Nick
Wadsworth,#2UPDATE Employee
Fri, April 18, 2008
Marquetta, It is your own fault that you don't have any equity built into the car you purchased. What do you expect with out putting money down and rolling negative equity into a new car? No one can do anything about the rate in which their vehicles depreciate. Usually, for the first year or year and a half, they payments you are making are just paying off the interest to the bank, not even touching the actual price of the car. You need to ride out the car loan, then buy a car with a slower rate of depreciation, and finally, and most importantly, put some cash down. Fortunately, for people in your situation, the lenders limit the price in which the dealer can sell the car for because of the negative equity, so you I am almost positive you didn't get ripped off. If anything, you ripped yourself off by putting yourself in that position, and your lucky they could even get you another loan the second time around, regardless of what the payment was.
Charlene
Upper Sandusky,#3Consumer Suggestion
Mon, April 14, 2008
The bottom line is if your going into a deal with someone like a car dealer and they ask you to sign a contract stop dont sign it if you dont understand it. I was suckered into the same situation with jd byrider, if i could go back and do it over again i would have paid the $40 to a lawyer for the consultation to look at it. It would have saved me thousands of dollars but i didnt, now im paying for a car i no longer have. It is a sad situation when you work so hard to get so little and supply your faimly with what they not only need but deserve and people like this just want to take every dime they can from you. Yes it pisses us off but with experience you learn what not to do the next time. Take it to an attorney or lawyer let them explain what it means the person trying to sell it isnt going to.
Mark
Stillwater,#4Consumer Comment
Mon, September 26, 2005
Unfortunately, Jim's "rebuttal" does nothing to help Marquetta's cause. It's simply a tired litany of the same old cliches about slimy dealers. Yes, there are poor, even criminal, dealers out there, but this not what happened to Marquetta. There is a much maligned and missing attribute in the world today called personal responsibility. Clearly, what Marquetta needs is to get her financial house in order by avoiding further indebtedness. She should consider the refusal to finance $8K in negative equity a blessing, not a RIP-OFF. Where might she be next year when trading in the next car with $8K in Neg. equity alreadt built-in to the purchase price? $12-$15K or more in debt in a fast depreciating commodity makes no sense. The viscious cycle continues until when...bankruptcy? All consumers, including Marquetta, should do their research in advance of stepping onto the dealer lot. They should have their credit score and, preferably, a couple of loan agreements in hand. They should get a range of trade-in values, which are broadly available on the internet. If the car being considered for purchase is used it should be inspected by an independant mechanic. Finally, the buyer should examine carefully all documents before signing anything. This is the best set of strategies to avoid unpleasant surprises. Also, if she wants to maximize the amount of money she can make from the sale of her current vehicle she should sell it privately, where her indebtedness will be confirmed by the marketplace. Marquetta's claim never spoke of bing sold unwanted parts or services nor did she claim that the vehicle wasn't as advertised. She just couldn't get financed--and with good reason!
Jim
Orlando,#5Consumer Suggestion
Sun, September 25, 2005
That's right! Just keep falling for those sucker ads...its the dealer's fault. Drive off in a used car without having YOUR mechanic check it out...its the dealer's fault. Get into a car FLEECE because the salesman said you were so-o-o smart...its the dealer's fault. Sign all the papers before you read and understand them then find out you were charged $300 for a "theft system" which is window etching...its the dealer's fault. Respond to a push-pull-drag it in "sale" which is aimed exclusively at chumps, doormats and suckers then get ripped off...its the dealer's fault. On and on it goes. Yes, the business is loaded with slimeballs who's M.O. is criminal deception/fraud. The best defense is to know what you're doing BEFORE you go thru the door and the second they treat you like sh--then go thru the door in the opposite direction.
Michael
Barnegat,#6Consumer Suggestion
Sat, September 24, 2005
Mark is on the money with his explanation. I'm guessing the Vitara you purchased was new, but in any case, you're going to have the largest depreciation in the first year of ownership. Generally it takes about 3.5 to 4 years to pay down a car loan enough to get to a point where you're in a break-even situation. The negative equity from your trade-in plus the first year depreciation on a Suzuki would indeed equate out to approximately $8000.00. The dealership didn't necessarily 'screw' you, although it is possible they did. It's actually pretty unlikely they could have as the Vitara, if new, wouldn't have had much mark up and your lender likely limited the dealership to approximately 115% of invoice for the loan amount. Without much markup and only 115% advance from the lender the dealer more than likely made a little money (maybe around $500.00) on the sale of the vehicle, or maybe even sold it for about invoice. There's really no way to know, unfortunately. Sorry we couldn't be more help to you!
Michael
Barnegat,#7Consumer Suggestion
Sat, September 24, 2005
Mark is on the money with his explanation. I'm guessing the Vitara you purchased was new, but in any case, you're going to have the largest depreciation in the first year of ownership. Generally it takes about 3.5 to 4 years to pay down a car loan enough to get to a point where you're in a break-even situation. The negative equity from your trade-in plus the first year depreciation on a Suzuki would indeed equate out to approximately $8000.00. The dealership didn't necessarily 'screw' you, although it is possible they did. It's actually pretty unlikely they could have as the Vitara, if new, wouldn't have had much mark up and your lender likely limited the dealership to approximately 115% of invoice for the loan amount. Without much markup and only 115% advance from the lender the dealer more than likely made a little money (maybe around $500.00) on the sale of the vehicle, or maybe even sold it for about invoice. There's really no way to know, unfortunately. Sorry we couldn't be more help to you!
Michael
Barnegat,#8Consumer Suggestion
Sat, September 24, 2005
Mark is on the money with his explanation. I'm guessing the Vitara you purchased was new, but in any case, you're going to have the largest depreciation in the first year of ownership. Generally it takes about 3.5 to 4 years to pay down a car loan enough to get to a point where you're in a break-even situation. The negative equity from your trade-in plus the first year depreciation on a Suzuki would indeed equate out to approximately $8000.00. The dealership didn't necessarily 'screw' you, although it is possible they did. It's actually pretty unlikely they could have as the Vitara, if new, wouldn't have had much mark up and your lender likely limited the dealership to approximately 115% of invoice for the loan amount. Without much markup and only 115% advance from the lender the dealer more than likely made a little money (maybe around $500.00) on the sale of the vehicle, or maybe even sold it for about invoice. There's really no way to know, unfortunately. Sorry we couldn't be more help to you!
Michael
Barnegat,#9Consumer Suggestion
Sat, September 24, 2005
Mark is on the money with his explanation. I'm guessing the Vitara you purchased was new, but in any case, you're going to have the largest depreciation in the first year of ownership. Generally it takes about 3.5 to 4 years to pay down a car loan enough to get to a point where you're in a break-even situation. The negative equity from your trade-in plus the first year depreciation on a Suzuki would indeed equate out to approximately $8000.00. The dealership didn't necessarily 'screw' you, although it is possible they did. It's actually pretty unlikely they could have as the Vitara, if new, wouldn't have had much mark up and your lender likely limited the dealership to approximately 115% of invoice for the loan amount. Without much markup and only 115% advance from the lender the dealer more than likely made a little money (maybe around $500.00) on the sale of the vehicle, or maybe even sold it for about invoice. There's really no way to know, unfortunately. Sorry we couldn't be more help to you!
Mark
Stillwater,#10Consumer Suggestion
Sat, September 24, 2005
Marquetta-- I don't want this to sound harsh, but you only have yourself to blame for your predicament. First, you traded in a car with negative equity, which the dealer was happy to roll in to the new car loan. Did you think that the negative equity would disappear in one year? Second, a year later you are trying to trade-in again. Of course, now you have significant negative equity because you still owe on the previous car and have barely made a dent in the loan on the new car. That is why you are $8K in the hole. Third, you bought a car that suffers substantial depreciation when compared with others in the same class--and the greatest depreciation takes place in the first year of ownership. However, even if you had purchased a Honda CR-V or other slower-depreciating SUV you'd be in trouble because you brought no cash to the transaction in the form of downpayment to lessen the length and/or amount of loan. Your best strategy is to stick with this vehicle until it is paid off, while saving for your replacement vehicle. This way you will be able to buy your next car/truck and stay ahead of the depreciation curve. Fortunately, your (lack of) credit-worthiness and indebtedness is preventing you from continuing this downward spiral. Rather than being "ripped off" by Fred Martin Superstore, the bank(s) or credit union(s) (not the dealership) are refusing to finance your loan because of a lack of equity in your current Suzuki.