Are banks this stupid? [loan-related]
 

So I got my car 3 years ago for $30k on a 7 year loan

Now this same car costs $18k - a newer model, with a better package from the same dealer.

At this point I owe them roughly $18k, meaning that my car can't be sold on the market for that price -- since you can get a new one from a dealer.

So I call up my bank, say hey people, help me out with insurance. They're losing cash either way, so I basically told them "buy me insurance or take the car away".

Now what they did was really interesting. I don't get a single word from them, not a reply on the email I sent with this official request, not a phone call.

This week I get a phone call from a law firm that say "ok, park the car there and give us your keys". Are they _REALLY_ that stupid? They will never sell the car at a profit, will lose like $10k (market value is $8k for my car) -- and all because they didn't want to help me with $1k on insurance.

I must be really not getting something here. Well, fuck them. I can now get a good ride in cash in this economy.

You realize that will probably fuck your credit, right? Also, you really shouldn't ever take loans on a depreciating asset...

You realize that they will sell the car for whatever they can get, and then go after you for the rest of your life untill you have payed them what you owe them?

That's the thing, the law firm said they don't need anything else, only the car and that's it.

I'm not worried about my credit though. It's a long story, but they won't do anything about it. They will be overshadowed by another credit history from another bank. Again, long and different story.

they dont owe you anything, they where nice enough to lend you money, the problem is the gov. has now trained people to think the the banks are the bad people and they owe everyone something.

fact is the right way to deal with the housing crisis was to tell people that if you cant pay you lose your home, why? because tons of people have stopped paying (even those who can afford it) because they know the banks now might change loan terms etc.

They are a business you agreed to terms yes its fucked cars dropped in price and not just your car but that does not mean they should allow anyone to dictate what they have to do for you to continue making payments.

If you care about your credit try to unload the car take the hit and move on, or continue using it a bit more or something, cars will drop in value and its one of those things you have to just come to terms with yourself on how much youd like to lose a month on a car.

If they pick it up forget the word car loan or lease for a long time unless you want to get raped with some rates etc. In addition they will run after you for the remainder of the money - what they got for it.

it will be one hell of a rude awakening for you, if follow that advice

hahahaaaa if credit is no problem and you dont have any accounts linked to you then you can get away with it, tons of people wake up in the morning check their account balance to find out its negative simple because they though they can ignore collections etc.

Time for a new identity hehehe

this one guy I know said fuck it to collections also and they did some sneaky shit and got a default against him then used that to freeze his bank account.... the method they used was shady but the CA's have there ways and he wasn't laughing at all when he found out his account was frozen and it was all over maybe 2k or so give or take

LOL

You really think its the banks job to pay for YOUR insurance? I think the joke is on you. :Oh crap

Fact is if you needed 7 years to pay 30k then you cant afford the car you bought anyway. You really have no choice other to then just keep driving it, or let the bank take it back I guess but then again your fucking your credit even more.

Think ahead guys :)

Don't see banks and lawyers letting you off that easy. They will watch your bank account and when you have money seize it.

But who buys a car over 7 years? They need to traded in a lot more often, unless kept in a garage.

they will get their money

Funny thing is, here you can and will get help from a bank for insurance. They will give you 1 year for free and 2 more at HALF of what you would normally pay. Its honestly in their best interest.

Now Lets say he decides to keep the car, 3 or more months down the line it gets totaled. He has NO insurance.. He still owes the bank and they can not collect, and they dont have a car worth a damn..

They should have helped him.

Why not just ask the bank for a free car while you are at it?

Not realistic. Look at it through the banks eyes...

They would rather just collect the car back and move forward cutting their losses. They just wont EVER loan to this guy again and do their best power to let others know not too aswell.

If they paid for his insurance they would have to pay for everyones, banks are in business to pay peoples insurance, they are in business to make loans. If he goes without insurance and the car gets totalled, yes they then WILL come after his money in every way. I think if he just gives the car back nothing else will happen. Here in the U.S. anyway. :2 cents:

Thread has wrong title. Should be, are you this stupid?

Seriously, and if you keep the car you'd better get some gap insurance otherwise if it's wrecked you'll be making payments on nothing...

I bet they won't be stupid enough to lend you money again...

what happens now?
1. they sell teh car for whatever
2. if they sell it for 4k (cause they dont give a fuck) you will be left with a 12k bill.
3. depending on where you are they will garnish your wages, sieze your account or take you to court.

nothing in life is free or that easy and your foolish for thinking that.

So you can buy the same thing and newer NOW for what you owe. You're the stupid dumbfuck who borrowed money at interest in order to pay for a depreciating liability which has got to be maintained which you probably did not even do. How is that the banks fault? They owe you absolutely nothing but a kick in the fucking ass.

Just like these assholes who bought twice the house they could afford. Never read the fucking loan documents didn't care about the terms. Clueless about housing valuations. Put as much thought into a home purchase as they do a fast food meal - IF THAT MUCH. Well now oh no my god the big bad bank is coming for my house. Boo hoo hoo. The bank doesn't want your car you overpaid for, they don't want your $200k house they loaned you $400k to buy, etc.

Yeah.. banks are crooked illegal pieces of fucking SHIT.
But people like you are just as bad.

Dumbass come at me with this oh boo hoo I'm stupid and I paid you too much for something so I'm not making the payments any more waaaaaaaah.. I'll get three boys to take you down by a river side.

Here's what happens to people who try to fuck someone in business like you're trying to fuck with the bank blackmailing them and all of this.. The Hook will tell yas,

The same goes for investments.

This is why I lease and will never buy.

That all depends on what it is.. whether to lease or buy.
Find out what the resale is like on whatever you're driving.
Figure out if your pattern of use would impact the cost of a lease.

Never have set in stone stubborn assed rules.
ALWAYS do the numbers.

They get the car first, and then they work on getting the $$ from you... and since it's over pretty substantial amount you can be sure you will be dragged into court over this... :2 cents:

No hell no they SAID VERBALLY that they won't do that..
Safe Place Safe Place Safe Place

You really think this dumb ass is going to listen to you and the three other people who tried to explain this to him? :error

Thats the thing. They have the option of doing Self Insured work.

In the long run it would be better for them to do this. the banks here do and do DAMN well with it. Because when they get you on the free one for the car, they also get you on a discounted home and personal injury etc etc etc.

That is usually how car loans go, especially over 5 years. It's not the bank's fault that the car depreciated so quickly.

Wow, the personal responsibility in this thread is amazing :1orglaugh

You asked the bank to buy you insurance because that was cheaper to them than you defaulting on your loan?!?!

Wait and you want someone to invest in your iPhone app venture?

The numbers, more times than not, will say "don't ever buy a car!"

A car will always depreciate in value, unless it turns into a collector's item. But, I think it's safe to assume that the cars we buy today have absolutely no chance at becoming collectors items.

If you buy a car, you own something that will depreciate in value every day, regardless of whether you use it or not.

I see a car as an expense, no different than my cell phone or cable bill. Every three years, I return the car and get a new one. My numbers say i would pay my car in full in 81 months (7 years) if I was using my lease dollars to pay for the actual car. By then, I would have to worry about the car breaking down, out dated gadgets, and usual wear and tear. Instead, I'm paying 1.2% of my car every month for three years, and then return it for a brand new one, which I will continue paying the same 1.2% every month.

I pay $125/m for my cable and internet. If Time Warner Cable offered you their cable box and the cable/internet service for a flat fee of $10,000 (and then YOU be responsible for the box if it breaks down), would anyone do that? Not to mention the fact that the box will be outdated in just a few years.

These days, while the bank is going to ask for the money to cover their loss, they will more than likely sell the debt. They will not waste time trying to collect a debt when there are no assets to go after. Over the course of the next few years your debt will get resold and resold and if you luck out you will make it past the statute of limitations to collect the debt. Depending on where you live the statute of limitations is anywhere from 3-15 years.

bad sitch

Then in 7 years you sell the car and as long you bought a car that is in demand with some luck should be able able to get 50%+ of the original price back. There are also numerous other details to consider, like interest rates, how many miles you drive, etc... leasing is certainly not the right option for everyone... :2 cents:

No wonder this country is in the shit hole. Are you fucking serious? This thread has to be a joke.

You're fucking aye right this punk is serious and he is the masses of today.. scared? I am..

epic bail!

:1orglaugh:1orglaugh are YOU this stupid?

they will sell the car at auction probably for $8k, then sue you for the rest plus attorney fees, so they will make the $18k you owe them, plus another few thousand on top of that.

if you think you can hand over the car think its going to go away then your pretty fucking stupid. Once you have this on your credit, no bank will give you a loan and if they do, your looking to pay 20% interest.

your best bet is to double or triple your current payment for the new few years and try to get closer to value to what you owe.

btw, why the hell did you take out a 7 year loan for 30k? :error

I'm trying to figure out what on earth ever made you think that the bank would consider paying your insurance.

Here's a better idea with deeper pockets. Send a letter to Citgo, they might buy your gas for five years. That should help!

This guy is mentally slow. Anyone who does any form of "business" with him is in for a ride

You're walking down the wrong road bud.

Assume your responsibilities... If less idiots would take the easy way out like this and bankruptcy blaming it on bad economy well I am sure we'd be in a much better place.

I just lost 17k trusting a friend with an investment and he went belly up. People who claim they are victim of the rest of the world when in fact they are victim of their own stupidity pisses me OFF!!!!

As many said... You sire are an Idiot.

do you watch the news? read the news? I mean its been knocked into every deadbeats head that the banks are terrible people and its up to you if you want to pay your bills and if you do plan on paying call them and make demands.

It was a rhetorical statement.

Yes, I read the news. More than I should.

one word comes to mind.....

moron.

Amazingly naive

Banks screw people greatly on cars. You give the car back, you no longer have the property, but they force you to honor the "contracted value" even though you already paid for the actual "cost" of the car. A faked value, that you instantly lose.

It's a scam... You should make them sign a paper saying the contract is over. If they don't, well.

I saw this posted on another site, just a story I liked.... I wouldn't ever suggest doing this, just an interesting theory.

Go clean your car, park it in the street. Windows down, nothing really inside to steal. Early morning hours, gloves on, pop hood, pour sand where oil goes. Burn gloves.

Enjoy..

Unless you have already defaulted on the loan, then they can not just come and get it like that. Tell them to piss off.

You took the loan, your car depreciated, you lost. That is the 2009 American dream.

Only filthy rich people are given help / money these days.

I like your style. :thumbsup

I have to agree. If they ARE going to take it and you are stuck paying for it anyway, fuck it up beyond repair. But if you have no defaulted on the loan, man up and pay for what you agreed on.