OK so I got a call from my mom today because she wants to buy a fully loaded '05 Nissan Murano with about 50k miles. She wants to trade in a '07 Tacoma that is negative $7000. So the numbers she told me was: $19999 for the Murano, add $7000 negative equity from the Tacoma, plus $500 for GAP insurance, with a 15% finance rate, and a $4000 down payment. So they told her the monthly payments are $560 a month for 72 monts. So to the final price is $40,320.

So she is paying $44,320 total? I'm horrible at math but that seems WAY to high. Oh and the reason for the 15% finance rate, it's because her credit score is in the 500s.

Something doesn't seem right. Can somebody shed some light on this please? Oh and she didn't buy it. I just told her to get out and find another dealer.

 

Don't know what happened with the other thread.

 

With that credit score, a 15% APR and current negaitve equity, sadly she is going to pay a fortune for any car. If she trades in her vehicle, she is just going to push herself even deeper in to a bad situation. Don't tell her to find another dealer--tell her to go home and pay for her truck. The best thing your mom can do at this point is keep the Tacoma that she is upside-down on until she gets that under control...and hopefully in the meantime she can repair her credit.

 

Upside-down on the current vehicle? Mom cannot afford a new one. Sorry.

 

sorry bro, no luck for your mom, tell her to keep the truck.

 

OK WTF! When I told her over the phone to get out of there and she told me o.k. She didn't come out of there! She bought the damn car. That's not what got me mad though. When I went to her house and saw the contract. The fukcing '05 Murano with 54k miles came out to $51,000! She said she read the contract but must have missed that part. She just trusted the numbers they where telling her. But they gave her an option to return the car for a $500 fee. I have to go to the dealership and take that damn car back. Oh and if anyone is wondering what dealership it is. It's Mossy Nissan of Escondido.

I don't know how the hell it went from around $40,000 to $50,000.

 

You mean the 07 Tacoma is $51,000. Must be a nice Tacoma.

 

Dealer and banks love people like your mom! Why do people fall for the payment SCAM?

TAKE THE CAR BACK, hate stealerships!

 

You should be able to get that contract nullified as long as you are within a 72-hour window. Go back and get the truck back immediately.

 

Dealer probably, but not necessarily the bank since her likelihood of paying off her debts is not good. But, I know what you mean.

 

Not to sound harsh, but I don't blame the dealer here. People with that credit score and equity position have no business shopping for a car. In these scenarios bank guidelines dictate a minimally profitable deal. I don't think Cali is a "cooling off" state (call your AG and check this before you do anything else), so you should be ecstatic that you are allowed to give the car back for $500.


Next step...

Do a total of payments calculation on her Tacoma. Then go to a credit union and see what sort of approval she can get on a re-fi. Repeat the total of payment calculation. Re-fi if it makes sense.

 

I would be estatic if there were more dealerships in the world that were not pieces of **** that take advantage of people that don't really know any better.

Yz

 

I know and she knows she is in no position to buy a car right now. But she has her heart set on a different car. Regardless of the high interest rate and being upside down on the Tacoma. I know it's a bad decision but that's her money and she can spend it how she wants. (Not trying to be an ***) But come on, how the hell did it add up to $51,000?! Tomorrow I'm going with her to return that POS and get the Tacoma back. I told her who gives a **** if she pays $500 to give the car back. At least she wont be in a $50,000 debt. She just doesn't know better and she trusted the dealership. I can't understand how those type of dealerships/salesmen can have a straight face ripping people off like that.

Thanks for the advice guys.

 

OK well...ignoring the fact that the last thing your mom should be doing is buying another vehicle, the price is going to be correct considering her negative equity, credit, interest rate and life of the loan. Remember that the dealer is wrapping up what she owes on the Tacoma in to the same loan. If she is a homeowner than consider taking an equity out to get square with that truck.

One thing to keep in mind here is that unless you are paying cash for the car, it's relatively pointless to focus on the overall price. Yes, you are overpaying for the vehicle in total, but if you are going to make monthly payments on it then focus on how much the monhly payment is going to be--you can't really have it both ways. Just make sure that the payments allow you to stay under or at least on par of what the vehicle is worth...this is general advice of course, that won't be the case with your mom's situation.

 

Seems kinda obvious why her credit score is in teh 500s.

bill

 

I just realized...if she has $4000 cash down, tell her to put that towards the truck. Taking a wild guess on her car payments, she should have the remaining $3000 done by the end of the year and be square on the Tacoma--or atleast be at a point where she is on par with value. She isn't going to get away from that situation, and the easiest and cheapest way to deal with it is to stick with her current vehicle.

 

So what did the dealer say?

 

No offense, but it sounds to me like she has the real responsibility for this mess, not the dealership/salesman.

bill

 

Guess it didn't go too well!

I just priced a fully loaded Murano with all options and it was $40K, lol!

 

She payed the $500 and gave it back. She decided to keep the Tacoma for a while and fix her credit.