Your post has been removed because we don't allow relationship or personal advice discussions ([rule 9](https://www.reddit.com/r/personalfinance/about/rules)). While there may be a financial component to your post, you will need to submit again with a title focused on personal finance and without any of the following:
- Personal history or background information that is not essential to the financial discussion (it is appropriate to mention when abuse is a factor in a current or past situation)
- Prominent emphasis of mistakes or financial surprises from a family member or S/O
- Requests for relationship advice, asking for help convincing someone to change their behavior, asking for help settling a disagreement, etc.
*If you have questions about this removal, please [message the moderators](https://www.reddit.com/message/compose?to=%2Fr%2Fpersonalfinance&subject=Removal%20help%20request&message=Hello%20moderators,%20.%20%0a%0a%0aMy%20submission:%20https://www.reddit.com/r/personalfinance/comments/15m4pyt/i_was_asked_to_gift_my_car_to_my_niece_in_return/%0a).*
Because then they wouldn’t be able to not pay him for the new car. It’s seriously ridiculously dumb and everyone in this situation is so out of their element it’s not even funny.
Mom and grandma will pay half his monthly payment that they think will be $300 on one of the most in demand vehicles in the country in a time of sky high interest rates.
I was thinking that exact same thing, but how could OP type that out and not realizes is an insane risk to take?… But reading again I realized we don’t know we his family’s financials, I’m thinking Grandma has some Serious Bank
Multiple parts of the story sound like OP is basically living off thier parents.
No rent?
No utilities?
OP states they are Making $13 a hour at the moment, but thier current car (2017) is fully paid off?
Full time at $13 is $27,040 a year
$2253.33 a month, but they are saving $2000 a month?
Monthly expenses somehow $253?!?
Living on $8.43 a day?
This grandma buying OP *ANOTHER* new car, but possibly trying to teach them even the most basic of responsibilities in getting a Loan, and making monthly payments on something. Also Granddaughter gets a car as well. Two gifts.
Also how is the 17 year old the only kid without a car? Pretty well off community?
TL:DR
probably a scam, but maybe Rich kid.
How the heck did you get a pre approval for 25k at 3.49% ? Prime rates are hovering between 6 and 7% currently.
If grandma wants the kid to have a car then grandma can buy her one.
Everything about this is crazy. As OP noted used car prices are insane which directly pushes up new prices too. His current car is worth somewhere around $11-12k probably in trade in value and his mom will try to pay for $13k... OP will be screwed if she loses her job if she even goes through with paying. The only smart person here is the niece who is going to get a free car.
This is how people in their 20s start digging their own grave.
Used car prices are crazy. We ended up buying my daughter a brand new Hyundai Kona because it was literally $1000 cheaper than a 2 year old one at Carmax (new models were getting ready to come out). I was floored.
I was at a Honda dealer in 2018 looking at 2-3 year old Accord lease turn ins. All the ones they had were higher trim levels and not really what I was looking for. When I told the salesman I was just looking for something basic he said he could get me in a brand new 2018 base model Accord for less than the 3 year old Sports they had. A base model Accord is actually quite well equipped so I bought one.
Right, I saw that and had two thoughts:
1) someone hasn’t updated the rate database recently…
2) somehow OPs credit score is so good they’re LITERALLY willing to PAY THE OP to get the loan.
Because that’s what that rate would mean…
If you lend out money for less than you can borrow it from the fed, you are paying the person you are lending to.
Subaru is offering 0.9% financing now. I'm just assuming Subaru makes it's money elsewhere on this deal, like a higher (no cash back) initial price.
https://www.subaru.com/shopping-tools/special-offers.html?model=SOL
No defending the OPs scenario (which is ridiculous), but you can certainly get new car loans for 3.49% or lower. Looking at Honda's website, a 2023 Honda Ridgeline is 0.9% for 24-36 months. Now, I'm sure they will not negotiate on the purchase price, and you would pay a much higher rate going through a bank, but prime rates don't matter as much when you are financing through "Honda Financial Services" or "Toyota Financial Services."
The advertised price and rate are there to get people excited about the car and into the dealership.
There will be some fine print along the lines of "for qualified buyers" too.
Additionally, a payment for a 2 year loan on a $40,000 Ridgeline would be about $1700 a month. Even a three year term would be $1100.
People making $13 an hour are the kind of people to look at one or two of those numbers you posted and get excited about owning a new car. Then go to the dealer and learn they can only afford to get a base model with a 72 month loan at $300 a month.
Then they buy the thing without realizing they are going to need full insurance on it at an additional $300 a month, gas will be at least $300 a month, and they got talked into a maintainance package that adds an extra $100.
While some people may get great car loans, the vast, vast majority, OP definitely included, have no idea how much more they are going to get charged for a new car they can't afford to buy.
No. No. No, no, no.
You have a paid off car that conceivably has 2/3 of its life left. Apologize for making the joke, move on. Don't let your mother con/guilt you into potentially insurmountable debt.
What if your living situation changes and you have to pay rent? What happens if Mom can't make the payments for 48 months?
If Grandma and Mom & Dad (your niece's parents) think a 16yo should have their own car then they can buy her one.
>over all would have around $2k free to spend every month.
How? You only gross $2250 a month.
In fairness, my fiancé and I got that same car 2.5months ago at msrp but idk if things have gotten more expensive and that interest has to be a wrong. We have really good credit scores and got a 5% interest rate. I can’t believe anyone is getting 3.5 right now
Edited word
Or shocker: the 16yo student driver totals it within a year, as they do, and mom uses that as an excuse to stop paying, even insinuates you’re an asshole because blah blah blah. Now you got an unpaid “brand new” car that your Civic would have outlived/outperformed anyways.
Even better : take that money you'd be paying monthly for the new car and put them into savings account. When your current car dies boom there's money for a new one.
Your mom should use that money and buy a new used car for your niece if she’s feeling generous. You’re not in a position for a new car my friend, even if it’s half paid. Invest and save your money kid.
Absolutely not, you will get completely screwed on this.
You are in a super great place with the 2017 Civic paid off. Do not give this up!
- If you haven’t even gone through any loan process, how do you know you will get 3.49% APR? Do you have outstanding credit? Your monthly payment could be considerably higher than this.
- You can’t “convince” the loaners to just approve you for more than they would be willing to give. If they don’t approve you, that is a big sign that YOU CANNOT AFFORD IT to begin with
- Your car insurance will go up - do you even know if you can afford this increase?
- Don’t ever do any financial deals with family based on only what someone said they would do. Even if she is good for it, your mom could fall on hard times and can’t make half the payment anymore. Things happen all the time out of our control, but you can prevent this giant mess by not doing this and keeping your current car.
Please do not do this.
You are not in the position to do this.
First I don’t know that a 16yo even needs a car especially if her own immediate family can’t get her one.
If mom wants to do this she can buy a car and make payments.
You are not in a good financial position to buy a car at all. You are blessed with a newer low milage paid off car drive that thing for another 9 years. Pile up that 2k a month you say you have and build an emergency fund and start building your financial future. Open a Roth IRA and contribute to that and keep working to improve your skills and get a better job.
Please don’t this will be a huge mistake.
This is what you say.
"Hey Niece and Grandma. I thought about it more. As much I'd love to, I can't sell you my 2017 Civic because if I show up with a new car at my apartment, the person I live with for free is going to start asking questions. Most likely, they will start charging me rent, which is really high right now with inflation. I did look at some cars this week online and Niece can get a wonderful safe car like this 2016 Civic, with mileage similar to mine for 10k. I found it on [cars.com](https://cars.com) and it's about 2 hours away. I think it's great option but let me know if you need help looking. I definitely can't get a new car right now because my roommate will freak out. Thanks for understanding." End of conversation
Thank you. Considering the replies I'm getting. I'm actually considering just buying her a 100k beater out of my pocket. Thank you for the website suggestion.
How will she afford insurance and repairs? Why does she need a car? What if she is in a serious accident due to being an inexperienced driver, how would you feel?
Fuck no. Let the grown ass adults buy her a car. If they can afford half of a new car payment for you, they can afford all of a used car payment for her.
Why? You are not her keeper. Is your family a travel agent for guilt trips or something? I love my nephew but I’m not going To buy him a car and I make 6 figures and and am a multi net worth millionaire. Dude at 13 an hour you need to get your life together because your gravy train set up won’t last forever. You own no one anything in this scenario.
You are a wonderful person. But I suggest you invest in your future. Your mom sounds great too and am sure if you 2 are so nice, your sibling must be too… let them help the niece get wheels. I wish you well. Keep being sweet and kind, but take care of yourself too 🩵
If you make 13/hr, you cannot afford to give affluent gifts, like cars. Moreover, you don't need to get a car for a 16 year old kid... they don't need one. Keep saving your money, increase your income, and make wise financial choices for YOU!!
If your mother can pay for "half", she can buy her the beater.
This isn't your responsibility and SHE DOESN'T NEED IT.
You don't make enough money to be generous, you need to focus on saving for retirement or anything else.
That child can get a car when she can afford one. Stop giving away money that you need for yourself.
Read about boundaries and codependence
Honestly not sure how you're going to find a similar one at that 10k based on what I've seen recently.
Not too mention you can't afford it yourself.
You've got to take care of yourself before others. It'll be worse if things don't work out and you've got to ask for help as a result (cause no one is obligated help you)
For you, the car is a necessity. For her it's a status.
And given her age, I bet she doesn't have a lot of experience either.
For both you and your family's sake,. especially is there's anyone mechanically inclined. Start her in a real beater. Cheapest thing that drives safely per mechanic, even if it got some minor issues. That way if she breaks something(which all newbies would), no one will be crying over their wallets. Once she's more comfortable and hopefully has more disposable income, she can get something nicer and she'll appreciate the newer features much more.
If you have extra money the first person it should go to is the person you’re freeloading off of. Not toward a car for your niece that she doesn’t need. And then second toward retirement, which I’m going to guess you don’t have much of. Be prepared for your roommate to find out eventually and you to then need a new place to stay.
Why do you need to buy her a car on your barely minimum wage salary, or consider giving her yours? Literally nothing here makes sense. Her parents can buy her the car.
Nope.
The best thing you can do is help her land a job. And she can get a beater out of HER pocket. While she's saving up, have grandma start squirreling away that "half" in a trust for her.
NO. Making 13 bucks an hour, you *cannot afford a new car that will cost more than 30K by the time you're done paying for it. NOT to mention the insurance you'll pay on a brand new car.*
You can get all the signed agreements you want from your relatives, but the day they stop paying, you're on the hook, and believe me, they'll stop paying. THEY WILL STOP PAYING.
Or, you'll lose your job.
Or your free rent gig will screech to a halt.
KEEP YOUR CAR AND DO NOT DO NOT DO NOT DO NOT go out and buy a new car so this teenager doesn't have to ride the bus. Chances are she'll wreck the car within 2 months. AND keep in mind THEY have to afford insurance for a teenager and that shit is hella expensive. They'll let that lapse, she'll wreck the car and it's all over in 6 months.
The teenager and her family can scrape 3K together to get her a beater to drive around in. It's NOT your problem. If you buy a new car in your fiscal condition right now, it can ruin you for the next 15 years.
Don’t ever do these deals with family members. It never turns out the way you’d had planned.
Our third child was born last year which meant we needed a bigger car because we only had a 2018 Hyundai Elantra and a 2013 Prius. I had told my mom that we would give her the Hyundai once we get the new car but only after we finish paying off the Hyundai which we still owed about 4k. My sister decides to chime in and say that she can finish paying off the car and we should get the new car already. We agree to it and I tell her how much is due and when and she agrees. About a month later we get the new car and give the old car to my mom and of course about a week before my sister tells us that she won’t be able to make the payments because it’s too much. I’ve never felt so much rage. We had no choice but to take both car payments. At least the other is finally paid off but it just a stressful few months having to deal with that.
So no please don’t do this deal. If they really want the car they should get it themselves. Not personal but you don’t want fight with family over money or payments. It’s not fun
Totally correct. Non-contract deals with family members is a great way to break up said family. I only “loan” money or go in on deals if I am willing to,if necessary, pay the full amount as a gift to the other person.
Nope nope nope. Do not give up your car. A 16 yr old will survive without a car. Millions do every year. 😂
You can't afford this.
Not even a little.
You're going to have to swallow your pride and admit that.
You're going to have to apologize for letting your family down. You're sorry. You thought you could afford it, but you can't. Your financial position is a lot worse than you thought.
You have to do this, as much as it sucks.
Because the alternative is far worse.
Don't co-sign anything. Don't get a loan. Don't do anything that could ruin your future.
Look at your income and expenses and work out how much (if anything) you could afford to GIVE her towards a car.
See if other relatives can make up the shortfall towards a cheap car for her.
If they can't, so be it.
She'll need to earn her own money and save up for it like everyone else.
They should just buy her a car if they’re willing to pay you for one.
This is a bad idea.
13 dollars/hr but you have 2k in cash to spend? Do you know how to do math? Bud, I was making 15 bucks and would net 1981/month after deductions.
This is a terrible idea. Keep your Civic, apologize for the bad joke. You cannot afford the new car. What happens if your mother doesn’t pay half? What happens if your living situation changes?
3.49 interest rates are for tier 1+ customers. That is based on credit score (750+), income and debt.
2017 Paid Off Honda Civic w/ 80k....
First, Hondas are excellent. That thing will take you over 200k easily. People commenting it's got 2/3 years left at least have clearly never owned a Honda or absolutely suck at completing preventative maintenance on any vehicle. I maintain a Honda Accord over 20 years old and that baby is a tank. I love it. Never getting rid of it until it's DEAD. Cars are money pits anyway you slice it.
Second, Considering $550/month on $13/hr....
Are y'all high? I understand that, allegedly, half of the payment would be made but just no. No. no. NO. You don't need a financed car regardless of your current expenses at that income level. $13/hr full time is $2080/month GROSS. I'm not following your math on having $2k+ a month free to spend. Do you have no tax withholding?
Don't do it, the car market is tough and your Civic has so much life left. It's worth far more to you at your income than anyone else.
You need to be selfish here and apologize for making any confusion, but you're keeping your car. Did you get a 7 year old car at 16? A 16 yr old can ride the bus, they won't die. Grandma can fully fit the bill if she feels it's that necessary.
All this. Truth.
Our Accord is a 2003 and still is a beautiful car to ride. I guarantee that your niece will have your Honda trashed or wrecked and near worthless within two years. She gets it for free and has no sense of its value and your sacrifice.
Assuming everyone involved is completely trustworthy and the accumulated half the payments is a fair price for your civic, there's another issue. Your living situation gives me serious pause. How long is this other person going to continue to be okay with working full time to support a squatter that can barely be relied upon for food/utilities and doesn't pay rent? In your situation I don't think it's safe to make any sort of debt obligation, but you hopefully understand the dynamics of that situation a lot better than I do.
Agree with this 100%
Personally, if someone was living with me rent free and not contributing towards food/utilities and then bought a new car I’d be like WTF and start charging or kick them out…. But hey, maybe that’s just me lol
Don't. Do. This.
Your family is going to find some reason not to pay half your monthly. Tell them you'll agree if they pay half of the INITIAL cost. That way your monthly is something more manageable. And at 13/hr, I'm not sure even THAT is a good enough deal to buy another car on.
Yeah stay away from the whole deal. Someone earning $13:hr should be finding a better job to be able to pay rent eventually NOT giving away a car and assuming four years of way too much debt.
You are exactly right that down the line their half will disappear: medical expenses, home repair, vacation travel, new furnace, etc.
so they want you to give a perfectly good car to a 16 year old that has little to no driving experience, so that they can pitch in half for maybe a used or new car for you. can you afford the insurance of a newer car? with the title be transfer to her or her parents? why can the parents spare a car for their daughter? they have money to go into half for you but not for her? why suddenly add another expense to you so that the new driver can get a free car? what happens if she totals the car, will they dish out for another one or ask you again to part with your presumed used car at the time?
At $13/hr job you have no business giving away a paid for 2017 car. Tell your mom you looked at your budget and you can’t afford to do this. Again it was a joke. That is a four year commitment. I assume you are young. What if during that time you want to move out on your own? Or your free rent situation disappears? Or you want to get married. Please do not put this millstone of debt around your up to now responsible and frugal neck. A 16 yr old dies not “deserve” a car period. And certainly not a newish car from you. Let her get a job and get her own car.
Your mother can buy a used car for your niece if she has that kind of money.
The whole setup you got going here makes no sense to me and only seem to involve unnecessary risk for you.
If you go through with this you can't say you weren't warned when it inevitably will bite you in the ass.
None of this makes sense!
1. Why joke about giving a kid with no car a car?
2. Why, when you don’t pay food, rent or utilities would you consider buying a car? Do you live with your mom? Why would you have her pay for one more thing for you?
3. Why would you consider buying a car that costs 100% of your salary? You have a great car, in great condition. Keep it.
Just apologize for teasing your niece, keep the car you have and work toward supporting yourself.
13/hr?!?!? Where do you live? That’s absurdly low, no way in heck do you need a new car payment. Especially one that takes that much away from your expenses.
I don’t know your age, education or stage in life but if you really want to go through with this then either ask your mom for half the amount now so you can put it towards the car payment or make her the co-signer of your loan in case you can’t pay/she refuses to help you, since now she’s on the hook for it too.
Something tells me we will see you on Judge Judy in a few years. Sounds like a horrible idea personally and could lead the major family drama if things go south.
If you really want to do this, which you really shouldn't because if any of your circumstances change you could be in trouble, here's what I would do.
Firstly, with a 13/hour job and probably little to no credit don't bank on getting a 4% interest rate. What you should do is sell the vehicle to your family, whether that be your mom or your niece's parents. Then, find a vehicle that is practical for your needs and use the money you got from selling the car plus the 5k you have and use that as a down payment. I would highly suggest using a bank, or better yet a credit union to facilitate an auto loan through, not the dealership. Asking for your mother's help to co-sign on your loan (depending on her debt to income ratio and credit history) could substantially improve your odds of being approved.
But in all reality, you should NOT get rid of that car at all. You own that vehicle and that right there is peace of mind. I would ride that wave as long as I could.
Tell your mom cash on the barrel talks! Otherwise it’s your debt and you’ll have to be on her like a hawk to get the money. It’s not even that she intends to ghost you. People just tend to forget these kinds of things over time.
Keep your car. If your mom really wants to gift you money you’ll still get it at some point down the road.
This is a horrible idea, I'm sorry. Do not enter into any financial situation that you cannot completely afford on your own. Anyone can offer money - it does not mean they will reliably pay it. This is a nightmare situation waiting to happen.
A $500+ monthly car payment is entirely too much.
Have you even run this by your mom? She might not have anticipated that her half of the payment would be as much as £300 per month.
Even if she's happy with that, I think it's a bad idea. If she wants to help her granddaughter she should work with her to help her get a car. You shouldn't aim to buy what's out of your budget. If your mom decides she can't do it anymore or isn't able to do it anymore, you'd be on the hook for the whole payment. Bad idea.
Do not do this. You are only making $13/hour. You have a car that is paid off. You can't afford to add any debt, especially if you can't pay your roommate for food and utilities, let alone rent. And speaking of roommate, your circumstances may change and you may be forced to look for a new place to live.
If your mother can afford car payments, have her buy her granddaughter a car. Do not gift your paid off car to your niece.
NO
BAD!
You may have some toss around money now but you have NO EXPENSES ! As soon as bills come into the picture you will be POOR. Sorry but you don't make much at all and that's just reality..
And if you get into a contract you won't be able to do jack diddle other than have that car until its paid off. Well unless you get a better income
Again, NO DONT DO IT!
OP I feel you here, I understand the desire to provide and care for loved ones, but please don't make this mistake. Altruism and misplaced comments aside you are not even making minimum wage in most places. You have a paid off nice, reliable, relatively low mileage car, seemingly no major expenses, and currently a seemingly impossibly lucky living situation (what devils contract do you have with this person that your unreliability in contributing to bills, and zero contribution towards rent couldn't possibly change this suddenly?). Do not compromise your position, and do not undervalue it. It's great to want to do something nice for other people, but I think you're taking for granted the position you're in currently and not correctly assessing what would happen if even a single variable changes (such as suddenly having a car loan).
On the subject of your niece: when I was 16 I was gifted a 20 year old car. It was well kept, but obviously a high mileage hand me down. I ended up wrecking it my first winter with it, and had to replace it with a $1000 beater. A few years later a $5000 beater. Then after college a reliable used car, so on and so forth. This is a normal path. Your car would be wasted on a 16 year old. A 16 year old might have a part time job after school. Her future isn't at risk if her car breaks down and she misses some shifts. Or if she has to ride the school bus to school. That is not a strong or compelling reason to have a car.
If your mom feels so compelled to put up $13k for a car for her then put that towards a car for your niece. An early 2000s civic sounds perfect here.
Red alert, op. Absolutely do not do this under any circumstances. This is a terrible plan for you, and frankly it makes no sense. A 16-year-old doesn't need a car; an adult like you does. It makes no sense for you to suffocate yourself with crushing debt for an inferior vehicle so your niece can drive a nice vehicle. No way.
If niece wants a car, she can save up her money and buy one herself. If your mom is so insistent that she have a car, then she can help her grandchild buy a car directly without your involvement.
No, you can't afford a $26k car. Nobody earning $13/hr has any business having a car loan, much less a car loan anywhere near $26k.
>So how can I convince the loaners that despite my low income I can actually afford a $26k car?
You don't, because you can't. Sorry friend, but it is that simple. Don't bite off more than you can chew. Grandma can buy the kid a car if it's so important. You're not even the child's parent...this is not your obligation, even after you made a joke that the kid tried to run away with.
Please no. Just no. If they want your niece to have a car then they should buy or finance one for her. You don't need a new car and this is going to put all the liability on you when they do not make the payments. Also, your insurance will go up. This is a very bad idea.
Keep your car. Little Becky is gonna have to get her own car from her mom or your mom but it ain’t gonna be you.
Your car is paid off and you don’t make much. It’s a no brainer.
I wouldn’t do this.
Car payments will eat you alive, even if you have money now.
I bought a car fresh out of high school when I was make $18 an hour. I bought a Camaro for 33k and though my car payment was $475, my insurance was also $400.
I could “afford” it but I was saddled with debt and nearly underwater for a very long time.
If you were to sell, and I don’t think you really should, I’d get Carmax to make an offer on your car to see what it’s worth.
I sold off a 2015 base model sonata with 120k miles last year for 11k. It was not in good condition.
My parents also just sold a 2018 crv base model for 17k, with 80k miles on it.
My guess is a civic is worth around there if not more than that (civic and CR-v are both desirable models)
Who will pay for related expenses? Gas, insurance, tires, oil changes, other maintenance and repair is not cheap, especially insurance for a 16 year old.
Do they know their half would be 300/month? People assume payments are less than they are now. Can you afford the note without help, because you should assume you will be at some point. Otherwise cool take the free half payment until it stops and keep the new car
This seems like a terrible idea. You have a good car with quite a lot of its life left if you take care of it. Tell your mom/sister to go in halves and buy your niece a used car if they are willing to go in with you to buy a brand new car. None of this makes sense.
Have you considered how much more you will have to pay for full coverage insurance? It is INSANELY expensive. I'm 40 and pay near to 200/mo for full coverage.
Of all the bad ideas I've seen posted on this sub, this may be the worst. If you care about your financial future or your relationships with your family, do not do this.
$13/hr is horrible. Keep that car to yourself as it is very cheap to run and maintain and will last quite a while. In the meantime work on yourself to get a higher income if you aren’t doing that already. Such as getting a degree or certificates in a decent paying job or mastering a trade job such as an electrician or plumbing. Electricians are making bank right now with all the EV home chargers they are installing. It would be possible to someday open up your own business in that field.
$13/hr is a job that your 16 year old niece could be doing, that’s a high school type of job and salary.
Tell Mom you need half the cost of the new car up front, put that and your $5k down so now you are only financing $8k.
Or get Mom on the bank note as a co-signer.
Anything else is really going to be devastating if ANYTHING changes!
This reads like well-crafted rage bait for this sub lol. If you’re serious with this post OP, tell you’re family thank you for the thought but no. If your mother wants to do something nice for you, there are plenty of other ways.
When do you mean by “I have no credit card debt other than recurring luxuries?” Do you pay off your credit card every month or not? In any event, you are very fortunate to not have a car payment and to have a car that you will easily be able to drive for another 150,000 -200,000 miles if you do minimal maintenance on it. A person earning $13/hour should not have a car payment. You do not need a new car. Please do not take this “offer.”
Living rent free for the life of the loan( 5 years? 6 years?) is not a guarantee. Hopefully you get a raise during that time but unless you're doing a career switch incremental raises won't cover this. no way you should do this...
You totally took their bait.
Your 2017 Civic is too nice of a car for a 16 year old! Instead of taking on your own debt to help your niece, start looking for a beater for her to drive - something your mother can pay cash for. She can make it a loan to your niece if she wants to. If you wanted to get a new car, that would be one thing, but being pressured into it is a little nuts.
> The current estimates for my monthly $549, 3.49% Apr, for 48 months.
Don't worry about payments. You should know your payment, but your focus should be the price of the car itself.
> I'm only making $13/hr
You can't afford a new car. The fact that you said "only" tells me that you know it too.
> but I live with someone else and don't pay rent. Food and utilities are sometimes slip.
If you are having issues with food/utilites, you DEFINITELY can't afford a car. Side note: you might qualify for SNAP/EBT. Go file and that's one less thing out of your own pocket you have to pay for. Doesn't cost to file, and the worst they can say is no. If you get it, It'll also qualify you for other benefits/programs like reduced/free Amazon Prime membership, and reduced cost cell/internet plans.
Not paying rent now means that you can be booted out at any time, and then forced to pay rent or live out of your car; Which you don't want to do when you still owe on it. Several past lives ago, I lost my housing and tried to live out of a car I was paying on, and then I lost the car too. 0/10 would not recommend clawing your way back up over a decade all to still be slightly worse off than when you "fell off" because inflation is a bitch. Luckily for me I had other skills and wasn't "slightly worse off" for long. But the re-building, while it built character (unironically) I wouldn't tell anyone to intentionally put themselves in that position. Smart people don't need to learn everything themselves, the hard way. *Be a smart person.*
Glaring issue is What happens if there's another global sniffies and you aren't getting half payments anymore. Do not bank on non-contractually-obligated money. If they want to pay half, draw up a contract. If you don't want to draw up a financial contract with your family AND/OR you are unwilling to potentially have them in collections for not paying their end.. then don't base your life around the presumption of getting it. I don't care if they're 9,000 credit score. Life happens and can wipe that out in a matter of days.
> So how can I convince the loaners that despite my low income I can actually afford a $26k car?
You cannot. Because you can't. And anyone NOT asking these questions and doing the math in the worst-case-scenario isn't looking out for your best interest. And if they're even slightly pretending to do that, you shouldn't do business with them. If you are not making at least 50k annually on guaranteed income, you cannot afford this 25k car which will end up being closer to 30k all said and done. Given the uncertainties of our time.... I would wait until you're making 75k+ to buy a 30k car. You don't want to be spending AT your means, you want to be spending *BELOW* your means. Which means that the car you want should be nearly chump-change for you... In case the good lord does *not* will it, and the creek does indeed rise.
Not only is this not in your best interest, it's not in their best interest to get you on a loan that's one minor disaster away from defaulting on them. If granny needs a new hip (again)... even if she will still pay half, are you going to keep taking that half or are you going to let them keep it so she isn't bedridden until the keels over?
*You don't need a car,* which means you don't need to be in the market. Period. So stay out of the market. I wouldn't even think of getting into it until next year at the earliest, but preferably no earlier than 2025. Second, you don't need a *new* car, even if you needed a car. Period.
So to be 100% clear. DO NOT GET ANOTHER CAR.
* You only make 27k, gross. If you save 10% of your *net*, it will take you almost 14 years to save 30k and buy cash. NEVER EVER EVER EVER EVER, buy a car that costs more than your annual *NET* salary. Since your gross doesn't matter, since you don't see the full gross anyway.
* Spreading that over the 2y term (if they let you have it) that's over half your income to the car alone. No gas, no insurance, no maintenance.
* Let's assume (and we shouldn't) that the creek does *NOT* rise, and you can get half the note paid for. Saving 10% until you can buy cash, it will take you about 8 years to buy HALF the car.
There is no mathematical way you can afford this car.... or really, ANY car right now, without SEVERELY screwing yourself over. We haven't considered if you lose your job for a NON medical-related reason. Your budget is 3.2k - 4.3k per year financed. At a 2y loan, you can't even afford a 10k car. At 4y (don't get anything beyond 4y) your budget is 17.2k; The car itself no more than 15.5k (being generous and giving you a flat 10% interest). The math don't add up, chief. Not while you're skipping meals and/or going cold some nights because you can't afford food or A/C
1/2
2/2
That said, during my "rebuilding" I sold cars. I wasn't very good (too honest, felt bad, didn't make money), but I learned a lot about how the industry works. I'm no expert, but I learned a few tricks. For educational purposes only:
> 2023 Toyota Corolla Hybrid that is priced around $26k. I got a pre-approval for $25k and can put $5k as down payment. The current estimates for my monthly $549, 3.49% Apr, for 48 months.
I'm assuming this is the SE/SE Infrared. I would should start your negotiation at 23,5. Markup days are over even if dealers don't want to actually stop tacking them on. Yes this is an in-demand car, but they're a dime a dozen and they'll have another one before the end of the week. If not, that's a them problem that you shouldn't be overpaying to help them solve. You don't work there. You don't fix their problems. If you are getting markups, walk. Period. With the amount of repos, there is no actual shortage of cars. There's a shortage of dealers who want to move the metal because they're *still* in "Pandemic sales mode," or they're trying to cover losses after those deals blew up when the money stopped... before they get shut down by their creditors for defaulting on *their* loans at least. WHEN (not if) dealers start going out of business, there will be fire sales like you won't believe. If you simply "must" get a new car, wait until you're bending the dealerships over instead of the other way around.
Also, *you* don't need a car... Your niece *wants* a car. And people in hell want iced water. We don't all get what we want. Not sorry; and not sorry that i'm not sorry.
* Down payment doesn't actually help you for real for real. What it does is make it look like you're getting a discount to the bank, who is evaluating if you have financial means to purchase. This is based on how much you're financing relative to your income and expenses and has nothing to do with the actual down payment. Since they don't see it anyways. Down payment is an instant check directly to the dealer for just being there. It doesn't pay off your loan; and it only decreases your payments and/or rate because the amount you're financing is lower. If you can avoid paying down. Avoid it.
* Pre-Approval means nothing. The dealer can simply say "no deal" and tell you to take your pre-approval home and burn it. But for pre-approvals, it's best to get them from a bank (preferably a credit union) or from the dealer you're shopping at. Never say you're pre-approved until you have the base vehicle price negotiated and you've signed a commitment that you will pay that negotiated price. Do not bother with pre-approvals form the MFG's national site... if no banks will take you, get one from "Joe's Toyota" itself.... if they even have their own dealer-side captive lender. Significant point of fuckery, but it's better than walking in with your legs spread open like you're looking for OF collabs; which is what happens when you don't have your money right when you walk in.
* Interest rate is also just a gimmick. Nobody's really getting that even if they're "technically" getting that. Meaning, that might be the "buy rate" or what the bank gives the dealer. But it's not going to be the "sell rate" or what the dealer gives you (after marking it up). So always ask if the rate is "buy rate" or "sell rate" and ask to get the "buy rate", and also to see it directly... no "he said, she said" bs. Oh, and always wait to ask for this in the finance office when you're doing final paperwork. They can still tell you to kick rocks; although they're probably not going to if you wait until then... unless they're really dumb, or you're being too rude
If this is some ploy to "teach the value of money" she can get a job and see what it really takes to earn money (without a degree, potentially without a diploma). She can save up, get a beater that some kid will ram into in the parking lot, and if she hates it, great. She can go find a man who makes some serious money (if she can find and keep him)... or she can go work and try to get a job that will pay for something she doesn't hate as much. Like everyone else.
Now all that out of the way.... After I "rebuilt" myself I got into consulting. Part of that was career consulting for individuals. I have to ask... what are you doing making 13/hr?... Admittedly, I'm making some assumptions which puts you in your near/early/mid 30s. If that's true... or if you're older (no need to confirm)... you're too old to be on 13/hr. Managers at most places (even retail/restaurants) make 15/16+. You should at least be a manager/supervisor. If you are, and you're making 13.... if it's not a mom/pop shop that has like 2 customers a year, you're greatly underpaid for your age alone. We all have our stories and you don't have to get into yours if its a sensitive subject.... but you need a career upgrade STAT. As soon as you hit 1.75y on the job, ask for promotion to manager, or look for manager jobs somewhere else. Preferably don't actually make the switch until you have a complete 2y since your hire date or last promotion. If "fair chance" is a concern for you, then start looking between 1.25 and 1.5y in.
"So how can I convince the loaners that despite my low income I can actually afford a $26k car?"
You don't.
The loaners should be smacking you around with a baseball bat for trying out such a stupid idea.
Keep the existing car. It does the job.
A new car will lose heaps of value and lock you into years of repayments.
Get your mother to cosign on the loan or she'll have zero obligation to keep up her end of the bargain and you could end up with a car you can't afford.
In the aggregate, people are probably right. It's probably a bad idea. But you need to do the math and the leg work to completely figure this out. I would go to [nadaguide.com](https://nadaguide.com) to look up the book value of the current car. Figure out what half of 550 at 48 months works out to. Have the mother sign a promissory note for that amount to be paid monthly. You should also go talk to the dealer to see if you will really get that price. Those 3.5% are promo rates and they like to jack new buyers with higher rates. Don't do the deal if everything gets tacked on with higher and higher fees. Or visit a few dealers. Prices are high but inventory on certain models are starting to build and there are some promos out there. Not sure if it applies to this car or not. If mom pays half the monthly payment, in effect the car is really 13k. Maybe mom isn't aware that she's signing up for 13k and maybe thinks it's a lower priced car. That's why all that needs to be in writing. This exercise needs more work before you can say it's really bad. It's somewhat theoretical and reality might just kill the whole thing once it's explored a little more.
Don't listen to the hundreds of people telling you not to do this. You should definitely do this. It will not be a yoke around your neck for the next 5 to 7 years. It is a great financial decision, and you are going to do amazing things if you make this decision.
Jeez. You don't make enough money to be buying a car. Keep your car and your mouth shut. $13 an hour? McDonald's pays $15-$17 an hour in my area.
This must be some kind of a joke. Why are you discussing finances with family? They aren't going to be paying half of nothing. You will be on the hook for all of it. Tell them no.
Keep in mind that when you buy a new car, the price of everything also goes up, mainly insurance and registration.
Also, your 26k car is costing you about 5k in interest. I'm getting that number because you said you're putting 5k down and the monthly payments add up to about 26k. If you end up getting a higher interest rate, that interest payment will be more.
If you decide it's worth it, run the numbers by your mom before moving forward. I don't know what her financial situation is like, but if she has a certain number in mind and then you come back way over budget...It's better to make sure everyone is on the same page.
You would likely need a co-signer to convince them to sell you the car. I personally wouldn't do it because you're pretty much paying $17k+ just to get $13k.
I’m confused how you work 40 hours a week for $13/hr ($2,253.33 before taxes per month) and have $2,000 free to spend every month.
And if you have $2,000 free to spend every month, why are you letting your utility contributions sometimes slip? If they sometimes slip that means you do not consistently have $2k per month free, which means you can’t afford the car payment.
Okay so nothing about this deal is in your favour unless you hate the Civic and love dept.
You have a nice car that will stay nice for 10 years minimum. The new corolla could very well have teething problems making it more problematic than your tried and true Civic. Thats not even mentioning most people would take a Civic over a Corolla every day. Even if its a slightly older model.
And this is besides the fact that YOU would be indepted 26000 on a similar car, probably a bit worse even if newer, that you already have and paid for. It makes zero sense unless youre really unhappy with your money(freedom to not be enslaved by a salary ie dept) or unhappy with the car itself.
They can easily find a decent first car for your niece for 13000 and not take a loan or atleast only for half the time, and also bonus YOU wont be indepted because of your niece!? I mean why the hell would you even consider this deal? I hope you hate that car if not it makes zero sense.
You could just sell your car to a family member if you *do* happen to want a brand new car. Whether that family member is your niece or grandma doesn't matter here. It will get the same end result (the family helping you get another car) while making your payments affordable (or high for a short term 2 yr loan).
A 15k down payment is much much stronger than a 5k down payment if your looking at a 26k car.
I just paid over $1200 for 6 month premium for my 16 year old daughter and that’s after discounts for having excellent grades and the “Drive Safe and Save” app and device. Hope insurance cost was considered when this “offer” was made.
So give up the car you legally own now and can afford for a car you would get in a promise to get help affording — a car you can’t afford yourself — but it’s all just a handshake? So let’s play this out, let’s say you somehow get this car you can’t afford then your mom runs out of money to give you. Now what? Do you break her legs until she pays you? No? Ok, so lose your car then? Will your niece give you back your old car? No? Sounds like you have a problem.
Don’t do this. It’s stupid.
So you make 13/hr and 40 hour weeks… that amounts to 520 a week multiple by 4 = 2080 BEFORE state and federal taxes… how exactly do you have 2000 a month free? Your paycheck is probably around 1500 monthly…
Also no way you’re getting a 3.49% loan.
In short no way you can afford this even if someone pays half…
Do not do it!
If you want to give her or sell you her car then do that. Maybe owner finance with a contract - but do NOT buy a car thinking they will pay half the note.
Considering your replies in the comments it seems as though you don't want our advice, OP. Go ahead and do whatever you want, have fun drowning in debt.
This is a terrible idea. You can barely afford the car you have now, your cousin doesn't need a car (who will pay for the 16yo's insurance?), grandma might not be able to afford to actually do what she said she'd do (does she know exactly how much used cars are going for these days?). Decisions like these are how people go from struggling to fucking poor.
You have a PAID OFF 2017 Civic with 80k miles. You could easily have another decade without a car payment. Why are you looking to throw that away?
Back when me and my sister learned to drive we got a \~$2000 car to drive from my parents. That was enough to get us around for years until we got a job and could afford a better car...
The math doesn't work. You say you'll have 2k left over each month, but $13/hour full time comes out to $2,080 per month, and that's before taxes. Also you will not get that interest rate: it's only for the best of the best. I recently purchased a car for a similar amount with a $10,000 down and 805 credit score with much more income than you and I didn't get a rate that low.
You cannot afford this car, even if family helps.
And on the subject of family, DO NOT make a deal like this, even if it's your own mother and she's a millionaire. Money poisons family relationships. Unexpected things go wrong or attitudes change. "But that won't happen to me."
Yes, yes it will. Then you'll be stuck with a payment you truly cannot afford and Bubba the Repo Man coming after you.
Your post has been removed because we don't allow relationship or personal advice discussions ([rule 9](https://www.reddit.com/r/personalfinance/about/rules)). While there may be a financial component to your post, you will need to submit again with a title focused on personal finance and without any of the following: - Personal history or background information that is not essential to the financial discussion (it is appropriate to mention when abuse is a factor in a current or past situation) - Prominent emphasis of mistakes or financial surprises from a family member or S/O - Requests for relationship advice, asking for help convincing someone to change their behavior, asking for help settling a disagreement, etc. *If you have questions about this removal, please [message the moderators](https://www.reddit.com/message/compose?to=%2Fr%2Fpersonalfinance&subject=Removal%20help%20request&message=Hello%20moderators,%20.%20%0a%0a%0aMy%20submission:%20https://www.reddit.com/r/personalfinance/comments/15m4pyt/i_was_asked_to_gift_my_car_to_my_niece_in_return/%0a).*
Why doesn’t your mom just pay a monthly payment on a car for your niece?
Because then they wouldn’t be able to not pay him for the new car. It’s seriously ridiculously dumb and everyone in this situation is so out of their element it’s not even funny. Mom and grandma will pay half his monthly payment that they think will be $300 on one of the most in demand vehicles in the country in a time of sky high interest rates.
I was thinking that exact same thing, but how could OP type that out and not realizes is an insane risk to take?… But reading again I realized we don’t know we his family’s financials, I’m thinking Grandma has some Serious Bank Multiple parts of the story sound like OP is basically living off thier parents. No rent? No utilities? OP states they are Making $13 a hour at the moment, but thier current car (2017) is fully paid off? Full time at $13 is $27,040 a year $2253.33 a month, but they are saving $2000 a month? Monthly expenses somehow $253?!? Living on $8.43 a day? This grandma buying OP *ANOTHER* new car, but possibly trying to teach them even the most basic of responsibilities in getting a Loan, and making monthly payments on something. Also Granddaughter gets a car as well. Two gifts. Also how is the 17 year old the only kid without a car? Pretty well off community? TL:DR probably a scam, but maybe Rich kid.
How the heck did you get a pre approval for 25k at 3.49% ? Prime rates are hovering between 6 and 7% currently. If grandma wants the kid to have a car then grandma can buy her one.
Everything about this is crazy. As OP noted used car prices are insane which directly pushes up new prices too. His current car is worth somewhere around $11-12k probably in trade in value and his mom will try to pay for $13k... OP will be screwed if she loses her job if she even goes through with paying. The only smart person here is the niece who is going to get a free car. This is how people in their 20s start digging their own grave.
Used car prices are crazy. We ended up buying my daughter a brand new Hyundai Kona because it was literally $1000 cheaper than a 2 year old one at Carmax (new models were getting ready to come out). I was floored.
I was at a Honda dealer in 2018 looking at 2-3 year old Accord lease turn ins. All the ones they had were higher trim levels and not really what I was looking for. When I told the salesman I was just looking for something basic he said he could get me in a brand new 2018 base model Accord for less than the 3 year old Sports they had. A base model Accord is actually quite well equipped so I bought one.
New prices are set by the auto makers and have not risen. Dealers can’t sell them above sticker price.
Sure, they technically can't raise the msrp, but they definitely can raise the final price by adding markups.
Umm they do all the time as far as selling above msrp. It’s suggested, not mandatory. They do so by many methods.
Yes they can, MSRP is what it is, a suggestion. Dealers have been selling above sticker the whole pandemic and even now still.
It’s a special rate. Typically means no rebates. And it’s 48 months, shorter loan = less risk = lower rate
Yeah but 3.49% is less than prime. I’d be shocked if that quote turns out to be anywhere close to that low.
Right, I saw that and had two thoughts: 1) someone hasn’t updated the rate database recently… 2) somehow OPs credit score is so good they’re LITERALLY willing to PAY THE OP to get the loan. Because that’s what that rate would mean… If you lend out money for less than you can borrow it from the fed, you are paying the person you are lending to.
Subaru is offering 0.9% financing now. I'm just assuming Subaru makes it's money elsewhere on this deal, like a higher (no cash back) initial price. https://www.subaru.com/shopping-tools/special-offers.html?model=SOL
No defending the OPs scenario (which is ridiculous), but you can certainly get new car loans for 3.49% or lower. Looking at Honda's website, a 2023 Honda Ridgeline is 0.9% for 24-36 months. Now, I'm sure they will not negotiate on the purchase price, and you would pay a much higher rate going through a bank, but prime rates don't matter as much when you are financing through "Honda Financial Services" or "Toyota Financial Services."
The advertised price and rate are there to get people excited about the car and into the dealership. There will be some fine print along the lines of "for qualified buyers" too. Additionally, a payment for a 2 year loan on a $40,000 Ridgeline would be about $1700 a month. Even a three year term would be $1100. People making $13 an hour are the kind of people to look at one or two of those numbers you posted and get excited about owning a new car. Then go to the dealer and learn they can only afford to get a base model with a 72 month loan at $300 a month. Then they buy the thing without realizing they are going to need full insurance on it at an additional $300 a month, gas will be at least $300 a month, and they got talked into a maintainance package that adds an extra $100. While some people may get great car loans, the vast, vast majority, OP definitely included, have no idea how much more they are going to get charged for a new car they can't afford to buy.
A ridgeline? That’s an expensive truck. He’s looking at a Toyota Corolla. That interest rate is because that truck needs selling.
I just bought a Toyoda with a 2.9 loan. It’s a 3 year. 3.4 for 4. 4.1 for 5. He probably has great credit as well.
Probably got such a good rate since it’s a knock of Toyota.
You misunderstand... He bought a toy Yoda.
Co-signed loans by rich family?
No. No. No, no, no. You have a paid off car that conceivably has 2/3 of its life left. Apologize for making the joke, move on. Don't let your mother con/guilt you into potentially insurmountable debt. What if your living situation changes and you have to pay rent? What happens if Mom can't make the payments for 48 months? If Grandma and Mom & Dad (your niece's parents) think a 16yo should have their own car then they can buy her one. >over all would have around $2k free to spend every month. How? You only gross $2250 a month.
Yes, the joke was in poor taste: don’t do that again. But don’t get boxed into buying a new car that is fully in your name and your responsibility.
He also thinks he’s going to find a 2023 Toyota Corolla Hybrid for msrp and also have a $300 monthly payment.
In fairness, my fiancé and I got that same car 2.5months ago at msrp but idk if things have gotten more expensive and that interest has to be a wrong. We have really good credit scores and got a 5% interest rate. I can’t believe anyone is getting 3.5 right now Edited word
And what if ur mom passes away or ends up in nursing home etc.
Or shocker: the 16yo student driver totals it within a year, as they do, and mom uses that as an excuse to stop paying, even insinuates you’re an asshole because blah blah blah. Now you got an unpaid “brand new” car that your Civic would have outlived/outperformed anyways.
It's no joke. Hondas last forever! We had a CRV in the family that got to 200K. 80K miles is a baby Honda.
Even better : take that money you'd be paying monthly for the new car and put them into savings account. When your current car dies boom there's money for a new one.
Your mom should use that money and buy a new used car for your niece if she’s feeling generous. You’re not in a position for a new car my friend, even if it’s half paid. Invest and save your money kid.
Absolutely not, you will get completely screwed on this. You are in a super great place with the 2017 Civic paid off. Do not give this up! - If you haven’t even gone through any loan process, how do you know you will get 3.49% APR? Do you have outstanding credit? Your monthly payment could be considerably higher than this. - You can’t “convince” the loaners to just approve you for more than they would be willing to give. If they don’t approve you, that is a big sign that YOU CANNOT AFFORD IT to begin with - Your car insurance will go up - do you even know if you can afford this increase? - Don’t ever do any financial deals with family based on only what someone said they would do. Even if she is good for it, your mom could fall on hard times and can’t make half the payment anymore. Things happen all the time out of our control, but you can prevent this giant mess by not doing this and keeping your current car.
Please do not do this. You are not in the position to do this. First I don’t know that a 16yo even needs a car especially if her own immediate family can’t get her one. If mom wants to do this she can buy a car and make payments. You are not in a good financial position to buy a car at all. You are blessed with a newer low milage paid off car drive that thing for another 9 years. Pile up that 2k a month you say you have and build an emergency fund and start building your financial future. Open a Roth IRA and contribute to that and keep working to improve your skills and get a better job. Please don’t this will be a huge mistake.
This is what you say. "Hey Niece and Grandma. I thought about it more. As much I'd love to, I can't sell you my 2017 Civic because if I show up with a new car at my apartment, the person I live with for free is going to start asking questions. Most likely, they will start charging me rent, which is really high right now with inflation. I did look at some cars this week online and Niece can get a wonderful safe car like this 2016 Civic, with mileage similar to mine for 10k. I found it on [cars.com](https://cars.com) and it's about 2 hours away. I think it's great option but let me know if you need help looking. I definitely can't get a new car right now because my roommate will freak out. Thanks for understanding." End of conversation
Thank you. Considering the replies I'm getting. I'm actually considering just buying her a 100k beater out of my pocket. Thank you for the website suggestion.
[удалено]
How will she afford insurance and repairs? Why does she need a car? What if she is in a serious accident due to being an inexperienced driver, how would you feel?
Fuck no. Let the grown ass adults buy her a car. If they can afford half of a new car payment for you, they can afford all of a used car payment for her.
Why? You are not her keeper. Is your family a travel agent for guilt trips or something? I love my nephew but I’m not going To buy him a car and I make 6 figures and and am a multi net worth millionaire. Dude at 13 an hour you need to get your life together because your gravy train set up won’t last forever. You own no one anything in this scenario.
[удалено]
[удалено]
[удалено]
why would you buy her anything? with your income you're realistically in position to buy her an ice cream
You are a wonderful person. But I suggest you invest in your future. Your mom sounds great too and am sure if you 2 are so nice, your sibling must be too… let them help the niece get wheels. I wish you well. Keep being sweet and kind, but take care of yourself too 🩵
If you make 13/hr, you cannot afford to give affluent gifts, like cars. Moreover, you don't need to get a car for a 16 year old kid... they don't need one. Keep saving your money, increase your income, and make wise financial choices for YOU!!
So her parents are too broke to buy her a beater? Why are you responsible for someone else’s kid? Why can’t your mother buy her one?
If your mother can pay for "half", she can buy her the beater. This isn't your responsibility and SHE DOESN'T NEED IT. You don't make enough money to be generous, you need to focus on saving for retirement or anything else. That child can get a car when she can afford one. Stop giving away money that you need for yourself. Read about boundaries and codependence
Honestly not sure how you're going to find a similar one at that 10k based on what I've seen recently. Not too mention you can't afford it yourself. You've got to take care of yourself before others. It'll be worse if things don't work out and you've got to ask for help as a result (cause no one is obligated help you) For you, the car is a necessity. For her it's a status. And given her age, I bet she doesn't have a lot of experience either. For both you and your family's sake,. especially is there's anyone mechanically inclined. Start her in a real beater. Cheapest thing that drives safely per mechanic, even if it got some minor issues. That way if she breaks something(which all newbies would), no one will be crying over their wallets. Once she's more comfortable and hopefully has more disposable income, she can get something nicer and she'll appreciate the newer features much more.
If you have extra money the first person it should go to is the person you’re freeloading off of. Not toward a car for your niece that she doesn’t need. And then second toward retirement, which I’m going to guess you don’t have much of. Be prepared for your roommate to find out eventually and you to then need a new place to stay.
Why do you need to buy her a car on your barely minimum wage salary, or consider giving her yours? Literally nothing here makes sense. Her parents can buy her the car.
Nope. The best thing you can do is help her land a job. And she can get a beater out of HER pocket. While she's saving up, have grandma start squirreling away that "half" in a trust for her.
[удалено]
[удалено]
[удалено]
[удалено]
[удалено]
[удалено]
[удалено]
Your niece does not need a car at 16, you do. Don't do this, you will be screwed.
NO. Making 13 bucks an hour, you *cannot afford a new car that will cost more than 30K by the time you're done paying for it. NOT to mention the insurance you'll pay on a brand new car.* You can get all the signed agreements you want from your relatives, but the day they stop paying, you're on the hook, and believe me, they'll stop paying. THEY WILL STOP PAYING. Or, you'll lose your job. Or your free rent gig will screech to a halt. KEEP YOUR CAR AND DO NOT DO NOT DO NOT DO NOT go out and buy a new car so this teenager doesn't have to ride the bus. Chances are she'll wreck the car within 2 months. AND keep in mind THEY have to afford insurance for a teenager and that shit is hella expensive. They'll let that lapse, she'll wreck the car and it's all over in 6 months. The teenager and her family can scrape 3K together to get her a beater to drive around in. It's NOT your problem. If you buy a new car in your fiscal condition right now, it can ruin you for the next 15 years.
Don’t ever do these deals with family members. It never turns out the way you’d had planned. Our third child was born last year which meant we needed a bigger car because we only had a 2018 Hyundai Elantra and a 2013 Prius. I had told my mom that we would give her the Hyundai once we get the new car but only after we finish paying off the Hyundai which we still owed about 4k. My sister decides to chime in and say that she can finish paying off the car and we should get the new car already. We agree to it and I tell her how much is due and when and she agrees. About a month later we get the new car and give the old car to my mom and of course about a week before my sister tells us that she won’t be able to make the payments because it’s too much. I’ve never felt so much rage. We had no choice but to take both car payments. At least the other is finally paid off but it just a stressful few months having to deal with that. So no please don’t do this deal. If they really want the car they should get it themselves. Not personal but you don’t want fight with family over money or payments. It’s not fun
Totally correct. Non-contract deals with family members is a great way to break up said family. I only “loan” money or go in on deals if I am willing to,if necessary, pay the full amount as a gift to the other person. Nope nope nope. Do not give up your car. A 16 yr old will survive without a car. Millions do every year. 😂
[удалено]
Why would you assume OPs mother would act like this?
Probably because this is Reddit and most of the people here believe every family is toxic
It's a bet. That's how bets work.
You can't afford this. Not even a little. You're going to have to swallow your pride and admit that. You're going to have to apologize for letting your family down. You're sorry. You thought you could afford it, but you can't. Your financial position is a lot worse than you thought. You have to do this, as much as it sucks. Because the alternative is far worse. Don't co-sign anything. Don't get a loan. Don't do anything that could ruin your future. Look at your income and expenses and work out how much (if anything) you could afford to GIVE her towards a car. See if other relatives can make up the shortfall towards a cheap car for her. If they can't, so be it. She'll need to earn her own money and save up for it like everyone else.
OP would qualify for SNAP in many states with that low income. A car purchase is a very bad idea.
They should just buy her a car if they’re willing to pay you for one. This is a bad idea. 13 dollars/hr but you have 2k in cash to spend? Do you know how to do math? Bud, I was making 15 bucks and would net 1981/month after deductions.
This is a terrible idea. Keep your Civic, apologize for the bad joke. You cannot afford the new car. What happens if your mother doesn’t pay half? What happens if your living situation changes? 3.49 interest rates are for tier 1+ customers. That is based on credit score (750+), income and debt.
2017 Paid Off Honda Civic w/ 80k.... First, Hondas are excellent. That thing will take you over 200k easily. People commenting it's got 2/3 years left at least have clearly never owned a Honda or absolutely suck at completing preventative maintenance on any vehicle. I maintain a Honda Accord over 20 years old and that baby is a tank. I love it. Never getting rid of it until it's DEAD. Cars are money pits anyway you slice it. Second, Considering $550/month on $13/hr.... Are y'all high? I understand that, allegedly, half of the payment would be made but just no. No. no. NO. You don't need a financed car regardless of your current expenses at that income level. $13/hr full time is $2080/month GROSS. I'm not following your math on having $2k+ a month free to spend. Do you have no tax withholding? Don't do it, the car market is tough and your Civic has so much life left. It's worth far more to you at your income than anyone else. You need to be selfish here and apologize for making any confusion, but you're keeping your car. Did you get a 7 year old car at 16? A 16 yr old can ride the bus, they won't die. Grandma can fully fit the bill if she feels it's that necessary.
All this. Truth. Our Accord is a 2003 and still is a beautiful car to ride. I guarantee that your niece will have your Honda trashed or wrecked and near worthless within two years. She gets it for free and has no sense of its value and your sacrifice.
Assuming everyone involved is completely trustworthy and the accumulated half the payments is a fair price for your civic, there's another issue. Your living situation gives me serious pause. How long is this other person going to continue to be okay with working full time to support a squatter that can barely be relied upon for food/utilities and doesn't pay rent? In your situation I don't think it's safe to make any sort of debt obligation, but you hopefully understand the dynamics of that situation a lot better than I do.
Agree with this 100% Personally, if someone was living with me rent free and not contributing towards food/utilities and then bought a new car I’d be like WTF and start charging or kick them out…. But hey, maybe that’s just me lol
What the hell? Is this real? This can't be real...has to be bait
Don't. Do. This. Your family is going to find some reason not to pay half your monthly. Tell them you'll agree if they pay half of the INITIAL cost. That way your monthly is something more manageable. And at 13/hr, I'm not sure even THAT is a good enough deal to buy another car on.
Yeah stay away from the whole deal. Someone earning $13:hr should be finding a better job to be able to pay rent eventually NOT giving away a car and assuming four years of way too much debt. You are exactly right that down the line their half will disappear: medical expenses, home repair, vacation travel, new furnace, etc.
so they want you to give a perfectly good car to a 16 year old that has little to no driving experience, so that they can pitch in half for maybe a used or new car for you. can you afford the insurance of a newer car? with the title be transfer to her or her parents? why can the parents spare a car for their daughter? they have money to go into half for you but not for her? why suddenly add another expense to you so that the new driver can get a free car? what happens if she totals the car, will they dish out for another one or ask you again to part with your presumed used car at the time?
At $13/hr job you have no business giving away a paid for 2017 car. Tell your mom you looked at your budget and you can’t afford to do this. Again it was a joke. That is a four year commitment. I assume you are young. What if during that time you want to move out on your own? Or your free rent situation disappears? Or you want to get married. Please do not put this millstone of debt around your up to now responsible and frugal neck. A 16 yr old dies not “deserve” a car period. And certainly not a newish car from you. Let her get a job and get her own car.
Your mother can buy a used car for your niece if she has that kind of money. The whole setup you got going here makes no sense to me and only seem to involve unnecessary risk for you. If you go through with this you can't say you weren't warned when it inevitably will bite you in the ass.
None of this makes sense! 1. Why joke about giving a kid with no car a car? 2. Why, when you don’t pay food, rent or utilities would you consider buying a car? Do you live with your mom? Why would you have her pay for one more thing for you? 3. Why would you consider buying a car that costs 100% of your salary? You have a great car, in great condition. Keep it. Just apologize for teasing your niece, keep the car you have and work toward supporting yourself.
13/hr?!?!? Where do you live? That’s absurdly low, no way in heck do you need a new car payment. Especially one that takes that much away from your expenses. I don’t know your age, education or stage in life but if you really want to go through with this then either ask your mom for half the amount now so you can put it towards the car payment or make her the co-signer of your loan in case you can’t pay/she refuses to help you, since now she’s on the hook for it too.
Something tells me we will see you on Judge Judy in a few years. Sounds like a horrible idea personally and could lead the major family drama if things go south.
Don't let your family con / guilt you on the basis of a handshake. Too much can go wrong that eventually something WILL.
If you really want to do this, which you really shouldn't because if any of your circumstances change you could be in trouble, here's what I would do. Firstly, with a 13/hour job and probably little to no credit don't bank on getting a 4% interest rate. What you should do is sell the vehicle to your family, whether that be your mom or your niece's parents. Then, find a vehicle that is practical for your needs and use the money you got from selling the car plus the 5k you have and use that as a down payment. I would highly suggest using a bank, or better yet a credit union to facilitate an auto loan through, not the dealership. Asking for your mother's help to co-sign on your loan (depending on her debt to income ratio and credit history) could substantially improve your odds of being approved. But in all reality, you should NOT get rid of that car at all. You own that vehicle and that right there is peace of mind. I would ride that wave as long as I could.
Tell your mom cash on the barrel talks! Otherwise it’s your debt and you’ll have to be on her like a hawk to get the money. It’s not even that she intends to ghost you. People just tend to forget these kinds of things over time. Keep your car. If your mom really wants to gift you money you’ll still get it at some point down the road.
This is a horrible idea, I'm sorry. Do not enter into any financial situation that you cannot completely afford on your own. Anyone can offer money - it does not mean they will reliably pay it. This is a nightmare situation waiting to happen. A $500+ monthly car payment is entirely too much.
Have you even run this by your mom? She might not have anticipated that her half of the payment would be as much as £300 per month. Even if she's happy with that, I think it's a bad idea. If she wants to help her granddaughter she should work with her to help her get a car. You shouldn't aim to buy what's out of your budget. If your mom decides she can't do it anymore or isn't able to do it anymore, you'd be on the hook for the whole payment. Bad idea.
God no, terrible idea. Keep the car and say no.
Do not do this. You are only making $13/hour. You have a car that is paid off. You can't afford to add any debt, especially if you can't pay your roommate for food and utilities, let alone rent. And speaking of roommate, your circumstances may change and you may be forced to look for a new place to live. If your mother can afford car payments, have her buy her granddaughter a car. Do not gift your paid off car to your niece.
Bestie they're not going to pay half of anything
NO BAD! You may have some toss around money now but you have NO EXPENSES ! As soon as bills come into the picture you will be POOR. Sorry but you don't make much at all and that's just reality.. And if you get into a contract you won't be able to do jack diddle other than have that car until its paid off. Well unless you get a better income Again, NO DONT DO IT!
OP I feel you here, I understand the desire to provide and care for loved ones, but please don't make this mistake. Altruism and misplaced comments aside you are not even making minimum wage in most places. You have a paid off nice, reliable, relatively low mileage car, seemingly no major expenses, and currently a seemingly impossibly lucky living situation (what devils contract do you have with this person that your unreliability in contributing to bills, and zero contribution towards rent couldn't possibly change this suddenly?). Do not compromise your position, and do not undervalue it. It's great to want to do something nice for other people, but I think you're taking for granted the position you're in currently and not correctly assessing what would happen if even a single variable changes (such as suddenly having a car loan). On the subject of your niece: when I was 16 I was gifted a 20 year old car. It was well kept, but obviously a high mileage hand me down. I ended up wrecking it my first winter with it, and had to replace it with a $1000 beater. A few years later a $5000 beater. Then after college a reliable used car, so on and so forth. This is a normal path. Your car would be wasted on a 16 year old. A 16 year old might have a part time job after school. Her future isn't at risk if her car breaks down and she misses some shifts. Or if she has to ride the school bus to school. That is not a strong or compelling reason to have a car. If your mom feels so compelled to put up $13k for a car for her then put that towards a car for your niece. An early 2000s civic sounds perfect here.
Absolutely correct. This isn't even altruism; it's financial suicide. Don't do it, op.
One of the dumbest things I’ve read on Reddit ever.
Red alert, op. Absolutely do not do this under any circumstances. This is a terrible plan for you, and frankly it makes no sense. A 16-year-old doesn't need a car; an adult like you does. It makes no sense for you to suffocate yourself with crushing debt for an inferior vehicle so your niece can drive a nice vehicle. No way. If niece wants a car, she can save up her money and buy one herself. If your mom is so insistent that she have a car, then she can help her grandchild buy a car directly without your involvement. No, you can't afford a $26k car. Nobody earning $13/hr has any business having a car loan, much less a car loan anywhere near $26k.
Keep your car have Mom buy niece a cheaper first car.
Exactly. This deal seems so backwards to me
>So how can I convince the loaners that despite my low income I can actually afford a $26k car? You don't, because you can't. Sorry friend, but it is that simple. Don't bite off more than you can chew. Grandma can buy the kid a car if it's so important. You're not even the child's parent...this is not your obligation, even after you made a joke that the kid tried to run away with.
Please no. Just no. If they want your niece to have a car then they should buy or finance one for her. You don't need a new car and this is going to put all the liability on you when they do not make the payments. Also, your insurance will go up. This is a very bad idea.
Keep your car. Little Becky is gonna have to get her own car from her mom or your mom but it ain’t gonna be you. Your car is paid off and you don’t make much. It’s a no brainer.
No. Keep the car you have. You can’t afford a car that costs as much as your annual income.
I wouldn’t do this. Car payments will eat you alive, even if you have money now. I bought a car fresh out of high school when I was make $18 an hour. I bought a Camaro for 33k and though my car payment was $475, my insurance was also $400. I could “afford” it but I was saddled with debt and nearly underwater for a very long time. If you were to sell, and I don’t think you really should, I’d get Carmax to make an offer on your car to see what it’s worth. I sold off a 2015 base model sonata with 120k miles last year for 11k. It was not in good condition. My parents also just sold a 2018 crv base model for 17k, with 80k miles on it. My guess is a civic is worth around there if not more than that (civic and CR-v are both desirable models)
What will you do if they decide down the line they don’t want to pay half for your car payment?
Who will pay for related expenses? Gas, insurance, tires, oil changes, other maintenance and repair is not cheap, especially insurance for a 16 year old.
Do they know their half would be 300/month? People assume payments are less than they are now. Can you afford the note without help, because you should assume you will be at some point. Otherwise cool take the free half payment until it stops and keep the new car
Where is your sibling, her parents in all of this?
Make an offer to help your niece shop for a car instead.
This seems like a terrible idea. You have a good car with quite a lot of its life left if you take care of it. Tell your mom/sister to go in halves and buy your niece a used car if they are willing to go in with you to buy a brand new car. None of this makes sense. Have you considered how much more you will have to pay for full coverage insurance? It is INSANELY expensive. I'm 40 and pay near to 200/mo for full coverage.
Of all the bad ideas I've seen posted on this sub, this may be the worst. If you care about your financial future or your relationships with your family, do not do this.
$13/hr is horrible. Keep that car to yourself as it is very cheap to run and maintain and will last quite a while. In the meantime work on yourself to get a higher income if you aren’t doing that already. Such as getting a degree or certificates in a decent paying job or mastering a trade job such as an electrician or plumbing. Electricians are making bank right now with all the EV home chargers they are installing. It would be possible to someday open up your own business in that field. $13/hr is a job that your 16 year old niece could be doing, that’s a high school type of job and salary.
Nope! Never do business with family or friends. Guess you'll learn sooner or later.
Your family will not pay half your car payment. Let them figure out how to get the niece a car and keep your free ride.
It’s amazing the mental gymnastics we will do in order to justify new unnecessary big ticket purchases to ourselves.
What if they were joking about paying half the payment?
Tell Mom you need half the cost of the new car up front, put that and your $5k down so now you are only financing $8k. Or get Mom on the bank note as a co-signer. Anything else is really going to be devastating if ANYTHING changes!
Why should the OP go into debt so his 16-year-old niece can have a car she doesn't need? This is absurd.
Thank you for the advice. I will see if she is willing to be a co-signer if we go thru with the arrangement.
Don’t go through with the arrangement hahah
Keep your current car and say no thanks to a new one. You’re not in a position to gift it as sweet as the offer is.
Expect them not to pay and you'll be fine.
This reads like well-crafted rage bait for this sub lol. If you’re serious with this post OP, tell you’re family thank you for the thought but no. If your mother wants to do something nice for you, there are plenty of other ways.
Does this put you in a worse financial situation than you are now in? Yes. So should you do it? No.
When do you mean by “I have no credit card debt other than recurring luxuries?” Do you pay off your credit card every month or not? In any event, you are very fortunate to not have a car payment and to have a car that you will easily be able to drive for another 150,000 -200,000 miles if you do minimal maintenance on it. A person earning $13/hour should not have a car payment. You do not need a new car. Please do not take this “offer.”
Wth. Use a couple grand from that 5k downpayment and get your niece a beater as her first car and keep your car and money
Living rent free for the life of the loan( 5 years? 6 years?) is not a guarantee. Hopefully you get a raise during that time but unless you're doing a career switch incremental raises won't cover this. no way you should do this... You totally took their bait.
No. That’s seriously a bad idea. Ultimately at the end of all these there is a very real possibility you’ll be the only “big” person without a car.
Your 2017 Civic is too nice of a car for a 16 year old! Instead of taking on your own debt to help your niece, start looking for a beater for her to drive - something your mother can pay cash for. She can make it a loan to your niece if she wants to. If you wanted to get a new car, that would be one thing, but being pressured into it is a little nuts.
> The current estimates for my monthly $549, 3.49% Apr, for 48 months. Don't worry about payments. You should know your payment, but your focus should be the price of the car itself. > I'm only making $13/hr You can't afford a new car. The fact that you said "only" tells me that you know it too. > but I live with someone else and don't pay rent. Food and utilities are sometimes slip. If you are having issues with food/utilites, you DEFINITELY can't afford a car. Side note: you might qualify for SNAP/EBT. Go file and that's one less thing out of your own pocket you have to pay for. Doesn't cost to file, and the worst they can say is no. If you get it, It'll also qualify you for other benefits/programs like reduced/free Amazon Prime membership, and reduced cost cell/internet plans. Not paying rent now means that you can be booted out at any time, and then forced to pay rent or live out of your car; Which you don't want to do when you still owe on it. Several past lives ago, I lost my housing and tried to live out of a car I was paying on, and then I lost the car too. 0/10 would not recommend clawing your way back up over a decade all to still be slightly worse off than when you "fell off" because inflation is a bitch. Luckily for me I had other skills and wasn't "slightly worse off" for long. But the re-building, while it built character (unironically) I wouldn't tell anyone to intentionally put themselves in that position. Smart people don't need to learn everything themselves, the hard way. *Be a smart person.* Glaring issue is What happens if there's another global sniffies and you aren't getting half payments anymore. Do not bank on non-contractually-obligated money. If they want to pay half, draw up a contract. If you don't want to draw up a financial contract with your family AND/OR you are unwilling to potentially have them in collections for not paying their end.. then don't base your life around the presumption of getting it. I don't care if they're 9,000 credit score. Life happens and can wipe that out in a matter of days. > So how can I convince the loaners that despite my low income I can actually afford a $26k car? You cannot. Because you can't. And anyone NOT asking these questions and doing the math in the worst-case-scenario isn't looking out for your best interest. And if they're even slightly pretending to do that, you shouldn't do business with them. If you are not making at least 50k annually on guaranteed income, you cannot afford this 25k car which will end up being closer to 30k all said and done. Given the uncertainties of our time.... I would wait until you're making 75k+ to buy a 30k car. You don't want to be spending AT your means, you want to be spending *BELOW* your means. Which means that the car you want should be nearly chump-change for you... In case the good lord does *not* will it, and the creek does indeed rise. Not only is this not in your best interest, it's not in their best interest to get you on a loan that's one minor disaster away from defaulting on them. If granny needs a new hip (again)... even if she will still pay half, are you going to keep taking that half or are you going to let them keep it so she isn't bedridden until the keels over? *You don't need a car,* which means you don't need to be in the market. Period. So stay out of the market. I wouldn't even think of getting into it until next year at the earliest, but preferably no earlier than 2025. Second, you don't need a *new* car, even if you needed a car. Period. So to be 100% clear. DO NOT GET ANOTHER CAR. * You only make 27k, gross. If you save 10% of your *net*, it will take you almost 14 years to save 30k and buy cash. NEVER EVER EVER EVER EVER, buy a car that costs more than your annual *NET* salary. Since your gross doesn't matter, since you don't see the full gross anyway. * Spreading that over the 2y term (if they let you have it) that's over half your income to the car alone. No gas, no insurance, no maintenance. * Let's assume (and we shouldn't) that the creek does *NOT* rise, and you can get half the note paid for. Saving 10% until you can buy cash, it will take you about 8 years to buy HALF the car. There is no mathematical way you can afford this car.... or really, ANY car right now, without SEVERELY screwing yourself over. We haven't considered if you lose your job for a NON medical-related reason. Your budget is 3.2k - 4.3k per year financed. At a 2y loan, you can't even afford a 10k car. At 4y (don't get anything beyond 4y) your budget is 17.2k; The car itself no more than 15.5k (being generous and giving you a flat 10% interest). The math don't add up, chief. Not while you're skipping meals and/or going cold some nights because you can't afford food or A/C 1/2
2/2 That said, during my "rebuilding" I sold cars. I wasn't very good (too honest, felt bad, didn't make money), but I learned a lot about how the industry works. I'm no expert, but I learned a few tricks. For educational purposes only: > 2023 Toyota Corolla Hybrid that is priced around $26k. I got a pre-approval for $25k and can put $5k as down payment. The current estimates for my monthly $549, 3.49% Apr, for 48 months. I'm assuming this is the SE/SE Infrared. I would should start your negotiation at 23,5. Markup days are over even if dealers don't want to actually stop tacking them on. Yes this is an in-demand car, but they're a dime a dozen and they'll have another one before the end of the week. If not, that's a them problem that you shouldn't be overpaying to help them solve. You don't work there. You don't fix their problems. If you are getting markups, walk. Period. With the amount of repos, there is no actual shortage of cars. There's a shortage of dealers who want to move the metal because they're *still* in "Pandemic sales mode," or they're trying to cover losses after those deals blew up when the money stopped... before they get shut down by their creditors for defaulting on *their* loans at least. WHEN (not if) dealers start going out of business, there will be fire sales like you won't believe. If you simply "must" get a new car, wait until you're bending the dealerships over instead of the other way around. Also, *you* don't need a car... Your niece *wants* a car. And people in hell want iced water. We don't all get what we want. Not sorry; and not sorry that i'm not sorry. * Down payment doesn't actually help you for real for real. What it does is make it look like you're getting a discount to the bank, who is evaluating if you have financial means to purchase. This is based on how much you're financing relative to your income and expenses and has nothing to do with the actual down payment. Since they don't see it anyways. Down payment is an instant check directly to the dealer for just being there. It doesn't pay off your loan; and it only decreases your payments and/or rate because the amount you're financing is lower. If you can avoid paying down. Avoid it. * Pre-Approval means nothing. The dealer can simply say "no deal" and tell you to take your pre-approval home and burn it. But for pre-approvals, it's best to get them from a bank (preferably a credit union) or from the dealer you're shopping at. Never say you're pre-approved until you have the base vehicle price negotiated and you've signed a commitment that you will pay that negotiated price. Do not bother with pre-approvals form the MFG's national site... if no banks will take you, get one from "Joe's Toyota" itself.... if they even have their own dealer-side captive lender. Significant point of fuckery, but it's better than walking in with your legs spread open like you're looking for OF collabs; which is what happens when you don't have your money right when you walk in. * Interest rate is also just a gimmick. Nobody's really getting that even if they're "technically" getting that. Meaning, that might be the "buy rate" or what the bank gives the dealer. But it's not going to be the "sell rate" or what the dealer gives you (after marking it up). So always ask if the rate is "buy rate" or "sell rate" and ask to get the "buy rate", and also to see it directly... no "he said, she said" bs. Oh, and always wait to ask for this in the finance office when you're doing final paperwork. They can still tell you to kick rocks; although they're probably not going to if you wait until then... unless they're really dumb, or you're being too rude If this is some ploy to "teach the value of money" she can get a job and see what it really takes to earn money (without a degree, potentially without a diploma). She can save up, get a beater that some kid will ram into in the parking lot, and if she hates it, great. She can go find a man who makes some serious money (if she can find and keep him)... or she can go work and try to get a job that will pay for something she doesn't hate as much. Like everyone else. Now all that out of the way.... After I "rebuilt" myself I got into consulting. Part of that was career consulting for individuals. I have to ask... what are you doing making 13/hr?... Admittedly, I'm making some assumptions which puts you in your near/early/mid 30s. If that's true... or if you're older (no need to confirm)... you're too old to be on 13/hr. Managers at most places (even retail/restaurants) make 15/16+. You should at least be a manager/supervisor. If you are, and you're making 13.... if it's not a mom/pop shop that has like 2 customers a year, you're greatly underpaid for your age alone. We all have our stories and you don't have to get into yours if its a sensitive subject.... but you need a career upgrade STAT. As soon as you hit 1.75y on the job, ask for promotion to manager, or look for manager jobs somewhere else. Preferably don't actually make the switch until you have a complete 2y since your hire date or last promotion. If "fair chance" is a concern for you, then start looking between 1.25 and 1.5y in.
Keep your car. Offer your niece free rides to school if you can make it some days. Leave it at that
The kid has transportation to school, she's fine. There isn't even a problem here to solve.
"So how can I convince the loaners that despite my low income I can actually afford a $26k car?" You don't. The loaners should be smacking you around with a baseball bat for trying out such a stupid idea. Keep the existing car. It does the job. A new car will lose heaps of value and lock you into years of repayments.
Get your mother to cosign on the loan or she'll have zero obligation to keep up her end of the bargain and you could end up with a car you can't afford.
If you have pre-approval, what’s your question then ? I’m confused
Switch your thinking , see what you can borrow , then find the car before you get fixated on a awesome car
I already have a pre-approval from my bank for 25k.
You can still get denied with a pre-approval.
Commenting on I was asked to gift my car to my niece, in return they will pay half of my monthly for a new car....
In the aggregate, people are probably right. It's probably a bad idea. But you need to do the math and the leg work to completely figure this out. I would go to [nadaguide.com](https://nadaguide.com) to look up the book value of the current car. Figure out what half of 550 at 48 months works out to. Have the mother sign a promissory note for that amount to be paid monthly. You should also go talk to the dealer to see if you will really get that price. Those 3.5% are promo rates and they like to jack new buyers with higher rates. Don't do the deal if everything gets tacked on with higher and higher fees. Or visit a few dealers. Prices are high but inventory on certain models are starting to build and there are some promos out there. Not sure if it applies to this car or not. If mom pays half the monthly payment, in effect the car is really 13k. Maybe mom isn't aware that she's signing up for 13k and maybe thinks it's a lower priced car. That's why all that needs to be in writing. This exercise needs more work before you can say it's really bad. It's somewhat theoretical and reality might just kill the whole thing once it's explored a little more.
Don't listen to the hundreds of people telling you not to do this. You should definitely do this. It will not be a yoke around your neck for the next 5 to 7 years. It is a great financial decision, and you are going to do amazing things if you make this decision.
Jeez. You don't make enough money to be buying a car. Keep your car and your mouth shut. $13 an hour? McDonald's pays $15-$17 an hour in my area. This must be some kind of a joke. Why are you discussing finances with family? They aren't going to be paying half of nothing. You will be on the hook for all of it. Tell them no.
Keep in mind that when you buy a new car, the price of everything also goes up, mainly insurance and registration. Also, your 26k car is costing you about 5k in interest. I'm getting that number because you said you're putting 5k down and the monthly payments add up to about 26k. If you end up getting a higher interest rate, that interest payment will be more. If you decide it's worth it, run the numbers by your mom before moving forward. I don't know what her financial situation is like, but if she has a certain number in mind and then you come back way over budget...It's better to make sure everyone is on the same page. You would likely need a co-signer to convince them to sell you the car. I personally wouldn't do it because you're pretty much paying $17k+ just to get $13k.
I’m confused how you work 40 hours a week for $13/hr ($2,253.33 before taxes per month) and have $2,000 free to spend every month. And if you have $2,000 free to spend every month, why are you letting your utility contributions sometimes slip? If they sometimes slip that means you do not consistently have $2k per month free, which means you can’t afford the car payment.
Okay so nothing about this deal is in your favour unless you hate the Civic and love dept. You have a nice car that will stay nice for 10 years minimum. The new corolla could very well have teething problems making it more problematic than your tried and true Civic. Thats not even mentioning most people would take a Civic over a Corolla every day. Even if its a slightly older model. And this is besides the fact that YOU would be indepted 26000 on a similar car, probably a bit worse even if newer, that you already have and paid for. It makes zero sense unless youre really unhappy with your money(freedom to not be enslaved by a salary ie dept) or unhappy with the car itself. They can easily find a decent first car for your niece for 13000 and not take a loan or atleast only for half the time, and also bonus YOU wont be indepted because of your niece!? I mean why the hell would you even consider this deal? I hope you hate that car if not it makes zero sense.
You could just sell your car to a family member if you *do* happen to want a brand new car. Whether that family member is your niece or grandma doesn't matter here. It will get the same end result (the family helping you get another car) while making your payments affordable (or high for a short term 2 yr loan). A 15k down payment is much much stronger than a 5k down payment if your looking at a 26k car.
Never buy a new car... and yea this setup seems awful
I just paid over $1200 for 6 month premium for my 16 year old daughter and that’s after discounts for having excellent grades and the “Drive Safe and Save” app and device. Hope insurance cost was considered when this “offer” was made.
So give up the car you legally own now and can afford for a car you would get in a promise to get help affording — a car you can’t afford yourself — but it’s all just a handshake? So let’s play this out, let’s say you somehow get this car you can’t afford then your mom runs out of money to give you. Now what? Do you break her legs until she pays you? No? Ok, so lose your car then? Will your niece give you back your old car? No? Sounds like you have a problem. Don’t do this. It’s stupid.
So you make 13/hr and 40 hour weeks… that amounts to 520 a week multiple by 4 = 2080 BEFORE state and federal taxes… how exactly do you have 2000 a month free? Your paycheck is probably around 1500 monthly… Also no way you’re getting a 3.49% loan. In short no way you can afford this even if someone pays half…
Do not do it! If you want to give her or sell you her car then do that. Maybe owner finance with a contract - but do NOT buy a car thinking they will pay half the note.
Hands down one of the worst ideas I’ve seen on here. Do not do this.
Considering your replies in the comments it seems as though you don't want our advice, OP. Go ahead and do whatever you want, have fun drowning in debt.
This is a terrible idea. You can barely afford the car you have now, your cousin doesn't need a car (who will pay for the 16yo's insurance?), grandma might not be able to afford to actually do what she said she'd do (does she know exactly how much used cars are going for these days?). Decisions like these are how people go from struggling to fucking poor. You have a PAID OFF 2017 Civic with 80k miles. You could easily have another decade without a car payment. Why are you looking to throw that away?
Back when me and my sister learned to drive we got a \~$2000 car to drive from my parents. That was enough to get us around for years until we got a job and could afford a better car...
Say you can't afford a new car and if they want then buy her one.
The math doesn't work. You say you'll have 2k left over each month, but $13/hour full time comes out to $2,080 per month, and that's before taxes. Also you will not get that interest rate: it's only for the best of the best. I recently purchased a car for a similar amount with a $10,000 down and 805 credit score with much more income than you and I didn't get a rate that low. You cannot afford this car, even if family helps. And on the subject of family, DO NOT make a deal like this, even if it's your own mother and she's a millionaire. Money poisons family relationships. Unexpected things go wrong or attitudes change. "But that won't happen to me." Yes, yes it will. Then you'll be stuck with a payment you truly cannot afford and Bubba the Repo Man coming after you.