Car finance issue

[510Meeze]

There is a certain piece of mind when you have a new(er) car. The only things you worry about is a tire going flat. Older cars there is alternators, batteries, fuses, suspension, etc. I've done both, and I often have a newer nicer car, and an older muscle car, I spend twice as much time fixing my older car and half as much time driving it because there is always something new to do. Plus the fact you're covered in a newer car manufacturer's warranty, and it's just so much easier.

[Seraph]

There is a certain piece of mind when you have a new(er) car. The only things you worry about is a tire going flat. Older cars there is alternators, batteries, fuses, suspension, etc. I've done both, and I often have a newer nicer car, and an older muscle car, I spend twice as much time fixing my older car and half as much time driving it because there is always something new to do. Plus the fact you're covered in a newer car manufacturer's warranty, and it's just so much easier.

Which means you are paying out the ass to buy a new car for 'piece of mind' when the warranty is supposed to save you money. The only reason to buy a new car is if you like to drive new cars and can afford it, it is in no way a financially smart decision.

[Fhloston]

Wow, thanks for all of the replies so far.

We're going to fill out the Workout Offer we recieved from the car financing company today, and see where we go from there. When we got the car she was working and making significantly more money per/mo, now she's retired. We're thinking that by filling the Workout Offer form with the amount she receives each month, compared to her total utilities, that they'll be able to workout a lower payment per/mo. It also helps that she's been a customer for god knows how long, but I don't know if these kind of companies really consider that.

If that fails, I'll most likely go to CarMax and see what they can do.

Also, 510Meeze, I'm trying to consider your option, but I'm not the best at finances when it comes to cars. How much I could buy it from her for, and other questions come to mind. Can you please elaborate? PM also works if you would like. :D

[Warudo Ecksu]

First of all, a little credit advice - I had been trying to buy a new car since the summer, but I had a lot of trouble with my credit. I've had one credit card for the past two years. I've never been late on a payment; however the banks that dealerships go through for loans don't like seeing a customer with only one credit card.

I got denied all over the place. I was told I needed to put 40-60% of the price of the car down, or get a co-signer which isn't possible. The last time I was denied in August, the salesman told me I have what they call thin credit, and I need 3 lines of credit on my file to fix that. For reference, I had a 694 credit score with my one little credit card, which is not bad, but again banks want to see more than one card.

My advice: Get yourself a couple of credit cards. Make a couple of tiny purchases per month and pay them off (soda or gas or something). You may not want or be in the position to buy a new car right now, but down the road, you might want one or even a newer used car, and then you would have the credit to do it all on your own.

Also it does sound like your grandmother was screwed with her interest rate. Having a good credit score gets you much lower interest, so there's another reason to start building your credit.

I finally bought a new car this month from Honda with an extended warranty. For people who say buying a new car is a bad investment, well so was driving my old car. I'm heavily reliant upon transportation for my job and spend hours a day on the freeway. My old car broke down pretty much every month for the year I had it, so I was constantly having to fix that thing. Not to mention I was always afraid it would blow up on the freeway and cause me to die in a car accident. I was paying money to fix it while losing money from not being able to make it to work.

With the car I just purchased, I don't have to worry like I used to, and for the next 5 years, if something breaks, Honda will fix it. I don't pay a dime. Sure people get lucky sometimes and get used cars that never need repairs, but that didn't happen in my case, and I'm pretty satisfied with having a car I don't have to worry about. (I get 40mpg too so I'm saving a lot of money there as well compared to my old mustang heh.)

[Cesaria]

Used cars aren't always bad - I've always got mine from family members who were trading up, meant I knew the service history and that they'd been well-maintained and apart from routine stuff that needs doing as the mileage goes on (cambelt coming up for change just before Xmas was joyous), I've had naff all in the way of motoring problems over the years. I went out with a mechanic for a good few years and heard lots of tales from him about brand new cars being plagued with glitches and problems - new just means you've got a garage to go bollock when things go wrong really.

Would be wary picking up just anything used though because then you are laying yourself open to problems and bodge jobs - but I'd never buy a brand new car since depreciation doesn't make it make sense economically, and I've got no urge to have something the newest and shiniest thing around cos I'd be terrified of scratching it or something (my folks live down a really cruddy dirt track to drive down).

Have a family friend who's an expert in buying cars for no more than £50 and driving them into the ground essentially - it works for him, but not for everyone.

[Popeh]

No advice on credit here - credit systems in the US are pretty different from here.

However, regarding your grandmother. Obviously we don't know the full circumstances for her name being on the credit agreement for your car, but if someone puts their neck on the line for you then you shouldn't be the one to hack it off.

Who cares what her son has done, thats between her and him. He's probably a shallow, self wallowing selfish individual that will take what he can get from anyone (the impression thus far).

Man up. Take responsibility and keep it. She's spent her entire life going through the hardships of life and now it's time to begin to relax do you think she'd appreciate her family using her as an easy way out so that they can live their life a little easier?

If she bought the car, decided she couldn't afford it then fair enough, it's her fault. If she did it for you, and you agreed/asked for it, then end it right.

That being said, it's good to see that your working on this together and not hoping it will 'go away'.

[Fhloston]

Forgot about this thread.... /necrobump

Well I have had a lot fall in to my lap since I last posted, and finally got around to taking the car to a couple of dealerships last weekend to see where I stood.

Tried getting credit through my bank. was denied their smallest loan, and a credit card due to "no credit history". (How's a guy supposed to get started?!.....) Might apply at another bank, or go for a gas card.

Figured from all the bad press Toyota was getting from the recalls, I would get a good deal. They flat out told me that I needed at least $3K down, due to no credit, even with the trade-in. Decided to go to CarMax afterwards. Had the car appraised and found I would only get $4500 on the trade-in, which means dick because I owe like $9K. The saleswoman at CarMax was a LOT more helpful than the people at Toyota, and tried looking at a lot of options. But, in the end, they wanted more down. (rest of the loan minus the appraisal value)

I really want to try more dealerships, but I feel like I'll be wasting my time/gas since CarMax couldn't help. Would REALLY like to get an apartment soon, but it will be hell with these goddamn payments. ;/

[Quixon]

Look into a secured line of credit for your first card. You can usually get one through a local credit union.


Do you have gap insurance on the car?

If you do there's, plenty of not-so-legal ways to get out of the car loan lol. A friend of mine got laid off from a VERY lucrative construction position, and either had to get rid of his house, or his vehicle.

He had credit, but was way to upside-down on the vehicle to trade it in or sell it. He drove it down to Harlem with a friend following him, left the car running with keys in it, got in his friend's car and drove away. They checked on the car the next morning, it was obviously gone, filed the police report.... and he was scott free from there.

He was in a bit more of a dire situation than you, and I would never advocate doing something illegal..... but like I said there's other ways to get out of the situation if you really have to.

Your best legal option is re-possession, but I wouldn't go that direction unless you have solid credit already. I believe there is a "voluntary repossession" option you could explore as well, some places have it and some do not. This should negate the fees involved when your car gets repo'd. (Storage fees, etc.)




Edit:

Also about the repo:

Let's say you own 10 grand on the car. It gets repo'd, and the bank then sells the car at auction. If the bank can only get 5 grand at auction, you are still on the hook for the 5 grand. Make your decision wisely.

[foopy]

He drove it down to Harlem with a friend following him, left the car running with keys in it, got in his friend's car and drove away. They checked on the car the next morning, it was obviously gone, filed the police report.... and he was scott free from there.

lol, good ole dependable racism.

great story!

on topic: if it's financed, he will have full coverage insurance which almost certainly covers theft. now all you need is a 99% black neighborhood to leave your car+keys in.

[Amarok]

Secured credit card or share secure loan are your best options for building credit if you can't get approved for anything else, but it will take a while to build a decent credit history with just 1 secured card or loan. You need to have the money to put down for both options though, and usually a little bit more than you want the secure card for. For example, you need to put down $556 for a $500 VISA secured card at the credit union I work for.

[Arrmani]

This doesn't really help with the car, but I got my first credit card when I turned 18 from Capital One. I'm pretty sure it was a shitty interest rate and only had a $200 limit, but I just paid it off every month. When I went to get a loan from my bank, they said I had good but limited credit, so maybe that's a good way to start.

[Quixon]

lol, good ole dependable racism.

great story!

on topic: if it's financed, he will have full coverage insurance which almost certainly covers theft. now all you need is a 99% black neighborhood to leave your car+keys in.

The problem is, you don't HAVE to have gap insurance if the car is new. Gap insurance covers the difference between what the car is worth, and what you owe.


For example:

Lets say you owe 16 Grand on your Car, but it's only worth 13 Grand...... which is actually pretty common.

If you don't have gap insurance, and the car is stolen or totaled.... insurance pays you 13 Grand, you're still responsible for the 3 Grand difference.

If you have gap insurance, the whole 16 grand gets covered and your good to go. Gap isn't expensive to add, for my g/f to add it to her scion it costed $100 total. That would depend on the model car/area etc though..

[Edgie]

lol, good ole dependable racism.

great story!

on topic: if it's financed, he will have full coverage insurance which almost certainly covers theft. now all you need is a 99% black neighborhood to leave your car+keys in.

If that was sarcasm I apologize in advance, anyway that's not racism. If you leave your car in just about anyplace in NYC unattended with the keys in the ignition, it will get stolen, even if its in front of a precinct.

I been thinking about something like this to get out of my car situation but I still need a car and don't have the money to get another right now.

[foopy]

If that was sarcasm I apologize in advance, anyway that's not racism. If you leave your car in just about anyplace in NYC unattended with the keys in the ignition, it will get stolen, even if its in front of a precinct.

meh, it was sarcasm, i was TRYING to be funny. failed.

even if you are correct, there's a specific reason why his friend chose harlem: due to racism.

anyways, to your point, i could leave my car running in front of my house all day, no one would touch it. in fact, i'd bet a neighbor would try to contact me if he noticed it for a long time. i live in whitestone, which is in NYC.

I see you're from PA. perhaps you assume NYC is some crime infested shithole. outside of some select areas (crown heights, most of harlem, bed-stuy, all of the bronx, i.e. where blacks live) it's extremely safe due to the vast amount of police presence or its simply an upper income area.

tl;dr: NYC is nice and safe if you avoid blacks.