Last year I got an 05 Chevy Silverado for 16k at a high rate can't recall what it is now. I'll check when I find the paper but I think it's over 10 percent. I was in a bad spot when I got into the loan and was dumb and didn't know what I was doing. Now it's been a little over a year and the buy out on the loan is 11400 and I've already paid 9k and it has 200k miles on it and may only make it another year if I'm lucky. It had 140k on it when I got it... Dumb I know, I have made all my payments on time but my credit isn't good but I have someone with great credit and a business who is willing to co sign I'm just trying to figure out my options so I don't mess up more, live in Maine if that helps with any ideas.

  • Your numbers don't make sense. – Loren Pechtel Oct 31 '16 at 21:28
  • Some of the numbers sound a bit off, you right, @Loren. He's saying he put 60k miles on the truck in a year...That's 5k miles a month, which I suppose is possible, but wow! I have to assume the "9k" he's saying he has in it includes his down payment and such plus his monthly payments. If not then something's offf – Daniel Anderson Oct 31 '16 at 22:10
  • @DanielAnderson I'm looking at $16k - $9k and getting about $7k + interest--that would imply an interest rate in the ballpark of 100% APR to have $11k owed now. – Loren Pechtel Oct 31 '16 at 22:24
  • You're right, assuming all $9k was payments, which it could be, since the OP didn't specify what the money went to. But on the other hand, if half of that $9k was down payment, the interest rate would be much different (although granted still ridiculously high!). I'm not arguing your point, simply looking at possible ways to arrive at his numbers. – Daniel Anderson Oct 31 '16 at 22:27
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    You drove 60k miles in a little over a year? – quid Nov 1 '16 at 1:54

I think the part of your question about not wanting to "mess up more" is the most important element.

You say you know someone with good credit who is willing to co-sign for you, but let's be honest -- your credit isn't bad for no reason. Your credit's bad because you have a history of not paying on your obligations.

Putting someone else's credit at risk, even though they may be willing to try and help, could be doing exactly what you said you're trying to avoid -- messing up more. This person's heart is in the right place, but you really have to ask yourself if you should put them in jeopardy by agreeing to guarantee your debts.

So the vehicle you bought is older and has a lot of miles -- you knew that when you bought it. So you're paying a high interest rate because of your bad credit history -- you knew that when you bought it. Why you think the vehicle's only going to last another year is what confuses me. There are many vehicles out there with much higher mileage that are still on the road, and with proper preventative maintenance there's no reason your truck can't do the same.

The fact is, you just don't like what you're paying or what you're driving (even though you were good with both when someone was willing to extend you credit), so now you see this other person's willingness to co-sign for you as your ticket out of a situation you no longer want to be in.

My suggestion is that you stay with the loan you have, take care of the vehicle to make it last, and prove that you can pay your obligations. Hopping from loan to loan isn't going to do your credit any favors. One of the big factors for your credit score is the average age of accounts. Going and signing a new loan now will only drag that number down and hurt your score, not help it. And there's no guarantee the next car you buy with your friend's help is going to last the length of that loan either.

I would be careful about this "grass is greener on the other side" attitude and just bear through your situation, if only to prove to yourself that you can do it.

There's nothing saying your friend won't still be willing to co-sign for you later on down the line of something does happen to the truck, but you can show them that you're trying to be responsible in the meantime by following through on what you already agreed to.

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