[Plinker]

Reverse Car Loan vs Reverse Mortgage

Here is how it works:
1. I show up at Fancy Cars R Us in Ocala and choose a shiny new whip. The slick salesman puts me in touch with a reverse car lender. I can see the saliva drool down his chin as he anticipates another $6,000 referral fee. To my surprise, I have qualified for a 5-year loan for $50,000 and no money down as all fees and interest will be wrapped into the loan. The MSRP on the car is only $30,000.
2. After 3 years, I decide to trade it in. Unfortunately, I chose to never wash, vacuum or change the oil since I took delivery. Also, it is parked on my driveway under a tree full of pigeons. The neighbors are not impressed. Even my dog refuses to get in the car. Apparently my once shiny new whip is now a hooptie. I called my heirs but they had no interest in a dilapidated eyesore.
3. I contacted the reverse car lender and was informed that the car is not worth anywhere near what I owe on it. They tell me my balance has ballooned to over $75,000 in just 3 years. Depressed, I decide to exercise a bit. Unfortunately, while trying to return a high lob during my pickle ball match I stumbled back and suffered a horribly debilitating injury requiring me to spend the next few years in a rehabilitation facility thereby preventing me from driving.
4. The lender had no worries as they informed me they would be made whole by the TGFF (taxpayer gets fleeced fund) to make up any deficiencies.

So easy, even a caveman can understand it (I miss those GEICO commercials)!