Is the interest rate worth the credit history?

[Sigarms]

BB was too slimy for the bank.

I really don't like Best Buy for numerous reasons, customer service at the tops, but I don't dislike them enough that if they are competitive in price and I can 18 or 24 month same as cash on or around Christmas time I won't use them

 

[Sigarms]

Thanks for the feedback guys.

The impression I get that if he already has decent credit and is using a credit now for the last couple of years, taking out a auto loan really isn't that important trying to build up his credit.

Reality is he has options.

Although I don't think his parents have spoiled him in any way, nor has the kid ever asked for money once in his life, we can always have a in depth discussion on his choices or game plan if he ever asks for help in any way.

Perhaps that may not make sense to some, but it's something my parents always did with me even though I was probably more of a butthole to my parents than this kid is to us. I consider myself not being a bum and work hard, and I wouldn't be where I'm at in my life if my parents weren't who they were.

Don't get me wrong, it's not like my parents spoiled me or just gave me money, but they did offer me a car free interest loan, and when I was living with them going to school, they did charge me rent, but they actually did so because they saved the money for me without telling me that at the time LOL

 

[hiddentacocatneddih]

I got out of the USAF at 27 with 0 credit history.

My wife added me to a target red card and 2 months later I was approved to buy a house

It's all a scam. If he just enlisted, sell the car.

As an airman, the last thing he needs is a car payment. Biggest mistake many single airman make, then they struggle to get out of the dorms due to their payments.

 

[Sigarms]

I got out of the USAF at 27 with 0 credit history.

My wife added me to a target red card and 2 months later I was approved to buy a house

It's all a scam. If he just enlisted, sell the car.

As an airman, the last thing he needs is a car payment. Biggest mistake many single airman make, then they struggle to get out of the dorms due to their payments.

The one weakness I can see in the boy is his love of cars. He saved his own money and bought his used car at 17, and actually put some more time and money into it because he actually takes pride in it.

At age 19, showing fiscal responsibility and not doing stupid stuff as a teen, that is a weakness we can live with given all the other stupid stuff kids his age could be exhibiting.

Reality is if I was smarter a couple of years ago, I would have fronted him the money on top of his to buy something newer, lower mileage as well as being more service friendly than a Mercedes. Believe me, he knows that car would not have been our first pick, but we figured his money, his mistake to learn from.

He actually put the car up for sale online the other week, but after talking to him about the logistics of selling a car as private sale and what is involved (given it's registered in NC and the title is in his parents name), he took it offline. He's planning on coming home next week, and we will have a in depth discussion on his plans if he wishes to have that conversation.

FYI my father got out of the AF at age 44 after spending 20 plus years, and he considered himself a pretty rich man financially for all the money he squirreled away over those years. It's my dad that made my son choose the AF after he (dad) lived with us for 4 year before his passing. Hopefully when he hits 20, more of my dad and myself rub off on him, but I do know he does like having his own vehicle. I do know he's (son) is light years ahead of me in maturity when I was his age and my dad still dealt with me. Overall in the grand scheme of things, we're pretty blessed.

 

[hiddentacocatneddih]

The one weakness I can see in the boy is his love of cars. He saved his own money and bought his used car at 17, and actually put some more time and money into it because he actually takes pride in it.

At age 19, showing fiscal responsibility and not doing stupid stuff as a teen, that is a weakness we can live with given all the other stupid stuff kids his age could be exhibiting.

Reality is if I was smarter a couple of years ago, I would have fronted him the money on top of his to buy something newer, lower mileage as well as being more service friendly than a Mercedes. Believe me, he knows that car would not have been our first pick, but we figured his money, his mistake to learn from.

He actually put the car up for sale online the other week, but after talking to him about the logistics of selling a car as private sale and what is involved (given it's registered in NC and the title is in his parents name), he took it offline. He's planning on coming home next week, and we will have a in depth discussion on his plans if he wishes to have that conversation.

FYI my father got out of the AF at age 44 after spending 20 plus years, and he considered himself a pretty rich man financially for all the money he squirreled away over those years. It's my dad that made my son choose the AF after he (dad) lived with us for 4 year before his passing. Hopefully when he hits 20, more of my dad and myself rub off on him, but I do know he does like having his own vehicle. I do know he's (son) is light years ahead of me in maturity when I was his age and my dad still dealt with me. Overall in the grand scheme of things, we're pretty blessed.

Sadly the retirement system was wrecked when I got out in 2017 so no more 20 and 50% of the top three

Before all the base auto hobby shops were sold/closed around 2014, you could live in the dorms and have a place to go work on stuff. I don't think they ever re opened them

 

[arto98607]

The kid was 17, saved up 12K after 2 years of working, and wanted to spend 7.5K on a Mercedes, this after passing up a BMW, Saab and Audi because he followed "my rules".

We both told him we wouldn't do it, but he earned the right in our opinion to make that decision on his own hoping he learns from a potential mistake.

The Mercedes was literally from a German widow off of Fort Bragg whose daughter was selling it for her. Honestly, from what I saw 3 years ago after driving and meeting the mom, it wasn't a bad private sale IMO other than the one rule which was broken and he knew it, that being able to take the used car to your mechanic to check out.

Thing is no matter how good the car seems, it's a Mercedes and sooner or later it's going to cost you money. He didn't see that but I'll let it slide because I did see it coming.

The kid did very well in saving money!

He has driven $7500 car for 30,000 miles in three years which works out to 25 cents/mile depreciation if he gave the car away for free - I think the newer the car the faster they depreciate.

All cars need maintenance and the money he spent on maintenance is not lost, but what was spent on accessories will be lost if the car is sold and there is a lesson in that for him if he sells the car now.

He should keep the car and learn to do the maintenance himself, instead of buying another car.
For the record, my "new" car is year 2008 Mercedes W211 Diesel with 190,000 miles and spent zero $ on accessories, do my own maintenance & repairs as needed.

My two adult sons drive older cars, do their own maintenance & repairs and owe nothing.

No offense, just saying.

 

[Sigarms]

The kid did very well in saving money!

He has driven $7500 car for 30,000 miles in three years which works out to 25 cents/mile depreciation if he gave the car away for free - I think the newer the car the faster they depreciate.

He could keep the car and learn to do the maintenance himself, instead of buying another car.
For the record, my "new" car is year 2008 Mercedes W211 Diesel with 190,000 miles and spent zero $ on accessories, do my own maintenance & repairs as needed.

We think alike per breaking the mileage down vs to what has been paid I assure you, as well as buying something new and what it loses once you drive it off the lot.

The issue on his end is he got hit with a pretty BIG service bill at around 100k. This after checking 4 different mechanics out.

The added issue is his father is a pretty simply guy and can do his oil and air filter change, that's it and honestly, all I want to do because I'm spending too much time with work and around the house.

The added issue is he was 17 when he bought the car, and although he's done a lot of work himself, he spent a good amount on accessories he installed himself, but that's not including the money he spent on having the rims painted completely black.

Generally on the cars we own, after we break the paid out cost for the used car plus maintenance costs, I try to shoot for the single digits for cost of ownership. AKA we don't trade cars but run them until they can't be run anymore.

When he was 13 or 14, he made this up for me (see below). We bought it with 72K on the odometer for 9.5K. We put over 320k on the car, and what we paid in maintenance, more than made up our money. That's one reason why I like him LOL. His mother made his father donate that car away, and he knew his dad loved that car for what it provided per overall costs

My sons issue is he can't see what a car actually is.

That said, my father finally bought his dream car at around age 73 because I finally convinced him he could afford it (and he could).

The idea IMO is to spend money when you don't need it IMO.

 

[Sigarms]

My two adult sons drive older cars, do their own maintenance & repairs and owe nothing.

No offense, just saying.

No offense taken.

My only point to my boy is buy a car that you can do the work yourself and don't pay an arm and a leg for European parts.

He loves working on his Mercedes on his own, but the reality is the way the car is designed and the OEM parts needed, unless he had his own garage and the proper tools for a Mercedes, almost becomes impossible IMO.

He impressed the living heck out of me when he replaced the seat motor himself and had to disassemble the door completely to do so for the wiring. He proudly told me he saved himself at least $500 doing it himself.

Down the road, I'm thinking Honda Civic, 2 door

If he hadn't enlisted, we would have sent him to mechanics school for German cars if he wanted That said, he's at least smart enough now to realize that a newer Audi is worse than a Mercedes

My son tells me it's the electronics that screws cars up. No different than the HVAC industry I work in.

 

[paulsharvey]

I don't know the quotes he got on the 100k PM service, but let's say $1800 or so; for plugs, coils, timing belt, water pump, and all fluids. That does sound crazy; but that's far less cash than even 4 months of payments on another car. It's a hit for sure, but then he's good for another 100k. He likes the car, has a steady income; I would just have the PM service done and keep driving it.

If he doesn't have the cash for the service; I would consider lending him the money for it.

All this is based on a good functioning car, that meets his needs, and just needs a service. If there is reason to think it has bigger problems, that a different story.

 

[paulsharvey]

I would caution against some of the 'smart' moves; such as buying a $1000-3000 compact car because it's cheap; if he's the type that is gonna want a nicer vehicle anyways. I know lots of people that will say; I'm just gonna buy this Ford Focus and drive it; then after 3 months of driving it. and parking next to the F250s and Chevy 2500s, and escaldes, they Need to buy something more manly. Then you have 2 vehicles, 2 insurance payments, 2 tags, ect. If you know yourself, and your not gonna be happy driving the Focus, don't buy it just because it's the 'smart' move.

Before anyone wants to attack, I drove the heck out of a Saturn station wagon and later a Toyota Highlander; and parked next to much 'cooler' vehicles, because it was cheap/paid for. I also probably trailered and hauled more with that highland than a lot of F250s.