18-Year-Old Buys Ford Escape from Alabama Dealer. Then He Tries to Trade it in Elsewhere and Learns How Badly He Was Fleeced

"[They] pocketed the $500."

Photo by: TikTok

By: Stacy Fernandez

Aug 8, 2025 at 1:00pm ET

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If you’re young, broke, and trying to get your life started, a bad car loan can absolutely wreck you—and the worst part is, it’s not always your fault.

In a viral storytime video, a used car dealer shared how one teenager was set up for failure after getting taken advantage of by a shady dealer.

A Brutal Wake-Up Call

In a trending video, @thetruckcenter shared the unfortunate situation a young customer was in.

The used truck dealer explained that a 19-year-old kid walked into a used car dealership, looking to trade in a 2010 Ford Escape with 185,000 miles on it. It was worth maybe $500 to $1,000, @thetruckcenter said.

But there was a major problem: The kid still owed $4,200 on it.

“We were about to trade it in, and we found out he still owed that much,” the dealer said. “This poor kid just bought it from some podunk dealer up in Alabama.”

From the sounds of it, the whole deal was bad from the start. According to the video, the dealer who sold him the car did the following:

Took a $500 “deposit” that apparently wasn’t applied to the sale at all, just pocketed.
Financed the car through CAC (Credit Acceptance Corporation), a lender known for approving customers with no or bad credit, but at high interest.
Charged $5,995 for the vehicle—far more than it was worth.

“He’s already set up for failure,” @thetruckcenter said. “He’s stuck with a ragged-out turn for the next four years, paying 50 times more than what the thing’s worth.”

No Way Out

Worse still, this wasn’t just about getting around town. The customer had just gotten promoted and needed a truck for his job. But with the Ford Escape still financed—and no money left for a down payment—he was stuck.

“He can’t do anything. He’s married to that freaking thing. And now it’s on his credit. He can’t just return it,” @thetruckcenter explained.

That’s because once a car is financed, it becomes a legal contract. Unless the car is repossessed or paid off, it’s the buyer’s responsibility—even if the vehicle is unreliable or overpriced.

And now, even a dealership that wants to help him can’t.

“It makes it hard for us guys that are always trying to do the right thing. … You know, for you dealers out there that are really trying to screw people, you’re making it harder for the better dealers like us that are trying to make a difference,” he said.

“It’s not the end of the world,” @thetruckcenter added. “He’ll live and learn. But [expletive], I hate to hear something like that happen.”

What You Need to Know About Car Loans

If you're buying a used car, chances are you'll be taking out a loan. Unlike mortgages or student loans, car loans are considered “simple interest loans.” That means interest is based only on what you still owe, not the original amount, NerdWallet reported.

Car loans typically come with higher interest rates than other types of loans, especially if your credit score isn’t great.

For used cars, average interest rates can be higher than for new cars, and the older the car, the fewer lenders are willing to offer financing. Some may even require larger down payments or shorter loan terms.

One key number to pay attention to is the APR, or annual percentage rate. That tells you the true cost of borrowing after fees and interest. A lower APR means a cheaper loan in the long run, even if the monthly payment is slightly higher.

If you do need a loan, make sure to shop around. Dealerships, banks, and credit unions all offer different terms.