Less than 2 weeks into ‘as-is’ 22% interest car loan, Florida driver’s Audi Q5 engine fails: Here are her options
After totaling her 2019 Honda Accord, a Florida woman went a few weeks without a car. This meant spending between $40 and $90 a day on Ubers. Since she wasn’t in stellar financial standing, she didn’t think a new car loan was possible. Navy Federal wouldn’t approve her for a loan. Instead, she went to a used car dealership after sending an inquiry on a listing she found on Google. She was rapidly pre-approved. When she arrived at the dealership, though, things seemed off…and it went downhill from there. Here’s how she ended up in an Audi Q5 SUV with a bad engine, and what she can do about it.
The car she arrived to check out wasn’t even available
She tells Yusef Benallal, a dealer and vehicle loan consultant, that she went to see a 2015 Mercedes-Benz C300. Upon arrival, though, they told her it was sold.
Instead, they offered her three options: a 2015 Audi Q5 with a clean Carfax, a 2012 Volkswagen with several accidents on record, or a fully electric Nissan.
She went with what she thought was the “best” option: the Audi Q5. She put down $2,000 on an “as-is” 22% interest car loan since her credit was around 540. Her payment landed at $350 per month.
Unfortunately, the Audi 2.0L turbo engines have oil consumption issues.
Less than two weeks into her 2015 Audi Q5 loan, engine failure strikes
The EPC dash warning light came on and the engine shook while driving. She took the car to a shop, where they charged her for a diagnostic. The verdict: the engine is shot. They advised her to take the Audi back to the dealership.
The dealership quotes her $6,400 before tax to replace the engine.
These are her options
The woman called Benallal to get advice on what to do next. She can’t afford to fix the Audi Q5 and isn’t sure where to put her money at this point, since she still has a high-interest loan on it. She tells Benallal that she doesn’t have any savings, either.
She could, of course, try to finance to repair and get the Audi back on the road. This could take repair financing through the dealership or even a personal loan. However, this option isn’t something Benallal mentions because the Audi is, at a base level, a money pit already. Signing up for more debt in the name of the Q5 isn’t a good move.
He recommends she obtain another low-cost vehicle. Something that’s $5,000-$6,000 and reputable on reliability, like a Honda or Toyota. Then, she might just have the bank repo the Audi.
This will hurt her credit, but the risk of continuing to put money toward the Audi Q5 isn’t worth the trouble. “Charge it to the game, and keep moving,” the consultant tells her.
