He Missed His Very First Payment on a Jaguar F Type

Bad car loans, missed car payments, bad credit auto financing, luxury car debt, high car payments, repossession, co-signers and risky vehicle purchases can turn an expensive car into a personal finance disaster. This video covers a missed $950 Jaguar payment, a 478 credit score Bronco loan, a weak co-signer, changing trade-in values and a 20-year-old college student buying a McLaren. A Jaguar F-Type lease goes bad immediately when the customer misses the very first $950 payment. The dealership calls, emails and waits for a response while discussing the possibility of repossessing the car before the first month is even over. Buying a luxury car can make someone look successful, but the payment still has to leave the bank account. A high car payment, expensive lease and missed payment can quickly turn an impressive vehicle into a serious debt problem. The customer finally responds after the dealership warns that the Jaguar may be repossessed. He says he is overseas and did not realize when the first lease payment was scheduled. The money is supposed to be available, but the dealership had to threaten to take back the car before getting an answer. Missing the first car payment is rare because most auto loan and lease problems happen later, after job loss, reduced income, unexpected expenses or months of struggling with an unaffordable payment. The next buyer openly admits that her credit is terrible before applying for a Ford Bronco. Her credit score comes back at 478, she has only $1,500 available for a down payment and she wants to finance a vehicle priced around $29,000. The dealership says the bad credit car loan will require a co-signer or a much larger down payment. A paid-off auto loan helps, but late payments, collections and other negative marks can still make an automotive loan difficult to approve. She is frustrated because she has watched people with worse credit get approved in other dealership videos. But another person receiving a bad credit auto loan does not improve her credit report, increase her income or reduce the lender’s risk. Every car loan application is different. Lenders can consider credit history, debt-to-income ratio, income, employment, down payment, trade-in value, loan amount, vehicle age and the strength of the co-signer. Her husband applies as the co-signer, but his credit score is only 561 and he already has an open auto loan. A co-signer is supposed to make an application stronger by adding better credit and reliable income. In this case, the dealership now has two low credit scores to explain. The application is eventually approved, but the approval depends heavily on the value of their trade-in and the amount of cash they can put down. The trade is a 2008 Honda CR-V with roughly 190,000 miles. The dealership initially needs to give top dollar for the vehicle to make the Bronco financing work, but after seeing it in person, the manager says it may realistically be worth only about $500. The deal then requires $2,500 down, along with a warranty and GAP coverage. When the buyer wants to stay at $1,500 down, the dealership starts moving the other numbers around. This is where car dealership math becomes important. Raising the trade-in allowance does not automatically mean the customer is receiving a better deal. A dealer can adjust the selling price, trade value, financing structure, backend products or lender terms to reach the required numbers. The buyer may focus on the down payment or monthly payment while missing what changed elsewhere in the contract. Nothing necessarily became cheaper. The numbers were rearranged until the lender accepted the application. A wholesaler finally agrees to buy the Honda for $3,000, allowing the customer to purchase the Bronco with $1,500 down while keeping the warranty, GAP insurance and the same monthly payment. The same trade-in goes from an estimated $500 value to $2,000 and then $3,000. That does not mean the vehicle suddenly improved. It means its value became useful to the structure of the bad credit car deal. The final clip shows an 18-year-old salesperson selling a McLaren 570 to a 20-year-old college student working in cybersecurity. The buyer already owns a BMW M3 and says the McLaren is his first exotic car. Buying an exotic car at a young age creates more than a large monthly payment. Chapters: 00:00 Missed First Jaguar Payment 00:47 The $950 Lease Payment 01:19 Repossession Warning 02:45 The Customer Finally Responds 03:31 She Admits Her Credit Is Bad 04:08 Asking for a Down Payment 05:33 The 478 Credit Score 06:39 Her Co-Signer Has Bad Credit 07:17 Bronco Shirt Before Approval 07:45 The Trade-In Falls Apart 08:33 Trying to Keep $1,500 Down 09:15 The $500 Trade Becomes $3,000 09:47 A 20-Year-Old Buys a McLaren 10:42 The Real Cost of an Exotic Car #cardebt #personalfinance #money #finance #investing