AirborneCZ

how about getting CAI?????

timothyrw

WHOA WHOA WHOA hold on just one second, your parents took out an equity loan to help you buy this and your 18 working at the city parks????

Well, I for one have a problem with it...

First, it's a free country you can do what you want.

Having said that, I think this is symptomatic of a greater issue here in the States. We want what we want and we want it now. Instead of saving money to buy a car we can afford, we want our cars RIGHT NOW so we take loans up to 6-7 years. There is a HUGE debt crisis in this country.

OK, think about it people. This kid's parents took out an EQUITY loan to help him pay for a new car?! What are they teaching him about fiscal and financial responsibility???!!!

THAT IS FREAKING OUTRAGEOUS!!!!

Am I the only one to see this? I presume he means Home Equity Loan. They took out a loan against their HOUSE to buy an 18 year old a CAR!!

Is this normal nowadays??

If he should be paying for anything it should be his college bill (or savings acct) so instead of buying a Mustang now he can buy a GT500 later!!

Wow... wow...

And 07AlloyGT, being able to AFFORD something is paying for it with CASH, not a Home Equity Loan!

Son, since your parents clearly can't say "No" to you, YOU need to learn to say, "Thanks, but no thanks Mom and Dad."

07AlloyGT

if that was the case then 70% of high school students wouldn't be able to attend college much less own a home, a car, etc.

budgeting is being able to afford something. the only time you can't afford something is if you don't have the means to pay off the debt. if you make $1200/mth and you owe 1500/mth, you can't afford it. but, if you make 1200 and you owe 800, i would say that's affordable.

timothyrw

I'll grant you that the definition of "afford" has changed in the last few decades.

I guess "afford" now means, "If it doesn't force you into bankruptcy, you can afford it."

Let's not compare student or home loans to car loans.

Student and home loans are smart investments. Student loans enable one to go to college and get a degree, a better job, and thus greater earning power. (The interest paid is deductible as well, reducing taxable income.)

Home loans are the best kind of debt as one builds equity as the principal is paid down and the house gains value. (Mortgage interest again tax deductible as well as property taxes, again reducing taxable income.)

Car loans are bad, bad, bad.

Unless you have 0% for 72 mo's like me!!! Then it is better than free money. With the time value of money (inflation) they are actually paying YOU to buy the car.

Which is no wonder FORD just put up all it's assets to get $18B of financing...

Caution

Geesh I dunno even know where to go on this one. I think that it's good that he pays the car and is 18... There is some responsibility there and he is working to have that car and foot his note. I personaly wouldn't take out a lean against my home to buy a car... but people are all different and appearantly his parents are fine with it. They obviously think that he is responsible to keep up with the car so I guess the future can only say what'll happen there. You got the car now so enjoy it and do what you have to. It could always be worse- a buddy out here took a lean against his home for a 15,000 dollar engine to throw into a nova... I think it was a nova but you get the point . He ended up blowin' it in umm 4-6 months [:@]

timothyrw

I think it's great he's paying for the car, too. But why a brand new $30k car? Why not a good used $5k car? Heck, splurge and get him a $10k used car if he's been a good student...

Look, I don't know WhiteStallion06's situation. It doesn't make sense to me why they would pay for the car the way they did. It doesn't make sense to me why you would help put your 18 year old son into $30k debt. It doesn't make sense why he's paying for the car when he should be paying/saving for college.

Maybe it will all work out great. But, it's hard for me to get too optimistic about an 18 year old and 300 hp and $30k of debt and a job at the parks department. I had a Fiero, 135hp, and a part time job at Wendy's and I'm amazed I survived...

I'm more shocked that everyone here is giving the Papal wave to the situation.

Agleon

I dont really want to get into too much detail but.....

My parents have built an excellent equity on our house since they've been living in it for a while now. As far as college goes, my college is already payed for with the Florida pre-paid college plan. Hopefully I'll get some scholoarships which will be extra money for my pocket. I've been driving a 1997 Thunderbird LX that is about to crap out anytime now.

timothyrw

Florida has a pre-paid college plan???!!!

Well that's cool bro. I was trying to not rip on you or your parents. If you can pull it off than more power to you!

Just be careful with it, have fun, and remember what's most important at this point... an education!!

Trust me, get that degree, life will be soooooooo much easier...

GT Newbie

Hey Tim- looks like you and I are about the only 2 people left in the U. S. of A. who believe that, except for buying a house, people should only buy what they can actually PAY for (in CASH), instead of mortgaging their futures away to satisfy an instant craving ("Gotta.. have.. it.. right.. NOW!").
I just bought my brand new 2007 GT a few weeks ago (after saving up for it for 3 years), and when the salesman asked me if I was leasing it or financing and I told him: "nope, paying CASH in one lump sum", he actually did a freakin' double-take like he'd never heard anything so crazy before...;-)
I HATE those bloodsucking credit card companies and "easy credit for all" scams, and every week take great pleasure in sending back the 3, 4, or 5 empty pre-paid envelopes they keep sending me to all those #@!%#%! credit card companies that are trying to get me HOOKED- that way they have to pay the .50 postage for each (empty!) envelope I send back, and even though it's only a very small token gesture of contempt on my part, it sure feels good to STICK IT TO 'EM.....LOL