Used Car Loans

[Nyboy]

My nephews truck died, it had a long life and was time. My nephew has no money, I told him thats what used car loans are for. Thats the way I purchased cars when in my 20s. The most he wanted to spend was $1,500, I said I would cosign a loan helping him build up his credit. He went to my bank chase, was told the lowest they loan on used car was $6,000. I then called a small saving bank that I also used, was told they don't even make used car loans anymore. No used car lots carried cars in his price range, would have to go though private seller with no chance at financing. He found a ford f150 truck from private seller , I had to loan him the money. Doing nothing to help build up his credit. I really feel sorry for young people just starting out, they are force to borrow much more money if they don't have the cash.

 

[Carol Dee]

You are a great Uncle. I agree that things are harder now for those just starting out. Son took out a loan 7 years ago for a house he really could not afford... (No down payment required!) Then when he nearly lost the house because he/they could not keep up with the payments and wanted to refinance. It was nearly impossible because banks,etc... wised up. Finally he was able to and brought his payments down by almost $400 a month. Whew.

 

[so lucky]

Carol Dee, it's not that the banks wised up: They got caught cheating to make $$ off of people who didn't know any better. Those big cheating bank CEOs need to get an attitude adjustment and 30 years in jail. Instead, they get a slap on the wrist and a wink.

 

[seedcorn]

@Nyboy the largest reason no one wants to loan on used cars is because people (not all but way too many) buy them, drive them until something breaks (maintaince?, they don't pay for any of that), then they just cuss and walk away leaving everyone hung. And get away with that!!!! Making the rest to pay for them.

When I was younger, you rented, saved money for down payment, then bought a starter house and worked your way up. Now, buy a house they can't afford (payments, insurance, maintaince,etc) and wonder why life is tough. Meanwhile, they buy anything that they want, not even thinking about using extra money to get ahead or pay down loans. Everything is credit based on what they bring in-but they forget about paying credit cards off.

 

[Nyboy]

I just feel bad for young people who are just starting out. If I wasn't able to help my nephew would of had to buy a much more expensive car so he could make payments.He would of had to borrow $6,000 instead of $1,500 to get a car without paying cash in full Times have changed I remember needing a car and getting bank loan, Banks back then helped you acquire things need .

 

[seedcorn]

Why a gas guzzling truck instead of a small fuel efficient car?

Know nothing about your relative, did he save while living at home to have a start in life?

Does he have money for things he wants? Video games, drinks, parties, movies, concerts, etc.

Son has girl friend that always cries she is so in debt from student loans (I understand that) but yet has $$$ for things she wants. Those she owes, they'll just have to wait. Yes, I'm praying my son will get over lust and see her for what she is.....

 

[Carol Dee]

Why a gas guzzling truck instead of a small fuel efficient car?

Know nothing about your relative, did he save while living at home to have a start in life?

Does he have money for things he wants? Video games, drinks, parties, movies, concerts, etc.

Son has girl friend that always cries she is so in debt from student loans (I understand that) but yet has $$$ for things she wants. Those she owes, they'll just have to wait. Yes, I'm praying my son will get over lust and see her for what she is.....

Don't hold your breath @seedcorn ! That is #1 reason son found himself so deeply in debt. She was always able to convince him they could afford this and that and the PERFECT house, no fixer upper for her. That is all water under the bridge, 2 Grandchildren I cherish and an EX-DIL later, things are getting better slowly for him.

 

[Rhodie Ranch]

Dave Ramsey. Not my fav but some of what he says makes sense.
Clark Howard. Again, not a fav but balancing him with Dave will really help anyone trying to get out of debt.

Do credit unions make small loans? Maybe not a car loan, but a personal loan?

 

[AMKuska]

I couldn't afford to rent a home. Rent here starts at $1,100. My mortgage is way less than that. Can't imagine saving enough to get ahead and paying rent. Even renting a room in a house is expensive.

 

[seedcorn]

Rent is more than buying the same value of house? No problem with buying but make it within your income. See way too many kids first house is better than their parents and suddenly they need parents/g'parents bale them out. My kids do that, go belly up.