ya when i purchased my first 90k house when i was 23 i paid cash. because i knew if i had to make payments on something i couldnt afford it.....post up pics of your paid cash purchases!!
its funny all these trying to find a way around it answers, Im pretty sure everyone here is familiar with buying a car, and knows she's in deep with no way around it but years of hard work or someone helpong her pay off the car as quick as possible.
Sheesh give a guy a break. I post at 2:30am in the morning and get to work by 9am and then find out that I actually have work to do instead of of browsing OKShooters all day. :-)
THANKS EVERYONE there is some good stuff here. I will get on later and do a big reply, but for the moment here is a few comments.
Dealer: The dealer is a buy-here-pay-here/carry-the-note sorta place so no banks involved.
Purchase date: She actually bought the car a month ago. I had heard about it, but didn't hear any details. She came to me asking for a short term loan to get her tags. She knows that wasn't going to be easy, because I don't hand out money. I am a tough loan officer. I started going over her finances and paperwork and had to explain the hole she had dug for herself. She has been driving all month without insurance because she thought she was covered by the collateral insurance that they were making her pay for. The collateral insurance could be an entire thread by itself.
Insurance: She is on her own now, so she is trying to get a policy on her own. The rates are horrible through the major insurers. When her, her mother and her 19yo sister were on my policy with 1 other car my insurance was only about $200/month more than it is now. Anyone that wants to volunteer to add her to their policy please send me an email :-). I may consider it for a short term to get her out of this hump.
Through some bottom tier insurance company she can get liability for $120/month. That is almost reasonable. With the collateral insurance, @ $60/month, the dealer/note holder will be satisfied, but she will be poorly protected, especially from the uninsured motorists out there. Still the best price I have found so far is $450/month.
Her mother currently is between vehicles herself and doesn't have an insurance policy (except on the motorcycle), but she is looking to get one on her daughters car and include the daughter and that is doable for $225/month or maybe even less. Though I am concerned if this is even legitimate. They are not living in the same household and the mother is not owner of the vehicle. I know for college students this is not a problem, but she is not a college student. The same goes for adding her to my insurance, I am not sure if this is actually legitimate.
General: She is looking to me for advice and help. I sure am not going to tell her to "suck it up" and "take responsibility'. She needs guidance as to what the best course of action. It is very doubtful if I will just cut a check a bail her out. That is neither in my nature, in her best interest, nor very financially responible to myself. The "correct" answer is not obvious. If she can't afford it, then it makes no sense to try to keep up with it until she crashes and burns. If it determined she can afford it even at great pains, then she probably should.
Thanks again.
Im going to say this outloud and get flamed to death but... insure the car as it was yours and leave her completely off of the policy. and just let her "borrow" it until she gets on her feet..... if she gets tickets and crashes alot disreguard...
20% interest, WTF? sheesh someone needed to have a sit down with her a long time ago.
If her mom needs a car also, have her help with payments, and they share the car and get on the same policy. You sound like in your answer that you still feel she's going to be able to get out of the car somehow. I dont see it happening without penalties.
Not too sound like too big of a d*ck, but it sounds like the family is going through a lot of hardship and her going and buying a car like that made things 100x worse.
This is what those car lots do, and it sucks you got in the loop so late, your hands are tied in a knot. She is beyond upside down, I hope she has a full time job and gets going straight forward for a few years, or she could hurt herself even more and really handicap herself later in life.
Not too sound like too big of a d*ck, but it sounds like the family is going through a lot of hardship and her going and buying a car like that made things 100x worse.
This is what those car lots do, and it sucks you got in the loop so late, your hands are tied in a knot. She is beyond upside down, I hope she has a full time job and gets going straight forward for a few years, or she could hurt herself even more and really handicap herself later in life.
If she just took delivery it may have been a spot delivery meaning the financing is not complete. Unless her income or job time is really good I doubt they will put it through. If the finance company has already paid the dealer hopefully she could get a credit union to buy the note. Maybe someone could stick their neck out and co-sign. Also really check around on the insurance as others have said that is high. It must be with one of the big name companies.
Doubt the finance co would go for that unless both people were on the loan.
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