My Dad works at a car dealership (mechanic) and some of the stories he hears from the finance guys are CRAZY! Like one about a woman with a $60,000 loan on an escalade 'trading it in' and rolling the outstanding loan into one for another $50,000 soccer mom-mobile, and having a loan for over $90,000 at the end. I can't believe that any finance company would do that!? Or that anyone could fail to see the problem with having a $90,000 loan on a $50,000 vehicle!!!
Even with a 7 year amortization, I can't imagine that monthly payment was anything but NUTS!
If she managed to get an interest rate of 6% on that fiasco, monthly payments would still be $1314!
Note: I realize this story makes it sound like the escalade wasn't worth anything on trade, but I think it was a combination of already having a loan worth more than the escalade, and the second vehicle (I believe it was a fully loaded Sequoia) being worth something like $65,000.