My brother in Texas decided to buy a car. I had told him to tell me about it, and not to buy it in a rush, since he mentioned he wanted a car before we go over there. Well, today I got a photo of a very nice Jeep. I asked the price, he said $11k, $252/mo. A bit of math took me to what I'd expect to be logical, but high... 10% for 48mo, so I ask. No, it was MUCH worse. 16% for 72 months. He will end up paying almost twice the value of the darn vehicle. I told him that was absolutely stupid, but he blamed his credit (632, which isn't terrible), and that the dealership had told him it was because he's never had a car loan before... I called foul, all around. He never shopped around for the car or the loan, and told them up front he was focused on low payments... all things that should be avoided.
I was mad he didn't consult me, but convinced him to refinance, and this time, through credit unions. He CAN get a much better rate on better terms and save so much more. Just would've thought he would've done some research, but I am not surprised he carries my parents' finance gene.
Actually, my whole family lacks any financial sense, except me. How come I am the one weird out every single time? No, I am not putting them down... I am not better than anyone, but I like to think I know a bit more about handling money, even if life keeps throwing curve balls at me. I'm thinking 5-10 years ahead in terms of money, they're doing 1-5 days ago. Paycheck by paycheck. It terrifies me some times.
But on other news, here's the NEW status of my last remaining student loan. I am quite sure they are just being spiteful at this time!!
OK....I had to giggle just a bit. Did you call the student loan company before you made the payment to confirm the payoff amount? Because I am guessing that penny has something to do with either 1) 14 seconds of interest, or 2) The Universe conspiring against you.
ReplyDeleteCall them and see if they will just waive the penny. Or mail them one! HAHAHA
As for family....I am so fundamentally different than my family in so many areas that I am convinced that they all must be pod people or something. I think you are just blessed to be able to see the larger picture....and are working to make your long term better. Your brother should be lucky he has a sister looking out for him.
Haha, I used their online feature to calculate payoff, and paid that full amount. I think it's #2. I should totally mail them the penny, but it would take too long.
DeleteActually Tanner, I don't believe you are weird at all. I believe that you are the only one with your eyes open and not operating in a happy little haze/fog called Debt is normal!
ReplyDeleteCongratulations on taking a good look at areas of your life you want to improve and going after that. When you do those things, you often look at some of the people around you and realize just how completely unhappy with themselves they must be that they allow themselves to keep accepting that behaviour.
I'm pretty sure your family have told you that what you doing is an impossible mission so why bother trying. That handling your debt takes time they don't want to give to it and education that nobody in the right mind would even understand. They don't see how to set a goal, break it into pieces and go after it. You, very clearly, are doing something that scares and amazes them. Keep right on doing it. And leave them in that fog!
I just looked around at all your progress and I must stand up and give you an ovation! GREAT JOB!!
By the way - I'm back on the wagon, back in the game, and back posting regularly again.
So glad to see that things are going so well with you!!
Welcome back, and thanks for the kind words! My parents just believe that debt is the way, the only way and the only reasonable way... I disagree in parts, and I hate their "as long as we can pay minimums" game...
Delete16%?????!! That should be illegal but yes I agree, his credit score is not bad. I think you did the right thing by telling him about credit union.
ReplyDeleteSend me the mailing address for your loan company and your account number and I will mail them a penny for you!
Congrats on your student loan payoff!!
HS
Not illegal at all... I've heard of loans as high as 21%. Yeah, they do happen, but it should have NOT happened to him. They played him and they played him hard. Hey hey, I don't want to send them two cents! Though that'd say something about it, eh.
Delete16% does seem awfully high :( But I know someone who had an 18% rate for his car loan. I got my first car loan last year (actually, today marks 1 year since I got my car!). I managed to get a 3% rate with no money down and no co-signer. My Dad helped me car shop for a reliable vehicle and managed to get $1k off the asking price. BAD not to put money down I know, but I needed a car immediately (I was not prepared for my prior one to need the repairs it did, outweighed what I could sell it for). Luckily, I was able to sell it (even needing repairs) and had enough cash to pay the sales tax, registration, & tags.
ReplyDeleteYeah, I qualified for 10k @ 2.49%, but only borrowed $7.5k at the same rate (7.5k was the minimum they were willing to loan). And I can understand having no down payment. My parents didn't, and when you need a car right away, it makes sense.
DeleteYou should totally mail them that penny :) Sometimes it does feel like you came from a different tree :) I hope your brother does refinance his new car because it's ridiculous! Question is whether or not he will learn from it or from you...
ReplyDeleteSend them a 1 cent check. It will cost the bank $1 to process it. Screw 'em. My old bank pulled a boner like that, too. I closed the account, they handed me the balance. Then I got a "below minimum balance fee" notice 2 months later for $11.99. Seems that even AFTER the account was closed, they managed to deposit 1 cent into it, then tried to charge me for it. I called them on it, they sent me a CASHIER'S CHECK for 1 cent, and by God, I walked in and cashed it. Probably cost them $15 or $20 to fix something that shouldn't even have happened save for their poor accounting procedures.
ReplyDeleteToo bad about your brother. I never finance through a dealer. You will NEVER get a decent rate from them!
Peace <3
Jay
Haha, way to teach those banks! Glad they didnt fight you on the $12. I've heard of good rates at the dealer's... only when you have your own offer for them to beat on your back pocket. Otherwise, yeah, they will screw you any way they can.
DeleteThat interest rate is way too steep. If there's one advantage of shopping around, it's that you get to gather your options and be able to choose what works best for you. With just one option, you're stuck with it for a long time. It's great though that he can refinance, because the deal he got was just downright terrible. As for your studend loan, I feel like it might be satisfying to hand in that last penny personally. But then again, that'll just lead to more expenses. I hope they just waive it off to save everyone the trouble. Haha!
ReplyDeleteRalph S @ Loans for Less
Thank your lucky starts that your apple rolled a ways from the TREE! You're not only more financially savvy but you're a nice sibling too! Much nicer than they deserve actually. How did that happen indeed with the same set of parents, the same environment growing up? Fascinating to think about and I'm grateful it's turned out well for you. I was in my 40's before my student loans were all paid off so give yourself a huge pat on the back my dear! Sending you hugs!
ReplyDeleteThanks! And no idea how it happened. We're all pretty different from each other... older brother can be a professional artist (got genes from both parents), and draws perfectly. I am financially knowledgeable, younger brother is nuts on electronics and hardware, like my dad, next one down is a bit of a... free form, moving around rather carefree (the one that bought the car), and then the youngest is very firm and goal oriented... strange stuff!
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