need help on loan info for my sons first car

yiterp

yiterp

Joined
Mar 18, 2001
Messages
2,921
my son manny is 19 and wants to buy himself his first car,he has the chance of buying a fully customized 1996 nissan sentra,this is the sharpest looking car i have seen in years,ground effects,4000.00 custom paint job,the car has just about everything you could think of done to it.he has saved 2800.00 of his own money from the job that he has and needs 2500.00 more to buy the car.the car belongs to a friend of mine that built it and he is giving him a once in a lifetime deal on it.
the problem is i have been pretty broke for a long time with the layoffs i went threw and the hurtin i put on my credit i can't even co-sign the loan for him.he has no credit at all and it's seems like no one wants to give him a
chance.
this chance to buy this car will not be around for long--does anyone have any thoughts on what i could do to get this money he needs for him.
anyone with lots of bucks out there that would be willing to do a personal loan for this amount,at the going interest rate with a payback of around 300.00 a month
whole thing really buggs me as he is a great kid and a father should be able to take care of this and i can't :confused: :confused: :confused:
 
I don't know you from Adam, and there's a lot of folks that give me a hard time around here periodically....but, I am a father !

I'll kick in $200.00, and won't ask for it back. Email me your address to John@cumberlandknives.com and it'll be out of here on Saturday morning to you.

Any more givers ?
 
Cumberland Knives said:
I don't know you from Adam, and there's a lot of folks that give me a hard time around here periodically....but, I am a father !

I'll kick in $200.00, and won't ask for it back. Email me your address to John@cumberlandknives.com and it'll be out of here on Saturday morning to you.

Any more givers ?
Click to expand...



The generosity of the good people on BF never ceases to amaze me!

I cannot, at this time, give anything but advice. I have seen several reviews and such on the 'net and tend to be very knowledgeable. Yiterp, have you considered having him fill out an online credit application to places such as e-loan.com? If not, this might be a decent way to build credit for the credit lacking/challenged. This would be my first choice if I had this situation.

Bear in mind that every application that is filled out will be a hit to the credit. In most cases, one or two applications will not hurt, but much more than that would be detrimental. Too many inquiries into credit looks bad to creditors for some reason. ;)

Good luck on your endeavor Yiterp!



Bill
 
Will the seller accept payments? That would be the most logical route to pursue.

You could have him make payments of 900 a month (using the cash he has now) and in the meantime, get with a bank to have him get a debit card. Use it a couple times here and there and credit will grow. Even 3 months is better than nothing.

Does he have any other assets?

What about a grandfather or uncle? (to co-sign) Might bust your pride a little, but would help.

Whatever you do, do NOT have him get a high-limit credit card.


And if all else fails....he might just have to settle for a less expensive car. My dream car is a fully restored 70 Chevelle. In the meantime, I drive a 71 Nova. The idea being that by the time I finish the Nova, I can sell it and put the money down on what I really want. In the meantime I have some decent wheels.

;)


Cumberland - you da man!
 
yiterp said:
a once in a lifetime deal
Click to expand...

There is no such thing.

Your son can get a very nice car for less than the $2800 he has in his pocket now. It may not have ground effects and a 4000.00 paint job, but will run. And I really think that's what he should do.

At 19, he'll have many more opportunities in the future to buy a fancy car.

The car you are describing is luxury. A basic rule of good use of credit is never borrow for luxury. Borrow for things you need (really need). Borrow for investment. But don't borrow for luxury.

Also, car owners need to be financially able to deal with car problems and car expenses. If your son blows his wad and borrows more to buy the car, how will he insure it? How will he pay tax and registration? And if -- or, more accurately -- when it breaks, how will he pay for quality repairs?

My strong advice: pass this time and take a once-in-a-lifetime-opportunity later in your life because it will come.
 
I have to agree with Chuck here. The car sounds like its nice, and according to msn.autos it has a 4/5 star safety rating, but $5,3000 is way too much to pay for a car that's 10 years old. You can get a safe and reliable car for less, and then your son won't be in the hole to start out trying to pay for insurance, gas, and the other expenses of car ownership. For example, your son could get a 1996 Volvo 850 Turbo (4 door) with moonroof, AM/FM/Casesset/CD, leather interior, ABS, power windows, cruise control, power doors, AC and 113k miles for $3,000-$3,500 on e-bay. It might not seem like a lot less, but it's about $2k that your son is going to have to insure and pay for his car. Plus, I don't think anyone is going to argue that a loaded turbo Volvo isn't an awesome first car, because while you like its safety and reliability, he'll like it because it's got all of the luxury one needs and it's fast.

Good luck with whatever you end up doing! :)
 
Blue book on a 1996 Nissan Sentra with low milage, in excellent condition, and fully-loaded is about $4200.

That is all that an insurance company will insure that car for on a standard policy even if you pay $5300 for it because it's got all these after-market extras. If you want to insure it for $5300, you'd have to take out a "Declared Value" insurance policy and the premium will be significantly higher. For a 19-year-old single male, insurance premiums are high enough already.

So, if your son decides to risk a standard policy and it gets totaled or stolen or something, the insurance company will write you a check for no more than $4200 minus the deductible of -- say -- $500. But the loan outstanding will be $2500 leaving your son with $1200 where he used to have $2800. That would be a big setback.

Oh, and if the car started life as a basic Sentra, if that's what the VIN number pulls up in the computer, then the maximum insurance you might be able to get on a standard policy will be more like $2800. After even a low deductible, you wouldn't have enough to pay the loan off. The loan will be "underwater" the moment you sign the note. That's not good.
 
a father should be able to take care of this and i can't
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My friend, the best thing a father can do for his son in a situation like that is give wise advice... and that you can do.



That children should be provided with gifts of a nature that can swim with them even out of a shipwreck.
-- Vitruvious
 
Your son obviously works hard and knows how to save money. He didn't develop this work ethic in a vacuum, so you have already given him something worthwhile.

He has two choices: 1. Buy a less expensive car and use some of the money he makes to modify it if he so choses. Whatever he ends up with will be more his than the car he is currently looking at. 2. Keep saving money and buy a more expensive car at some time in the future.
 
Gollnick said:
There is no such thing.

Your son can get a very nice car for less than the $2800 he has in his pocket now. It may not have ground effects and a 4000.00 paint job, but will run. And I really think that's what he should do.

At 19, he'll have many more opportunities in the future to buy a fancy car.

The car you are describing is luxury. A basic rule of good use of credit is never borrow for luxury. Borrow for things you need (really need). Borrow for investment. But don't borrow for luxury.

Also, car owners need to be financially able to deal with car problems and car expenses. If your son blows his wad and borrows more to buy the car, how will he insure it? How will he pay tax and registration? And if -- or, more accurately -- when it breaks, how will he pay for quality repairs?

My strong advice: pass this time and take a once-in-a-lifetime-opportunity later in your life because it will come.
Click to expand...




First priority should be transportation. Get established & THEN satisfy the ego. If you can't pay the fiddler,don't dance. Any decent ,reliable wheels can be a basis for onward & upward . A goal increases the willingness to work harder. I've learned in my long life that the harder I worked,the luckier I got.


Good luck !

Uncle Alan [ been there,fought upward }
 
One day in the car with my dad, he gave me the best advice of my life.
Basically he said, if he were to give only 2 pieces of advice to anyone, it would be:

1) Pray 5 times a day (we're muslims)
2) Live within your means

It's a wonder how many people don't realise the 2nd one. Sometimes they do confuse need with want. In this case yiterp, i tend to agree with Chuck.

Buy a reasonable car within your means or save up and buy a better one later. Sometimes when you just don't have the means, you have to pass up on that 'once in a lifetime offer'. Although i believe this isn't going to be a once in a lifetime offer.
 
It's going to be nearly impossible to get a car loan for an amount higher than the NADA value.

Something to consider, how about a very inexpensive new car? Would be less than $300/mo, insurance would be low, warranty is a huge bonus, and car dealers will do anything to get new buyers approved. I assume he has a job and can show paystubs?

Best Luck,
Bob
 
At 19 he should be more concerned with getting a car that will get him from point A to point B. Insurance is another thing he has to worry about. I suggest getting a basic bare bones car and let him do the upgrades that he wants on his own dime. It will teach him how to save his money and a whole lot of patience. He will be more inclined to take care of his car if he was paying for all of the extras himself. When I was 16 I bought my first car on my own for $2000 without help from my father. It was a 1968 GTO. It was total POS but it was my dream car. I worked hard, saved up and rebuilt it with help from my friends and donated time from my auto shop teacher. By the beginning of my senior year in HS I had the best looking car in the school, not to mention the fastest. I won 4 1st place car show awards that summer. :D :thumbup: What those 2 summers taught me was that hard work and patience will pay off in the end. Advise your son to get a cheaper car and that with hard work and some perseverance he will be able to have what he really wants later on down the road.
 
thanks for all the help my friends--i know alot of what you have all said is true--but i have to try my best to help him on this.
and he will be able to afford the payments and insurance as he has a full time job and lives at home--has no other bills at all
:eek: :) :eek:
 
my son works hard each day and saves his money well--and i feel if this is what he wants he deserves it--and i have to do what i can to make it happen.
to show you what a great kid he is--he knows how much a computer means to me and before all i had was a old outdated HP that was on it's last leg.well last month when i got home from work guess what was waiting for me at my computer desk a brand new system and not a cheapo set-up but a top of the line HP--if he can do something this nice for me--i need to do the same if possible
:eek: :) :eek:
 
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