What do I do!!! Please Help!!

[Anonymous]

In 2008 I bought a 2009 Honda Civic Coupe brand new.  Since my credit was lousy I needed my dad to co-sign.  At a high interest rate, I got the loan and the car.  Well, now, I'm getting married soon and going to be starting a family.  Problem is, the 2 door coupe is not conducive to raising a family since I cant even get groceries in the back seat.  I want to sell the car and get something more family friendly.  But I am afraid that if I sell the car and pay off the current loan that I still wont be able to get a new loan in just my name.  My credit has gotten much better since having the auto loan, but I'm not sure i'll get another loan. What route should I take? What should I do.  I kelly blue booked my car and its worth a little more than I owe (thankfully). PLEASE HELP!!

[llecs]

If I was in that situation, I would accelerate the payments and PIF a little early. If you got the car in 2008, then it'll probably get paid off before you have kids anyway. During that time, continue to rebuild your credit by removing any baddies and open up maybe a card or two in your name to establish a good mix of credit, assuming you have nothing but the car now. That way, once you PIF, your credit will be better, you'll qualify for a better rate, and you won't take a hit for the lack of credit if the car is all you have now. Moreover, your DTI will be lower and you can qualify for a better rate, car, etc.

[Boldilocks]

I'd hold on to the car for a while - as long as you can - and keep paying down as much as possible.

Before you have kids you have this idea in your head about how everything has to be perfect (especially if you're female).  Well, the reality is that you're talking at least a year before any kids are on the scene, and even then, it's not the end of the world. 

Our situation - true story.  We have one car that we share, it's a 1994 2 door saturn SC2.  TINY.  We have 2 kids now aged 3 and 2, and it's the only car we have ever had since before they were born.  We made do, got our credit sorted out and some savings behind us without the burden of big car payments.  Now we're ready to get a nice minivan this weekend.  With cars, there is a big difference between "wants" and "needs".

PS.  DH and I tried for 5 years before our first daughter came along, with the help of IVF.  Starting that family can take longer and cost more than you think...