Question about a car loan
05-19-2009, 06:02 AM
#1
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Question about a car loan
morning guys!
i have a question for you guys. Im trying to help my mom secure financing for a car, but it is proving to be very difficult as ill explain below
-my mother has very poor credit. unfortunately my parents divorced about a year ago. the house and her current car are under her name. per the settlement, my dad is required to pay the house mortgage and all utilities/maintenence for 2 years but has not been doing so because his practice (he is a criminal defense attorney) has virtualy tanked. he is not required to pay the car but has been, although not in a timely fashion (cant blame him since he's not legally required to do so).
-my mom makes adequate enough money to be able to afford a 13-14k car and have a nice cushion, but the above has pretty much killed her credit. we have tried securing a loan for her, but i cannot cosign (im 22, a fulltime student and already have a car under my name) and my grandfather cant either since he has 2 cars under his name.
her current car payment is almost 900 a month. my parents purchased the car (05 excursion ltd 4x4) when things were much much better financially and never had an issue paying on time untill about 1.5 years ago. the idea would be to ditch the 900 a month payment for something considerably lower (250-275 a month) but not being able to get financing and thus trade in the car for something more economical has basically made her stuck in her situation. the reality is that my dad will keep paying things late because of his situation and on 35k a year, im already maxed out as to what i can do to help.
now, here's my question
1. What can she do to secure a car loan? any tips, advice, etc...?
thanks for any help and my apologies for the long read. just wanted to make sure the whole scenario was clear
i have a question for you guys. Im trying to help my mom secure financing for a car, but it is proving to be very difficult as ill explain below
-my mother has very poor credit. unfortunately my parents divorced about a year ago. the house and her current car are under her name. per the settlement, my dad is required to pay the house mortgage and all utilities/maintenence for 2 years but has not been doing so because his practice (he is a criminal defense attorney) has virtualy tanked. he is not required to pay the car but has been, although not in a timely fashion (cant blame him since he's not legally required to do so).
-my mom makes adequate enough money to be able to afford a 13-14k car and have a nice cushion, but the above has pretty much killed her credit. we have tried securing a loan for her, but i cannot cosign (im 22, a fulltime student and already have a car under my name) and my grandfather cant either since he has 2 cars under his name.
her current car payment is almost 900 a month. my parents purchased the car (05 excursion ltd 4x4) when things were much much better financially and never had an issue paying on time untill about 1.5 years ago. the idea would be to ditch the 900 a month payment for something considerably lower (250-275 a month) but not being able to get financing and thus trade in the car for something more economical has basically made her stuck in her situation. the reality is that my dad will keep paying things late because of his situation and on 35k a year, im already maxed out as to what i can do to help.
now, here's my question
1. What can she do to secure a car loan? any tips, advice, etc...?
thanks for any help and my apologies for the long read. just wanted to make sure the whole scenario was clear
05-19-2009, 08:53 AM
#3
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How much is still owed on the Excusion?
I'm assuming they are underwater on the truck because if they are paying $900/mo for it, it almost has to still be in the red.
Both you Mom's and Dad's credit sounds like it's already screwed to the point where they cannot get loans. So one option might be to call the lender holding the note on the Excusion and tell them you want to turn in the keys and do a voluntary repossession. Yes, their already horrible credit score will get worse, but at least they won't have a $900/mo car payment.
As far as getting another car, save up some money and just buy a $2000-4000 beater with cash to drive around for a few years.
Andrew
I'm assuming they are underwater on the truck because if they are paying $900/mo for it, it almost has to still be in the red.
Both you Mom's and Dad's credit sounds like it's already screwed to the point where they cannot get loans. So one option might be to call the lender holding the note on the Excusion and tell them you want to turn in the keys and do a voluntary repossession. Yes, their already horrible credit score will get worse, but at least they won't have a $900/mo car payment.
As far as getting another car, save up some money and just buy a $2000-4000 beater with cash to drive around for a few years.
Andrew
05-19-2009, 11:07 AM
#5
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Thread Starter
Originally Posted by aklucsarits,May 19 2009, 08:53 AM
How much is still owed on the Excusion?
I'm assuming they are underwater on the truck because if they are paying $900/mo for it, it almost has to still be in the red.
Both you Mom's and Dad's credit sounds like it's already screwed to the point where they cannot get loans. So one option might be to call the lender holding the note on the Excusion and tell them you want to turn in the keys and do a voluntary repossession. Yes, their already horrible credit score will get worse, but at least they won't have a $900/mo car payment.
As far as getting another car, save up some money and just buy a $2000-4000 beater with cash to drive around for a few years.
Andrew
I'm assuming they are underwater on the truck because if they are paying $900/mo for it, it almost has to still be in the red.
Both you Mom's and Dad's credit sounds like it's already screwed to the point where they cannot get loans. So one option might be to call the lender holding the note on the Excusion and tell them you want to turn in the keys and do a voluntary repossession. Yes, their already horrible credit score will get worse, but at least they won't have a $900/mo car payment.
As far as getting another car, save up some money and just buy a $2000-4000 beater with cash to drive around for a few years.
Andrew
i mentioned to her that she should consider just buying a beater, but she wants something with low miles that has some sort of warranty, which ovbiously cant be found with your run-of-the-mill 93 Civic DX.
05-19-2009, 11:08 AM
#6
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Originally Posted by wifeb123,May 19 2009, 07:23 AM
Sell the car and take the bus. I know its not what you want to hear but financially it sounds like everyone will be better off in the long run.
05-19-2009, 11:14 AM
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Originally Posted by k24accord,May 19 2009, 11:07 AM
the car is actually right at zero in terms of negative equity. IIRC they owe about 15ish on the truck and its worth about 16-16.5k trade in and about 18 if i sell it privately. i also thought of the idea of doing a voluntary repo, but then my mom will have no way to get to work. i should have mentioned that the truck has about 16-17 months till its paid off.
i mentioned to her that she should consider just buying a beater, but she wants something with low miles that has some sort of warranty, which ovbiously cant be found with your run-of-the-mill 93 Civic DX.
i mentioned to her that she should consider just buying a beater, but she wants something with low miles that has some sort of warranty, which ovbiously cant be found with your run-of-the-mill 93 Civic DX.
You can buy a lot of parts for $900/mo and just think of the savings in Gas?
Who cares what you drive as long has you can get to point b.
Don
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05-19-2009, 04:01 PM
#9
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OP - the reality is...your mom has bad credit. no advice is gonna instantly change that. nobody is gonna lend her money until she repairs it, which takes time. sell the excursion and finance a used corolla.
i was gonna say champagne taste with beer pockets. but 13k-14k is beer taste, with 40oz malt liquor pockets.
i was gonna say champagne taste with beer pockets. but 13k-14k is beer taste, with 40oz malt liquor pockets.
