Horrible car buying decision - any advice appreciated

Ask the Hackrs Used Cars
21

Hope she has GAP

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22

Haha. Thatā€™s what I was thinking. Get Gap insurance and burn that Muthafā€¦! Lol

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23

Dealership used different score like Fico 8 or Fico Auto mostly by TU or Experian. 671 is not great but not that bad either.
Report must have seen 3 hard pulls, one for leasing apartment, one from car max and 1 from Dealership on same day. Dont think $1700 payment per month shows up on the report since its just started.
Or may be she told her about 1700 payments. They do look at her income, her previous auto finance history if any and her income to spending ratio including her CC or other loans payments she has.

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24

Maybe but the question is, with being $10-12k underwater little to no cash on hand and modest credit, whatā€™s the better alternative that you see here?

And for a 110k mile car, you probably couldnā€™t pick a better option than a 3-4 year old Civic.

25

Wow thatā€™s a bad deal.

Any chance the dealership has a x day/ x mile warranty on used vehicles to get the ac working?

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26

True. But, both CarMax Burbank and that Anaheim dealership use the same subprime lender. Therefore, the same lender denied the Carmax application but approved the dealership application within hours of each other. I hope I am making sense. I only have a photo of the CarMax rejection letter - I canā€™t edit her personal info and post it.

You guys are truly the best - she cannot thank you enough. To summarize the advice:

  1. Get rid of the dealer add-ons - gps and maintenance package. Is this done through the dealership finance department? The dealership in general? It is her legal right to demand that these add-ons be removed?
  2. Identify a co-signer and refinance at lower rate through a different lender.
  3. Selling isnā€™t a great idea because she will still owe thousands on the loan and wonā€™t have a vehicle to drive to work.

Thank you, Hackrs.

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27

Usually itā€™s 30-day / 1k miles which sounds like sheā€™s past. Even then typically applies only if less than 100k miles.

28

Agree she is atleast 10k under water if decides to sell it now. Only option is the Refinance if she can find a bank or credit union who can refinance a car with 110k miles she might get a better rate like 15% instead of 25% . Then try to recoupe some money by canceling Maintenance and Gap and GPS ā€¦

AC issues, lot of shops in Santa Ana can fix that cheaply and hope she dont take it to a Honda dealership. Or maybe the dealership who sell her the car can fix it for free ā€¦

Civic are good cars can go 150k with no major issues same is true for Toyota corolla or camryā€¦
Said that my 2002 Camry with 28k miles blew her transmission while going to Florida from IL in Macon Georgia. All covered under warrantyā€¦

29

  1. GPS is going to be difficult, feel free to ask, donā€™t believe thereā€™s any legal protection there. Maintenance though yes she should be able to get this taken off and the value applied to principle. Pretty sure the dealer will still fight it though.

  2. Try this, but it wonā€™t be easy.

  3. Not just ā€˜wonā€™t be easyā€™ it would be near impossible. Letā€™s say she manages to sell it for $12k, letā€™s say she gets the principle down to $20k, whereā€™s the other $8k going to come from to do the lien payoff? Without that you canā€™t sell it.

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30

Hi everyone, Iā€™m the TENANTā€¦I know I know I messed up. Can I also add that the credit application was fabricated?! My income, monthly rent, and job info was ALL INCORRECT in order for me to be approved but I never signed with that infoā€¦I pay rent, I donā€™t live with relatives, and I just started my job last yearā€¦ANY ADVICE?? Be brutal as necessary please, I deserve it :sob::sob:

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31

Lets look at her options again. Her biggest issue is her credit .

  1. If she do decides to refinance getting a cosigner can help. On LH under wiki there is a posting regarding Great Credit Unions . I would start their first to see their rates. Dont apply yet just check them out. Just applying to them cause a hard pull. But first make sure they can give loans on a 110k miles car.

  2. Go to Carvana, Vroom and carmax and put in the VIN , mileage and see what they offering you for the civic. No need to mention that AC is not cooling. This will give you an idea what her 2019 Civic is worth. Results are some time instant. Also check on their sites if she sell to them and buy something newer with better rates she can save on sales tax.

  3. Once she knows the car worth she can take that number to other dealers for a tradein, get a new very economy car leased or finance and add that debt she carrying and see the numbers if they less then $600 then its not a bad deal plus saving on sales tax, free maintenance for some brand namesā€¦
    You can search this site to find out which brand names are offering good leases or financeā€¦Nissan, Hyundai, VW, Kiaā€¦etc.

Anytime she applied to bank a hard pull will lower her score. Only apply when she dead sure ā€¦
Getting a cosigner with good credit will help too.

Back to Rams and 49ers Gameā€¦ My old Anhiem RAMS.

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32

Can you clarify? Didnā€™t you review the paperwork and ensure the information on the credit application was correct before signing this deal?

Is this your first auto purchase? Why did you end up choosing a 3-year old car with more than 100k miles on it? Feel free to share any additional information.

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33

Who fabricated the info ? Dealership or you?
So someone make the application look good to get the loan since it was rejected before by same lender ? Some of these sub prime lenders will give you loans but will cost you arm and a leg.

34

I have heard of dealers fabricating apps to get them pushed thru. This may be a legal angle you can takeā€¦if the state AG office wants to touch it. Cali? They very well might.

35

The information I reviewed with the salesperson was while he was typing it. He was typing it in correctly but they changed it and kept my electronic signature on it. WHAT I SIGNED HAD THE CORRECT INFO AND WHAT WAS SUBMITTED WAS INCORRECT.

This is my first auto purchase, I was in desperate need of a car due to my domestic violence situation and needed a car to move out. I was desperate.

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36

I would never fabricate info. It was the dealership.

37

do you have a copy of the info that was correct? versus what actually submitted and accepted by bank?

38

You have an option to follow leagal action but they can say that you provide that info hard to prove by you that it them. Lets try to get out of this situation and follow the options hackers have mentioned above. Its not an easy way out unfortunately.

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No I donā€™t, he was typing it in as I was telling him. And when I signed, it was after he typed it in and I clearly saw it was correct but once they submitted the info, I saw my electronic signature on it and a lot of the info was wrong

40

Thank you so much for all of your advice. Iā€™ll go in with all of this in mind. :pray:t2: