Is the interest rate worth the credit history?

[Tinhack]

He was allowed to take so many pounds of personal belongings. So he took his Ford Maverick and drove it on the Autobahn.

My second wife had a Ford Maverick when we got married in 1978. I tow-barred it back to Ohio filled with her worldly possession. That was the worst car I ever drove. No power steering, no air, plastic seats and crank windows. It did garner a premium from a dealer that wanted it though. The car did look cherry in its rust-free Powder-Blue color.

 

[MossRoad]

I had a friend that had a 70 Ford Maverick with an automatic. I had a 70 Nova with a stick. Both had L6 engines. We'd drag race on a local street....

No one could tell.

 

[ultrarunner]

Never cared for the Maverick and even had a 302 V8 Grabber...

 

[Sigarms]

I feel like we're cruel parents...

Boy is moving along with wanting to trade in his Mercedes as a potential ball joint along with issues on his sound system not working now seems to have broke the camels back on keeping the Mercedes.

5 of his good friends in the local area around us ALL have had their parents outright buy their cars (most brand new) and we're forcing our boy to buy his LMAO (although we will help him on our end interest free depending on route we take).

Don't get me wrong, he didn't ask for us to buy him anything, but I was asking how all his friends could afford new cars under 20 years in age as I saw one of his friends in another different car.

As a father I really wish I would have put my foot down on him buying that Mercedes a couple of years ago, but I told him it was his money and he's worked hard, been good as a son, and he could do what he wanted to with his own money, even though I thought it was a mistake. This is one case where I was hoping I could have been wrong. Hopefully he'll learn his lesson, but I'm not certain. Had to put my foot down on saying no help on a Mazda Miata convertible LOL (but dad, I can get my duffle bag in the trunk was his reasoning).

Told him he's an adult now and he can buy anything he wants on his own if it's a convertible he wants.

 

[hiddentacocatneddih]

My son want my old F350 gasser when he can drive. First time he takes it to a gas station, he will change his mind

 

[CloverKnollFarms]

Kids learn the hard way. We can do our best, but they think we are idiots. So, I let mine make choices, as long as they aren't life altering. They will learn like I did.

 

[ultrarunner]

My nephew really wanted the super clean 96 F150 4wd 5spd pickup I had and I gave it to him.

He took good care of it but the gas kept him broke filling the 2 tanks.

Best riding truck I have ever driven and the bench seat super comfortable...

I told him just take care of it and he did.

Off to college and sold it for 6k so good all the way around.

 

[Sigarms]

My son want my old F350 gasser when he can drive. First time he takes it to a gas station, he will change his mind

Don't you know, Mercedes requires premium gas? LOL

He always complained about that.

He's going to have to learn how to budget his money and that's something we're going over this weekend as his grandmother is having a birthday party.

He was always good at saving living with us in high school, and now that he's in the air force, he's pretty much broke now. BUT... he has his cell phone and he buys all of his food on his own! (apparently the mess hall on the base is closed for renovations).

Of course the "Benz" is keeping him broke with maintenance along with premium gas, but for some strange reason, he never listened to us on exactly how much gas he wastes driving from base to home to hang with his buddies on the weekend.

I did have to laugh... I saw the father of a high school classmate of my son who is in the air force as well (both boys actually bumped into each other at the mess hall when they were in tech school). The father of his friend asked me if my son is broke like his son (who is stationed in Korea). I had to tell him yes, but I also questioned if it was because he was stationed too close to home where it was only a 4 hour drive.

 

[hiddentacocatneddih]

It's a young airman stereotype to have a car eating up all your money.

I had to counsel a couple guys that selling their camero with a 20% interest loan and $800 month car payment was the only way they would ever afford to move out of the dorms.

 

[Sigarms]

Ended up buying a car yesterday.

When I found out what the interest rate would be on a used car loan for a 19 year old (even with a solid one or two year credit history AND being in the Air Force), I just paid for it outright, and he can make interest free payments.

To me the interest rates they offered was raping him.

Amazingly, everything worked out with his Mercedes. Didn't work in the trade in value on selling price, but afterwards the guy selling the car offered to buy it for his own kid after he test drove it with my boy, and the cash offer wasn't bad considering the I found out yesterday driving 2 hours to the dealership that the Mercedes AC wasn't working because that's the car we were driving LOL (wasn't planning on a trade in).

 

[3Ts]

I feel like we're cruel parents...

Boy is moving along with wanting to trade in his Mercedes as a potential ball joint along with issues on his sound system not working now seems to have broke the camels back on keeping the Mercedes.

5 of his good friends in the local area around us ALL have had their parents outright buy their cars (most brand new) and we're forcing our boy to buy his LMAO (although we will help him on our end interest free depending on route we take).

Don't get me wrong, he didn't ask for us to buy him anything, but I was asking how all his friends could afford new cars under 20 years in age as I saw one of his friends in another different car.

As a father I really wish I would have put my foot down on him buying that Mercedes a couple of years ago, but I told him it was his money and he's worked hard, been good as a son, and he could do what he wanted to with his own money, even though I thought it was a mistake. This is one case where I was hoping I could have been wrong. Hopefully he'll learn his lesson, but I'm not certain. Had to put my foot down on saying no help on a Mazda Miata convertible LOL (but dad, I can get my duffle bag in the trunk was his reasoning).

Told him he's an adult now and he can buy anything he wants on his own if it's a convertible he wants.

You can't protect them forever and making mistakes (and learning from them) early in life is better than later since they still have time to correct it.

In my case, my son received an offer of a $25k loan at a low interest rate (with conditions) when he graduated from college. I counselled against the loan, but he took it anyway and bought a bunch of top of the line stuff. It took awhile to pay it off and in the process, he learned about depreciation and interest and loan financing in general.

 

[Torvy]

Glad it worked out. Interest rates on used are almost always higher than new. We got 0% on our '18 Outback, a barely used '17 was like 4% and despite a lower price, would have cost more.

The only drawback to you carrying his note is that it doesn't help him build credit. Make sure he has a low credit limit card and pays it off in full monthly. Cheap, easy way to build credit.

 

[hiddentacocatneddih]

Ended up buying a car yesterday.

When I found out what the interest rate would be on a used car loan for a 19 year old (even with a solid one or two year credit history AND being in the Air Force), I just paid for it outright, and he can make interest free payments.

To me the interest rates they offered was raping him.

Amazingly, everything worked out with his Mercedes. Didn't work in the trade in value on selling price, but afterwards the guy selling the car offered to buy it for his own kid after he test drove it with my boy, and the cash offer wasn't bad considering the I found out yesterday driving 2 hours to the dealership that the Mercedes AC wasn't working because that's the car we were driving LOL (wasn't planning on a trade in).

Hearing he is usaf means the interest goes up 5 points. Guaranteed easy money

Lightstream is a good source of used car loan if your credit can get you in. They don't take the title. Low fee. Low interest.

 

[Sigarms]

He has a credit card for the last 2 years. Not a high limit, but it's always paid in full.

What I was told is because of his young age and limited credit history, a car loan could help his credit, but the interest rate was way too high IMO just to build up his credit line.

The interest saved for 3 years is basically paying for his car insurance.

Already worked up a spreadsheet with his payments, next up before he leaves back for the base today is hitting is going over his budget numbers. You can lead a horse to water, and I'm hoping this horse will drink on his own...

 

[Sigarms]

Kid is happy with his buy. Better gas mileage and inevitably lower maintenance costs, and he can do a lot more work himself on the car himself.

Texted me this pic Early Sunday morning as he and a buddy were going hiking...

 

[ultrarunner]

In High School my nephew really wanted my long bed 96 F150 4wd extended cab...

We made the deal and he took good care of it but no longer has it.

It was taking all his money to keep the 2 gas tanks full plus the minor mods he wanted to do.

Sold it for a good price and learned a lot... even surprised his folks with the skills he picked up...

 

[oosik]

I bought my son and his wife their first car. They hadn't had it a month and an accident totaled it. Nobody was hurt. That was the positive take on the accident. I gave them my lightly used Ford F-150. Fortunately - it's still in great shape. He is able to work from home and does not drive much. Lives in Spokane. I really HATE driving in Spokane. The Taco Wagon just doesn't mix well with all those city drivers.

 

[Sigarms]

I bought my son and his wife their first car. They hadn't had it a month and an accident totaled it. Nobody was hurt. That was the positive take on the accident. I gave them my lightly used Ford F-150. Fortunately - it's still in great shape. He is able to work from home and does not drive much. Lives in Spokane. I really HATE driving in Spokane. The Taco Wagon just doesn't mix well with all those city drivers.

I would have preferred he just buy it on his own, but being he is in another state, being 19, and living on a military base, I have no doubt his interest rate would have been even higher than the bend over price the dealer in NC told me he would pay.

For just a 36 month loan on his own, it would have cost over 1k a year in interest alone which I thought was beyond ridiculous for 3 years.

The issue with Kids today is they look at their monthly payment, figure "hey, I can afford that monthly payment", but don't look at the total amount paid back on the loan with interest.

Nice thing was the car was under 11K. With the guy on the lot wanting to buy his old car for his own son, his monthly payment came down due to the principal owed, and his 36 monthly payments are more than manageable on his end.

Once the car is paid back in full no later than 3 years, after that, title goes in his name everything will be on him including insurance under his own name.

 

[newbury]

The Taco Wagon just doesn't mix well with all those city drivers.

As long as you don't squish them or try to park it should mix well, like a big rock in a bowl of cake mix

 

[Sigarms]

As long as you don't squish them or try to park it should mix well, like a big rock in a bowl of cake mix

The first time driving the beltway around DC when I worked there, I was scared ****eless as a youngster driving a rental car.

Then when I took my "beater" 72 cutlass and I figured out as long as I don't care if I hit anyone or anyone hits me, I don't have a worry in the world on that roadway