There’s either an incentive to lend money or there isn’t, which is logic that simply goes from Point A to Point B. 
At the end of the day, we are responsible for our choices and actions.
Is it bad to wonder what the hell did they do to earn a 26% interest rate?
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For starters, she got her financing through the dealer.
Who knows what her credit score is.
No, I don’t think it’s bad to wonder. A 26% interest rate doesn’t come from nowhere. Learning about that may help other people to avoid the same fate.
Using credit responsibly is a great start.
Not everyone with a low beacon is there because they took on too many obligations. Some don’t use credit often enough or at all.
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Not to mention medical bills can be paid very minimally if you set up a payment plan. That won’t hurt credit if you actually do that. Same with student loans. There’s all types of forbearances etc.
These stories run almost daily to get people riled up about some injustice that they directly caused themself. They just leave out the latter
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That’s why I always try to get the full picture, not just the sob story.
I’ve said my piece.
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it honestly doesn’t surprised me that a lady with bad credit (probably a long history of miss/late payment) signs a loan with 26% interest rate and miss a payment. It’s almost like banks knows the risk involved.
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I think most people in this thread (including me) got hung up on the 26% APR on “her loan.”
But
She said the dealership, LA Auto Exchange in Montebello, told her that the financing had been canceled because it couldn’t confirm her employment.
She couldn’t even get a 26% APR loan funded.
It takes a lot more than a few late payments on medical bills and student loan accounts to butcher your credit so thoroughly that you can’t get a SECURED loan at this APR.
And imagine how many calls, emails and texts from the dealership she ignored before the tow truck finally arrived.
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My fav class in high school was finance life skills. Everyone was assigned a career, a salary, a family, etc. We learned about household budgets, rent vs mortgage, car loans, credit cards, student loans, payroll taxes, insurance, everything. We made our own budgets and got to make choices like buying a car and we had to write out fake checks to pay our bills. I considered “buying” a MB but realized I’d have $19 left over at the end of the month so I bought a Ford Probe.
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This is the american way. Uneducated consumers buying things they can’t afford at interest rates that make them pay for the item twice. This person should have found a $5k civic hybrid, put $2k down, and pay it off in a year. But that would have made financial sense.
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You can’t even find a Civic EJ worth buying for $5K.
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I’ve never even seen an old school Civic Hybrid before. And that poster says they are $5k?
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Are American citizens in like the most debt out of citizens of-other countries? Like you can take a loan out for everything…
I just did a quick search and found a bunch under 5k, only a few under 5k and also under 200k miles but it looks like they do in fact exist.
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Must be a thing for the east coast thing. On the West Coast I found 1…1…then 1000 miles east for the next one. (For around 5k) and no the fake < $2000 ones I don’t consider real.
Rust probably a major factor there.
I can’t imagine the HV battery is still good on a 14yr old car with 170K+ on the clock.
2k + labor to replace HV. I’ve seen tons of people do it on youtube, but I wouldn’t attempt it myself.
I’m driving a $5k car for nearly 3 years. Not a hybrid but there are still plenty of decent cars you can buy for $5k.
26% interest is financial suicide. I wonder how many of those loans get repo’d? Probably 26%. But how many would get repo’d if they were 10% APR?
There is a process for licensing drivers to prevent accidents etc but nothing to prevent somebody paying 26% apr on a $21k car loan? Freedom to do dumb stuff.