Budgeting While Broke

The Predatory Car Loan Edition

A lotta y’all have never been poor and it shows.

But that’s now why I’m here.

Let’s talk about predatory car loans!

I got divorced a few years back. (Damn, I still miss that woman.) She took our family car and since Uber was my main source of income, I had to buy one.

However, my credit was/is trash and I didn’t have any money saved which meant my options were limited. I won’t dive into how credit scores have racist roots because that’s a post for another day.

Enter: Carvana

This was the ONLY place that would approve a loan. And since I was desperate and needed a car, I signed on the dotted line.

Did I read the terms? lol no.

I needed a car and they offered me one - who cares what the terms were?

This is your reminder that people with terrible options make terrible choices.

Let’s talk about said terms:

In 2020, I financed a 2013 Honda civic.
Bluebook car value - $10,000

📌Loan Amount with Carvana - $18,115

📌 APR - 21.5%

📌 Monthly payment: $450

We’re already off to a bad start.

I’ve made payments for three years. *To be fair, there are a bunch of late payments and repos in here.

📌 Total paid to date: $14,800

(Remember, the car is only worth 10k)

📌 Principle paid: $1300

📌 Interest paid: $13,500 (seriously?)

📌 Remaining balance: $17,000

I STILL OWE $17,000.

This should be illegal.

At the end of this loan, I will have paid over $30,000 for a ten-year old Honda.

But I just need to budget better. Ok babe, sure.

One of the reasons why I’m stuck in a financial cycle of suck is because of bullshit like this.

These systems aren’t broken. They were designed to keep poor folks in poverty and make the rich even wealthier - they’re working exactly as intended.

If I had $5000 upfront to buy a reliable used car then trust me, I would have.

But I don’t so HERE WE ARE.

Poor folks end up spending more money in the long term, thanks to late fees and higher interest rates, because we don’t have immediate access to money.

I’m not bad with money.
My problem with money is that I don’t have any.

As for me, I need to get up outta this country (Viva la Mexico!) if I want any chance at improving the quality of my life.

A kind human messaged me and said “do you prefer I donate to your Venmo or your “Get Robin the Fuck Out of Ohio fund?”

And honestly, this should have been the name the entire time

Oh, and if anyone owns a dealership and can offer me a reasonable rate on a car loan, please hit me up. Because chile, this ain’t it.