My friend just financed a 2021 Sonata SEL. His credit is pretty bad, but I think he still got ripped off on the car. I’m not sure the exact terms of the lease, but he told me he put $1k down, with payments of $500 per month for 72 months. He claims this was the price after $2k dealer incentives. How bad is this deal form the scale of 1 to 10?
Adding up the payments that’s about 37k for a 27k car. It could have been a decent deal on the car, but 10% interest would kill ya. “I’m not sure the exact terms of the lease”. There are no terms. This isn’t a lease at 72 months. It was purchased.
Comparable deal on the same car. Assuming good credit you though. But depends if your friends credit is soo bad that he’s paying an extra $8k in interest
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Wow. It looks like the salesperson at that dealership will be getting a nice bonus
So we don’t know exactly what the MSRP was (though we can guess, but for example, convenience package is a $2,200 swing), we don’t know the purchase price, we don’t know the interest rate, what extras/accessories or what F&I products were purchased either.
I mean, it’s pretty obvious it wasn’t a good deal. And the friend in question clearly didn’t do anything meaningful research and threw himself at the mercy of the dealership. But if he doesn’t care, I guess we shouldn’t either.
I will say, it always astounds me when people with less than stellar credit end up buying so much car. If it was me, I’d probably have looked at a comparably used vehicle for around half the price, paid it off inside of 36-months and got my credit back on track for the next vehicle and with the lowest total interest cost as possible. But to each, their own.
Edit: on a quick look, there are plenty of nice CPO alternatives, as an example this 2018 Sonata SEL with 16k miles for around $14k: https://cpo.hyundaiusa.com/us/en/certified-pre-owned/inventory/details/year/2018/model/Sonata/VIN/5NPE34AF4JH668136
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No clue without more details such as MSRP, sale price, dealer add-ons, and finance APR. How bad is your friend’s credit? Below 600s?
Around 630
“My friend”
I also have a friend who thrives on creating her own misery.
There’s really nothing you can do.
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