Car dealer rip off

**Slack** · 07-12-2012, 02:27 AM

I am posting here to vent a little, but if anyone has some constructive suggestions, I am all ears.

My ex-girlfriend's daughter, whom I consider family, came to me to help her over a financial hump. She is 18 and trying to live her own life and is kind of a free spirit and wants to do her own thing. So this means she usually gets to learn lessons the hard way. The last couple of years she was a wild teen and didn't have the opportunity for a structured life lessons such as budgeting and to not trust car dealers. She actually has been straightening up and being responsible.

Short story:

She went to the used car dealer on her own and walked away with:
2007 Kia Spectra, 92K miles, for $13K with a 3.5 year loan @ 20%APR.

She also had no clue about her insurance and wasn't expecting the $450/month insurance payment on her $430/month car. So they let her over extend herself, she really isn't going to be able to afford the car, insurance, rent, etc. The best I can tell, this car is work 7K-10K retail, she got screwed by the dealer coming and going.

This really makes me mad and I wish there was something I could do to rectify this. For the most part, the law allows you to make a financial fool of yourself. It seems to me that the dealer while being unethical, probably did nothing illegal.

Any thoughts, suggestions or sympathy?

Thanks for listening.

**yukonjack** · 07-12-2012, 02:33 AM

Turn it into the loan company and take the hit on her credit. That's the best thing she could do for herself.

**David2012** · 07-12-2012, 02:46 AM

$450 month insurance? How many accidents has she had? I'm in my 50's and have full coverage on my '05 Grand Marquis & liability on my Pickup.. with lots of extra medical & glass damage coverage... and I only pay approx. $350 every 6 months. My brother has had several accidents & has 2 teens on his policy and they don't cost him anywhere near that mucn per month.

**thegomezclan** · 07-12-2012, 04:27 AM

That seams like a lot for insurance, my insurance only wants an extra $180 a month for my son and I carry full coverage on our cars.

**gl89aw** · 07-12-2012, 04:55 AM

my daughter was about to get into the same kind of deal on a mini-van a few years ago, luckily she called me to co-sign and when I went to the dealer, looked at the van and the price/interest rate I refused to sign the papers, the salesman was really upset and rude so we walked out with him still cussing, very un-professional and I think un-ethical to prey on young people like that.

**peanut** · 07-12-2012, 04:58 AM

I agree. That insurance is high. Call around. If someone can add her to a current policy it should cut it in half or more from what your saying she pays. I have 3 driving boys, 1 with a bad record.

**AKguy1985** · 07-12-2012, 05:13 AM

yeah thats way high on insurance.

**Shoot Summ** · 07-12-2012, 05:45 AM

Sorry to hear about the trouble she has caused for herself, it amazes me how many people just don't have any financial common sense. In my opinion, she created the problem, now she either lives with it, or works with the company to fix it, she needs to learn the lesson on this so she doesn't do this again. I don't fault the car company at all, this world has always been buyer beware, instead folks find the reasons they want to buy, instead of the reasons they shouldn't.

**cowzrul** · 07-12-2012, 06:18 AM

Thoughts and suggestions:

1) sit down and show her a budget with what she has done and let her realize she can't make it work or else she won't learn. Next it will be a CC maxed out.
2) Since it is financed the car will require full coverage so I would shop around for a cheap rate.
3) Go back to said dealership and explain the car will either be dropped off at their door step or else they can help negotiate a better rate for the girl.
4) If the above fails see below:
A) give car back and start her on a you life of potential bad credit
B) find somebody willing to co-sign, re-finance at a better rate, and add her to their insurance policy
C) find her a really good paying job

**surjimmy** · 07-12-2012, 06:23 AM

When did this happen? I took a truck back and turned it in two days later after I found a better truck and better deal deal. Of course they threw a fit saying all kinds of stuff, but I think you have 72 hours to make your final choice.

**KOPBET** · 07-12-2012, 06:43 AM

There is no right of rescission on auto purchase contracts in Oklahoma.

She can voluntary repo (let the lender take it back), but she will still be on the hook for what she's underwater for. Good chance the lender is out of state too.

She probably had no or bad credit to begin with, that's why she got 20%. Good luck with a refi.

**nemesis** · 07-12-2012, 07:22 AM

She is 18 and trying to live her own life and is kind of a free spirit and wants to do her own thing. So this means she usually gets to learn lessons the hard way

And this is another lesson she's going to have to learn.

I raised three children and all I can suggest is that maybe, just maybe, you should reconsider trying to clean up her mess. Just my opinion.

Best of luck whichever way you go.

**bulbboy** · 07-12-2012, 07:29 AM

My daughter is 17 with one wreck and her insurance is only $100 a month.

Take the hit and get a $1500 beater and introduce her to Dave Ramsey.

Good for you for helping her out!

**BadgeBunny** · 07-12-2012, 07:36 AM

My goodness, she sounds like me a hundred years ago!

There are plenty here who are gonna say don't do this BUT you might discuss her filing for bankruptcy. It's not like it used to be and the trustee will either make her surrender the car, or if she wants to keep the car, make the dealer cram down the note and take a more reasonable arrangement if she can prove she's unable to pay for the car under her current circumstances. In order to file Chap 7 she will have to prove she doesn't have the funds to pay her debts. In Chap 13 she will wind up making payments to the Trustee to pay off a certain percentage on the dollar of what she owes. She will have to go to mandatory credit counseling with either. None of this is a lot of fun, and this could help her and teach her some valuable life lessons at the same time.

I'm in camp with bulbboy. I'd be sure to tell her that this is her one "get out of jail free card" though. Make sure she knows how much you love her and that you will always be there for her but that you don't have a money tree and you simply can't bail her out again.

Double down on the Dave Ramsey advice.

Good luck to you! (and to her)!!