Is me Career over before it even started??

[Patrick]

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.

His problem is the car insurance, not the car payment. This solves a good chunk of his problems until he can sell the car. If he does have to let someone test drive the car, it can be insured for the day with a phone call for a nominal fee.

Furthermore, the idea of "playing hardball" with the bank may very well save him some money in the short term, however the long term repercussions on his credit would cost him 10 times whatever was saved.

Right or wrong, we also all know that flight departments check one's driving history, so it pays to have that under control.

 

[JaceTheAce]

What the hell are you doing spending $637 a month for a car?

 

[brent p h]

It's a 2005 Nissan Sentra Spec V. Insurance: 425 per month. Car note: 212 per month. I can't afford it no more they cut back my hours at my job.

Have you considered refinancing the original loan? ie: as in a trade in on a less expensive newer car?

 

[jspeed87]

What the hell are you doing spending $637 a month for a car?

This is me everyday..............:banghead: :banghead: :banghead: Seriously I just fell In love with the car, and had to take it home! RPJ, has giving me some motivation to park the car and remove the plates. I still don't know what I'm going to do. I really don't care much for my credit. I don't plan to buy a house anyway. I'm more of an apartment guy, maybe a condo. The only thing i would need credit for is flight training, and I can arrange that with my father.

 

[wheelsup]

You have no idea what bad credit will do to you in the future. Buying a house is one thing but there are a lot of ramifications to bad credit. Insurance costs being one!!! Then you will be in the same boat with a crappier car.

Who is your insurance company? Have you shopped around? Geico and Erie were the cheapest publically available big name insurance companies that I have found. When I was your age (missed it but guessing late teens early 20's) I had a suspended license, speeding ticket, and red light on my license along with an expensive accident but my full coverage insurance in FL (high rates back then due to no fault law) was $80/month on a 5 year old Altima with 100/300 coverage. I can't believe you are paying that much.

My sister has had several accidents and tickets, she's (well dad is) paying almost $2400/year. I cringed!!!

 

[Old Pete]

I don't see how anybody can give you any meaningful advice unless you say
1. what the blue book value of your car is.
2. what it would cost to pay off your car loan including any prepayment penalties.

It doesn't make any sense to me to park or store your car. A car is a depreciating asset and if you are not going to use it, sell it.

With the limited information you gave, I would sell your car, and pay off your car loan. If you can't beg rides or take the bus, I would then buy a "beater" and not insure for collision or comprehensive and take the minimum liability for your state.

 

[jspeed87]

I don't see how anybody can give you any meaningful advice unless you say
1. what the blue book value of your car is.
2. what it would cost to pay off your car loan including any prepayment penalties.

It doesn't make any sense to me to park or store your car. A car is a depreciating asset and if you are not going to use it, sell it.

With the limited information you gave, I would sell your car, and pay off your car loan. If you can't beg rides or take the bus, I would then buy a "beater" and not insure for collision or comprehensive and take the minimum liability for your state.

How do I sell a car that I don't own? Unless someone wants to refinance it under their name which is easier said then done.

 

[Old Pete]

How do I sell a car that I don't own? Unless someone wants to refinance it under their name which is easier said then done.

Why are you making payments on something you don't own? Whose car is it? Do you mean it's a lease?

 

[jspeed87]

Why are you making payments on something you don't own? Whose car is it? Do you mean it's a lease?

It's financed so the bank holds the title.

 

[teetee]

You put the car up for sale. You don't have to do anything special. If you owe more than it is worth, after you sale the car you will have to work with the bank to get a loan to cover the difference, or talk to you parents. Even though you don't own the title yet it doesn't mean you can't sell the car. If that was the case, a lot more peopel would be paying off their cars and not going to bigger and better.

 

[BillErvin]

How do I sell a car that I don't own? Unless someone wants to refinance it under their name which is easier said then done.

Go to kbb.com, check private sale value for your car. If your upside down, figure out how to cover the difference (bank, parents etc) Then put the car up for sale. When you come to terms with a buyer, take their money and your money to the bank, pay off your note to clear the title, give the buyer a bill of sale, and arrange for the bank to send the buyer the title, At that point, its up to the buyer.

Then after all that, educate yourself about credit and debt, learn how to budget, and get your life on track again. Don't just jump back into it with a huge loan to go to ATP. Pay as you go, you have lots of time, no one is hiring right now anyway.

If you haven't read other threads about how much the airlines pay, you might check those before you dive head long into more debt.

If you'd like, check out www.daveramsey.com to learn more about debt (I don't work for him, just believe in his message)

Good Luck, I mean that
Bill

 

[rjmore]

You are getting some solid advice here. You made the decision to buy the car and you also made the decision to speed. These things have consequences. Take responsibility for it and do what it takes to get out of it cleanly. You made a promise to pay so you should do what you can to fulfill that promise. In the grand scheme of things this is not a lot of money and is not worth the cost in terms of your credit. I own rental property and I check credit. I always get the story behind it as well and with what you have said, I would not rent to you. Your credit follows you more than you realize.

 

[SpiraMirabilis]

See if you can get back on your parents insurance policy. Having more than one vehicle on a policy reduces the rates significently, generally. This sounds weird but it might even lower your rates if you bought a junker car and put only liability on it. There were many times when people were surprised that adding a vehicle on their auto policy actually decreased their premiums.


The biggest expense to you is the insurance, which is crazy. Call geico. How fast were you speeding?

 

[teetee]

I agree with Spira, you might find that going back on your parents insurance would lower your rates significantly (like around $100 instead of $400).

 

[CoffeeIcePapers]

This is me everyday..............:banghead: :banghead: :banghead: Seriously I just fell In love with the car, and had to take it home! RPJ, has giving me some motivation to park the car and remove the plates. I still don't know what I'm going to do. I really don't care much for my credit. I don't plan to buy a house anyway. I'm more of an apartment guy, maybe a condo. The only thing i would need credit for is flight training, and I can arrange that with my father.

Bad move. From someone who started off with bad credit (I broke my leg when I was 18 and uninsured), you really want to do it the right way. It has taken me 7 years to get it resolved. During this time, I haven't been able to get any credit without a co-signer.

Don't let it go to repo. I am SURE you can get cheaper car insurance from someone. The payment doesn't seem to be the problem. Get a job waiting tables and you can make enough working 3 days a week to pay the insurance.

 

[Matt13C]

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 say a home equity loan is crazy and then you suggest to play chicken with the bank? They will win, even if they do negotiate he still will have a black mark on his credit that will make it even harder for him to get a loan for training, and he still will have the insanly high insurance premiums.

A home equity loan, while not the best option overall, is a great option in this situation, if it is a fixed rate. The rates are lower than a private loan from the bank, which he prob could not get given his situation. It would eliminate the need for full coverage allowing his insurance premium to drop substantially and he will no longer be close to default so his credit would be safe, for now.

Anything is better than having all those marks on your credit at such a young age. It affects everything. You may not want to buy a house but you need ok credit to rent a decient apartment/condo, you need it to be approved for a cell phone and it has an impact on your insurance rates.

 

[wheelsup]

I'm not sure dropping coverage on a $10,000+ car from full to liability only is wise, it's kinda playing with fire if you wreck it. Then you've still got the payment (to the home eq line of credit) and no car.

 

[surreal1221]

Pretty sure this is standard, but all the lien holders of vehicles I own (owned) require(d) me to have full coverage.

I think he has a lot of information to digest, and hopefully he makes some right choices.

Why are you making payments on something you don't own? Whose car is it? Do you mean it's a lease?

Uh. . .ever bought a car with a loan? If not, here is how it usually goes down:

The loan provider is the lien holder of the vehicle. They (the lien holder) own the vehicle - and as such - keep possession of the tittle, until you fulfill your contract with them (full payment of the loan, and any interests). Although the vehicle is yours to do as you see fit during the period you are making payments towards ownership.

 

[Barty]

The biggest expense to you is the insurance, which is crazy. Call geico. How fast were you speeding?

Have you actually priced anything out with them???

If you aren't over the age of 25 and drive an extremely boring vehicle, the rate they will quote you is absolutely laughable. Even when my record was clean, they were almost always a couple hundred dollars more a year than who I was with when I still had my Mustang.

Unless he only checked rates with one insurance company, he's not going to see a dramatic drop in the cost of insurance if it is already that high. He's paying that much because he's a bad risk and is driving (though I find this laughable) is a "sports car" in the eyes of the insurance company. Unless he's carrying zero deductible insurance and an ungodly amount of liability insurance, you're generally only going to see about a 10-20% spread in rates. IMHO, is only real option is to sell the car and get something that he can carry liability only on. Even at his age and record, he could probably get liability only on a cheap ($2000-3000) car for less than $100 a month.

 

[surreal1221]

GEICO's been great to me and my wife, even with one accident on my wife's record, really wasn't too bad of an increase. Nothing that caused us an inability to save, invest, and live a comfortable quality of life. And we're both under 25. We'll welcome the above 25 rate greatly though.

Don't plan on leaving them either, not after 6 years. They've matched every competitor's quoted price as well, which might be why I'm happy with them.