I knew this would happen again, but didn't know when. My family has problems with cars, they buy too expensive of cars, they buy ones that they crash in a matter of months, or they buy ones when they don't even have a driver's license.
I called my sister yesterday since my dad had said she was not doing too well with her new position regarding pay (became a hair stylist at an upscale shop, was an assistant before). When I got her on the phone, she let me know her car was gone. I thought it first was stolen, but she explained that she was negotiating a payment plan since she was behind on the payments, had made a plan and was paying, but they came and took the car anyways. She owes about $8K on the car, it's worth about $3K and was starting to have problems.
I wish there was some magic smart pill I could give my family, but there is not (yet at least). Here's the advice I gave her:
- Buy a beater of a car for $500 (all she has in the bank).
- Save $200/month for 6 months. By that time the beater will be dead.
- Buy a better beater of a car for $1200 (from savings).
- Keep up the $200/month savings for a year, repeat cycle in a year for a $3000 car (from savings and selling the previous car).
I doubt she'll listen, but I tried all I could.
Regarding my beater, it is dead. The brakes are shot and it's not worth pumping more money into this thing. We haven't made a decision yet, but I'm leaning towards us holding off Capital One a bit longer and us buying a $2K car with 75-100K miles on it. For now, I'm driving my wife's car to work and back, while she stays at home.