A concerned grandson recently shared a troubling story that drew serious concern from the personal finance community: their grandfather had his car repossessed after falling behind on payments for a 10-year auto loan with a 32% interest rate.
The original post on r/personalfinance said that the grandfather still owed $15,000 on a car now worth only $10,000 to $12,000, and it would cost $5,000 just to get it out of repossession. He had already paid more than $62,000 over eight years.
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The loan terms alone set off alarm bells. One person wrote, “Who gave him this loan? The mafia?” Another asked, “Wait, no one here is alarmed at, questioning a car payment of 32% for 10 years? Loan sharks don’t get that and this is a collateralized loan.”
But the bigger concern for many was the grandfather’s cognitive health. “If he actually forgot to pay 3 car payments, I’d be more interested in having him checked for memory loss than getting him another car,” one commenter said. Another added, “Anyone who would sign up for that sort of loan sounds like someone who should be under financial guardianship.”
Multiple people pointed out that missing three payments in a row and agreeing to such a high-interest, long-term loan may indicate dementia or other age-related cognitive decline. Some advised the grandson to consider getting a power of attorney and taking over their grandfather’s financial responsibilities.
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Commenters were stunned by how much the grandfather had already spent. “He has already spent $62k on this car, and if he finishes the loan, it would total $77,400. That’s lunacy.”
Others broke down just how punishing the loan terms were. According to one commenter, at a 32% APR, the borrower ends up repaying nearly the original loan amount every three years. Another said that over 10 years, nearly all of the borrowed value is consumed by interest, calling it a clear example of usurious lending.
The community was split on next steps. Some said to let the repo stand and walk away. “You do understand people can just not pay and then die, right?” one person said.
