I'm sure you've seen pop-up car sales in an empty parking lot. At these events, salesmen tout car buyers with guaranteed financing no matter how bad their credit is. What many is not aware of is the outrageous interest rates, overpriced vehicles, and a pocket breaking monthly payment.
Let me back up a little and tell you what has happened to my mother and her deceased brother.
They attended one of these tent events about 30 months ago. This was about six months before my mother's half brother passed away. They traded in a early model Pontiac Sunfire for a 2012 Nissan Xterra. Unbeknownst to them, their trade ended up with an overpriced vehicle, a payment that takes advantage of the elderly, and interest so high that payments hasn't even touched the principal.
Without seeing a current statement, knowing the payoff and the date of purchase, I was able to come up with somewhat of original purchase price. The vehicle payoff is around $16,000. The monthly finance payment is $477. Knowing this, I can calculate the total amount that will have been paid for the vehicle, without calculating future interest, to be around $31000.
These tent events will finance anyone with a pulse but the unsuspecting car buyer will be paying on the vehicle as long as you have a pulse. My mother got caught in the web of never ending payments because after her brother passed away, she was a co-signer. She has paid on the vehicle two years by herself with absolutely no end in sight.
This is preying on the elderly and people who doesn't understand the actual value vehicles. Bullock Toyota in Louisville, MS hosted the shyster pop-up sales event. They explained the paperwork and financing information to my mother and her brother who didn't fully understand the details and when presented with the financing contract they didn't know what they were getting into.
So she now underwater paying for an overpriced vehicle and it never was questioned by the dealership, since the purchase, if there was anything they could do to help with since her brother's death.
Children can't tell their parents what to do or is suppose to get involved with their financial decisions. But if you care about them, do whatever you can to keep them away from these type of sales, regardless how good the advertisements and sales promises may be. They may thank you later.
I have known that many car dealerships was notorious about ripping off customers but I've only gained knowledge of this issue recently, way after I even thought it was an issue involving any of my relatives.