Question about getting a car

[zoomzoom]

Ok - So I've had a company car for the last 6 months. They now decided to get rid of the idea of employees having company cars. They are giving us an option of buying our current company cars for a 'reduced' wholesale value with no markup's. If we agree to the price (I don't know which one mine will be), we'll have to send a check in 15 days from today! We have 13 months to go before we're discharged. We have some money saved for those rainy days. What are the possibilities that we could buy this car? Any thoughts? Thanks!

[chpxiii]

I don't have any ideas, but I noticed your login id, "zoomzoom?" Do you have a Miata? Or a Mazda for that matter? hehe..

[lrprn]

Ok - So I've had a company car for the last 6 months. They now decided to get rid of the idea of employees having company cars. They are giving us an option of buying our current company cars for a 'reduced' wholesale value with no markup's. If we agree to the price (I don't know which one mine will be), we'll have to send a check in 15 days from today! We have 13 months to go before we're discharged. We have some money saved for those rainy days. What are the possibilities that we could buy this car? Any thoughts? Thanks!

Buying a car for cash doesn't involve a loan (no new debt) so you don't need your trustee's permission.

However, most companies that have employees driving company cars handle the insurance, car repairs, and sometimes even buy the gas. Can your Ch 13 budget handle not just buying the car but all the associated costs with owning the car afterward?

Perhaps the most important question....what will you do if you don't buy the car? Will you need to buy another car to get to work? Or do you have other transportation you can use (public, carpool, etc) until your Ch 13 finishes?

[CindyLou]

I am guessing this change also comes with an allowance to offset the cost of owning the car, right?

[cso5@]

Buying a car for cash doesn't involve a loan (no new debt) so you don't need your trustee's permission.

I have gone back and forth about fixing my current car / getting a different car / exploring financing for a new car / saving to pay for a different car outright.

My lawyer said, if a car I wanted to purchase outright is over $1000 I would need the trustee's permission to purchase it, even though I would be paying cash.

Just my experience.....there is a lot of variability, it seems, among the different districts / regions, so if you are planning to pay cash, you might want to run it past your attorney first.

I'm still limping along with my current car, fixing it as it breaks and trying to save for the inevitable when it breaks for good one of these times......

[lrprn]

My lawyer said, if a car I wanted to purchase outright is over $1000 I would need the trustee's permission to purchase it, even though I would be paying cash.

I'm so glad you posted, cso....I didn't realize we were in the Ch 13 forum when I replied. It would be very hard to explain to your trustee how you amassed thousands of dollars to pay for a car in cash when all your disposable income is supposed to be going into your plan.

You're right, cso....in Ch 13 it's best to be very cautious and for sure to ask your lawyer before making plans to pay a large sum of cash for anything.