Buying a used car. Is this ok?

[derp]

I've already spoken with an attorney, and he made mention of buying another car before I file, since mine won't last long. I'm current on all of my CC bills, but I plan on stop paying on them after this month. So, I'm in no hurry to file. I wasn't planning on buying another car, but mine is on it's last legs, and won't pass inspection, which is due in July, without $1,500 worth of repairs, which would only cover the things nessesery to pass inspection. It would still be a terrible ride.

The car I'm looking to buy is a 2002 Subaru for $7,000. My dad is paying $700 towards the down payment, I'm putting in $100, and my current car might get me $200 with the dealer. My dad is also co-signing for the loan (he filed BK in '04, but his credit rating is up to 750, and mine is around 670). I have to wait until Monday to see if I'm approved.

I plan on making my car payments on time.

Is there anything wrong with this scenario?

[Exployer1234]

Are you filing 13 or 7?

For me I would hold off on having a co-signer. Is there a way for you to be the only one on the loan?

[derp]

Chapter 7. What's wrong with a co-signer?

[Exployer1234]

You will need to reaffirm the debt otherwise the cosigner will be responsible for the car.

For me I would rather either fix my car up or find a car that I could have without a co-signer. There is a reason why the loan company is requiring a co-signer, and that is because they see a risk for loaning the money.

If you are thinking of filing BK to wipe away the debt that you owe, then adding more debt is not a good thing.

[derp]

So, you would spend $1,500+ to repair a $500 car?

"If you are thinking of filing BK to wipe away the debt that you owe, then adding more debt is not a good thing."

You're absolutely right! It's much wiser to throw money into the wind fixing a money pit.

[keepmine]

Nothing wrong with making sure you have reliable transportation before you file. That's pretty standard advice around here.
I'd not spend $1500 on something that may be worth $500.
Just be careful about cosigning. If for whatever reason you can't pay they'll come looking for your father. A reaffirmation agreement will make no difference in his potential liability. See if you can get financing on your own and not drag others into your finances or bk.

[derp]

My apologies to the other guy. I didn't mean to come across rudely. I'm just feeling very tense lately.

But yeah, it wasn't my idea to have a co-signer. Actually, I applied for a loan with my bank first, as they offer a 25% reduction on their interest rate if I have my monthly payments automatically taken out of my checking account. I'm just not sure I'll get approved with them, since last November I ended up being penalized with four $40 OD fees, due to my paycheck being directly deposited a day late, due to, I believe, Veterans Day. Scheduled some CC payments on a Thursday, but the payroll company issued our checks Friday. Oops.

My dad wanted to co-sign at the dealer because he thought his credit score would get me a lower interest rate.

In either case, I have to wait until Monday to find out if I'm approved. And I'm not worried about not making my monthly payments. I'm employed, and I don't fear losing my job. I'm filing for bankruptcy because the CC companies have already raised my interest rates to their max (29.99%), the minimum payments are ridiculous (I could be making payments on two brand new cars for what I'm paying these clowns every month), and my balances never go down.

Add in living expenses, and I'm spending exactly what I make every month. After BK, I'll for the first time in years have money freed up to put into savings, replace/fix things in need, buy groceries with cash (an amazing prospect), and yes, even make small car payments.

[Exployer1234]

So, you would spend $1,500+ to repair a $500 car?

"If you are thinking of filing BK to wipe away the debt that you owe, then adding more debt is not a good thing."

You're absolutely right! It's much wiser to throw money into the wind fixing a money pit.

What I am looking at is this. You are looking at a 2002 vehicle. The car is already 8 years old and has to be reaching close to 80K- on up. Things can happen to this car and the repairs may cost more to fix in the new car then the car you have right now. The question is can you afford the car payment, plus the repairs. You have to look at both sides.

None of us plan on losing our jobs with a great salary, but it does happen. 2 years ago I was driving around in a brand new car, and now I only have my back-up car. The repairs cost much less to fix on my 92' Lexus SC400 then the brand new car I had purchased.

So would I personally "waste" money to fix up my car: Yes I would. The only way I would trade my car is if someone wanted to flat out trade me out of my car.

Sometimes just because it is a "newer" car does not mean it isn't a money pit.

[nc73]

That's all fine and dandy but some people want to be seen in a shiny not so used car or better yet brand new car. How did you think some of us got into this mess? Been there done that..

[TEW]

What you are doing is a good idea. You will need the reliable transpiration. There is nothing wrong with your Dad helping you out. BUT after you file he will be the only person responsible for that loan.
You may want to wait until after you file. That way the loan will help rebuild your credit. If you get the loan before you file it will show IIB after you file and not that you are paying it off.