$30k sale price in November 2021, my guess is it is a 2019, 2020 if they really got lucky.
Edit: based on where used car prices were in Nov’21 and given that this dealer took them for all they had, very well could have been a 2018. Especially given that the current value is estimated to be $22k.
He indicated the current payoff around $39,5XX. Based on that, it should be 2021 model if it was purchased brand new.
Nope. $30k sale price + $3k NE + 4.8k in warranty/extras + tax/fees so $41k financed. At such a high rate that in 9mo they paid mostly interest and only a few grand in principle so still $39k owed…
I see. So they got the used X2?
Did this friend specifically ask you to help them or did you decide to help of your own volition? This usually doesn’t go well.
That’s my presumption, but waiting for OP to confirm/verify.
So I have been just trying to gather more information on her finances and situation so I can answer these questions.
It is a 2018 with 58k miles currently and when she purchased it the car had 44k miles. Her credit isn’t all that bad, low 700s. I just think when she purchased the car, she didn’t know what she was doing and the dealer applied everything in the book on her.
I asked her if she had enough savings to pay off the loan if she sold the car and she might be able to but would like to see what the final amount would come to. So the best thing to do would be cancelling the warranty and get a prorated credit. Sell the car for as much as she possibly can (possibly going private party if it gets a higher offer?). Then using whatever savings she has to pay off the loan. If she doesn’t have enough then I think refinancing the rest will be the next option.
I am pretty sure she is doing 1400 miles of commuting a month and the Civic is a 10k a year lease. So I was thinking of selling it while it still had positive equity still and hoping the Rogue lasts a year or so. And then buying another car whenever this market softens up. But that is putting a lot of trust into that 11 year old Rogue. I think keeping the Civic and splitting miles between the two is also not bad as well but I don’t think she really needs two cars like that however.
Go way over the civic miles and just buy that at the end
Also, really 700s credit but thought 16% apr for a loan was normal/ok to sign? This is more shocking than if she were a credit criminal.
If I were in her shoes, I would not be thinking about buying another car. No one knows what the market would look like in 6 months or a 1 year.
- What Mike said.
Is one of those cars her spouse’s car? Trying to understand why she has the civic, X2 and now also the Rogue. I get the rogue was inherited.
Cancel the warranty (if it’s not too late), pay down as much of the X2 as she can with cash on hand. Sell the Rogue for whatever she can get for it, and then sell the X2. Keep the Civic, the insurance and fuel savings can be used to rebuilt her savings down the line.
As others said, keep the civic, let it run over miles and buy it out at the end. Whatever positive equity it has she will probably use up with the mileage overage, but that’s fine. At least there’ll be gas savings.
Now if there’s someone else in the picture and she needs a second car, it’s a different story.
She only qualified for a sub prime rate with low 700s? Either she got a much better rate and the dealer padded above 10 points on it(mega yacht for that manager) or she has limited auto FICO credit history… but still, 16%?
Anyways, best of luck. Hopefully your friend breaks the mold and listens to the advice from this thread because my experience has been friends do the exact opposite of what’s suggested here 100% of the time.
Excerpt from a conversation with a friend of mine from yesterday that called and asked for assistance with a lease, after i told him not to talk to dealers until he knew his target deal. The deal is question was a $470/mo offer for a $27k Ford Ecosport. Text was sent whilr he was at the dealer.
My relative just bought a “fully loaded, $70k” 23 4xe (to save on gas), OTD is ~$74k. After my follow up questions, it happened to be a $59k Sahara with $20k 2013 Wrangler trade. The best part: he doesnt have a place to charge where he lives, but the dealer told him he doesn’t need to because 4xe recharges itself. And he doesn’t qualify for $7,500 even if it’s still avalaible on '23.
I think what you guys are saying is the best idea to move forward. She can sell that Rogue. The lowest listing for a similar salvaged titled Rogue with the same-ish amount of miles in the area is about $6500 right now so there is a glimmer of hope there. Maybe she can get 4-5k or maybe more if she goes the private party route. Get the warranty off and get a prorated credit. Sell the X2 and maybe the left over balance is like 9k best case scenario. She can pay that off and drive the Civic and buy it out at lease end.
I hope she listens to the advice and if she doesn’t then it is out of my hands at that point 
You know, I don’t fully understand why she got both the Civic and X2 either. The Civic was leased first which was in June last year. I think the X2 was like a rash purchase decision and wanted the BMW badge. She went to the dealership and purchased the same day and the dealer padded 10 points and the manager got a mega yacht that day.
If that is truly her credit score , she should get a personal loan asap and pay off that dumb rate, swapping it for a moderately less obscene one. Should be very easy.
This is sad for him, but still one of the funniest things I’ve heard in while.
Yup. I’ve learned the same lesson. I’m done spending hours of my time hunting and negotiating a deal for friends only for them or their families to just do what they wanted to do anyway and spend double on the same car at a shitty dealership close to their house. I help my parents and my sister now and that’s it. And only because I’m basically given a blank check and told to find the best/nicest car for $x and they don’t have any input other than color if there’s a few available.