surreal1221
Well-Known Member
I think we've given him enough information to make the correct choice, now the question is left if he is going to make it. . .or fall into the trap of taking on more debt.
Is me Career over before it even started??
- Thread starter jspeed87
- Start date
SoCalAprch
Well-Known Member
Agreed, Leave it to someone to label everyone with bad credit as irresponsible. Don't stereotype people and I hope you never lose your job and need to feed your family and can't make your monthly credit card payments then by your definition you will be irresponsible.
To the OP my opinion only but try to get rid of the car. Try to pay for as much of your training as you go. I have buddies that are at regionals who took out the big ATP/Riddle/RAA/insert big flight school here loans and are on the verge of going bankrupt.Call your bank and let them know your situation. Sometimes they will be willing to work with you until your can sell it or until you can find something to do that will make ends meet.
SoCalAprch
Well-Known Member
Well that's a little different that your original post.
surreal1221
Well-Known Member
And?
I challenge that it wasn't different at all, but rather provided more of an emphasis on my point about manageable financial decisions one can make.
The examples cited by ljg are not necessarily manageable decisions, where as those at the bottom of my second post indicate the manageable ones that one can make. By my definition would be irresponsible? I never defined irresponsible in any of my posts. Might I suggest trying to post without emotion, also helps if you read what I wrote and not what you think I wrote. Nothing about being irresponsible. Just poor financial decisions on those that can be managed.
I challenge that it wasn't different at all, but rather provided more of an emphasis on my point about manageable financial decisions one can make.
The examples cited by ljg are not necessarily manageable decisions, where as those at the bottom of my second post indicate the manageable ones that one can make. By my definition would be irresponsible? I never defined irresponsible in any of my posts. Might I suggest trying to post without emotion, also helps if you read what I wrote and not what you think I wrote. Nothing about being irresponsible. Just poor financial decisions on those that can be managed.
flyTotheSky
Well-Known Member
Am I the only one that thought this post was flamebait?...I mean you can't be serious....
thehobbit
Well-Known Member
you can park you car and get storage insurance on it at a significantly reduced rate. then buy a beater for what it would cost you in two months of the other insurance. this lowers your monthly costs and gives you some time to sell the car or plan out what you are going to do next.
Sunburn
Well-Known Member
Unfortunately, he can't. He is financing the car, which means he has to have Comp, Collision, and Liability on it.
(To the OP)I used to sell cars, let me tell you, that repo will haunt you for 7 years, and even a voluntary repo is still a repo. You will be paying 20%-30% on a used car loan, 15%-30% on a new car (if you can get one). And if you ever want a state or gov't job, that repo will be a MAJOR blemish. I Highly recommend finding a second job (I know it is hard) or finding another insurance company or going on your father's policy, and finding a car that is paid off and putting your name on that as the primary driver and your father/mother as the primary on the Sentra, or (and I do not know if this is the case, but being 22 myself) party less, tell your gf you don't have to money to take her out on a date 5 times a week, and you can't buy a 24 pack for the guys. But your first priority should be to find a way not to let that car go repo.
teetee
New Member
I second the advise for a second job. Even at 6.00/hour for 20 hours a week you would be bringing in $100 more a week. Take that $100 each week and put it directly onto the car. You could have the car paid down significantly and be able to avoid repo. Yeah it will suck working 2 jobs, but it will also prevent you from messing up your future.
Also, cars like the sentra that get good gas mileage are selling a LOT faster than cars that are V-6 or V-8. When you put the car up for sale, make sure to put good gas mileage on that. People are watching for that now! Put the car up for sale, make the payments and if you can only get $3000 and you owe $5000, you might have to take out a signature loan. That is even a better option than a repo.
Also, cars like the sentra that get good gas mileage are selling a LOT faster than cars that are V-6 or V-8. When you put the car up for sale, make sure to put good gas mileage on that. People are watching for that now! Put the car up for sale, make the payments and if you can only get $3000 and you owe $5000, you might have to take out a signature loan. That is even a better option than a repo.
SpiraMirabilis
Possible Subversive
Ex-insurance underwriter:
Most finance companies will allow you to have comprehensive only on a vehicle in storage. Comprehensive coverage is not, generally speaking, raised or lowered by ones driving record because it does not cover auto accidents. Also, no finance company that I know of cares if you have liability at all. Liability does not protect their interest (the vehicle) it protects you, which they're more or less indifferent about.
But $425/month premium for one vehicle is pretty bad. I second what someone else said and would be more worried about your driving record than your credit score. (Edit: 2 tickets and 1 accident is not a big deal. It's so difficult to gauge because it is wildly different based on geography but your rates are pretty horrible. Then again you are 20. Have you gotten quotes with other carriers?)
By the way, turning the vehicle in voluntarily is still considered a reposession on your credit record, which will trash your credit for a number of years.
Most finance companies will allow you to have comprehensive only on a vehicle in storage. Comprehensive coverage is not, generally speaking, raised or lowered by ones driving record because it does not cover auto accidents. Also, no finance company that I know of cares if you have liability at all. Liability does not protect their interest (the vehicle) it protects you, which they're more or less indifferent about.
But $425/month premium for one vehicle is pretty bad. I second what someone else said and would be more worried about your driving record than your credit score. (Edit: 2 tickets and 1 accident is not a big deal. It's so difficult to gauge because it is wildly different based on geography but your rates are pretty horrible. Then again you are 20. Have you gotten quotes with other carriers?)
By the way, turning the vehicle in voluntarily is still considered a reposession on your credit record, which will trash your credit for a number of years.
surreal1221
Well-Known Member
The issue with liability is that most states that I'm familiar with, required a vehicle to be insurered with liability coverage in the least. Now, with it being in storage, if it's not on the road - then fine. But it's a huge payment if you're busted driving the thing around without liability coverage. Even for illegals.
Barty
Well-Known Member
Speaking from experience, it will probably take them 30-45 days to even take notice that he's not carrying full coverage on the car. I've gotten the nasty-grams from lenders before about not having full coverage on a vehicle and it took about that long after I changed coverage and/or insurance policies and the paperwork got mixed up after I switched companies, but in every instance, the car always had full coverage on it or I had sold it by the time they said anything about it.
It is purely a lender requirement and there's no force of law behind that rule. Usually their typical recourse is to force you to buy their overpriced coverage, which they conveniently roll into the loan payment. In an extreme circumstance I suppose they could come repossess the car, but in this guy's case, does it really matter? He's going to be trying to sell it (I hope) and a bank is only going to repo a car under those circumstances as a last resort.
Matt13C
Well-Known Member
It appears your dad is willing to help you out. See if he is willing to get a home equity loan for the amount you owe on the car. The interest rates are normally lower than a private loan through a bank. This will allow you to pay off the outo lender and then drop your insurance coverage down to liability only. You will then be in debt to your dad and not a bank and you insurance payments will drop down a good amount.
Plus, you save your credit. If anything just do it for the short term as a way to keep from dealing with a reposession. Then sell the car and pay off your dad and buy something that should never be modded, like a Ford Escort to save yourself from future speeding tickets.
Plus, you save your credit. If anything just do it for the short term as a way to keep from dealing with a reposession. Then sell the car and pay off your dad and buy something that should never be modded, like a Ford Escort to save yourself from future speeding tickets.
Patrick
Well-Known Member
Only if he's willing to do it for you, and its a FIXED rate equity line.
You made a mistake, now its time to either live with the mistake or get out of it with the least cost (both financial and otherwise). Your problem with affording the car isn't the loan payment, its the insurance. Park the car in dad's garage, turn the plates in, reduce the insurance to only comprehensive (removing collision and liability, since it isn't being driven) so that if the garage collapses the car is covered (which will save you over $300/mo), put the car on the market, and keep the loan current. You'll likely sell the car for less than you owe, but thats the price of learning some life lessons. In the meantime, go pickup a reliable beater that you can drive for a few grand, only keep liability coverage on the car, and enjoy your no car payment/ $40 a month insurance and learn from this experience for next time.
As to your flying dreams, yes, any flight school that you will have to obtain financing for will check your credit, as they base your ability to repay and your interest rate on your credit history as well as your income (both present and future). If you have a co-signer, they use their information as well.
RPJ
Well-Known Member
Are you guys serious?! Home equity line of credit for a freaking car ?!?!? You are off your rockers! You are better off defaulting on the car loan and letting them come after you for the full amount! Some of these people are suggesting bankruptcy?! WTF?!!? Are you kidding me? For a loan that is no more the 30k your gonna file bankruptcy?! Listen worst case scenario, you completely default on your car loan and the bank comes after you for it. You have two options, 1 is to give the car up to the repo man, or 2 hide the car and don't let it become repossessed. Trust me it is VERY EASY to hide a car from a repo man for extended periods of time. If the bank cant recover their asset then they are in a bad position. Thats when they will call you to negotiate. You will have A LOT of time before they serve you in court.
You must make a decision if you want to be responsible and give up your car/pay them what you owe them or you must come to strict terms that you will not pay them on the terms that YOU signed and go from there. People are very easily persuaded by creditors that have them in debt for a good amount. Let me tell you that if you choose to go the route of not paying them you can negotiate a settlement, especially if you have their asset. The problem is if they end up suing you must PROVE that you have made a good faith settlement offer in writing.
You already know that your in a bad position. You should pay the car note according to your contact. If you choose not then you must be smart about it. What you have is a secured loan, if you hide the car they no longer have any security. They WILL negotiate with you. This is very dirty tactics but it works.
Worst comes to worst let them take the car and come after you for the balance. TRUST ME it will be better than filing bankruptcy! If you go to court and you tell the judge "I am broke, unemployed looking for work, have no savings or assets" the judge has VERY LITTLE to go on. That does not satisfy the requirements to lean against income.
This is very dirty play and your credit will get jacked, no doubt about it. But properly played you can negotiate a settlement that is less than your overall contract balance.
You must make a decision if you want to be responsible and give up your car/pay them what you owe them or you must come to strict terms that you will not pay them on the terms that YOU signed and go from there. People are very easily persuaded by creditors that have them in debt for a good amount. Let me tell you that if you choose to go the route of not paying them you can negotiate a settlement, especially if you have their asset. The problem is if they end up suing you must PROVE that you have made a good faith settlement offer in writing.
You already know that your in a bad position. You should pay the car note according to your contact. If you choose not then you must be smart about it. What you have is a secured loan, if you hide the car they no longer have any security. They WILL negotiate with you. This is very dirty tactics but it works.
Worst comes to worst let them take the car and come after you for the balance. TRUST ME it will be better than filing bankruptcy! If you go to court and you tell the judge "I am broke, unemployed looking for work, have no savings or assets" the judge has VERY LITTLE to go on. That does not satisfy the requirements to lean against income.
This is very dirty play and your credit will get jacked, no doubt about it. But properly played you can negotiate a settlement that is less than your overall contract balance.
wheelsup
Well-Known Member
How would potential buyers test drive a car with no plates and no insurance?
If they wreck it on the test drive he'd have to sue to recover damages (small claims court is limited in $$ amount too, so if it's above that we're talking lawyers), now he's got no car, no money to pay lawyers, and a big loan from the bank.
This is why I keep my old cars, my insurance on two cars for a year is equal to what this guy pays for a month on one car. Crazy.
RPJ,
A home equity loan is a much wiser decision than letting the car get repoed, or trying to hid it from the bank. The objective here is to keep his credit in tact. The only way to do that is to pay off the loan and keep/sell the car in a private transaction. I agree with you on not declaring bankruptcy...that's just nonsense.
Jspeed,
Sell the car, get another job to pay off what you owe, learn your lesson and move on. DON'T let the bank take the car.... a loan large enough for flight training will be hard enough to get and pay off with good credit...don't make it difficult for yourself.
A home equity loan is a much wiser decision than letting the car get repoed, or trying to hid it from the bank. The objective here is to keep his credit in tact. The only way to do that is to pay off the loan and keep/sell the car in a private transaction. I agree with you on not declaring bankruptcy...that's just nonsense.
Jspeed,
Sell the car, get another job to pay off what you owe, learn your lesson and move on. DON'T let the bank take the car.... a loan large enough for flight training will be hard enough to get and pay off with good credit...don't make it difficult for yourself.
granlistillo
Well-Known Member
oh that's not to hard to figure out, just look at my user name!
A poor driving record could keep you from getting a job. Ive seen it happen to a really good guy.
nosehair
Well-Known Member
Prime meat for a career flight instructor...oh that's not to hard to figure out, just look at my user name!
