Is my friend being ripped off?
She has pretty bad credit. However, she was able to finance a Suburban through one of those No Credit No Problem places. She said they paid $10,000, and she’s paying $500 a month on a 2 year note. She hasn’t missed a payment.
Well, I just found out from her ex that she’s leasing the truck! I don’t know much about how leasing works, but it was my understanding that if you have a substantial down payment and you lease, your payments should be pretty low. Her ex mumbled something about actually have put a large down payment down on the truck, but I don’t know how much.
Another thing she mentioned was that there a $2,500 pay off at the end of the terms.
She’s had the truck 8 months, and she checked her pay off balance, and it’s $9,000. That doesn’t sound right.
I think she may have really messed up. Is there anything we can do?
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6 Answers
Unless you are using the leased vehicle for business needs and can write it off on your taxes,leasing for the average person is just a huge rip off, all I can say is check the fine print of her contract and see what she has to do to get out of it.
Once upon a time I had $5000 to put down on a car. I wanted payments in the $150 area. One guy I talked to said the only way he could get the payments that low is if I used the $5,000 to lease the car. Another internet place I went to to find out what a lease is all about suggested that leasing gets your payments low.
Again praying on the poor, sure it can get your payments low ,and you never own the car and subject to a million rules, leasing is a good thing if you can write it off on your taxes ,and want to trade vehicles all the time but for the average person it is a complete rip off.
Did the car also come with the 4 digit ignition interlock system so they can disable the car if her payment is late?
FYI some of the No Credit No Problem cars are equipped with a LoJack type system to identify the car’s location to make immediate repossession easy. If they take the car, your friend will have to pay exorbitant fees for towing and recovery.
Well, so far she hasn’t missed a payment.
Yes. She will end up paying 2,000 in interest over the 2 year period or a 20% interest rate. That’s ridiculously high. That is, if I understand you correctly. Did the vehicle itself cost 10,000?
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