My ex-wife is a financial wreck and is about to lose her car (lease is over) in an area of the country where you can't get around without one. She can't get a new one because her credit is really bad (bankruptcy, 2 evictions, home foreclosure, etc...). Anyone that has ever had financial dealings with her has regretted it. I do not want to deal with her either.
My ex-Mother In Law (MIL), who is very responsible with money and reliable, has cooked up a plan which gets her daughter a car for now and has a financial benefit for me as well.
Her plan is to have me lease an inexpensive car (under my name) for her daughter. The cost of the lease is $3k down and $150 a month for 48 months. Her daughter (my ex-wife) would drive it for 2 years and then turn the car over to our son, who just turned 14 (and thus will be 16 in two years - of driving age). So for now the ex-MIL will provide the down payment and will pay the lease for 2 years. Once our son turns 16, I will take over the lease payments and our son will use the car until the termination of the lease. So there is a financial benefit for me in that my son will have a reasonably inexpensive (for me) vehicle to drive in, once he turns 16.
I am pretty sure that the ex-MIL will not let me down (I've loaned her large sums of money before and she always promptly repaid). Her daughter, though, is a loose canon.
My question is this. What can reasonably go wrong? And how can I protect against stuff that might go wrong. Is this a good or bad idea?
- Ex-MIL can't co-sign because she doesn't have credit either - basically lives on fixed income.
- Ex-wife's relatives won't co-sign cause they've been burned before
- My credit has just recovered from the insanity of the divorce and I am planning to buy a house in a year or two.
P.S. 12/24/2014 - Several people asked me to follow up, so here it goes. I was about 80% against any further financial dealings with my ex prior to posting the question. And you guys and gals talked the rest of sense into me, so I refused to help. Despite intense lobbying from ex-MIL and some others in my ex's life.
Apparently she must have been able to talk someone else into co-signing because the week after she came to pick up the kids in a brand new Toyota Prius. So I guess happily ever after for everyone.