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Offer from my parents... any thoughts?

Discussion in 'The Lounge' started by Capman2k, Nov 17, 2004.

  1. Capman2k

    Capman2k 3/4 ton status

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    The biggest worry in my life at the moment is the fact that I have this nice new truck that I can't make the payments on... It wasn't going to be a problem since I was in the Air National Guard and had the extra income I needed coming my way... Of course, things fell apart with the armed forces, and now I'm struggling with this truck and trying to pay for school and other stuff... The payments, insurance, and gas would take nearly all of my money (I estimated around $600 monthly, not including oil changes and such, I earn around $800 a month)

    I mentioned to my parents that I was thinking I might try my luck at selling it, even though I owe way more than the truck is worth, and it'd be a hell of a challenge to sell it. But I figured it'd be worth my time to at least put a sign in the window and hope someone noticed. Meanwhile, I've been searching for a second job. With my weird schedule at the hotel, and my high unwillingness to work in fast food again, it's been hard to do that also. Then factor in the $612 I owe the college for 2 classes next semester. I'm hoping for financial aid, but just in case, I want to have at least $300 by the start of the semester, so I can get on the payment plan.

    Today, my dad called me up and said come home I want to discuss something with you... So I came home thinking I was going to be in trouble or something... So we sat down, and he laid down the offer to take over the payments on my Ranger, let me drive my mom's truck until I have some money saved to get another vehicle, and pay for school.

    It sounded like a great deal, but there's a catch. Since my parents don't have the best credit, and the bank that would loan anyone $17000 for a truck that's worth $14000 probably doesn't exist, the loan would remain in my name.

    Here's where I'm at now. I told my dad I'd decide by tomorrow afternoon if I would accept his offer or not. These are my concerns (and reasons that they shouldn't be concerns):

    1. I got myself into the situation of large payments, and I hate to take advantage of my parents willingness to bail me out when I screw up. My dad mentioned that they've been thinking about a newer truck for a while, and with my mom's job they're bringing in a lot more money than a couple years go, and can afford a $350 a month car payment. Also, since dad offered, I'm technically not running to mommy and daddy to fix the results of an irresponsible purchase, eh? I always say that people need to be responsible for their own screw-ups, so I'd hate to be one of those people I condemn.

    2. Should I decide to buy a vehicle with maybe $150-$200 a month payments, how will having an unpaid loan of $17,000 affect that, even if it's being paid? That's my main concern. I've tossed the idea around this evening about getting another Subaru, and paying cash for it. A late 80's wagon would give me what I need and want, a 4x4, something to get around in, good gas mileage, an easy to install (and cheap) lift kit /forums/images/graemlins/peace.gif that would get me sufficient ground clearance, and room for subwoofers and camping gear. I could get one of these for $1000ish cash in pretty good shape.

    3. I've kind of spoiled myself in the last 2 years. I've had 4 extremely nice vehicles (2 explorers, a grand cherokee, and now the ranger), and I've always been the type to worry about what my friends think. To suddenly go from mr. bling bling with the nicest truck in the employee parking lot, to mr. poor kid in a 15 year old Subaru, would surely be a blow to the old ego. Though all the money I'd save not having a car payment would be enough to get me a very nice stereo system, and jack the car up 3" and on some 27's. That would certainly raise my ego back to its current status. Not to mention the fact that old Subarus don't have cup holders. Every vehicle I've had since my last Subaru has had 2 or more cup holders (2 in the Scout, 2 in each Explorer, 4 in the Jeep, and Ford managed to stuff SIX in the little Ranger)

    Anyway... Just wanted to lay that out, maybe I can get some sleep tonight... I'd love to hear some of your suggestions on the matter. Should I swallow my pride and take my dad up on his offer, or should I thank him for the offer, suck it up and make my own darn truck payments? /forums/images/graemlins/woot.gif /forums/images/graemlins/woot.gif /forums/images/graemlins/woot.gif /forums/images/graemlins/woot.gif /forums/images/graemlins/confused.gif /forums/images/graemlins/confused.gif /forums/images/graemlins/confused.gif
     
  2. mud390

    mud390 1/2 ton status

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    Here's my thoughts:

    #1 -- Your parents are offering to help you out with the truck. Make sure its not going to put them in a bind if you decide to go through with this.

    #2 -- If you are going to try and finance another vehicle with $17,000 hanging over your head, plus not a lot income, you can probably forget about it. If you are thinking on financing a vehicle, I would recommend refinancing the truck you have if you decide to go with #1 with your parents as primary on the loan with you co-signing. If that doesn't work, do it the other way around, you primary, them secondary. A used vehicle is a good idea, so long as you get one in good shape. I wouldn't be concerned with modding it right away. Make it mechanically sound and then once its running great, leave it alone. Yeah, I know cd player and subs are good, but (i'm gonna get burned for this) shy away from the lift. Keep it economical. If 4x4 isn't completely necessary, try looking for 2wd. They are cheaper.

    #3 -- I learned a long time ago to not care what other people think of me and what own or drive, or don't for that matter. Point in case, frineds of mine told me to rims on my DD truck. I said I have better things to spend my money on. On Friday nights, we are usually in my blingless truck going to where ever we had planned. If people can't look over the petty crap, look over them for new people to hang out with. Do what you need to get by and be happy and the rest will work out.

    On the money for college situation, look into the Pale (sp??) grant. Its free money the government gives out to go to school. Its based on income though. Worst they can say is no. Best of luck to you man! Sorry for being long winded!

    Kris
     
  3. 84_Chevy_K10

    84_Chevy_K10 Banned

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    I'd take them up on it and get yourself a little pickup truck. That's what I did, and everyone makes fun of me for driving a Ford, blah blah blah.

    I bought a 3 year old Ford Ranger 4x4, 3.0, 5 speed, with air and a CD player for $6500 a couple years ago. I got a 5 year loan that I pay $143.67 a month on, very managable. It's not a bad little truck, and I haven't done ANYTHING to it the entire time I've owned it except put a lock-right in the back, and change the oil.

    I've put almost 50,000 miles on it and I don't much care for it, but it gets me around, and I'm not that jackass that needs a new car all the time.

    By the time I'm done with this one I'll be able to get the Superduty Diesel/6 speed that I really want. Until then I'll just drive this.
     
  4. bigyellowjimmy

    bigyellowjimmy 1/2 ton status

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    I like your idea of paying cash for something you can afford. You cannot go wrong that way. What you drive has nothing to do with who you are. I know millionaires who drive a Taurus and people up to their eyeballs in debt who drive a Mercedes.

    As far as your parents go thats your call. Its very nice of them to offer but on the other hand you are resposnsible for the payments and if they are late it goes on your credit report. I see this kind of thing ruin peoples credit every day in my business. It could be a good way out for you but it might be kinda wierd if you have to remind your parents to make your truck payment on time every month.
     
  5. Topdown

    Topdown 1/2 ton status

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    Take your dads offer, buy something with cash and keep this in mind.

    Wealthy people are wealthy because of just a few things. They manage thier money well (I.e. no blowing it on stoopid sh*t), they buy with credit, then pay that credit off in short order (I.e. manage thier money) and they live (as a general rule) on half of thier household income and either save the rest or invest it in something that will bring a return (I.e. stocks, double up your house payment, etc...)

    Wealthy people rarely live paycheck to paycheck and drive bling cars and own huge houses. They live reserved, conserving money but live well.

    My parents are "wealthy" people, they live in an old farm house thats been paid off for decades, Dad has never owned a brand new car, he buys used ones with low miles that he can buy cheap (after depreciation). Mom also drives used, low-miles cars. Every year they take a trip somewhere they have never been, every year they make some kind of improvement to the house and every month they spend a weekend (or equivalent) going through thier bills (which are non-existant anymore), stocks, retirement plans, and the like. All thier friends drive Mercedes and BMW's and live in big new houses and the like... Its not about what you drive, its about who you are. If you kick ass in every way, and drive a Yugo... you still kick ass in every way other than what you drive. /forums/images/graemlins/waytogo.gif
     
  6. eightyone

    eightyone 1/2 ton status

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    i was kinda in the same bind as you are, i will explain. i am 20 years old, and ive owned 26 automobiles. since i was 16, i bought cars or trucks for under 500 bucks and just drove the sh!t outa them. none of my friends thought less of me for not having nice cars liek them, they just liked driving with me cuz i could do watever i wanted with my cars and trucks. i acually had a nissan centra, and cut the roof off and the trunk lid so i could get my dirtbike in there.

    after hi school, i was working full time, and started making real money, so my dad talked me into buying a new car. i bought a 2003 volswagon jetta, 5 speed (only 1 of my automobiles was automatic) i could afford it fine, but then i got into alot of trouble with it, and my insure skyrocketed, so i couldnt afford to pay insurance and the car paymet. so i talked it over with my dad, and it ended up that i owed more than it was worth. so my dad told me he wouldpay the loan off for me and sell the car. (my dad is one of those people who manage money very well, and just payed it right off wth cash) and now im back to driving peices of [censored] with insurance that costs more a month than my truck cost to buy. i hate insurance.
     
  7. djsblaze

    djsblaze 1/2 ton status

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    Figure out if you can finance another car while your parents make these payments which are still in your name. Doubtful, but anymore they will give credit to anyone. If your parents default, you will always have ammo against them for future use. But, probably they wont. As far as what people think of what you drive...dont take this too hard...grow up. The car dont make the man. Like someone else said, I know rich folk driving fords and poor folk driving used BMWs. Perceived status does not mean much to others, and it should not mean much to you. Go with what is practical. I love Subarus, and would drive one myself. Youve got the rest of your life to save up for your dream car. Right now, drive what you can afford. (All this from a guy who owes out his nose on 2 cars, so here is where you should eat that grain of salt) Good luck
     
  8. landsmasher

    landsmasher 1/2 ton status

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    Why don't you use that nice new truck to make money for the payments. Dominos? Napa? Delivery of some sort? Newspaper route in the early am? I know ya gots a full plate as it is but you're YOUNG and full of .... well you know... Make the vehicle pay for itself somehow. Get a commercial plate and write the whole thing off...
     
  9. beater_k20

    beater_k20 Banned

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    if i were in your situation, i would go for it. i've always had better luck and more fun with the vehicles i have bought for under $1000.
     
  10. Z3PR

    Z3PR Banned

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    Dude, let your dad take over the payments. Buy the older Subaru if that's what you want. If some asks what happened, tell the the Subaru is your winter beater. /forums/images/graemlins/deal.gif /forums/images/graemlins/thinking.gif /forums/images/graemlins/whistling.gif
     
  11. newyorkin

    newyorkin 1 ton status

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    I'd take the deal offered and buy a beater car.

    It doesn't matter what you drive if it fits your needs (and as us married guys know, doesn't embarass our wives).
    Ignore the age and missing bells and whistles, it's just transportation. A lesson I learned a little hard after investing too much blood sweat and cash in a car that was wrecked in a heartbeat, and compensated by insurance with $2000.
    There are better things to spent cash you're struggling to accumulate on. /forums/images/graemlins/waytogo.gif
     
  12. odoa3

    odoa3 1/2 ton status

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    Someone mentioned the Pell Grant earlier in the post. I work at a university so I see student's with financial issues every day. There is an unbelieveable amout of money just laying around for school. Scholarships and grants are the way to go. Loans you have to pay back. Stay away from loans - I am still paying mine back. Good place to start looking is Fastweb.com. Start searching the net for scholarships and grants, and after a few applications and essays pretty soon you are able to start cutting and pasting them together from those you have written before. For example, one of the students applied for every scholarship he could find his whole senior year of high school and every year in college. He paid for all of his college and lived pretty cheaply from this and graduated with enough excess money to pay cash for a brand new Chevy Duramax. He drove a POS beater all through college. He waited for his truck until he knew he was done with school. Smart! Take advantage of the free money now, as there are very few free rides after you get out of school. Good luck.
     
  13. spincast375

    spincast375 1/2 ton status

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    You don't say, but does one assume you are living at home?

    So your living under your parents roof, eating their food, driving a $ 14,000 truck you are upside down on $ 3,000, and can't afford the $ 600 college tuition?

    Action plan

    1. Make a budget. On a sheet of paper, draw a line down the center. List all of your income(s) on the left. List all of your outflow(s) on the right. Spend every dollar on paper (allocate all of the monies to some specific expense). Stick with the written budget.

    2. Sell the truck outright. There are dealers that help out those in trouble. Seek them out. Be upfront: tell them you are upside down, want to buy some basic transportation, and roll the shortage into the loan on the replacement vehicle. It can be done. It happens every day. Do it. A plus: your insurance should go way down without the big, over-priced truck.

    3. Can the lift kit. Can the subwoofers. You can't afford it now. Camping is free. That's good.

    4. Cut up any credit cards you have. If you don't have cash, you can't afford it.

    5. Put school on hold for a short time until you get your finances cleaned up. Who can focus on their studies with all this debt hanging over your head?

    6. Get a second part-time job. Deliver newspapers in the morning, or pizzas at night. Save up a $ 1,000 for an emergency fund. Put it aside it a bank savings account and don't touch it unless there is a real emergency.

    7. List all your debts, lowest to highest. Make all the payments on time. Put the additional income from the part-time job on the smallest until it is paid off. Then take those monies (the payment plus the extra) and apply it to the next smallest. Keep going until all debts are paid off in full. Stay focused and on track. Within a year the $ 3,000 can be paid off.

    8. With the other debts paid off, school will be affordable, and manageable. And you can focus on getting your degree as quickly as possible.

    9. Never, ever again borrow for any thing that goes down in value. Never, ever again buy new. Let some other guy pay for the first year depreciation loss.

    Summary

    Hopefully this lesson has taught you to pay cash for everything, never borrow, and live on a budget. Debt is dumb.A man living debt-free and on a budget sleeps sooooo well!
     
  14. Pookster

    Pookster 1/2 ton status

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    Beat up car= Nuttin to prove down south if you know what I mean. /forums/images/graemlins/rotfl.gif
    Im perfectly happy with my beatup old cars- I dont cry when I get a scratch, and it gets me from point A to B.

    I didnt get my first car until I was 22- When I was finally out of college. Then I somehow bought 4 cars in 2 years after that. Lol.

    A plan you can stick to and stick out with for the long run will prove you to be the winner.

    And if your worried about the chicks... if the chick is gonna judge you by your car... then you dont want her anyways.
     
  15. kennyw

    kennyw N9PHW Premium Member

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    [ QUOTE ]
    '84 SUBARU 4x4, 4 cyl, great mileage, $500. 509-727-2223. TriCities.

    [/ QUOTE ]

    Want me to run down and look at it for you? /forums/images/graemlins/thumb.gif I'm only about 12-15 hours away...

    But I'd have your parents look into a loan with you as the co-signer or speak with the place that currently has the loan on it and ask them about having your parents assume the loan as primary? If you explain your situation with your current lender they may have a way for your parents to assume the loan to take over the payments and have it on their credit report /forums/images/graemlins/thumb.gif
     
  16. Capman2k

    Capman2k 3/4 ton status

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    mannnn... I almost got a $200 Subaru today, but someone bought it before I could get to the guys house to see it... He said all it needs is a timing belt, which I found out is $15 at Auto Zone... I was rather looking forward to that deal... Maybe next time... /forums/images/graemlins/dunno.gif
     

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