28 '24

Pensacola was exactly what I was talking about 😂😂

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u/Affectionate-Wall-23 Apr 28 '24

We had an electronics store in the mall outside of base that would sell guys computers at like 25% interest. Since there’s nothing really to do in Jacksonville NC unless you have a car, there was like nine E-1s at my command that were funding that place. It eventually got black listed by the base co and closed.

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u/11BMasshole Apr 29 '24

Jacksonville is a total dump. It’s either hang out on base and drink. Go to the strip club and drink or go to the beach and drink. I was in the Army stationed as Ft Bragg and my older brother was a Marine at Lejune. He hated it there and would always come to visit me to get away from there.

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u/IsolationAutomation Apr 28 '24

Don’t forget the prostitutes!

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u/Brittany5150 Apr 28 '24

You mean the battalion girlfriend? That same guy married her and it went about as well as you would imagine.

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u/IsolationAutomation Apr 28 '24

I knew quite a few guys that married dependas, they’d have an “allowance” every time we were in port and then had the audacity to laugh at me because I was single lol

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u/wolfblitzen84 Apr 29 '24

This is very true in the military but before I joined I remember walking into college orientation and there were credit card booths. We are destined to fail

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u/16BitGenocide Apr 28 '24

They're not even the worst part- we had a handout, with recent pictures, of women that would target soldiers fresh out of training carrying their manila folder to inprocessing- where they sign the final details for their enlistment bonus.

Soldiers STILL managed to get scammed by these women.

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u/Nema_K Apr 28 '24

Some of them probably interpreted that handout as a list of women who were DTF lol

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u/gamertag0311 Apr 28 '24

Yeah I just wanna know if they were hot, sounds like a big misunderstanding

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u/Zanydrop Apr 29 '24

What were they trying to do? Were they prostitutes or trying to get free presents or what?

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u/NotoriousGonti Apr 29 '24

I assume get them to be their "boyfriend" or worse "husband."  And then they get shipped overseas and spend the next three or four years never seeing them while funding her lavish lifestyle.

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u/CreamSodaBrainDamage Apr 29 '24

Scammed or paid them for their service......

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u/Msboredd Apr 28 '24 edited Apr 29 '24

Yep. This happened to my cousin. Bought a brand new Mustang, paid like 25% interest, financed for 35k. Luckily he refinanced after I explained the fact that he would be paying more than he even made a month on that thing. Unfortunately this is not uncommon. I work in finances and see teens and young adults (anyone generally speaking tho) getting themselves into horrible financial situations. The worst is when they commit fraud and overdraft their account. We report it to EWS. Good luck even getting a bank account again without restrictions and monthly fees for the rest of your life.

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u/Rager_Ronin Apr 29 '24

A School was in San Antonio on the AFB (I was Navy), when we would go to the mall off base, there was a sketchy dude who would specifically target younglings with the typical signs of a boot. He had a notepad with a list of routing numbers and claimed he was with a bank that gave better interest rate for savings. Can’t quite remember the bs amount but think Polka King Jan Lewan levels of bs. I declined but didnt think anyone could be stupid enough. Fast forward 4 years, I’m on USS Bonhomme Richard. New batch of recruits come to my division. One just seemed, well, the not so bright crayon in the knife drawer. Find out months into deployment that he hasn’t received a paycheck in several months since leaving San Antonio. Tells us that he was waiting for the bank he signed up to send the documents and debit card which might be lost in transit since we were over seas. When we push further, he tells us that a guy outside the mall seemed nice enough and wanted to help him finically (this was early 2000s before banking was easily fixable with someone making fraudulent charges).

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u/MjrGrangerDanger Apr 29 '24

Part of my brother's job, besides helping to teach financial literacy, was to council young marines to get a prenup. Another job duty was dealing with spouses, usually wives, during divorces and afterwards as a sort of pre MP / court mediator. Ex is stating that she is owed spousal and child support? Even if Marine has proof of payment Command takes care of getting her money to buy food and care for the kids just to make sure things stay calm. In their experience it's pretty rare and a better way to deal with the issue. Military noncom divorces are particularly messy because your pay gets doubled when you get married so lots of people make poor choices just for the money.

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u/Sporadicus76 Apr 28 '24

There were places like these at EVERY base. If they weren't selling you cars, they were "helping" you with financial planning (I was roped into this scam, and actually received some money back after the guy was prosecuted), or practically anything else.

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u/captainAwesomePants Apr 28 '24

The worst scammers are the ones taking advantage of people trying to do things right. Getting help with financial planning when you're not an expert at it is a REALLY GOOD thing to do. There are good places out there that do good work there. Looking for people trying to do that just to fuck them over is so amazingly shitty.

I feel a little bad for the 19 year old spending thousands on the "premium" spinning rims for his new, lifted truck, but I feel a whole lot more bad for the guy trying to make good.

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u/platysoup Apr 29 '24

The whole "pretending to help" thing icks me out the most. If they were casinos or car dealers, at the very least the victim shares some of the blame for stupid decision.

When someone tries to do the right thing and then gets scammed, it kinda breaks something in them for a while. I know I became distrustful of everything self-improvement for like 5 years after getting roped into Nuskin (an MLM). 

It takes a while to mentally differentiate the good and the bad after you've been ripped off that way. 

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u/km_ikl Apr 28 '24

I worked with a couple of young kids in the Canadian Coast Guard... non-military, but similar situation. One of them went and bought an $85,000 Chev Suburban, and got absolutely clobbered by the interest.

Fortunately, there was a buyer's remorse clause for the first 60 days and we got him out of it... lost his down payment, but at least he didn't lose his shirt and pants.

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u/Brittany5150 Apr 28 '24

Yeah, we tried to help the idiot out but because of state laws where we were at he was on the hook for that POS. 15yr old Jeep Grand Cherokee with tranny issues and he paid like 20k with that 19%. He was "that guy" in the company. There is always one...

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u/powerlesshero111 Apr 28 '24

When I was in PA school, an Army Specialist in my class told me how she helped a new private buy a car. She signed up for the Army at 30, so she had been around for a while, but this new private was 18, and grew up dirt poor. He asked her for help, because some of the other privates were getting like dodge chargers and shit. So, she first taught him to drive stick. Then she helped him save up about $5000 for a down payment. She went with him to the dealership and helped him get a dodge dart manual (the new edition ones they came out with in 2012). She even got them to do interest at a super low rate, despite his lack of credit history because he had the $5000 down. 2 of the privates in his barracks got their chargers repo'd within 6 months, and that guy paid off his dart by the time she left for PA school 3 years later.

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u/Realworld Apr 29 '24

I like this one. Good for her, and good for him.

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u/ELIte8niner Apr 28 '24

Oceanside, CA, just outside Camp Pendleton, there sits (or sat like 20 years ago when my old ass was there, idk if it's still there) a car dealership called Hometown motors that had at least 59 USMC flags flying at all times. It was notorious for ripping off stupid PFCs. One of my idiots, when I first became a CPL, bought a Chevy Impala, that was blue booked for like, 6,500, for 10,000 with an 18% interest rate on a 5 year loan. This was after I looked him in the eye, and told him not to go to any business with a USMC flag on display, as it's the easiest way to spot a business that exists to prey on stupid PFCs. You can't help stupid people.

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u/Knotical_MK6 Apr 28 '24

I think that's where I bought my current car haha.

Thankfully I got a loan from my bank and didn't finance with them.

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u/[deleted] Apr 28 '24

Same in the Navy! My department got big reenlistment bonuses and pretty much everyone who chose to reenlist blew a ton of money on a new car.

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u/Brittany5150 Apr 28 '24

Yup, every time we would get a fresh batch you would see an influx of dodge chargers on base. Slowly but surely most of them got repo'd lol!

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u/Acceptable-Ability-6 Apr 28 '24

Shit, my first five years in the army I didn’t even have a car. I did two years at DLI and Monterey, CA has a pretty nice bus system that is free for military. Then I did three years in Korea where I wasn’t even allowed to have a car. Came back in 2015 and bought my dad’s 2010 Honda Accord for 12k and still drive it today.

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u/Ah2k15 Apr 28 '24

How many Challengers and Chargers were purchased?

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u/Brittany5150 Apr 28 '24

holds up 11 fingers At least this many.

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u/ADeadlyFerret Apr 28 '24

Yeah I was in the military. I don't feel bad for the people that get into debt. There were tons of seminars about money.

I work with a dude now who makes about $30/hr. His wife is an E-6. They live on base. He was telling me about how much debt they're in. It's like well you send your 3 daughters to ballet. You guys got scammed for 5k buying a great Dane online. Then 2 months later scammed by the same people for 2k custom dog shipping. Then spent another 3k buying a great Dane from someone else. You've had 3 different cars in 6 years just transferring the balance to the next one. Now you owe 75k on a 30k hatchback. While he has to drive a huge lifted piece of shit truck cause he's from South Carolina and people might think he's gay if he drives a car. Seriously that's what he said. You spend $80 every 2 days filling it up dude.

Don't know what else they have going on. He was telling me this and he saw the look on my face and he got mad lol. So he ended the conversation.

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u/IsolationAutomation Apr 28 '24

I knew a Chief that had to live onboard the boat because his credit was so bad he couldn’t find a place to rent. You can’t give some people money.

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u/pafrac Apr 28 '24

I'm pretty sure that would be considered predatory lending over here, there's all sorts of regulations the lenders have to comply with to prevent it.

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u/Brittany5150 Apr 28 '24

You must live in one of those socialist hellholes I always hear about that has "consumer protections" and "rights" and stuff.

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u/uptownjuggler Apr 28 '24

It’s our FREEDOM to get ripped off

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u/ProsodySpeaks Apr 28 '24

nah, its the uk. close tho. i hear the vikings stole all our rights back in the first millenium ad. or, i mean somehow they seem to have all the rights.

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u/Alpha_Dreamer Apr 28 '24

It's a major problem in the Navy too. In SD, more experienced people and the people who give those seminars are very fucking clear about not to go and buy a car from the dealerships on a street called "Mile of Cars Way" which is conveniently a mile down the road from the base. Even so, there are ALWAYS fucking idiots on E-1 - E-3 pay buying these cars from there, and when you press them what their interest is, it's always "don't worry about it". It's like "dude we can look up your pay in like ten seconds and we know you didnt get hooked up on the interest because you're like 19."

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u/RadarSmith Apr 28 '24

Ugh, it always pissed me off so much when one of my sailors did something like that (I was an officer). It was just a few of them, but it was a massive red flag that the sailor was going to be a problem in general.

Its like some junior people in the Navy read a list of all the stupid things some young military people do and treat it like a quest to do all of them.

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u/Freestila Apr 28 '24

What? 19%??? That is legal in the states? Here in Germany this would be illegal, way too high.

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u/Choice_Blackberry406 Apr 28 '24

LMAO 19% is not even that high here. The usual joke apr for military kids is 29%.

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u/padawanninja Apr 29 '24

We had a kid on my second boat get taken by a famous huckster in Norfolk for close to 95%. "Just sign here, I'll fill in the blanks with what we talked about, $100/month for a Mustang, and you can drive out of here now. Look, I got these official forms from the Navy, you can trust me."

Then, when he deployed and forgot keep up with his payments, car was repo'd. Sold again in the same circumstances. Wash, rinse, repeat. Same car was sold and repoed 4 times.

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u/Clean_Student8612 Apr 28 '24

They're in EVERY unit. We had one at Carson who got there while we were deployed. A lifted dodge ram, with tires too small, easily 6 years old with too many miles for its time.

16% interest for it, his payments had to be at least one whole check of his. His name was Bembo, but we called him Bimbo after that.

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u/Mysterious-Tie7039 Apr 28 '24

I was in SC in the Navy. SC has no usury laws, so that was fun for some people…

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u/masixx Apr 28 '24

You have to be 21 in the USA to buy a beer but you're allowed to sign a contract that will bind you for 5+ years with 18?

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u/Unable_Ad_1260 Apr 28 '24

As an Australian I've never really understood this. Either raise the enlistment age or lower the drinking age.

I don't think they should be allowed to sign up anyone with less than 21 years. Encourage them to get 3 years work or more study or just being a damn beach bum or something. The come and see if you want to die in a foreign land.

However I get it. They'd never fulfilled enlistment if they couldn't scrape up high school grads.

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u/jackbenny76 Apr 29 '24

So, why 21? Back in the Reagan administration, they decided to combat the drunk driving problem by tying federal highway funds to having the minimum drinking age be 21. So states that didn't have a drinking age of at least 21 would lose all their federal highway funds. So all the states complied and what used to generally be 18 got raised in the early 1980s. Why is it still this way? Because 18-21 year olds can vote but mostly don't, their political preferences don't really count that much, so there is no pressure get the linking of drinking age to federal highway funds removed.

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u/PMMeYourWorstThought Apr 28 '24

She’s paying a bit over $1000 a month in interest based on those numbers. If she still owes $74,000 after 36 months (as shown) she took a roughly $80,000 loan at around 16-20% interest. Essentially put $80,000 on a credit card.

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u/just_4_the_halibut Apr 28 '24

This was posted on YouTube with a bit more info. She paid $85k (if I recall) and had negative equity on her trade in. Her monthly payment was roughly $1,400.

The dealer basically suckered her into buying it on the spot and the paperwork was done within an hour. Total impulse purchase.

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u/OutWithTheNew Apr 28 '24

the paperwork was done within an hour

You know you're getting it raw when a new car dealership gets you out the door in less than 4 hours.

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u/DrakeBurroughs Apr 29 '24

Whoa whoa whoa. I can do it in 3 and I’m not getting screwed (well, last time I got a little screwed but it was during COVID and a flood wiped out a lot of cars/car dealerships in the area so I had to make due).

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u/dipstick162 Apr 28 '24

These are like the car dealerships that don’t advertise the price of the car - just advertise the monthly payment

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u/darknesswascheap Apr 29 '24

Friend of mine bought a car a few years back, pre-pandemic. I went with her as she had done her research & was prepared to write a check for a hefty down payment. She could NOT get anyone to tell her how much the interest rate was, what the amortization schedule was, nothing. All they wanted was to talk about the payment, which is meaningless if you don't know the interest rate.

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u/Cautious_Intern7824 Apr 29 '24

This is so common it hurts. People will straight up ignore the term length and interest rate but will constantly check that monthly payment. 

The ones with lifestyle inflation will end up with the same payments but lengthened to 84 months and they won’t bat a single eye on it. 

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u/Paulyhedron Apr 28 '24

likely traded in a vehicle she was upside down on, that went right on top of the payment.

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u/Mysterious-Tie7039 Apr 28 '24

I’m sure she also put no money down either, so she was likely also financing taxes and fees.

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u/Fronzel Apr 28 '24

I knew a couple that every two years went to the dealership and made sure to negotiate that their monthly note stayed the same because they were savvy with their finances.

Spoiler: they were not.

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u/pafrac Apr 28 '24

There's fixed rate, and then there's fixed rate ...

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u/bdog59600 Apr 29 '24

I had a car salesman try to four square me and he got visibly mad that I got out a calculator and ran the interest and total payments on the numbers he was throwing at me. I normally go in with financing from my credit union lined up in advance, but the brand had a deal going with 1% financing and I couldn't beat it. I just had to say "no thanks" like 30 times over several hours.

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u/tesmatsam Apr 28 '24

High interest, very long and she was probably paying the minimum

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u/[deleted] Apr 28 '24

What is that rate?!!! She must have had some gnarly credit to begin with.

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u/happytobeaheathen Apr 28 '24

If I did the math right and based off of limited information- 22.4% interest.

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u/Shinavast42 Apr 28 '24

Jaysus h. tapdancing christ. Yeah, that'd do it...

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u/TheCritFisher Apr 28 '24

I remember buying a car and getting 0.99% interest back in like 2012. Holy shit balls I couldn't imagine paying 22% interest on a car.

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u/moon307 Apr 28 '24

I've never had over 3.5%. Who the fuck are these people banking with?

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u/a_a_ronc Apr 28 '24

I just bought my first car at 32 (always bought my wife’s parents used cars). I got a 6.5% and when I tried bartering with dealers they said “No that’s a really good rate, you should take that.” 7-8% is very normal for a new car.

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u/alabardios Apr 28 '24

Yup, my first car was 8% my second I bought outright, my third was 6.99%. 6.5% is a very good rate, and I shopped around A LOT to get under 7% most places wanted to fleece me at 10 or 12%, I walked from 5 dealerships.

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u/bendbrewer Apr 29 '24

My credit isn’t amazing but I just got a new car last year at 3.69%. I did shop around and Toyota was offering in the 12% range. Nope’d out of there real quick.

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u/saggywitchtits Apr 28 '24

I have great credit (high 700s) and mine would be about 5.5%. Rates suck right now.

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u/Mhammers223 Apr 28 '24

And she probably financed it for 84+ months. The first 18 months you pay, basically nothing but interest.

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u/OutWithTheNew Apr 28 '24

And she had negative equity. A pair of nice words for a terrible concept.

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u/[deleted] Apr 28 '24

That's credit card territory and 5x the average.

I sure do hope a lesson was learned here... But I think hope is all the is

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u/happytobeaheathen Apr 28 '24

The way the article was written- it was like no fault was placed on her. I get the lender was predatory- but she also had a role here

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u/TeamShonuff Apr 28 '24

She also rolled over her negative equity on her previous vehicle.

https://www.dailymail.co.uk/yourmoney/consumer/article-13302555/auto-loans-debt-car-ownership.html

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u/[deleted] Apr 28 '24

Yeah, I just read more on it instead of just asking in shock to the internet void.

Bonkers that a wedding photographer felt she could afford an $84k car during a pandemic while she has a vehicle that is negative equity.

I'm utterly flabbergasted.

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u/[deleted] Apr 28 '24

I think photography has become what real estate was 10 years ago. Every one that has failed at literally everything else in their life goes and buys a $3K camera and charges $3K for shitty boudoir shoots and wedding photos.

There are five women I graduated with on IG that sold Beachbody, moved onto photography (and still do it) and now sell Arbonne. They charge ridiculous rates to other “boss babes” and think they’re gonna be millionaires taking wedding photos.

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u/tauwyt Apr 28 '24

how many 25 year olds financing an $80k vehicle over 7 years have good credit?

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u/the_simurgh Apr 28 '24

Driving a 2003 mercury grand marquis may jot attract women but I aint paying house money for new car.

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u/jambr380 Apr 28 '24

I'm a dude with no kids (and never had kids) with a 2005 Dodge Caravan. I love not having to consider car payments or sometimes hotel cost. I went ahead and just took out the two rows of back seats lol

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u/boston_2004 Apr 28 '24

I'm trying to talk my wife into getting a dodge caravan and she wants a super expensive vehicle instead.

I just want to get us and our kids to work and school in one vehicle and she wants it to cost 55,000 to do so.

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u/dirtyrango Apr 28 '24

We've got 2 kids also, we bought a Honda odyssey off Facebook for $11,500 3 years ago. It's perfectly fine and there is no car payment.

I really feel like people have lost their fucking minds paying that kind of money for a car.

Thank God my wife really doesn't care about stuff like that.

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u/Wonderful_Result_936 Apr 28 '24

My friend bought a $40,000 car right out of high school while working at Best Buy. Literally anyone could have told him he couldn't afford it and it took him almost 2 years to come to his senses and sell it.

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u/OutWithTheNew Apr 28 '24

Did you get the model with a vacuum in the back?

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u/dirtyrango Apr 28 '24

We did not but it's pretty loaded with leather and DVD player and all that. Kids love it and when it falls apart we'll just buy another one for $10-12k and go on down the road.

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u/Anxious_cactus Apr 28 '24

We got a Skoda Karoq brand new in 2019 for 20k and that car fits 2 children, a dog and a shitton of stuff in the boot. We ain't changing if for awhile, the price was great, the size is great and it literally had no issues so far and we've put a lot of miles on it driving across half of Europe. Never needed to get something delivered either, we fit a closet and a single bed in it to drive it home from the store.

Paying those inflated prices for a car is insane, it's literally 1/2 - 1/6 of a house depending on your area.

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u/Moist_When_It_Counts Apr 28 '24

Minivans are the shit. Comfy to drive, can be a sleeper, ultimate road trip rig.

I’m actively lobbying my wife to replace our Outback with a minivan.

“For the kids”, i tell her.

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u/Ultramarine81 Apr 28 '24 edited Apr 28 '24

I served in the military w/ a guy who drove one as a family vehicle. He referred to it as the "suburban tactical vehicle" & I refuse to refer to them differently to this day

Edit: clarity

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u/meh762 Apr 29 '24

I’ve been driving a 2005 Sienna for 15 years. The radio is shit, the power doors don’t work anymore, and it’s approaching 200,000 miles. But that thing has been paid off for ten years and rarely needs a repair. We’ve saved over $40k in car payments. It’s been a great car for camping, hauling, and road trips with the kids.

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u/Choice_Blackberry406 Apr 28 '24

Today's minivans ain't like they used to be! Most have pretty aggressive styling and stiff suspension/steering.

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u/Ambitious_Policy_936 Apr 28 '24

That is no longer house money. I know since I am unable to buy a house

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u/the_simurgh Apr 28 '24

It is in some areas of kentucky.

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u/Unlucky_Decision4138 Apr 28 '24

I bought a new S10 in 02 and drove it until November 22. It finally got to be not worth the repair so I got a 23 tacoma and ill drive that until the wheels fall off. Fuck car payments

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u/TinyRascalSaurus Apr 28 '24

My car was 5 grand at an estate sale. It's low milage, good condition, belonged to some elderly lady who rarely drove it. Not my dream car or anything, but I don't owe payments and it's reliable.

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u/darcyduh Apr 28 '24

I had 03 grand Marquis too! It was the pale blue and it was the smoothest ride I've ever experienced. My 70 y/o dad was very jealous lmao

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u/BitterFuture Apr 28 '24

I had a buddy years ago who'd always struggled financially. Grew up poor, never went to college, had a series of jobs where he was a great hard worker, but there was never much room for advancement. Rented rooms from friends and family, cars always breaking down, got together little bits of savings and then wiped them out with occasional health issues and was back to living on credit, the very picture of being stuck in the cycle of poverty.

One of his relatives died and left him a shocking inheritance. Almost a hundred grand. More money than he'd ever seen in his life. More money than he'd ever made in any two years, probably three.

I tried telling him this was life-changing money. He could do a lot to really change his circumstances. He could use this money to cover his living expenses for a couple of years and power through community college, maybe even finish a full four-year degree, like he'd always said he wanted. Set himself up for a career instead of a bunch of jobs. Get out from under debt and stress and living life paycheck to paycheck, favor to favor, couch to couch.

He bought a car. It was red.

Some people really are just fucking idiots.

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u/killamcleods Apr 29 '24

I have a similar story. My wife had a broke aunt who won 100k through a sweepstakes in the 90s. They blew it all in one summer. Half of it went to an in ground pool they had installed at the house they were renting. YES RENTING They continued being broke after that summer.

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u/extralyfe Apr 29 '24

I imagine the landlord was thrilled to be able to charge a ridiculously higher rent once they fucked off, though.

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u/bleplogist Apr 29 '24

He can start charging more rent at the next nenewal as well

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u/Apart-Landscape1012 Apr 29 '24

I don't even want to change a fucking light bulb when I rent lmao

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u/i_should_be_studying Apr 29 '24

Lmao what thats top stupidity in this entire thread

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u/thebourbonoftruth Apr 29 '24

OK this wins for "dumbest financial decisions of all time" and I'm a regular at r/WSB

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u/Expensive-Report-886 Apr 29 '24

That's basically free 25k a year for 4 years without work.

Collage plus a part-time job, or even just a small side hustle would've set him up for an easy future. EVEN if he didn't want to go to collage, 100k is no small amount to invest, he could've grown it.

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u/Cautious_Intern7824 Apr 29 '24

He could’ve easily went to an in-state community college and pay $2000 or less per semester for tuition. Hell, if he grew up poor he probably qualified for financial aid. 

Some people don’t care at all, makes it kind of hard to feel bad. 

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u/ThePlanBPill Apr 29 '24

My ex-wife, during her previous marriage, was awaiting the process of an inheritance from her grandmother to wrap up. Not sure how much, must have been between 50-100k.

I guess she went out on credit buying all kinds of new home furniture, brand new Chevy Equinox(lmao), and other various luxuries.

Well of course, the proceedings took longer than expected and she defaulted before getting any money. Forced her to declare bankruptcy, which her parents assisted with. Parents even saved them from losing their house, put a new roof on it. Then she lost the house in the divorce.

Fast forward 10 years to our divorce, and she immediately takes out a $42k loan out for a 2024 Kia sorento she's shows off driving by my residence. Certainly expecting spousal support coming soon.

Unsurprisingly, the divorce took 8 months to finalize. She had to trade in because her mom couldn't afford the car payment and lawyer fees. So she settled with no cost from me.

Thinking money's coming your way gets you to make really dumb choices.

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u/BitterFuture Apr 29 '24

I'm sorry...I'm stuck on imagining someone trying to show off with a Kia Sorento.

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u/VengenaceIsMyName Apr 28 '24

Wow. And thus the cycle continues.

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u/Frequent_Coffee_2921 Apr 28 '24

It's almost like she couldn't afford it from the beginning

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u/CWHats Apr 29 '24

Everyone at work that makes less than I do has a newer and nicer car than I do. Some have better houses along with cooler camping gear and other stuff. They all complain about money. As long as they can make the minimum payments each month, they think that they can afford it.

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u/timesink2000 Apr 29 '24

Spend less than you make. Simple concept that many people could follow but do not.

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u/CraftyObject Apr 28 '24

My dream car is a paid off car.

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u/MotherSupermarket532 Apr 29 '24

My parents basically taught me to drive my cars until they won't go anymore. 

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u/Zombie-Lenin Apr 28 '24

This is woman who is an influencer who bought her husband a car with a similar payment, and who owns a new Audi in addition to this.

Not that the premise of the post is incorrect, auto loan debt is out of control, and the price of trucks is out of control; however, don't feel sorry for this woman and her terrible decisions buying multiple $100k+ vehicles borrowing at 10% interest with no down payments.

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u/MM_mama Apr 29 '24

’I did not go with my husband and as a female I feel they took advantage of me. They knew I really wanted the car and that I was by myself,' she said.

Here’s a quote from the article. No, I don’t feel sorry for her at all, and shame on her for trying to act like being a woman is an excuse for her idiocy.

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u/moonwoolf35 Apr 29 '24

That Audi she bought had 100k miles on it lol she makes terrible decisions

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u/healthybowl Apr 28 '24

Doing it for the Gram. Classic

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u/AlaskanSamsquanch Apr 28 '24

Sure she’s dumb but predatory lending like this shouldn’t even be legal.

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u/aimlessly-astray Apr 29 '24

Exactly. I'm not saying she isn't stupid, but the system is designed to exploit people. She should have done research and been more diligent, but we also can't blame people for falling prey to predatory systems.

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u/Heroic_Sheperd Apr 28 '24

I wouldn’t be against the government wrecking these loan companies shit.

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u/Responsible-Room-645 Apr 28 '24

The worst kind of debt is car debt; the thing is worth at least 10% less the minute you drive it off the lot. If you live in a place where public transit is half way decent, use it.

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u/DouchecraftCarrier Apr 29 '24

If you live in a place where public transit is half way decent, use it.

Totally agree with this - I lived in NYC for 6 years and the subway (for all its flaws) was awesome - unfortunately this isn't the case in huge swaths of the US. There's someone further up in this thread arguing that people should only ever pay cash for cars and I'm just not sure that's realistic for many folks. You need a car to make a living. I don't have a problem in principle with people financing large purchases at reasonable rates and for reasonable terms, but there comes a point where people are at risk of being taken advantage of.

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u/artificialavocado Apr 28 '24

Remember when loan sharking was illegal and something associated with organized crime?

Pepperidge Farm remembers.

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u/adhesivepants Apr 28 '24

To be fair, banks shouldn't be allowed to even offer deals like this. Most people enter into deals assuming they are fair. A loan in which after ten years of the basic payment your debt is MORE than you started with, shouldn't be a thing.

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u/cookingkville Apr 28 '24

Consumerism at it’s finest. People see someone driving a 2002 suburban and think they’re poor, not knowing that person has $78,000 in the bank. Meanwhile, people see someone driving a 2025 Tahoe and think they’re rich, meanwhile that person has $78 in the bank.

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u/MiaLba Apr 29 '24

Man I always have to remind myself of this when I see all these parents in the school pickup line in their brand new huge SUV’s some even luxury ones. And here I am in my 2007 car. I feel like such a poor bitch. I always think damn what do they do for a living to afford such a nice car they must have money.

But the reality is they likely don’t and are just living paycheck to paycheck or are in a shit ton of debt.

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u/Euporophage Apr 28 '24

If you cannot pay off a car in 5-7 years, then you cannot afford that car. If interest is so insanely high that in 3 years it accrues $40K, then you stay the fuck away from that purchase.

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u/Maxwell_Jeeves Apr 28 '24

I think car loans should not be over 5 years. I've been seeing the 7-year car note increasing in popularity over the last 10 years as a means to bring the monthly car payment down. It's nuts!

Part of the problem is the first question car dealers ask is what monthly payment can you afford? From there they start playing with the numbers to put you in the most expensive car you can afford.

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u/All4megrog Apr 29 '24

Remember when the CFPB wanted to reign in auto lending but they didn’t because congress had a fit because their lobbyists had a fit because the auto manufacturers had a fit? God I love America and corporate personhood!

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u/peat_phreak Apr 28 '24

Expensive cars are a huge waste of money.

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u/InevitableHoliday708 Apr 28 '24

From the picture I reckon that car is worth more than here house. people spending more than they can afford for “appearances” and fb/ticktok pictures is lost on me

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