Co-signing?

[MoneyGuy]

I'd say that this is a poor financial-planning decision for the buyer of the car. I agree with those who has said they should buy a good, cheaper used car until their financial situation improves. BTW, my experience is that people who are in difficult financial times like this are usually there because of their poor decisions, and they tend to remain in a pickle years down the road. Not always, but usually.

[MoneyGuy]

Yeah, she needs a safe car for work, just as she probably needs all those little perks that for many people amount to hundreds of dollars a month and keep them in debt and in difficulty financially.

[albertGQ]

The banks that I have worked for don't even use the term "co-signer" anymore.

They're on the loan as "co-borrowers". Both on it equally. Both responsible for the loan payments and it affects both applicants' credit (either postively or negatively).

And it would be harder for you to get credit in the future since the car payments would be calculated in your GDS/TDS ratios as if its your payments

[stang]

Originally Posted by fotze

But I bet she "needs a safe car for work".

My Safe car to go back and forth to work cost me $3000.

I drive a 95 GMC Sierra 4x4 fully loaded except leather. 300K on the clock when I got it, 345K Now.

There are tons of good used cars out there for $5000, that she should be driving.

Hand her a $5000 and under autotrader, and tell her your credit rating wont allow you to be a cosigner.

[CaptainCrunch]

After I had a car accident a year and a half ago, on the day that I lost my job, I went out and bought a car in the $6000.00 and its been the most indestructible and most reliable car that I've ever owned.

The thing starts in the extreme cold, dosen't shake, is decent on gas, and I bought it for cash, no car payments.

[old-fart]

Agreed with almost everyone here... danger Will Rogers - Danger!

It is tough in family situations and as Stang said, it is probably best to blame the bank that you won't be able to cosign than to say you don't trust her to make the payments. But really, if she can't get secure the loan herself for the $20K car, she probably doesn't need the $20K car. Lots of good cars to get from point A to B for way less than $20K.

[old-fart]

Originally Posted by CaptainCrunch

After I had a car accident a year and a half ago, on the day that I lost my job, I went out and bought a car in the $6000.00 and its been the most indestructible and most reliable car that I've ever owned.

The thing starts in the extreme cold, dosen't shake, is decent on gas, and I bought it for cash, no car payments.

Was your job "safe driving instructor"?

[Winsor_Pilates]

I drive a nice BMW and it didn't cost me 20K. She can certainly "downgrade" and still get a nice, cool & safe car.
To the OP, I'd talk your sister inlaw out of it for her own sake and yours. Doesn't make sense for her to take on more debt then she's qualified for in todays economy.

[STeeLy]

Originally Posted by fotze

I know, I've just heard that "safe car for work" baloney from a few girlies who actually just wanted "a cool car they can't really afford".

They buy things they can't afford... to
1. Show off to their friends
2. Be cool
3. Impress the boys

[ruddstud]

Does any CPer have a car for $5000 that they are willing to sell. THanks for all of your comments, they have really helped!!!

[CaptainCrunch]

Originally Posted by old-fart

Was your job "safe driving instructor"?

Actually funny story.

I was at a red light, looked in the mirror and saw a truck barreling at me from behind, I could see the guy on his cell phone yaking away. Then there was impact, my air bag deployed for some reason, and I saw a bunch of trunk debris spiraling over my car.

It was a totally oh slo motion I'm going to die moment.

[Dion]

Originally Posted by Flash

I wouldn't do it. There's no reason she needs a $20,000 car...if she's young and has no credit she should start off with a cheaper vehicle. If she's older and has bad credit, then there's no way I'd co-sign. There's a reason she's got bad credit and it's not because she was great at making her payments on time.

Flash makes good sense. I wouldn't co sign for a $20,000 car loan either - too much risk imo. Tell her to buy something a lot cheaper. Once she has paid that loan off and has established a good credit rating she can go out and buy a more expensive vehicle. That's what i did when i got out of school.

[Dion]

Originally Posted by ruddstud

Does any CPer have a car for $5000 that they are willing to sell. THanks for all of your comments, they have really helped!!!

If you know a good mechanic i would ask them if they have any leads on a a cheap used vehicle. I did this when i bought my first car. Said mechanic hooked me up with one of his customers who was trying to sell thier vehicle. Add to the fact he knew the condition of the customers vehicle from working on it all the time.

[stang]

Originally Posted by ruddstud

Does any CPer have a car for $5000 that they are willing to sell. THanks for all of your comments, they have really helped!!!

Check the Autotrader $5000 and under... I actually found my Truck from a guy I worked with. It was just sitting in his yard because he had a work truck he could use all the time, so no need for this other truck.

[I_am_Beast]

If she can't afford the payments on a 20k car, then she won't be able to afford the full coverage on insurance, so if she's in a accident and it's her fault the loan isn't covered and your now paying on a car thats worth nothing!

I co signed for a buddy, told him to buy a cheaper truck and if he missed 1 payment the entire truck gets signed over to me.... he paid it off early...

yes, the loan was on my credit till it was paid off...