Honestly that's what I would do. Just wait it out. If you're going into a really lucrative field then you can get just about any car. Also, you will get a much better rate on the new car after you have positive payment history. I just got a new car in March 2013 and the rate is 1.79%. Its definately doable if you focus on making all payments on time, and sticking with a vehicle that is within your budget... A lot of folks damage their credit by going too deep in the hole to finance assets which depreciate. The smart folks choose short repayment terms on these items and put a ton of money down, so that the asset is paid for long before it has negative equity. My family has 3 cars, and 1 is completely paid for, 1 is worth about 10k more than what is owed, and the other has less than 200 miles and retails for 50k and we owe 41k now.
On the prior car that was smoke damaged, did you try to file a claim against your collision policy? I think I would have fought harder for insurance to reimburse the damage, or for the friends insurance to reimburse the damage.
It is unlikely this loan is being reported to his credit report. Most likely it is the mother's vehicle and loan. That is good in that if this get's repo'd it will not start the 18 year old off in the wrong direction credit wise.
@Dustink wrote:Honestly that's what I would do. Just wait it out. If you're going into a really lucrative field then you can get just about any car. Also, you will get a much better rate on the new car after you have positive payment history. I just got a new car in March 2013 and the rate is 1.79%. Its definately doable if you focus on making all payments on time, and sticking with a vehicle that is within your budget... A lot of folks damage their credit by going too deep in the hole to finance assets which depreciate. The smart folks choose short repayment terms on these items and put a ton of money down, so that the asset is paid for long before it has negative equity. My family has 3 cars, and 1 is completely paid for, 1 is worth about 10k more than what is owed, and the other has less than 200 miles and retails for 50k and we owe 41k now.
On the prior car that was smoke damaged, did you try to file a claim against your collision policy? I think I would have fought harder for insurance to reimburse the damage, or for the friends insurance to reimburse the damage.
It is unlikely this loan is being reported to his credit report. Most likely it is the mother's vehicle and loan. That is good in that if this get's repo'd it will not start the 18 year old off in the wrong direction credit wise.
I'm really not sure about that. When I was 20 my mom co-signed for me a used car, worth about 10k. Luckily we got GAP insurance because three months later the car was totalled. Next car was 11k, and was a safer model car (a mazda). I drove that car for 5 years. At that time, I only had an internship which paid minimum wage. The car note was $232. There were times that I had to call and borrow money from mom for the car note, which she had co-signed. But I always paid it back. Also worked like crazy during the summer and saved my money to last me through the school year. I was never late on that car loan... it was with Chase bank. Ever since then I've had a good relationship with Chase. The car which was financed replaced a "beater" that I had paid 2700 in cash for, which died a year later. During the time that I didn't have reliable transportation I had to carry my kid to daycare, and then walk the rest of the way to school. It was over two miles to walk, while carrying baby + school books. When it was all said and done, I paid less per year to drive the mazda, plus I never had to carry my baby + books for two miles again.
FICO 8: 
Goal: Gardening!
Goal: Gardening!
I'm really not sure about that. When I was 20* my mom co-signed for me a used car, worth about 10k. Luckily we got GAP insurance because three months later the car was totalled. Next car was 11k, and was a safer model car (a mazda). I drove that car for 5 years. At that time, I only had an internship which paid minimum wage. The car note was $232. There were times that I had to call and borrow money from mom for the car note, but I always paid it back. Also worked like crazy during the summer and saved my money to last me through the school year. I was never late on that car loan... it was with Chase bank. Ever since then I've had a good relationship with Chase.
*OP was under 18 at time of vehicle acquisition.
My parent's would never co-sign for me. Haha, they wouldn't even AU me on a card that they SD. They wanted me to establish my own credit so I would know how hard it is and would not be tempted to ruin it. They also wanted me to learn about the value of a dollar (or lack there of) so I would know how to get by and sustain myself.
I mowed lawns and did yard work for neighbors while in middle school, then when I was 15 I purchased a car with cash. I graduated with an AA degree at age 17, I went to college instead of my 11th and 12th grade HS years. Then at 18 I purchased a car borrowing money from my grandmother, which I paid her back or she would have beat my shin's in 
I traded that car in just recently with $8,000 in equity which I used towards a new car that I financed at 0% for 36 months.
I hope OP has learned what not to do from this whole Ram 1500 experience. Don't make the same mistake your mother has made. Key things to take away from this, put money down and make large payments each month.
@Dustink wrote:I'm really not sure about that. When I was 20* my mom co-signed for me a used car, worth about 10k. Luckily we got GAP insurance because three months later the car was totalled. Next car was 11k, and was a safer model car (a mazda). I drove that car for 5 years. At that time, I only had an internship which paid minimum wage. The car note was $232. There were times that I had to call and borrow money from mom for the car note, but I always paid it back. Also worked like crazy during the summer and saved my money to last me through the school year. I was never late on that car loan... it was with Chase bank. Ever since then I've had a good relationship with Chase.
*OP was under 18 at time of vehicle acquisition.
My parent's would never co-sign for me. Haha, they wouldn't even AU me on a card that they SD. They wanted me to establish my own credit so I would know how hard it is and would not be tempted to ruin it. They also wanted me to learn about the value of a dollar (or lack there of) so I would know how to get by and sustain myself.
I mowed lawns and did yard work for neighbors while in middle school, then when I was 15 I purchased a car with cash. I graduated with an AA degree at age 17, I went to college instead of my 11th and 12th grade HS years. Then at 18 I purchased a car borrowing money from my grandmother, which I paid her back or she would have beat my shin's in
I hope OP has learned what not to do from this whole Ram 1500 experience. Don't make the same mistake your mother has made. Key things to take away from this, put money down and make large payments each month.
Wow. That's incredible. I thought graduating from high school at 16 and my associates by 19 was good lol. You've blown me out of the water!
But yes I have definitely learned from this experience. I'm gonna stick with vehicles that can be paid off in 48 months or less, put more down than the 15% or so my mom did, pay extra every month, and definitely never buy a vehicle again that depreciates so quickly in one year
@gk94254 wrote:
@Dustink wrote:Honestly that's what I would do. Just wait it out. If you're going into a really lucrative field then you can get just about any car. Also, you will get a much better rate on the new car after you have positive payment history. I just got a new car in March 2013 and the rate is 1.79%. Its definately doable if you focus on making all payments on time, and sticking with a vehicle that is within your budget... A lot of folks damage their credit by going too deep in the hole to finance assets which depreciate. The smart folks choose short repayment terms on these items and put a ton of money down, so that the asset is paid for long before it has negative equity. My family has 3 cars, and 1 is completely paid for, 1 is worth about 10k more than what is owed, and the other has less than 200 miles and retails for 50k and we owe 41k now.
On the prior car that was smoke damaged, did you try to file a claim against your collision policy? I think I would have fought harder for insurance to reimburse the damage, or for the friends insurance to reimburse the damage.
It is unlikely this loan is being reported to his credit report. Most likely it is the mother's vehicle and loan. That is good in that if this get's repo'd it will not start the 18 year old off in the wrong direction credit wise.
Correct, loan is my mom's name. But I'm on some of her credit cards that are paid properly and report to the credit bureaus so they should help my credit. However I highly doubt it'll get repoed as the only variable expenses in our lives is household utilities, college books, and vehicle fuel(house has locked in interest rate and payment, mother's paycheck is locked in unless military retirement is changed, college is paid for, etc)
$800 is a lot for a car payment each month on a military retirement. I hope she can get by with her old car, she may have some issues getting approved for another car loan with that on there.
Yes, the credit cards that are paid as agreed will help build your credit.
@Dustink wrote:I'm really not sure about that. When I was 20* my mom co-signed for me a used car, worth about 10k. Luckily we got GAP insurance because three months later the car was totalled. Next car was 11k, and was a safer model car (a mazda). I drove that car for 5 years. At that time, I only had an internship which paid minimum wage. The car note was $232. There were times that I had to call and borrow money from mom for the car note, but I always paid it back. Also worked like crazy during the summer and saved my money to last me through the school year. I was never late on that car loan... it was with Chase bank. Ever since then I've had a good relationship with Chase.
*OP was under 18 at time of vehicle acquisition.
My parent's would never co-sign for me. Haha, they wouldn't even AU me on a card that they SD. They wanted me to establish my own credit so I would know how hard it is and would not be tempted to ruin it. They also wanted me to learn about the value of a dollar (or lack there of) so I would know how to get by and sustain myself.
I mowed lawns and did yard work for neighbors while in middle school, then when I was 15 I purchased a car with cash. I graduated with an AA degree at age 17, I went to college instead of my 11th and 12th grade HS years. Then at 18 I purchased a car borrowing money from my grandmother, which I paid her back or she would have beat my shin's in
I hope OP has learned what not to do from this whole Ram 1500 experience. Don't make the same mistake your mother has made. Key things to take away from this, put money down and make large payments each month.
When I was 18 I didn't have a car at all, and I would definately not put my own daughter in that situation. I started college about 3 hours from home when I was 17 years old. My parents were a little odd in that they wouldn't "let" me have a job while I was in college and either didn't want, or couldn't afford for me to have a car. That lasted until I got pregnant at 18. I moved back home briefly and then and moved out on my own when I was 19. The moving out part was due to disagreements between myself and my mom regarding how to raise my daughter. At that point I knew what I needed to do as far as doing well in school, and I have always been willing to work hard. So I picked up three jobs and got a daycare. I also felt like what I was doing with my daughter was the right thing to do, no matter how my parents felt. They literally wanted me to deny my daughter's father from being in her life, on her birth certificate and from seeing her at all.
They stated that since I lived with them that they could tell me what to do. Unfortunately for them, I am stubborn and I like to make my own rules and my own way in life. I never asked my parents to co-sign for me a car, but I think they felt guilty at that point when they drove 2 hours to see me and the kiddo and figured out that I had no transportation for me and my daughter. I'm grateful that she did it, and our relationship is good now.
I think its easy to be wrapped up in the idea that co-signing for your kiddo a car is a bad move to do, however, in my situation and in plenty of other people's situation, it can be a very responsible thing to do.
My parents did this with all four of us kids, and of the 4, only one of us had an issue with paying on time and it wasn't really his fault (long story) he was sending the money home for the bills to be paid, but his now EX wife was not paying the bills.
Out of us four, we all learned responsibility and we all have paid our own way and contributred to society now... I think there is a misconception that there is only one right and one wrong way...
In reality, there are as many right and wrong ways as there are kids in the world 
FICO 8:
Goal: Gardening!
Goal: Gardening!
Wow. That's incredible. I thought graduating from high school at 16 and my associates by 19 was good lol. You've blown me out of the water! **
But yes I have definitely learned from this experience. I'm gonna stick with vehicles that can be paid off in 48 months or less, put more down than the 15% or so my mom did, pay extra every month, and definitely never buy a vehicle again that depreciates so quickly in one year
**I was in a state that had a program which allowed you to get high school credit at the college.
It was the negative equity from the old loan that hurt this one. Had she negotiated a good price on the car. Then put 15% down without rolling any negative equity into the loan, it would have been an okay down payment.
A 60 month loan is okay as long as you make extra payments, it will be assessed the same rate as a 48 month loan. That means there is really no reason to take the shorter term. It gives you some wiggle room if you lose your job and need to make smaller payments.