[USER]

looking for guidance for a friend of mine. Her score credit it’s 540 she got a car loan APR 25% original price 18,000k total amount around 43k$ .

She said that at the dealer they said she had 5 days to change her opinion she came to me and I said ?Why would you do that?

She has some old medical bills on collection, IRS debt plan, a pending court case because ( credit car) .

Her monthly payment is $670.

And she’s paying for her wife car loan $640 too her income is about $5k monthly.

For me this is insane. But I come to you to read your thoughts and solutions.

Thank you in advance.

[Lexi]

Tell her the interest payment *alone* is around $216 per month. Maybe approaching 2600 per year! With a loan you are typically required to have collision on auto policy, extra $.

If she were to save that car payment and Uber around for 2 months, buy a car for $1200 she’s still better off if the car died in 1 year and had to buy a new one.

[Damon]

I mean you know it’s a bad decision, what else can be said about it? Maybe try to tell her once why it’s a bad decision, give some alternative solutions (save to buy a car she can afford, Uber, less expensive car if financing, etc).

After that, she has to come to her own realization.

[Capitan]

Start by returning the car. That’s insane. Cash on hand?

[Jasmine]

OMG 25%!! Spending $43K on a $18K car?? (that will rapidly depreciate)
She’s already drowning in debt.

She absolutely cannot afford this.

As for solutions… Share the other car?

Use public transport?

Save money and then buy an old used car with cash?

[Talia]

Summary and support of advice her:

1. Return car asap. Losing down payment is a small price to pay for making this big of a mistake.

2. User ride shares and public transportation.

3. Carpool or share car with wife.

4. My addition: Get an eBike

[Ivan]

Oof is all I gotta say…even with that credit score there has to be a better percentage they can get

[Julie]

Return the car and buy her and her partner a season of Financial Peace University.

[Author]

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