My dad is in his 60s and has IMPECCABLE credit. In his whole life, he has paid every bill (credit card, mortgage, utilities, insurance, you name it) on time and in full. He has never taken a personal loan (well, he probably had some back in college, but they’re long gone) and he has never refinanced. He has a steady, guaranteed job that he has been at since the 1970s. This past year, I needed a new car (I’m in college and live at home), so he took a loan for me so we could get a lower interest rate. The loan was originally for $16,000 and, since I’ve learned the same responsibility my dad has always shown, I always pay on time and in full. However, my mom’s car is fairly old and has started giving us some trouble. My mom would like to get a new car. We’re not into luxury cars – she just wants a Camry or an Accord. My dad thinks that with the mortgage and my car loan in his name, he won’t be able to get another car loan. I think he would be able to get it, no problem. Who is right?
He doesn’t currently have a car payment – I do. It’s just in his and my mom’s names. I give him a check every month.
I wasn’t asking for rudeness, I was asking for a generalization.
Dereck said payment, not debt. My dad doesn’t have the responsibility for the payment, because it is something I can afford and he will never be responsible for, even if it’s in his name. Who are you to tell me what kind of car I can have? I could have afforded the higher interest rate, we just chose to go about it this way because he didn’t want me to have to get my own insurance policy – he saw it as a way of helping me out by getting lower insurance and lower monthly payments. I can buy whatever car I please. And, actually, the car was $20,000. It’s really none of your business. I’m sorry if you’re happy with a Ford that will blow up in a year, but I wanted a car I can keep for the next ten years if I need to. And yes, Camrys and Accords are cheap. What’s the point in buying a Hyundai for almost the same price that won’t last beyond 100,000 miles?
As for this retirement nonsense, he’s not planning to retire – my dad is shockingly young for his age – I see 50-year-olds who look older. Also, my mom’s car won’t last that much longer, so even if he were planning to retire, it would be smarter to buy it now while he is working than to wait until he’s on a fixed income. Either way, my mom will need a new car within the next few years.
Also, refinancing would be ridiculous, because 5-6% would be doubling my interest rate. My dad wouldn’t even allow me to think of it.
Neither one of you are “right” until u go to the bank. Maybe he doesn’t want another car payment right now.
Its totally dependent upon your debt to income ratio. Only the bank would be able to determine this. Maybe your dad doesn’t make enough for the banks to think he can afford a house and two cars at the same time. Also, look at his age. Someone that age (please don’t get offended) doesn’t have the same age capabilities as a young person your age. One way you would be able to get by this, is to get your dad to add you as an authorized user on credit cards(if he has some) that he has had for years. Its adds all that credit history to your file. Then your just as credit worthy as your dad in the eyes of the creditors. Overall, I think that your dad is mostly thinking about retiring soon and doesn’t think he can actually afford to retire and still pay a house and a car.
I had a mortgage and a car loan in my name, then my oldest daughter needed a car so I got the loan in my name (she made the payment), my other daughter needed a car that I co-signed for, then both of them got loans (a quad and a motorcycle) that I co-signed for. It is possible.
Most likely he can get the car loan. It may not be an ideal interest rate.
Depends on what the bank thinks
If he makes enough money, obviously has the credit score, he probably could get financed for a car.
It depends on their income and how they can explain your vehicle. It maybe a little harder then normal, but not too bad if he has the room to spare for both in case something happens to your income.
He is more “right” than you are.
The car you are paying for is on his credit, so the lender will consider it his loan and his responsiblity, which it will be if you fail to pay. It’s not your loan at all. He still might be able to afford it, but it’s all going to be viewed as his debt.
You could do him a favor and refinance the loan in your name at a credit union. That way it’s off his credit and he can do what he needs to do to take care of themselves. Credit union rates are in the 5-6% range.
He DOES have a car payment – even if you are making those payments, it shows up as HIS legal debt.
it depends on how much he makes and what his total monthly debt to income ratio is – he might NOT be able to get another loan – your car in HIS debt – it’s in his name – why did you need a $16,000 car?
Camrys and Accords are not cheap cars – even used
the only way he is going to know is to apply -
I currently have 3 houses mortgaged, a second mortgage, a land loan and a car loan on one salary