Skip to comments.Couple feel 'robbed' by 25% interest TD car loan (Canada, eh?)
Posted on 01/07/2014 5:13:55 PM PST by dynachrome
A B.C. couple are speaking out about how they feel they were misled into a 25 per cent vehicle loan from TD, which has left them paying more than double the price of their car.
Were paying $21,000 for the loan then $23,000 in interest, said Angie Hauser of Kelowna. Theyre making money off of people who have no money.
Weve been robbed by a bank with the help of a car dealer. I mean, thats the only way I see it, said her husband Enzo Gamarra.
"Why would I want to pay $44,000 for a car that's now only worth $15,000?"
Hauser and Gamarra declared bankruptcy in 2010 over credit card debt. The following year, they saw a sign at a Kelowna dealership offering financing for people with bad credit.
(Excerpt) Read more at ca.finance.yahoo.com ...
Suckers idiots bone heads
DUDE. That's what we were wondering too.
Read. The. Contract.
If it is not written in the contract the promises mean nothing.
No one made them purchase a $22,000 car. They could have bought a beater and made due.
They can pay it off early you know. sheesh
They obviously can’t afford a $21,000.00 car. That’s a nice used car - I just got a 2011 Maxima for less than that. You can get a pretty decent used car for half of that. Living beyond their means and getting mad at the bank for cashing in on their stupidity.
People won’t think past the save your cash and then pay for it straight up will they? Nope, gotta have it now! It’s the eeeeeeeevil banks fault for completely twisting their arms, threatening their lives and the lives of their children if they didn’t sign for that loan. Yep, that’s the ticket!
It’s easy to blame the victims. Not everybody is good with money. The poor, especially. Usery used to be a serious crime in this country.
I’d go further than that. There are PLENTY of less wealthy people where I live, a lot of them Hispanic, who buy older but reliable beaters and keep them working. They crack open a book or use the limitless resources of the Internet to get help. Fundamentally, the people described in this article are LAZY, which is probably how they got into trouble in the first place.
I earn a good living and I could easily buy a new car (naturally, my wife has one) but I drive a 30 year old car DAILY, in the winter too. It’s a “classic”, and I know how to repair it. Sometimes I go to junkyards to pull some spares to refurbish for myself or to sell on eBay or on the boards. Many of the people there are admittedly a bit scary at first, but then you realize that these are the hard-working people trying to get along or to put food on the table for their family instead of driving a trouble-free new car.
When I head down to the local Pick-a-Part, I have to believe 50% of the clientele are Hispanics. They seem particularly into keeping 90s era Chrysler minivans on the road.
It would be interesting if a car company specifically built a new car that was simply enough for the average person to work on (like old cars used to be)
There is also a history to usury laws, whose circumstances do not really apply anymore.
In 1800, in a small farm community, if your plow broke at planting time you did not have much time to waste to avoid missing the season and going hungry. And you did not have many choices either. A local lender could charge you an amount that would be impossible to repay and you would lose your farm. And he may have been the only game in town.
The morons in this article had many options. Public transportation. A lease. An inexpensive used vehicle. If they default, they can seek bankruptcy protection and shield their assets. And they'll never go hungry.
Even at 0% you are paying more for a car than it will be worth when you leave the lot.
That is why I drive cheap <1000 dollar cars or trucks. Ill drive um till something expensive breaks. Normally get half my money back from the recycler.I’ve put 40,000 miles on my 600 dollar Saturn with no problems other than a battery and alternator and 20,000 on my express van that just turned 312,000 miles. I let someone else drive the value out of the car and pay for the value lost.
“It would be interesting if a car company specifically built a new car that was simply enough for the average person to work on (like old cars used to be)”
They can’t build it simple. All the black box and govt and emission mandates are not possible with simple.
If they were misled about the interest, then the bank has lied.
Too many Business Socialists will defend a corrupt business over people...and that is scary.
Having worked in personal lending, my guess is that the dealership had been feeding them lots of good paper and pushed TD/Canada Trust to take this flyer. To keep the dealer happy, they hooked it at 25%, thinking that the buyers would turn it down, but the salesman was good and the customers were less than diligent.
Back in the day, in my part of the world, ‘TD Bank’ (Toronto Dominion Bank) was nicknamed ‘Turn Down’ Bank, because their lending policies were VERY tight. Bank of Nova Scotia (Scotiabank) had a reputation for being loose. So loose in fact, that they approved deals that I (at AVCO Finance) would not touch.
Another stupid consumer.
Dads advice always works for me. He told me to make car payments to myself and use cash. It's awesome to have the power of cash in hand when you negotiate with a private owner or car lot.
New cars are for wealthy people.
Every car on the road is a used car.
Our last 2 cars we paid cash for. I had an Avalon on a 4 yr loan and once it was paid for I started putting the payments in the bank. I drove it for 10 yrs so banked 6 yrs worth of payments. Sold it and with the 6 yrs worth of payments got a really nice deal on a not even 1 yr old Jaguar. I asked the salesman what the payment would be on it and started putting that in the bank. In June we paid cash for a 1 yr old Mercedes SUV. Didn’t even sell the Jag, still have it. I’ll never have a car payment again.
Of course, the first new vehicle I ever purchased lasted for 18 years and had 365,000 miles on it by the time I replaced it. By my very rough estimate, the initial purchase price plus the maintenance and repairs over 18 years cost me around 11 cents per mile when all was said and done. When measured per mile, the gasoline probably cost almost as much as that.
This is very similar to the circumstances of Shays' Rebellion.Very interesting read at link.
Just pay it off early. While tough, it wouldn’t cost you that much and it would help to restore their credit rating.
1. Take the $25,000 and use it to get a five-year CD at a bank.
2. His bank at the time would then negotiate a fantastic rate with him on a line of credit. They'd give him a five year loan for about 1.75 points above the rate they were paying him on the CD -- up to a limit of $25,000. The loan was fully secured by the CD for its entire term, so the bank had no risk at all.
3. He'd then take the $25,000 and negotiate a cash purchase price with the dealership.
4. Five years later, his car was paid off entirely, and he had both his original $25,000 plus the interest it had earned for five years. He put that money in a separate savings account.
5. He'd then continue to "make car payments" after the car was paid off ... by conditioning himself to take the equivalent of his monthly car payment and putting it aside in that separate savings account every month.
He ended up driving that car around for another five years. By the time he replaced it, he had almost $40,000 in his bank account. He had the option of doing the same thing all over again with a $40,000 car, or settling for a $25,000 model (or whatever a comparable car cost ten years later).
I never sat down and did the math on this, because the one thing that I couldn't quantify was the price savings on the original car based on a cash purchase.
When I got out of highschool and got a job in a sawmill one of the first things I did was buy a new dirtbike. It was financed thru Household Finance Co at 22%. Was that usury or a fool being parted with his money?
I could build a nice, efficient little house for less than the principle. On paying it off early, loans are rigged to define the greater percentage of their early payments as interest, so that wouldn’t help much.
Speaking as a shareholder of Toronto Dominion: keep it up, eh!
That is very shrewd.
Then you talk them down good on the car.
I think that is a good “bank on yourself” method.
Shoot everyone makes out in that situation.
CDs pay crap now as well as savings accounts. We never buy new. We buy at less than or at 1 yr old with few miles. We get almost half off new buy doing that.
The Jag was a little over one yr old and had 14000 miles on it. The Mercedes was less than 1 yr old and had 8000 miles on it
Those are barely broke in cars at almost half price.
Bought them both from a lot that was looking to move them.
My methodology has worked great for us.
Meant jag was a little under 1 yr old.
It goes in a totally separate ‘car’ account.
Keep those two cars up.
They can cost a lot in maintenance. (I am an Auto technician by trade)
Oh, but I bet they are nice.
Thank you. Also, the 1800 farmer had no bankruptcy statutes to shield himself - he had debtor’s prison.
We drive our cars a long time. One of the reasons we buy nice ones. Yes they are expensive maintenance but we do keep them up. We don’t really put a lot of miles on our cars so it’s not too bad. The Jag is a 2006 S Type and it has 64k on it. Have had the Mercedes since June and have put 3k on it. If I wasn’t out of town alot we could get by with one car.
Wonder what caliber the gun was that was held to their head to sign...
I am retired mechanic. I can fix it if it breaks. Something about a car that made it 200,000 miles makes me feel good that all the bugs have been worked out of it.
Credit cards are a tool, like hammers and guns. Not inherently evil. I use mine ALL the time. I just pay off the balance at the end of the month. See, not evil.
My main reason for having one is it is my health plan for our pets and for
When I was younger though.....that was something else.
I’ve been keeping cars on the road for 40 years for myself and friends; in some ways, the newer cars are actually EASIER to repair then they once were. You can buy a powerful diagnostic tool for $25.00 - a Bluetooth OBDII reader - and get a free app for an Android phone or tablet to work with it, spelling out the problem in English. This kind of diagnostic power would cost a dealer several thousand dollars 25 years ago, not including the training required to operate and interpret it. And, if you think modern fuel injection is complex, take a look at an early-mid 1980’s carburetor. They didn’t work properly when they were designed and built, and they never will! Of course, there are things you can’t do, but there’s a lot of things that you CAN do.
use to be and then came credit cards.
Good for you. I agree with you - we have gone to the scrappers PLENTY of times to replace parts. Heck, when the kids were young I went without a vehicle for over a year rather than borrow....and we lived in the country. All errands, shopping, etc. was done after the vehicle got home from work (and it wasn’t a great one).
In Duluth, GA. They will have you driving in style in no time!