Future Car Scenario

iVillage Member
Registered: 07-20-2001
Future Car Scenario
10
Thu, 11-03-2011 - 5:23pm

I had had a milestone recently with having paid off my 2nd mortgage.

iVillage Member
Registered: 03-27-2005
Fri, 11-04-2011 - 9:40am

Personally I'd borrow money from a bank long before I would a relative.

iVillage Member
Registered: 04-16-2008
Fri, 11-04-2011 - 10:47am

If you could handle the dynamics of borrowing money from a parent, it could be a win-win situation.

iVillage Member
Registered: 12-31-2010
Fri, 11-04-2011 - 11:18am

It does take a while, but we didn't get into this overnight either.

IT is Dave Ramsey and many other financial folks who say to pay off a lower balance before higher interest - why, EMOTIONAL ACCOUNTING is more important than financial accounting.

#Marie
Avatar for mahopac
iVillage Member
Registered: 07-24-1997
Fri, 11-04-2011 - 11:35am

It does take a while but when you start knocking over the pins one by one, it sure feels good!

There is no one right way to tackle this stuff.

Community Leader
Registered: 08-25-2006
Fri, 11-04-2011 - 12:52pm
Hey Mitsy, congrats on paying off that second mortgage! I would say, like the others, that if you do borrow from your mother, put it in writing. If not for anything else, if one of you were to pass away during the duration of the loan. When I got D from my second DH, my mom immediately asked me to change my life insurance beneficiary to her and dad, because I owed them a TON of money that they truly needed. (I have since paid them back.) So, I think it really depends on your family dynamics, whether it is a good idea, or not. Oh, and yea...make sure and still sink for car repairs. Off the top of my head I think since I got my $10,000, 68,000 mile rig in December of 2008 I have had to buy tires ($550), replace sensors, etc. ($330) and rebuilt transmission ($2,800). Extra keys to newer computerized cars are about $75.00. I also have a broken tail light ($50.00) and one of my seat belts stopped working a few weeks ago (afraid to find out what that will cost). Next will be brakes. I realize you already know all of this, you are a smart lady. But just a reminder. :) You can take that info. and run either way with it. For now, just keep saving that money so like you said, you can put down as much cash as possible. Any chance you can get by for longer and pay for a car in full with cash?
Serenity
iVillage Member
Registered: 07-20-2001
Fri, 11-04-2011 - 2:59pm

Normally, I would not advise people to borrow from relatives, but my Mom is basically financially well off but I'm also responsible enough that I would pay her back & I would have a set amount agreed upon to pay her back.

iVillage Member
Registered: 07-20-2001
Fri, 11-04-2011 - 3:03pm

No chance on paying cash for a car.

Community Leader
Registered: 08-25-2006
Fri, 11-04-2011 - 4:30pm
Sounds like borrowing from your mom might be the best bet for you then. I would not have an issue borrowing from my parents, either. I could see my mom offering the same thing if I could get lower interest and she could get better interest.

Seriously considering trading in my gas hog next year with the goal of no more payment than I have now. Or no payment if I get this rig paid off first. Worst case scenario, maybe having to borrow a little bit. I hate car payments!

Seems like there will be repairs regardless.

Even if I won the lottery, I would have a hard time paying full price for a new car.
Serenity
iVillage Member
Registered: 07-20-2001
Mon, 11-07-2011 - 2:46pm

I agree about buying a brand new car.

iVillage Member
Registered: 10-01-2008
Mon, 11-07-2011 - 3:44pm

IF.....my roof does not hold up for 2 more years, I had thought of asking my parents the same loan question.

Norma


"Patience is the best remedy for every trouble"- Plautus