redelk
Moderator
Please... speak to the hand.
Posts: 3212
|
posted April 25, 2002 07:55 PM
 Edited By: redelk on 25 Apr 2002 21:37
Should I buy my late brother's car?
'97 Eagle Talon ESI, 37,750 ACTUAL miles, 5 speed, A/C and all the other "standard" stuff.
It's in great shape and we just put new tires on it as well as had all the minor problems fixed since it has a used car warranty (non-transferable). My daughter's boyfriend has done an unbelievable job of cleaning it up. It was rather a mess when my brother had it. There is a small dent (about 2" x 3") and a few scratches on the pass. front 1/4 panel. We figure we'll be able to pop it out and use some touch-up paint.
There's doesn't seem to be anything else wrong with it. The car has no rattles, creaks, whines or any other noises. VERY solid all the way around. Though my late brother wasn't the "king of upkeep", he really didn't drive it that hard and he only put about 8000 miles on it in 15 months. Anything that was wrong with it has since been fixed or replaced. I've already talked to the mechanic that works on our truck and he said he didn't like working on them. All the same, he says that about anything made after 1980.
I've been driving it for a few days now and it's been a blast. Gas mileage is OBSCENE! For almost 11 years, I've been used to 11 MPG and looking for a gas station when the truck's tripometer went over 220 miles (25 gal. tank). I've put over 120 miles on the car since I filled it up (I'm guessing it's 15 gal. tank)and it's not even down to the 3/4 mark yet. It's not like I've been "babying" it either.
My mother co-signed the loan with him and is now saddled with the payments of $340 a month. The payoff is $9300. NADA and KBB says it's worth around $9000. If I refinance it for 48 months, my payments would be around $235. If I get a 24K mile used car warranty like it currently has (it covers damn near everything), it'd kick it up closer to $245. I'm not sure what insurance would be on it, but I'm sure that it'd be under $1000 a year. The company has offered to pay it anyway. Personal property taxes on it are around $130 a year and I'd be financing the sales tax with the car.
I haven't owned a car (or any 4 wheeled vehicle) in close to 20 years. I've always driven a company truck. It's just that I don't want mother to be stuck with making payments on it until we sell it and if it's not gone by May 30, she'll have to assess it on her property taxes. Still, with the paycuts I have taken, things are still pretty tight around my house too.
Our company truck is getting kinda "long in tooth" and will be biting the dust more sooner then later. It's a '91 Chevy Silverado 4x4 with 165,000 miles on it. Just driving it back and forth to work is adding over 1000 miles a month. I'll still have total access to the truck and can use it for what ever I want to (i.e. hauling my trailer to the Gap). The company's not quite back on it's feet well enough to be shopping for a new truck. Giving the truck a "rest" will really help out the company.
What do ya'll think? Should I scoop it up for $240 a month with insurance paid or should I run like hell from it?
____________
There are only three sports: bullfighting, motor racing, and mountaineering; all the rest are merely games.
-Ernest Hemingway
   
|
Red 12R Rocket
Novice Class
Posts: 59
|
posted April 25, 2002 08:50 PM
Edited By: Red 12R Rocket on 25 Apr 2002 21:59
Hmmm.... financially I'd have to say it's a bad move.
Reasons -
1) The payoff on the existing loan is more than the car is worth. Even if the car was worth exactly what you are going to borrow, it will continue to depreciate faster than what you will be paying towards the principal on the monthly payments (assuming that you will make the monthly payment and pay nothing extra towards principal) and you will be "upside down" on your loan.
2) Do you really want to make payments for 4 years on a car that is already 5 years old? It really sucks when a repair comes up that you have to pay for AND make that monthly payment, too! [Check that warranty carefully!]
3) Rolling the sales tax into the loan? Having to pay sales tax on a used vehicle (or any vehicle for that matter!) is bad enough. Paying interest on the sales tax is unacceptable!! I often wonder how much money gets collected on vehicle sales taxes when the vehicle gets resold many times over a period of years.
4) If your budget is already tight, buying this car ain't gonna help any!
Please don't be insulted - I'm only looking at this from a financial standpoint.
|
MadMike
Moderator
FEAR THE BLACK FLAG!!!!!!!!
Posts: 6579
|
posted April 25, 2002 09:19 PM
Well I have a big factor for you? who buys the gas for your vehicle?? if it is you your going to make $75 a month in gas savings along!! if not more. if the company pays? then either way no big deal, other then your mom owns the company. and you would be saving her money. do you like the car(buy it). do you need the car (dont buy it) check into the milage on those kinds of cars. do they last for ever or is it a money pit!!
and finally can you honestly afford it. and insurance? if so I say go for it. espically since you dont want a brand new car. If I was a financial planner I would probably tell you Not to buy it, but im not so if you really want it Buy it, just weigh the good vrs the bad...
Mad Mike
____________
200-MPH CLUB MEMBER!
|
redelk
Moderator
Please... speak to the hand.
Posts: 3212
|
posted April 25, 2002 10:41 PM
Interesting
Rocket, none taken. I'd rather have a HONEST opinion then BS. Good point about the sales tax. Will have to see what it would be, but I was thinking as if it was a new car, where the tax could easily be over $1200. Odds are, it would be less then $500 and the company might cover it too.
MM, Insurance and most of the gas will be paid by the company. About the only thing I'd be stuck with is service & repair costs. Odds are, I won't have to cover more then 50% of it. It's that "company" thing again. In the case of the trucks I've been driving all these years, I haven't had to pay ANY of the expenses. Gas, insurance, taxes, service/repairs and even half of the "mods".
____________
There are only three sports: bullfighting, motor racing, and mountaineering; all the rest are merely games.
-Ernest Hemingway
|
12RPilot
Pro
Posts: 1094
|
posted April 26, 2002 05:39 AM
Only you can decide
If Red Rocket was my dad he would bitch slap me for all the financial blunders I've made out of impulsiveness. He is absolutely right of course. However, I'm "upside down" on my ZX-12 loan and it doesn't bother me cuz I love having it. I think that if you like the car enough, 245 a month is worth the enjoyment despite the numbers not adding up. If you are going to get bored with it though....ugh. It will be a burden that's hard to unload.
____________
If you aren't an AMA member, you're part of the problem.
NESBA #209
http://www.bikepics.com/members/12rpilot/04zx10r/
 
|
pat830
Expert Class
Posts: 135
|
posted April 26, 2002 06:34 AM
You could buy it......
......keep it a couple of months, if you don't like it or the payments, sell it. That would help out your Mom.
|
princesskiwi
Administrator
MISTRESS of SMACK
Posts: 7688
|
posted April 26, 2002 08:52 AM
Company car?
|
hott-rodd
Novice Class
Posts: 96
|
posted April 26, 2002 12:00 PM
It's you brothers car! Just make the payments, Put insurance on it and drive it, until you decide.
Personal tax on a 5 yr old car is what?
If you decide to buy, the sales tax can be cheaper/none when the sale is within the family. Check into it.
good luck
|
rs
Expert Class
Posts: 137
|
posted April 26, 2002 12:18 PM
Was the title in your brothers name, or both his and your mothers? If it was in both, why not just leave it that way and make the payments for her. More than likely she can claim the car as a company vehicle (instead of the old truck) and get a tax break. You won't have to worry about the sales tax and it will help out the company also. She probably can talk to the bank or credit union and get it refinanced at a lower rate and for a longer term and get the payments down from where they are now. I'm sure they will work with her on this as it would be in their interest to not have the loan in default.
|
Red 12R Rocket
Novice Class
Posts: 59
|
posted April 26, 2002 12:39 PM
If you can use it as a company car and write off expenses on your taxes that's a whole new ball game!!
|
frEEk
Administrator
ummm... yeah
Posts: 9660
|
posted April 26, 2002 02:28 PM
well, in my case i think i would place alot of value on the fact that it was my brother's car. i am not exactly "financially responsible", and tend to spend money i dont have for things like that. maybe u could get the company to pay u the gas savings in cash? that would help offset the payments.
i guess what it comes down to is it would be smarter to sell the car & just pay out the difference (few hundred by the soudns of it), but i for one would buy it.
|
princesskiwi
Administrator
MISTRESS of SMACK
Posts: 7688
|
posted April 26, 2002 05:13 PM
If you like the car, keep the car.
If you want it because it was your brothers, that's fine too
There are worse reasons to buy something....
If you don't want the car, and it will not contribute to your happiness... then sell it to someone it WILL make happy, that's fine too, ya know?
|
princesskiwi
Administrator
MISTRESS of SMACK
Posts: 7688
|
posted April 26, 2002 05:15 PM
Had to look at the car again...
For four wheels, it's kinda sexy...
If it's not makin you smile, sell it to someone it will
|
|
|
HOME
NEW TOPIC