Ok...need a little advice here. Should I purchase a car or house first?? My situation currently: I have a car now but, it is in my Dad's name because my credit was so bad. So, my name is not on the car at all. My payments are about 500.00 a month (which is kinda hurting me). I live in a one bedroom apartment with my little girl. I want to move to a 2BR or get a house however, my salary is not enough yet to afford a house (to the best of my knowledge). Come on you guys give me some advice. If you need more if on my situation let me know. AAAAAAAAAAADvice needed
I think you need to figure out what best suits you. If you KNOW you aren't going to qualify for a house - then perhaps the car would be the better thing to do at this time. Make sure you pay on time and you can build your credit. IF you knew you were going to buy a house in the next six months - then I'd tell you to wait on the car. But, it sounds like it would might awhile before you could afford a house. Just my thoughts.
Couple questions... How much do you have saved? Can you pay off or have someone take over payment on our car? I
mommy2cats, That was so refreshing. THANK YOU. I really don't have anyone to ask about these things, THX. So, get the car and pay on time...sounds like a plan.
Well, this is not going to sound good but here goes. I tried to give the car to my sisters but, they can not afford the payments (which I can understand). So, I was just going to let it go as a repossession. If I did that how much would that bring his credit score down????? He has some really good scores. Otherwise If I trade that car in for a new or even a used one it is going to put me sooooo upside down. I already had to roll $2,000 into the car I have now from a wreck I had.
the repossession should not even be an option.... you should get a care in your name and use this car as down payment.. upside down is better than trashing dad's credit with a repo... also since his credit is good, maybe he will agree to cosign for you a car if you need to avoid getting high interest rate... if you buy a modest vehicl, with rebates and deals going now, you should definitely be able to lower you payment from $500. the money you save with the lower payment, you bank for down payment for house or for larger apt. that wasn't you posting about the bmw was it?
Well, this is not going to sound good but here goes. Shame on him for Co-signing for you. Teach him a lesson for doing you such a great favor. I mean it doesn't hurt you at all to let it go to repo. I'm always a big fan of screwing someone who went out of their way to help me out. scott
House first. Once PRMs see a mortgage on your reports, you will be bombarded with car finance deals (as well as card offers). That little girl would love more play space ) Sorry, did not read all the posts. I think that if you not making enought to afford a house, you can work on buiding your credit for when you are ready to buy a house, but also come up with a plan to increase your income so that when your credit is rebuilt, income will not be an issue. You may get more for the car by selling it yourself rather than trading it.
Okay, I've thought about this before posting because I don't want to sound judgmental - which is not my intent here. First, if you let it go for repossesion - this is not YOUR credit you would damage! If he has good scores - they will certainly drop and you will do 7 years worth of damage to his credit. It's kind of one thing when we do stupid things to our own credit - but it's another when it's someone else's. Espeically after they tried to help you out. I'm sure that isn't your intent - you are just looking for a way out of a bad situation. Are you presently able to make those payments even if difficult? Can you throw a little extra each month to pay it down and then try to sell the car? Another thought is if you had trouble buying THAT car without a co-signer - how would you do it for another? Mommy2cats
You are correct I am in a sticky situation with the car...and yes my Dad helped me out big time. I have tried serveral times to give the car anyone of my three sisters but, noone can take over the payments. I have been throwing in a little extra each month. The car I want is a BMW (and yes that was me posting over in general lounge). That is my dream car. I could settle for a Nissan Max but, I would still want that BMW. Mommy2cats, that is true about getting another car and probably needing a co-signer. If I keep that car it is going to put me sssssssssssssssssssssssssssssssssoooo upside down...in other words if I got a little Corolla or something which is usually 250.00 to 300.00 a month it is going to run me about 500.00 once I put that car on there. So, there I am stuck in the same boat. I might try to sell it and even look into refinancing it perhaps.
Buy the house first. I know that's going to mean a long period of delayed gratification for you and doesn't help your current car loan situation. I took the bus for years, and when I did have a car or a truck, they were so old, beat up, and/or unstylish that people would point and laugh - literally. Now people are flabbergasted when they fins out how much real estate I own, but a large part of it is due to not making car payments every month. I'm not trying to show off; i just wanted to point out that if you take all the money you make in car payments it can add up to a lot. And real estate will be much better security for you and your daughter.
I had a 1k deductible plus, the cars value was down. So, it left me owing 2k. I was trying to make ends meet by paying less on insurance each month which means the deductible is going to be higher.....
Now that is the more responsible way of going about it. Then, when you DO have your house and car - you can have it with a clear conscience. We all get into bad situations - and many are not our fault. Many, many stories here of people who are here because of things beyond their control. You do have control over this. Maybe not how you'd LIKE it to be - but you do have control. Heck, I'd like a Porsche. But I know I can't afford it (at this time anyway - think positive after all). I could go out and buy one - but then it would ruin everything I am trying so hard to correct. Credit repair isn't all about running out on our debts. There's been tons of discussion about that. Mommy2cats
I ditto what many on here have said. A house is a much better thing to have. There are other ways to get around other than a car (although i guess it depends on where you live and work). Moreover, if you do need a car you certainly don't need a BMW. Purchasing a car is NOT an investment. Buying a house IS. But more importantly you need to work on responsibility. Allowing a car in your dad's name to be repo'd is not a sign of responsibility. You need to save money and work on improving your credit first.
First of all, I need a car maybe not a BMW. But I am paying payments now on a car that is not helping my credit. I am not trying to ruin my Dad's credit at all. However, a car in my name would surely help scores (i guess). So, far I have been re-establishing my credit. I currently have two credit cards. And I am possibly going to take out a loan just to round of my CR.
Some questions for clarification purposes.. You have two credit cards...are you carrying a balance on them? You say you want to take a loan? Do you need money? If not, why do you want to take out a loan? Will you be able to afford to pay it back? If you have positive items on your credit report then that should be enough. I don't own a car (b/c I don't drive) and my credit is perfectly fine. You mentioned your credit had been so bad that you couldn't get a car? Is your credit better now or do you still have negatives?
the reason i suggested that she get the car first.. is because she seemed to doubt the whole house thing. psychologically (sorry,doc) if you would even consider a car repo, maybe you are not ready for the long term committment of a house? how much money do you have saved? i know that with kid, you probably need a car but you should maybe look at refinance.. how old is the car? and for the house purchase... what do your scores look like?
