However much it took to break the car and get their name/video out there all over the internet.

I have a hard time believing people are this stupid. I am however fully willing to believe that they simply don’t care about the credit hit. Especially considering they are probably putting their overly expensive vehicle on a seven year loan.

Available isn’t good enough.  Required is what’s needed.  A course in personal finance would be a lot more beneficial to most HS students than 12th grade English.

The bigger question for me is why does the lender of the new(er) vehicle even give the loan when they see the purchaser already has a financed vehicle deeply in the hole.

Can we discuss the elephant in the room?

This has to be the single most shady thing I have ever heard of a car dealership doing. Just, wow.

People are stupid. 

You’re giving the customer way too much credit than they generally deserve. 9/10 times, they know exactly what they are doing and have no problem doing it. They just don’t care. This is how people end up having to pay cash for literally everything and some - again - simply don’t care.

Thanks for pointing out what should be common sense, but isn’t.  Sadly, the people who are caught up in this practice are probably the ones who could least afford a new car payment.

I have been in the car business for years, and I make an honest living without deception. We have used the term “kick the trade” and to me and the people that I work with, it means to take the trade out of the negotiations. The deal maybe possible without the negative equity, but I would never suggest that my customer…

Lol at the notion that the borrower gets screwed in this deal. The bank gets screwed. The borrower gets what they deserve for trying to screw the bank and failing at it.

“This is called being “underwater” and there’s no easy solution for it” I’m pretty sure it’s called don’t buy stuff you can’t afford and have some shred of personal responsiblity.  But yeah, nobody is going to do that

Why the fuck would anyone do this!?! There are so many options out there that I wouldn’t even think about getting a loan to buy a car. Let alone defaulting on one deliberately, to take a bigger loan on another because, god forbid, Janice and Declan across the street realise the Mercedes is three years old!

Shady advice from someone trying to sell something? I’m shocked. /s

This was common over a decade ago, I worked as an inventory manager for a Texas based Nissan dealer, They often used this tactic when a person had rolled over too many loans on the trade in and they were severely upside down on the value of the trade. The sales manager NEVER offered this tactic when making deals,and…

Its insane that people will think there is some magic trick to get out of a car underwater. The older I get the more I realize how terrible most Americans are with their money. Good thing is "kicking the trade" will only work once. You'd be stupid to finance someone with a history of ditching their underwater cars.…

Why in the holy hell would a bank give a new loan to a person who likely already has a questionable credit score and has an existing auto loan showing on the report?? Feels like the banks should be doing better due diligence on potential borrowers and dealers.

If you are so far underwater on your car loan, why the hell are you looking for a new car?! We need to upgrade my wifes car as its too small. But trade in value is about $2k less than payout. I will not roll the balance into another loan. I could sell it privately for more than its payout, but it seems way too hard…

What a scam! Granted, it only works on people with zero common sense, but somebody without a lot of financial savvy can easily get convinced. “Just let them take your car and stop making payments! Then it is THEIR problem, not yours!”

though the National Auto Dealers Association denied that it was common