I fully agree with your generalized version, but I was specifically taking about this exact case: The photo seems to be of a document that very neatly and clearly summarizes the involved costs (and the effective price for the fact that it’s a loan being about 50k$). So I’m assuming here that during the negotiating or signing of the contract/loan, this information or document is available. Then I really don’t buy the education argument (again in this specific case).
This is a truck costing 110k$, leading to payments of 1.8k$ per month. It’s about the relative value, too. From my frame of reference it’s just a (big) car and costs about a third of what is expect a house to cost, if it isn’t in a city (suburban to rural), which obviously might be very different in the US. This is very much a luxury or vanity item, at least to me. Even for a monthly mortgage payment for a house I wouldn’t go much higher than the rate they are accepting to pay for a car.
Yeah, I somewhat agree on the truck not because the financing isn’t predatory but because this plainly seems like a luxury item, as you say. It should still be illegal to engage in such drastic usury, but I don’t find it a compelling case.
I fully agree with your generalized version, but I was specifically taking about this exact case: The photo seems to be of a document that very neatly and clearly summarizes the involved costs (and the effective price for the fact that it’s a loan being about 50k$). So I’m assuming here that during the negotiating or signing of the contract/loan, this information or document is available. Then I really don’t buy the education argument (again in this specific case).
This is a truck costing 110k$, leading to payments of 1.8k$ per month. It’s about the relative value, too. From my frame of reference it’s just a (big) car and costs about a third of what is expect a house to cost, if it isn’t in a city (suburban to rural), which obviously might be very different in the US. This is very much a luxury or vanity item, at least to me. Even for a monthly mortgage payment for a house I wouldn’t go much higher than the rate they are accepting to pay for a car.
Yeah, I somewhat agree on the truck not because the financing isn’t predatory but because this plainly seems like a luxury item, as you say. It should still be illegal to engage in such drastic usury, but I don’t find it a compelling case.