Am I making a mistake?

[ZeBorgCollective]

I'm 16 years old. I need to get a car because my parents don't like driving me everywhere including work and school and I need the freedom a car will bring. I had a car, but it was a junky one and it's transmission died less than a month after I got it. So, I meet this lady. She has a 2001 Hyundai Tiburon with $12K remaining on the loan and payments of $317.00 a month. She has encountered health problems (she's 50ish) and she cannot afford to keep the car realistically. My parents have insufficient credit to help me finance a car on our own. However, we may assume the payments for this womans car. Considering the finance company knows she isn't paying, they'd be better of giving the car and loan to us. So, by assuming this woman's loan, I have a chance to have a car I simply could not get any way else. I like Tiburon's anyways. The car is an automatic 4 cylinder with leather interior, airconditioning, sunroof, and power everything.

If the finance company is willing to let us assume her loan, I'll probably do it. My income is about $800-$1000 per month and I have NO expenses. This car with insurance will be draining about half of my income. It will be paid off before I have to worry about college.

The appeal should be obvious. I can get a nice car and establish credit. This way when college time comes, student loans and such will be easier to get.

I am worried about one thing however. If this lady let's us assume her loan, can she come back later and say I did not pay her for the right to assume her loan? She has put thousands into the car, and she says she just wants the burden gone because she cannot handle it. Can she come back on me later and sue me on Judge Judy or something? Also, once the car payments and loan are transferred to me, is that it? I'll just pay and then when it's done the title comes to me and I'm done?

Advice please.

 

[Azraele]

Why not draw up a contract with her? That way all question is settled before you begin.

 

[rgwalt]

Don't people who are paying off a car have some sort of title, only with a lean against it? I'm sure there is some sort of procedure where she will have to sign the car over to you and your parents. It sounds like a good idea and a good deal. Is the vehicle in its current condition worth $12K?

Ryan

 

[Viper GTS]

1) You are not old enough to "assume" her loan, and will depend on your parents' income + credit - You cannot sign the contract by yourself.
2) If you have no credit, and your parents have sh!tty credit, you're going to get SCREWED on interest.
3) Expect to pay $400 a month for comprehensive insurance on your own policy.

At 16 you should not be considering entering a contract for any vehicle, let alone a $12K one. I have a hard time justifying it for myself, and I make significantly more than twice what you do. I would end up paying double my rent costs for a vehicle + insurance, and that's before gas & maintenance.

My advice? Save a couple grand & pay cash for something. Insurance will be MUCH cheaper, & you won't have your income committed to paying off a vehicle that you can't really afford.

Viper GTS

 

[ZeBorgCollective]

Azraele that's what I'm wondering. Do I need a contract saying she gives up her claims to the car and money from me to protect myself?

rgwalt, the car has 10K miles. Me being second owner, I get the Hyundai warranty still. That's 90K miles on powertrain still left and 40K on everything else. This old lady has kept the thing in excellent condition. The leather is still nice and everything. It has one dent on the driver door, on the end. Can't see unless you look, paint is flawless cobalt blue. It also has a spoiler.

Man, that spoiler, 4 cylinder, and some stickers, and I'll ownz j00!

Viper, I know I can't enter into this alone. Parents are helping.

 

[FelixDeCat]

I for one do not want to see another person under 32 driving on the road with me. :|

Walk. Youll live.

 

[ZeBorgCollective]

I'm a good driver.


I'll live.

 

[Viper GTS]

Originally posted by: ZeBorgCollective
I'm a good driver.


I'll live.

All 16 year olds are.

Just out of curiousity, if you have that much monthly income and no expenses, how much do you have in the bank?

What do you currently spend your money on?

Viper GTS

 

[iamwiz82]

Originally posted by: Viper GTS

Originally posted by: ZeBorgCollective
I'm a good driver.


I'll live.

All 16 year olds are.

Just out of curiousity, if you have that much monthly income and no expenses, how much do you have in the bank?

What do you currently spend your money on?

Viper GTS

i wish someone would have asked me that when i was 16!

 

[vi edit]

I say it's a bad deal, simply because you'll end up paying $2,000 more than you should have. Going rate for the car is ~$10,000.

 

[ZeBorgCollective]

Actually, Edmunds TMV for the car is $12kish. That's for the standard 2001 Tiburon.

After you account for the leather and auto and such, it's more.

KBB value is even higher.

ViperGTS, my bank balance is only $443.21

I used to work for Kmart and then just this summer started working again.

So far I've just been blowing most of it on games and such.

 

[Viper GTS]

Originally posted by: ZeBorgCollective
Actually, Edmunds TMV for the car is $12kish. That's for the standard 2001 Tiburon.

After you account for the leather and auto and such, it's more.

KBB value is even higher.

ViperGTS, my bank balance is only $443.21

I used to work for Kmart and then just this summer started working again.

So far I've just been blowing most of it on games and such.

You do realize you are going to commit 2/3 - 3/4 of your income minimum to driving this car, right? 50% is a seriously low estimate.

Hope those games will last you three years.

Viper GTS

 

[skyking]

I say it's a bad deal, simply because you'll end up paying $2,000 more than you should have. Going rate for the car is ~$10,000.

I agree. If you have been around cars and car dealerships, the term that is used is "backwards" . She is backwards in this car. She owes more than the bluebook, and that is a consequence of buying a new car. Drive it off the lot, or burn 20 100 dollar bills in the ashtray. The effect is the same.
Save a couple grand and buy yourself something you can insure. If it breaks down, ride the bus until you and your friends can get it fixed.

 

[gopunk]

viper, it depends on the parents. my parents pay for my insurance, so all i ever pay for is gas, occasionally. of course, in true asian manner, we don't have individual cars.... just 3 that we are all free to drive.

 

[ZeBorgCollective]

Actually, being the low income bastard that I am, the federal government sees fit to give me tax returns.

Tax returns and paying more than the payment each month I should have the car payed off in one-two years.

For god sakes, I'm 16. What RESPONSIBILITIES have I got?

How old are you? Too old to remember that when you're 16 CAR=LIFE?



I'm in Missouri and get good student discounts etc on insurance. The car payment and insurance should run me $500-$600 per month.

I earn $800-$1000. I do not spend $200-$400 on video games.

 

[notfred]

I paid $250 for my first car. I beat the hell out of it and it died 30k miles later. I also had a lot of rfriends w/ first cars back then, msot of them killed them, too.

Given your likely hood to have this car get wrecked or neglected, are you sure you want to spend $12k on it? You could get a $3000 civic and have just as good of transportation at a lot less risk. And you could have it paid for completely in 3 months, and then you wouldn't need comprehensive insurance, and you could save a LOT of money every month w/ jsut liability.

Also - if you only work durung the summer, how could you pay for the car during the school year?

 

[vi edit]

Save up $4,000 and buy an older camry or civic. You'll be happy that you did. Which actually reminds me of something - how are you going to insure a car that isn't in your name?

Advice courtesy of the "been there, done that" school of wisdom.

 

[Yo Ma Ma]

Seems like the "take over my loan payments" type of deals that I've heard about have been scams.. but if you can legally guarantee this isn't the case, and can really afford it and/or your parents will fully back you, then I don't see why not. But if you are/have been making ~$1000/month, have no expenses and currently have just over $400 in your bank account, your previous/current spending habits are going to take a real hard hit.

 

[ZeBorgCollective]

The car will be in my grandma's name and my name. I will not have trouble insuring it.

Considering I will have full coverage insurance, even if I wreck it, It's not an issue. My insurance will skyrocket, but, oh well. I don't intend to drive like an idiot.

 

[Viper GTS]

Originally posted by: ZeBorgCollective
Actually, being the low income bastard that I am, the federal government sees fit to give me tax returns.

Tax returns and paying more than the payment each month I should have the car payed off in one-two years.

For god sakes, I'm 16. What RESPONSIBILITIES have I got?

How old are you? Too old to remember that when you're 16 CAR=LIFE?



I'm in Missouri and get good student discounts etc on insurance. The car payment and insurance should run me $500-$600 per month.

I earn $800-$1000. I do not spend $200-$400 on video games.

I am 19. When I turned 18 I was making $30K+ a year & considering doing THE EXACT SAME THING you are. I was going to finance a ~$10K vehicle. Thankfully my head dislodged itself from my ass before I entered any contracts. You make significantly less than I do, and while you have no expenses your life will be devoted to this car. Why don't you try making a $700 payment into your bank account every month for a few months & see if you can handle being REQUIRED to do that every month, without fail. The way I see it:

$350+ for the car payment (she financed the vehicle using her credit history, you'll be doing it on yours)
$300+ for insurance if it's your own policy, less if you're on your parents' policy
$100 for gas + incidental expenses

If you can make $700 a month deposits without fail without feeling tight for money, great. Then take that $2K you just put in the bank in three months & use it as a down payment - You just lowered your interest rate and decreased your payment.

Viper GTS

 

[ZeBorgCollective]

Yoyo_ma, this is my position.

My parents do back me and I have no problem with not being able to buy a video game here and there If I can drive a car like this.

I can afford it. If I run into trouble one month, my parents will cover for me.

 

[gopunk]

Originally posted by: notfred
I paid $250 for my first car. I beat the hell out of it and it died 30k miles later. I also had a lot of rfriends w/ first cars back then, msot of them killed them, too.

Given your likely hood to have this car get wrecked or neglected, are you sure you want to spend $12k on it? You could get a $3000 civic and have just as good of transportation at a lot less risk. And you could have it paid for completely in 3 months, and then you wouldn't need comprehensive insurance, and you could save a LOT of money every month w/ jsut liability.

Also - if you only work durung the summer, how could you pay for the car during the school year?

out of curiosity, how does one kill a car?

 

[ZeBorgCollective]

Viper, it will be on my parents policy.

Secondly, if the payments DO change when the loan transfers to my grandma, it will be LOWER payments, not higher. This woman had terrible credit when she got the car. She has a 17% interest rate.

I'm HAPPY to know that rate will change when the loan is transferred.

 

[kumanchu]

i say go for it. just dont drive stupid too often.

if you like the car, and its what you want; and you can do it (even if you'll be broke most of the time as a result) its worth it.

when people get older, its easy to forget what its like to be young and just spontaneous making things happen. they've become old and decrepid by the age of 24 and have already fallen into patterns of living.

/me pokes vipergts

enjoy it while you can.

 

[ZeBorgCollective]

kumanchu.................




WORD!!!!