Is it just to hard to go from a 08 car to a junker

[Keebler]

The problem I have with this forum is I find alot of the advice to be one dimensional. It is the main reason I post here. It is easy to criticize someone for getting a car loan at 19.99% interest but until you know all the facts you really can't give sound advice...

At the same time, the problem with too many people is how they REFUSE to see themselves or their situation or their decisions differently no matter how much reasonable advice they get. Bankruptcy should be a big huge warning sign that you're doing something wrong and it's time to let go of the same flawed logic that got you here.

You're right, everyone's situation is different. But when the advice you're getting directly disagrees with your assessment of the situation, it's time to stop and think and ask yourself why you cling so tightly to the broken ideas that brought you to the brink of bankruptcy.

For example, the idea that a vehicle is a tax write-off is a foolish one. The fact is that you need to SPEND a Dollar to get any tax benefit and the tax benefit is ALWAYS less than the Dollar. Why then is it a good idea to WASTE a Dollar so you can save 25-Cents on your taxes? (Or, 50-Cents or even 75-Cents?) True, if you don't SPEND the Dollar you get NO tax benefit... but you get to KEEP the whole Dollar! Spending $12,000 on ANYHTING where you could have managed just fine with something else for LESS is WASTING DOLLARS and no amount of tax write-off will help you as much as leaving those dollars un-spent.

Look around, there's no shortage of people who live their lives and run their businesses on vehicles that are worth far less than $12,000. The question is: What's wrong with you that you can't imagine doing the same?

Please understand that I don't mean to attack you personally. I feel like you have a solution stuck in your head that no amount of reason will change. (And that's a problem that I've had to face myself!) To be successful after bankruptcy you need to see things differently so you can avoid landing right back here again.

[debtmonster]

I agree with the above post wholeheartedly. But remember, I just showed you those trucks for as low as $5,000. $12,000 is more than DOUBLE what I found that you could have worked with.

[BkinTX]

I do agree with DebtMonster that we need more information (than what you shared initially).

It appears you have your mind made up already as to what you should do.

[Logan]

At the same time, the problem with too many people is how they REFUSE to see themselves or their situation or their decisions differently no matter how much reasonable advice they get. Bankruptcy should be a big huge warning sign that you're doing something wrong and it's time to let go of the same flawed logic that got you here.

You're right, everyone's situation is different. But when the advice you're getting directly disagrees with your assessment of the situation, it's time to stop and think and ask yourself why you cling so tightly to the broken ideas that brought you to the brink of bankruptcy.

For example, the idea that a vehicle is a tax write-off is a foolish one. The fact is that you need to SPEND a Dollar to get any tax benefit and the tax benefit is ALWAYS less than the Dollar. Why then is it a good idea to WASTE a Dollar so you can save 25-Cents on your taxes? (Or, 50-Cents or even 75-Cents?) True, if you don't SPEND the Dollar you get NO tax benefit... but you get to KEEP the whole Dollar! Spending $12,000 on ANYHTING where you could have managed just fine with something else for LESS is WASTING DOLLARS and no amount of tax write-off will help you as much as leaving those dollars un-spent.

Look around, there's no shortage of people who live their lives and run their businesses on vehicles that are worth far less than $12,000. The question is: What's wrong with you that you can't imagine doing the same?

Please understand that I don't mean to attack you personally. I feel like you have a solution stuck in your head that no amount of reason will change. (And that's a problem that I've had to face myself!) To be successful after bankruptcy you need to see things differently so you can avoid landing right back here again.

Dude--the tax write off really has nothing to do with the financing of the vehicle. I would finance either way but it is a benefit so why wouldn't I throw it out there for consideration.

Also, your last sentence is without merit. How Am I not seeing things different than before my BK? I have the cash to pay for my car but I've decided that I'm better off financing it so that I have that cash in a 2.25% interest bearing account in case of an emergency. If I didn't have any money and I was financing the car then I would agree with your last statement.

Also, in regards to the type of vehicle--I need a car that can fit my girlfriend and myself with a child in the rear seat and the dogs in the back. It also has to be a car that my girl friend wants to drive and she wants a Nissan Xterra so that is most likely what we're getting.

I will most likely finance it in my name and pay it off quickly but if I can't get an acceptable interest rate (I applied a year ago and had an offer at 7.99%) I'll just have my GF finance it with her 790+ FICO score.

Logan

[BkinTX]

It doesn't matter how much interest your savings yields if your auto loan is financed at a higher rate.

[Logan]

It doesn't matter how much interest your savings yields if your auto loan is financed at a higher rate.

LOL---one dimensional answer once again!

[BkinTX]

Not one-dimensional. Truthful.

You have 12k in the bank at 2.25% and a 12k auto loan at 7.99%. The auto loan interest cancels out the interest yield from the savings.

No one is saying you can't finance and keep the 12k. If that's what's best for you, then why worry what we think?

But let's be realistic. You can't boast about your savings interest rate to argue FOR financing a vehicle at a much higher rate. Doesn't work.

[Logan]

Not one-dimensional. Truthful.

You have 12k in the bank at 2.25% and a 12k auto loan at 7.99%. The auto loan interest cancels out the interest yield from the savings.

No one is saying you can't finance and keep the 12k. If that's what's best for you, then why worry what we think?

But let's be realistic. You can't boast about your savings interest rate to argue FOR financing a vehicle at a much higher rate. Doesn't work.

One dimensional because you're only looking at one part of a many part equation.

I don't worry about what you think---I just have fun arguing with you guys and it does help others reading this with there decisions.

I happen to think credit is a good thing when used properly but 2 years ago when I was going through my BK I said I'd never finance anything again.

Logan
Posing from Fort Worth TX---at least today.

[BkinTX]

I have a pretty narrow view of credit at this point. I think it's misused more often that it's used correctly and it can be ruinous.

Question: What will you do for a vehicle/with your auto payment when you experience the unemployment you are attempting to protect against?

[debtmonster]

I have a pretty narrow view of credit at this point. I think it's misused more often that it's used correctly and it can be ruinous.

Question: What will you do for a vehicle/with your auto payment when you experience the unemployment you are attempting to protect against?

You need to get a residual income to fight that off some how. Be in business for yourself and don't rely on employers to pay you. It took me nearly 20 years of work to figure that out.

Remember the pyramid scheme. Do one of those like the corporations and MLM's do. Start something and have a bunch of people under you working making you money. Look at all of the CEO's who started companies. They can take as much time off as they want and still have money coming in. Same with all of your basic MLM's. Join Amway, Herbalife or whatever MLM you like and make it work. Have hundreds of thousands of people under you making you money.

When you work a day job, you earn 100% of yourself. I'd rather earn 1% of 100 people.

The other option for residual income is to invest in the stock market or some other thing. That requires too much capital up front to do. Starting a company or joining an MLM would be easier on the wallet in the beginning.

[Keebler]

Dude--the tax write off really has nothing to do with the financing of the vehicle. I would finance either way but it is a benefit so why wouldn't I throw it out there for consideration.

Also, your last sentence is without merit. How Am I not seeing things different than before my BK? I have the cash to pay for my car but I've decided that I'm better off financing it so that I have that cash in a 2.25% interest bearing account in case of an emergency. If I didn't have any money and I was financing the car then I would agree with your last statement.

Also, in regards to the type of vehicle--I need a car that can fit my girlfriend and myself with a child in the rear seat and the dogs in the back. It also has to be a car that my girl friend wants to drive and she wants a Nissan Xterra so that is most likely what we're getting.

I will most likely finance it in my name and pay it off quickly but if I can't get an acceptable interest rate (I applied a year ago and had an offer at 7.99%) I'll just have my GF finance it with her 790+ FICO score.

Logan

You'd need to be in my shoes to realize that your girlfriend, with apparently uncompromising taste in vehicles, along with your blind willingness to please her is a combination that will ruin you eventually and in ways you can't even imagine now. You need to man-up and be in control of the situation so you can insist that buying everything isn't like a trip to the mall where you pick out the prettiest stuff and charge it on your credit card without regard for the cost or the question of NEED.

I can tell you lots about how girlfriends become wives and how children come along and how wives think that children are even more deserving of the finest of everything than wives are. I could explain how you need to start now by being the voice of reason and insisting that happiness isn't all about getting what you want as compared to wanting what you have. I could share lots of good advice with you but I'm not so sure you want to hear it.

I know that some people just need to live and learn from their own mistakes no matter how obvious they seem from the perspective of bystanders trying to give helpful advice. But consider this: You need to learn at least a little bit from the mistakes of others because you won't live long enough to make them all yourself.

[BkinTX]

Keebler, bk has definitely been a humbling experience for me. I have been guilty of going way outside our means because a) EVERYTHING is an emergency and justifies spending and b) the kids deserve it.

I think you really hit on something with that one.

More than a late model vehicle or the best Christmas EVER, my kids deserve parents who look out for their future and don't spend themselves into poverty.

[Keebler]

Keebler, bk has definitely been a humbling experience for me. I have been guilty of going way outside our means because a) EVERYTHING is an emergency and justifies spending and b) the kids deserve it.

I think you really hit on something with that one.

More than a late model vehicle or the best Christmas EVER, my kids deserve parents who look out for their future and don't spend themselves into poverty.

AMEN Brother. I couldn't have said it better myself.

[BkinTX]

Sister. ;)

[Keebler]

Sister. ;)

I should have guessed. Kudos all the same.