This isn’t one of my usual bad auto loans post, but this one highlights one of the many overextended customers I have and encountered with many of them, like this person, making good money but paying so many things a month its like they aren’t making the money they make.
Here we have a 49 year old man making just over 11 grad a month (but it fluctuates between $10 and $25k a month depending on how many hours he works. But this last month he was in it was just over $11). Being married with 2 kids, he bought a car for all of them and pays for all them. All told hes paying $3,483 bucks a month just in car payments on these cars:
A Honda Accord EX-L bought in 2014 for $27,600. Pays $449 for 72 months. Is currently paid down to $14,800.
A Mercedes CLS bought in 2016 for $73,300. Pays $1350 a month for 60 months. Is currently down to $59,900.
Another Mercedes, this time an ML. Bought in 2014 for $50,700. Pays $906 a month for 72 months. Is currently paid down to $29,600.
And lastly, a CPO 750 (that the wife always seems to have) bought in 2015 for $39,100. Pays $778 a month for 60 months. IS currently paid down to $26,600.
And there you have it. Keep in mind that all of these cars have been financed through their automakers respective finance arms as well. Aside from the Accord, him and his family seem to have a penchant for luxury cars. I would too if my ytd salary was approaching 200k. But with all of these bills and these cars, that $11-25 grand a month is really like $5-8 a month after everything is paid, maybe even less.