#ElderlyWoman #DealershipScrewedMe #HelpNeeded #AdviceSought #FinancialStruggles
So a friend of our family went out and bought a Mercedes (mistake no. 1) with 70k miles, 2021, and up to her eyeballs in debt. And not only that, she is older and has back pain from driving the vehicle, so at this point, she doesn’t know what to do:
### The Problem: How the Dealership Screwed Her Over
She traded her Cadillac for it. So she rolled over her negative equity for a car that’s worth 25k, but she paid $40k. With an 11% interest rate, overpaying by $15k, she’s now paying about 50k for a $25k vehicle. To make matters worse, she realized she got screwed over 2 months after buying it and now suffers from severe back pain while driving.
### Solutions and Advice:
1. **Refinancing the Loan:** While refinancing may lower her monthly payments, it won’t solve the underlying issue of being upside down on the loan. It may provide temporary relief but won’t address the depreciation of the vehicle.
2. **Looking for Someone to Take Over Payments:** Finding someone to take over the payments might be challenging, especially given the high amount she owes compared to the vehicle’s actual value. This option is risky and may not guarantee a resolution.
3. **Letting the Vehicle Get Repossessed:** While allowing the vehicle to be repossessed could impact her credit score, it may be a better option than continuing to pay for a vehicle that is not worth its high loan amount. This option allows her to cut her losses and move on from the financial burden.
4. **Renting the Vehicle Out on Toro:** Renting the vehicle out on a platform like Toro could help offset some of the costs, but it may not be a sustainable solution in the long run. It could provide a temporary income stream while she explores other options.
### Final Thoughts:
In situations like these, it’s essential to consider all options carefully and weigh the pros and cons of each decision. It’s crucial to prioritize her physical well-being while also taking into account the financial implications of her choices. Seeking advice from a financial advisor or legal expert specializing in vehicle loans may provide valuable insights and guidance in navigating this challenging situation. Remember, it’s never too late to seek help and explore different solutions to find a way out of the predicament. #FinancialFreedom #Empowerment #SeekingSolutions 🚗💸🤔
She must have shitty credit if she received 11% on her financing.
I am not sure how old this person is, but even with a repo, she still owes money on the financing regardless. So she either lets it get repo’d and she gets a major ding on her credit + no car + still owe money, or she continues to pay and she has a car.
Ouch. It hurts so much to see people roll their negative equity into yet another bad car loan.
> The problem is you probably not gonna find a idiot to pay that note, and that she’s upside down like 20k or more.
Yep, you’re right about that.
At this point her best bet may be to take a personal loan for the $20,000 or whatever the negative equity is, sell the car, and focus on paying off that smaller balance. And then her family drives her around for a while.
Not sure if she put any down payment money toward this but from the sounds of it she’s in like $50k of car debt. That’s just gigantic unless she gets a lot of income from somewhere. I don’t see another way besides raising the negative equity and getting out of this car, and having no car.
Oh sweetie…the help she wants is for YOU to buy the car. Don’t fall for wily old people and their bullshit. They’ve had decades to perfect the guilt.
If she could buy another car on top of the shit deal she has, she’s got resources.
If she could get financed for another car after the Mercedes, she has the resources to figure it out. Wash your hands of it and walk away.
Sorry to say this reminds me of an elderly friend of mine. He was churning through vehicles quickly. I thought the dealership must be taking advantage of him, but sadly, this was a symptom of dementia onset. He was lonely, and car shopping was a fun pastime. He didn’t have the mental acuity to be able to see how destructive this was to his finances. When his daughter moved in with him, she was able to get POA, and shortly thereafter, had to take away his keys. You might want to share your concerns with her family or local Elder Services. Good luck.
Does she have kids? She needs her kids to take over her financial decisions.
If the car is repo’d she will still owe much of the remaining loan balance. The bank will auction the car, and whatever amount of the loan isn’t covered by the auction price, plus fees, is the responsibility of your friend to pay. If she doesn’t pay, they’ll sue her.
A car getting repo’d is not the same as just being able to walk away.
I keep seeing you ask about Toro. But unless its a speciality Mercedes, with the wear and tear the car will incur, plus insurance and additional upkeep, spread over what you could realistically rent the car for compared to Hertz, Enterprise, etc. Probably wouldn’t be a good idea. Does she at least have GAP ?
Did she get screwed over? It just sounds like she made a bad financial decision to purchase another luxury vehicle and rolled over her previous luxury vehicle’s loan.
People made bad financial decisions all the time. Unless you have proof someone screwed her over, she has to deal with the decision she made.
Does she actually need credit? Doesn’t she have money to buy a car for cash? Is her house paid off or close to it? Because if she doesn’t need credit and clearly she’s just let the car be repossessed
Does she have gap insurance? It’d be a shame if she drove it to a bad part of town and left the keys in it and it got stolen….
Upside is a used Mercedes won’t depreciate as bad as a new one. But it might need repairs.
But there is only way to clear that negative equity, with cash.
Credit won’t follow her to the afterlife get another vehicle then repo away
You may want to see if there’s a consumer protection department with your state attorney general and contact them – if the dealer was dishonest in any of the interaction they may be and to help
Go trade it in for a Toyota Camry that will out last her
She didn’t get screwed. She’s an idiot. She had a vehicle she was already paying a note on then thought it’d be a good idea to trade it in for less than she owed and take out an 11% loan for everything.
There is no magic fix for this. She’s on the hook for the money. The only decision is sell the vehicle and eat the lost money or keep the vehicle and deal with the back pain.
I read someone else suggested trading it in for a Camry. That’s not a bad idea. I’d rather pay a 40k loan on a 25k Camry that is going to probably outlast her than keep the Mercedes, keep the back pain, and have to pay for repairs on it.