Hot answers tagged

108

It's 100% a scam. I help with unresolved cases on PeopleClaim a lot and saw several that are very similar to this. Here's how it works: you send your money by wire or gift card or similar to the "neutral third party" that supposedly holds the car. They may even have a nice website with legitimate DOT numbers (that just happen to belong to a different company)...


101

Negotiation 101, never be the first to say a number. You tell them you have a $300,000 limit and magically they want $300,000. Alternatively, they may just assume you carry the minimum.


97

The registration (title too, right?) is in your name, the car is yours. You need to decide how to politely tell her this.


82

There are two ways to improve your personal finances: Make more money Spend less money That's literally the secret. To afford the car, you either need more income, or lower expenses. Don't fret, though. It's good that you are learning this lesson early in life because a lot of people live paycheck-to-paycheck their entire lives without realizing that some ...


70

A few points. You may be interested in this website which helps you calculate the total cost of car ownership, and factors in things like insurance, gas, mileage, repairs, registration, etc... These costs are not inconsequential and have a tendency to add up. Even this calculator doesn't consider all the costs though because it ignores the lost opportunity ...


67

"Her solution to the problem is to take my car" - i.e. THEFT. If you are on the title, it is your car. A cosigner has no right to the item purchased - all he did was guarantee the loan in case the signer does not pay. Anything between the signer and the cosigner is a civil matter (i.e. the cosigner could ask for damages if the signer does not pay). But the ...


60

Since this hit HNQ, I'll move this warning to the top to make sure everyone sees it: Do not buy more car than you can afford. Figure out how much you're willing to spend ahead of time—make sure you include tax/title/license fees, insurance, and a fund for emergency repairs—and don't go above that. Even if that means you can't get the luxury car, have to get ...


60

The car is yours, your name is on the title, and you are insuring it based on you being the driver (not her). You are responsible for parking tickets and toll evasion. Any arrangement you might do must account for these facts. Legally, you don't have to give her the car, and can report it stolen if she takes it. Socially, if your family is close enough ...


57

It isn't just GEICO that tells you this, every US car insurance company instructs their customers to not mention the amount of coverage. Your job is not to negotiate. Your job is to collect the specified information and to hand the claim process over to the insurance company. That is also why they tell you not to admit fault. When you start discussing the ...


52

The dealer makes money on the loan. The amount depends on the relationship between the dealer and the finance company. Basically, you getting a loan increases the dealer's commission and so you can indeed negotiate a lower price. The dealer may also have incentives to close x number of loans per month, so he could have additional motivations. He's probably ...


51

$160 a month is less than $40 a week (except in February when it can be exactly $40 a week). At the Ohio minimum wage of $8.55 an hour, you should have something like $8 an hour left after FICA taxes (and not pay income tax until working more than twenty hours a week). That's only five hours a week. Five hours is a single shift, not even a full day (eight ...


50

This is clearly a scam - and it's a fairly common one. The answer posted by George explains the mechanism: they will ask you to submit payment to a "safe" third party agent (really just the scammer pretending to be such an agent) via a non-refundable method like gift cards or Western Union, and then they'll either vanish, or they'll string you along for more ...


42

CC debt is My Hair Is On Fire!! debt, because the interest rate is so high. So... yes, you should pay that off first (unless you like subsidizing my 1.5% Cash Back Rewards and "Fat Cat Bankers" while slowly impoverishing yourself).


40

No doubt about it: vehicles are capital expenditures which depreciate over time. Referring to a car as "a good investment" because it hasn't depreciated very much is metaphorical. Having said that, the exception that proves the rule are low-supply, high-demand antique and specialty cars.


24

About your mental health, I trust that you are seeking professional help about that as others have mentioned. My answer is here to help you with the financial part of your question, which should (hopefully) alleviate some of the stress you're experiencing that comes from debt. It's great that you're looking at your expenses and thinking about how to ...


21

Beware confirmation bias I have been reading a lot and doing as much research as I could and need some help to decide whether I could consider the action of buying a car as an investment. Oh, you have to be very careful here, of confirmation bias. Deciding which conclusion you want to reach, and then searching for the facts that support reaching that ...


20

You're asking several related questions - about credit scores, how to use cash, and how to buy a vehicle. If we break them all down and start with what to do with your $5k in cash - it makes sense to use that to pay down credit card debt, since it's likely costing you an arm and a leg in interest right now. Even if you decide you need a vehicle badly, and ...


15

Simple answer is: they are luxury cars. Safety - at least in Europe you do not really get unsafe cars. Too much competition. Not getting full stars gets you kicked in the a** by consumers. Fuel Economy? Hate to tell you but the 3 liter engine in my SUV eats more fuel than the small engine in a lower end car (currently average this year 8.4 liter diesel per ...


15

I have read that paying in cash can actually put you at a disadvantage, because dealers want to be able to sell you a car loan on top of the car. Every time I've purchased a car, the purchase price is set and agreed upon before I step into the finance office (meaning they don't know if I'm going to finance or pay cash yet). With a fixed price, once you step ...


15

This is almost certainly not a scam. This is the seller trying to avoid any chance of you scamming him, with for instance a fake transfer. While I don't know details of Canadian motor vehicle laws, in the US such a cash transaction would be the normal way to handle a sale between private parties where there's no outstanding vehicle loan. FWIW, the only ...


14

The limits of your coverage are completely irrelevant to anything you might do in a situation where your liability coverage is in play. More directly, there is nothing at all for you to gain from providing this information. Another way to look at the question is "why would you want to reveal this information?". There probably isn't much downside to it for ...


14

A car that has had major repairs done is going to have a much lower resale value than a non-damaged car. The reason for this is mechanical, so I'll defer to someone on the auto mechanics stack for more detail, but in general a future buyer would assume that if you had to have $16,500 in repairs done, no matter how well those repairs were done, there would ...


14

Simple. Do not buy that newish vehicle, and do not even try to obtain finance. Instead, buy an older vehicle (of a reliable manufacturer like Honda or Toyota) for whatever cash you have - or even less. Drive it until either your financial situation improves, or it breaks. While I don't know the Australian used-car market, in the US you can easily find ...


13

First, ask the company who claims you are a cosigner to forward a copy of the document showing your handwritten signature (A: to verify you didn't actually sign it, and B: so you have evidence of ID theft). If they can't, write them a letter, return receipt requested, you are not liable until they provide proof (and maintain a copy for your records plus ...


12

I think you may have a fundamental misunderstanding of how insurance works and the value of it (assuming you are in the US). The Government doesn't pay out insurance claims from private insurers. It is also decidedly not a scam, but rather a way to buy down financial risk. Every state has guidelines for the minimum level of insurance you must carry to drive ...


12

From a legal standpoint this is your car and your mother is committing something in the direction of theft. From a human standpoint your mother helped you by cosigning and you owe her a favor. So my advice would be, to make it clear to her that it is your car, but she can borrow it if she asks you first to be sure you don't need it at the moment. (It might ...


11

Keep It Simple without needing to deceive them. Negotiate a lower price by financing. Make sure that there's no prepayment penalty!! Pay off the car on the first due date.


11

It's important to note that there can be lots of variations in a given, specific scenario. Dealers may behave differently on different deals over time, and there may be specific reasons behind that which we will never know. That said, speaking generally, the biggest reason why dealers prefer finance for some cases is when they are getting a kickback from ...


10

Laws vary by country/region, but typically the title dictates who owns the car. A co-signer is lending their good name/credit score to help secure financing. They are obligated to pay but generally have no ownership rights unless they are also on the title. This is true in Texas, a co-signer has no legal rights to the car. So, if your girlfriend is the only ...


10

Do not buy a car on credit. Ever. The fact that you have credit card debt makes it an even worse idea, but there are just so many reasons you should never buy a car on credit. For $5000 you can get a great, excellent-condition car. You could probably even get one for $3500-4000 and put the rest towards paying off the credit cards. I don’t want to put the ...


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