[QUOTE]Drive the car back to the lot, leave it there and have your brother drive you back home.

 

I agree with the "this ain't high school" comment.

Be a man, take your lumps.
1. "Sell" the car back to the dealership, lose $2000, drive used Civic.
2. Beg your parents for a favor. Pay to change title to their name, insure under them.

If you make $1400 and don't pay rent, you can scrounge another $120 per month. Or beg mommy and daddy to pitch in.

 

I take it you don't plan on going to college?

there is no way in hell you are going to be able to go to a GOOD school AND drive this car. NO WAY. You're probably sacrificing $2000 a month for the rest of your life just to drive a S2000 at 18! Congratulations, you've effectively spent $750,000 for this car.

I would try to get out of this. Laws on cooling off vary from state to state. check your contract. You could very likely "sell" the car to the dealer, although they will likely offer about $3000 less than the current residual.

I can't believe they financed this car for you. I know the threshold for loans is 25% of monthly income, but IMO that is way way way too much. You're at that. I think that a payment should not exceed 10% of monthly income myself. With your insurance (AND MAINTENANCE) you will be spending half your income on this car.

 

I feel a little bad for you. You obvisouly did the right thing, getting a quote before getting the car. I wish the insurance company had to take some responsibility, but in reality, they probably don't. I'd see what kind of money you'd lose, returning the car. Maybe even try to talk things out with the dealer, I suppose they may take pity. Get into a cheaper car- one that you can afford easier, and consider this a life lesson learned. And I wouldn't get a car that costs so much, that you can't afford an extra 120 a month. Good luck with your situation.

 

And you don't have to settle for just a civic. New cars are bad investments in themselves, as there is an exponential drop in value for a car the first 2 or 3 years after it's been driven. The best time to buy a car value-wise is 3-5 years old. I could have bought a newer s2000, but instead I opted to buy an '00 through a private seller I found on autotrader for only 16,800. After putting down 5,000 dollars, my payments are now very small on my 42 month (3 1/2 year) loan. Drive the sports car when you're a bit older.

For now, find a fast used car. I recommend looking into a 99/00 civic Si like the one you see in my sig. You can find one in great shape for 11 or 12 grand. Also, look into a 95-97 Integra GSR. These are also quick and you can find one for even less.

I agree with the already mentioned statements: sell the car back and cut your losses. You're getting way in over your head on this deal.

 

afwfjustin, one thing i find strange is that 99-00 Si's are often listed at higher prices than 99-00 GSR's. The GSR is the better car in every way (speed, fit/finish, brakes, handling) but costs less. I'm not sure what actual selling price are, but it seems that the EK Si is more of a "fad" car than the GSR is.

 

Horrible advise, but I believe it was meant to be sarcastic.

First, based on my experience with my insurance agency (a State Farm agent), I don't trust anything they say. While I don't believe they purposely lie to me, I do believe they are either too lazy, stupid, or incompetent to make sure their information is accurate.

As an example, in planning to purchase a new S2000 myself, I called to get an insurance quote. We discussed the coverage in detail and I got a quote that at 27yo, with excellent credit, a very good salary, and perfect driving record pretty much made me decide against a car I've wanted for over five years. OUTRAGEOUS! After bitching and moaning and checking some other companies, I called back and spoke with the actual agent WHO CUT THE PREMIUM DOWN TO LESS THAN HALF FOR THE SAME COVERAGE!!! I called back the next day to confirm the coverage and spoke to a third person who gave me yet ANOTHER quote for the same car, same coverage. So much for cut-and-dry. Three different quotes from the same place in a three-day period.

My point? I very much understand how difficult it can be to get a straight answer from an insurance agent.

As for what to do now???
I think there have been several realistic recommendations in this thread. But, I think that you pretty much need to perform a detailed cost/benefit analysis considering all of the alternatives and the known and potential consequences of each. Until then, you really can't make an informed decision.

Start by determining what all of your options are. For example,
- Returning the car and paying whatever charges or fees are associated with breaking the contract.
- Keeping the car and dealing with the higher than expected monthly costs of ownership.
- Insuring the car under a parent's name while putting your name on a car with lesser premiums (this is what I did as State Farm considered the CRX I had as a sports car).
- etc.
- etc.

For each scenario you identify, you need to understand all of the potential consequences. Only then can you compare each alternative and determine which suits your situation best.

For example:
Suppose selling the car back will cost you $3,000 in depreciation and penalties.
Compare that scenario to keeping the car and paying the extra $120/month.

To compare the two, you could say that the $3,000 hit now could easily be spread out over the next 25 months buy just paying the extra $120/month in insurance (actually longer if you consider the time value of money).

Obviously, I've made some simplifying assumptions and I've only considered two scenarios. Additionally, there are other variables that could change your situation in the future (speeding tickets could increase or cause you to lose your insurance, etc.).

The key is to consider each option in detail and then make an informed decision than simply jumping to a quick conclusion.

One thing is certain. Do not undervalue having a good credit rating in the future. Having good credit can save you big money in the long run. It'll get you the best interest rates on future cars, and home, and other items. In addition, many employers use credit information to get an idea about your character. Leasing a $30k car at 18 y.o. is probably not the smartest thing to do. DO NOT dig a bigger whole by defaulting purposely to get rid of the car. Do what you can NOW in the situation you are in to build your credit, not ruin it. Credit consequences should very much be considered in your cost/benefit analysis.

Lastly, you don't want to get the car stolen IF YOU DON'T HAVE INSURANCE!!! (That and purposely letting your car get stolen is fraudulent.

 

I agree, whatever you do don't mess up your credit. The comment earlier saying don't worry about messing up your credit, you're only 18 was very stupid. 18 is when you should start building and establishing your credit, not ruining it.

 

get legal counsel. it's possible you might have recourse against the insurance company since you relied on their quote, which was a critical factor in your decision to buy the car. depending on the situation, you may be able to get the insurance company to pay for the lease return penalty. call a law firm and see if they think your case is valid.

 

sell car to father... have him insure and you drive it


if ever a conflict between you and insurance (your father let you drive the car that day for errands, etc) its not against the law for him to let u drive the car even if your not listed as a driver on the policy.

my dad's 58... man insurance is SOOOOO cheap