k24accord

this is exactly what shes trying to do. i wouldnt go as far to say that she shouldnt get a loan. the reason for her poor credit is because everything was put under her name since my fathers credit was severely damaged years ago and up untill the divorce her credit was excellent. now that theyre divorced, there's no real interest in my father paying things on time since it dosent hurt his credit, only hers.

essentually, she got screwed :/

k24accord

i agree. the more i read and do research on the situation the more i realize shes not going to qualify for shit. 900 dollars a month is ridiculous for a car payment given both my parents financial situation (my parents have never really been financially savy) its just plain stupid.

i thought about just lending my mother 5k or so to buy something cash and just have her pay me back when she can, but that makes me a little nervous

k24accord

im aware of this. the reason i posted this thread was to see if anyone around here has been in a similar situation and what they did. i somewhat posted this knowing what i was going to hear but was hoping for another option.

thanks for the feedback guys.

SD_S2K

if the car is at 0 she can sell it or trade it in without being backwards

then go lease a new civic or accord or corolla for $199 a month or whatever cheap rate they are going for these days. ford focus $199

if she can't even qualify for a $199 lease, then time to buy a used civic or corolla for $5000

sure i want a car with a nice shiny warranty too, but i also want a Ferrari and and mansion and a 3 month vacation and a ...... you get the picture

k24accord

hmmm...the leasing idea might be a good idea since her driving mileage has dropped substantially in the past year. that might be a good idea to try that just to see.

cthree

I would go so far. Car loans are stupid. It's a high interest loan on a rapidly depreciating asset which does nothing but increase the price you pay for it. If she is in the shit, as she appears to be, why you consider overpaying for something and being saddled with a monthly payment obligation anything but? With bad credit she will overpay by 15-20% because she isn't going to get a favorable rate and she will probably have to put a few thousand down anyway. You can buy a car free and clear for the down payment.

Sell the truck, even at a loss if necessary, and buy a cheap but reliable beater for a couple grand in cash. No depreciation, no payment. No creditors hounding her and no more being screwed by her ex. Problem solved.

A car loan is a debt obligation she doesn't need. I have a 9 year old 3 series which costs me 2 payments on a new one each year to keep operating. I replaced a water pump just two weeks ago for $1300, a single payment on a new one is $900. That makes sense.

k24accord

well i disagree with your opinion on car loans being stupid, so as long as the interest rate is something reasonable. its a necessary evil for some of us who simply cannot afford to drop 20k+/- cash on a car.

i do agree with your "advice" however. based on what she makes and her expenditures, she could afford comfortably a $250 a month payment on a car. however, im 99% sure nobody is going to give her a loan and depreciation on cars nowadays is just ridiculous. the beater idea would probably be the better choice.

mxt_77

It's not a necessary evil. It's a choice. If you can't drop 20k cash on a car, yet you don't want car payments, you know what...? Don't buy a 20K car. Problem solved. If you look hard enough, you can find a car that runs well with 4 tires, a steering wheel and some seats for $500. It may not be pretty, but it gets the job done. Just because Mr & Mrs Jones are driving a nice new BMW, doesn't mean you should.

Anyway, I digress. Tell your mom to sell the dinosaur killer and buy a 10-year old Accord with <125K miles on it. She'll be set for the next 3 or 4 years and can get her finances together during that time.

chrisjgiuliano

Not everyone is entitled to buy a new shiny car with a safety-blanket warranty just because they live in America and are a nice person. It is this line of thinking that is driving this country into the shitter. No one is entitled to anything. The above advice about buying a $2K beater and sorting out her other myriad of problems is the ONLY solution you should be looking at. Sucks but it's reality. The bus is pretty cheap...?

k24accord

[QUOTE=mxt_77,May 20 2009, 09:29 AM] It's not a necessary evil.