Hey Hackr community! I really enjoy asking the community some great questions because I can always look forward to some great responses!
To answer my own question:
I have a friend who had a 2016 Ram 1500. He got a new job in the downtown area and decided he needed a car instead of a truck to park like a “normal person”. He started shopping around for cars and ends up at a Chevrolet dealer. Long story short, it turns out his loan payoff was $23,500 higher than the value of the car. The salesman that was helping him out suggested he should take a look at a 2019 corvette, as the incentives could easily eat the negative equity. He ended up closing the sale and now has a 2019 Corvette paying $1,250 a month for 82 months…but in his defense it’s 0% APR. I’ll see his car “stolen” within the next year or so😂
He’s paying $102,500 over nearly 7 years for a Corvette with what Msrp?
Your friend sounds like he has the intelligence level of a haddock
I strongly advised against it every time he asked and I even broke down the numbers for him which was the worst part of it all…but his justification was the 0%APR…
What was the MSRP of the Corvette?
Getting free money at 0% APR isn’t the worst idea assuming he can afford the Corvette, and that he got a good deal on the Corvette.
Did he roll the negative equity from a 2009 Corvette into the Ram when he decided he had to have a truck?
Pretty sure it had a sticker within the $85,000-$90,000 range
He rolled in negative equity from a 2015 Challenger SRT
Rolling negative equity in general is bad news. Rolling negative equity on a dodge is just like leaving blank signed checks around.
Yeah most likely this guy is financially illiterate. But if the guy made $250k/yr, had low debt, $1M in the stock market, I could see rolling the debt into a free 0% APR makes sense. Would help him keep more in the market. I’m guessing I didn’t describe the friend.
Stimulates the economy… that’s the silver lining…
Not even close LOL
Hmmm… almost like there’s a pattern here
Funny that the types of people who by Hellcats and Corvettes generally aren’t the types to save and invest.
Worked at a health system where the executive parking lot has a bunch of Corvettes parked in it besides jag f types and Tesla model S…
Whoever that salesman was, definitely retired after that deal.
Never heard of a 2016 Ram being 24k flipped, unless that vehicle was totaled. I worked at a Jeep Dealer for 3 years before becoming a broker.
Not me upside down but I caused MBFS to be quite upside down.
2017 C300 loaner
RV was 26500
Car was worth about 21000
I was 15k under miles too!
Lol, on my new Volvo Carvana is offering $29k to buy it. That is the RV in 3 years . Poor VCFS.
Not all srt’s are hellcats, however all hellcats are srt’s. The regular srt is a 6.4L N/a engine.
Srt’s back in 2015 were 45-50k, the hellcats were going for 80k+(some close to or above 100) their sticker was like 65-74k but when first released ADM was a huge thing, it wasn’t until 2016 that people without hookups could get msrp on these cars. Aka if you’re not rich or well connected you weren’t getting a 2015 hellcat brand new.
Long story short that stereotype proves wrong in this example.
Anyone good with money wouldn’t overpay for a Dodge. It was obvious to me the mark-ups were a short lived phenomenon.
Limited production in 2015, markups were high.
Charger hellcat is one of a kind, no american car can compete and the germans were down 100+ horsepower when it first came out, obviously it has aged now, but it beat the brakes off the f10 m5 and e63 amg.
Challenger hellcat is a different story, too much competition in the coupe market, but it is the best muscle car in that segment.
So no its not a normal dodge, but agreed over msrp on most vehicles is dumb.