Dodge Charger Scat Pack buyer pays $10K over retail…now he’s stuck with underwater payments
Considering the average American car payment is $723 in 2024 and 82% of Americans feel like they can’t afford a new vehicle, I’ve been sharing individual car loan narratives in the hopes of helping folks gain a bit of financial literacy in this area. Here’s another one for the books, and it’s all about a slightly used Dodge Charger.
2022 Dodge Charger Scat Pack signed for $53K, even though its retail value was $43K
Yusuf Benallal co-owns Legacy Motor Cars in Atlanta. The car dealer often posts conversations he has with customers about trading in vehicles they want to get out of. Among these calls is a guy with a particularly prickly car loan situation.
The customer pays about $1,200 a month for his Charger Scat Pack, including insurance. According to the seller, the muscle car was worth $43,000 when he signed. However, the car loan somehow totaled $53,000…even after a $3,000 down payment.
Maybe the customer signed up for an aftermarket warranty or rolled over negative equity from a previous car loan? In any case, fast-forward to the call with Benallal, and he still owes $44,000 on the loan. The Charger, unfortunately, is worth less than now.
KBB estimates the 2022 Dodge Charger Scat Pack’s resale value at around $39,563, with a $36,427 trade-in value.
Benallal’s right on the money here, offering the caller $36,500 on trade-in. Unfortunately, the Charger owner doesn’t have the cash to fill the gap, which would take a minimum of $7,500 to wipe the lien off the title.
What’s more, the caller is interested in trading the 2022 Charger for a 2023 Scat Pack Widebody offered at Legacy Motors. When all’s said and done, he’d need more like $10,000-$15,000 to make sure he doesn’t get into another high-payment loan.
The caller doesn’t pay rent at the moment as he lives with his child’s mother in her home. He has terrible credit, so had his mom co-sign on the 2022.
Of course, the commenters lit up the post with everything from anger at the Dodge Charger owner’s original dealership for “predatory lending practices” to shock at the lack of financial tactfulness in signing up for such a loan in the first place.
Benallel reiterates the importance of car buyers understanding what they’re signing, asking questions before committing to a car loan, and avoiding situations where you’re spending 20% of your income on your vehicle payment.
I won’t argue those points…after all, I can’t think of anyone, especially folks with terrible credit, “needing” a fresh-off-the-line Dodge Charger. I can’t blame people for wanting one, though, either…but I’d go for the Hellcat, personally.
