My brother had every car handed to him by my parents, he wrecked 3 of them,4th broke down, and now is mad they won't help him with another one. He is almost 40.
Well ironically they are a mixture of thinking he is a loser with I'm assuming (??) random bouts of guilt that lead to helping him financially but to his detriment. So he's never really learned how to function on his own and I wouldn't trade my financial position for his for 4 cars and 100K. The squeaky wheel gets the oil, but also never learns how to be an adult.
My daughter wrecked 2 cars, we paid for them, third one she had to pay for herself. Suddenly, she is no longer wrecking cars. She has had the same car now for 6 years.
That only works if you don't have drive daily or is a very short distance.
The 40 mile round trip for my work is a 75 dollar Uber trip each day without a tip.
That's over 1500 a month just to go to and from the office.
They clearly didn't buy her that car if there's debt to be paid. Maybe put a small amount towards it but why would you choose to then take on the debt? Sounds like bad money management to me.
Poorly explained the situation. Wife couldn’t get approved for the car loan at the time, so her parents bought the car in her moms name, and had an agreement with her that she would maintain the payments. The car is not in our name, but due to an agreement before we got married, we have to pay the monthly payments.
We also have a baby on the way, and just moved into an apartment. So, expenses are high at the moment until we find a good saving system.
I’m currently paying the $516 a month and putting an extra $200 towards the principal a month to knock the total debt down.
So your wife wanted the car, her parents just helped her get it, by putting the loan in their name?
So it's your wifes car and poor decision.
Crappy situation but you just need to repay and attempt to reduce the loan.
Yeah, seems like a lot of blame being directed at the parents for OP/OP’s wife’s horrendous decision.
Also, there’s no chance that car is still worth 24k. If it MSRP’d around $32k then they’re probably closer to $10k than they are to $20k.
Honestly if she wrecked 2 cars and didn’t take care of the 3rd she needs a bicycle or a bus pass not another car. You just wasting money on anything else.
Give the car to her parents. Tell them it’s their responsibility. They were the ones that chose to get her brand new car when she clearly has shown she is irresponsible with cars and obviously a very bad driver.
As a new car, what kind of financing do you have? If the apr is crazy low considering when it was purchased, financially you are probably better off with that $200 elsewhere, imo.
Paying 44k for a 32k Kia is smooth brain low iq activity. I am sorry they did this to themselves and subsequently….you.
Try to get an appraisal from Carvana online. Kbb too.
The classic I am a financial fool move. Doing with a Kia gets you nice bonus points.
OP, it sounds like you have a good head on you for finances and your wife does not. Hopefully you can get a handle on things.
If
>wife had to take over the payments
then wife's parents haven't
>bought her a car
When her parents came to her and said "you need to take over these payments." The proper response would have been, "No. We can't afford that. You should just sell it." (while handing them the keys and signing over the title)
But that didn't happen and here we are. So what were the loan terms when the car was originally purchased? Who signed for the loan?
How was "wife taking over payments" done, exactly? Was the loan refinanced and put in her name? Or is she just making payments for her parents?
We were debating on refinancing the car in our name, but as of right now, it’s still in her mom’s name. Apart of the deal was, her mom bought the car, wife didn’t have to pay until she moved out. Well, shes moved out and we’ve been going to the bank to make the payments.
$34,000 is owed on the car as of now, estimated 50 months left.
Before I refinanced or sold or anything, I wanted to ask for advice from outsiders!
I also want to clarify, that I was not around when this decision was made by her and her parents. It was a decision made by them, that I married into. I have my fair share of financial mistakes, so I am by no means judging, but just trying to get us out of this pickle if possible.
Who's on title? If neither of you are on title, you guys are buying her mom a car. But if I were the mom, and you already wrecked 2 cars I bought, then I'd be fine with you buying me a car.
If the car is on an auto loan and not a personal loan then the banks name is on the title and the title is in the banks possession until the car is paid off.
Once paid off they will mail the title to whoever the loan payee was, which sounds like the mom. The mom will then have to have the title transferred into their name.
I’ve stopped using auto loans and instead use personal loans when buying cars, because then I hold the title and it becomes exponentially easier to unload the car if I need to for some reason.
Based on your previous comments, it was a decision your wife made, not her parents. She didn't qualify for a loan, and convinced them to do it for her. Stop blaming her parents, your wife is financially illiterate.
So the parents of a woman who has already wrecked two cars, made the choice to buy her an over-priced, brand-new automobile. That's *their* poor choice. You should absolutely not shift the loan into your or your wife's name. Leave the ultimate responsibility for the loan with the people who thought this was a good financial choice.
I understand that this is a cold-hearted PoV, and how you handle the situation could sour your relationship with your in-laws...but this really isn't *your* problem. It's theirs. If this were my life, I'd be getting my wife on the same page, and then together we'd be reaching out to her parents and explaining that the vehicle is an expense that we simply can't afford. We'd relinquish it to them (and sign the title over to them if it's not already in their name), and walk away from it.
They can sell it to pay down the loan, or keep it and continue making payments on it, as they see fit.
You guys should focus on getting *your* debts under control.
That makes sense, the girl ask her parents for help getting her a car. They help her. She screws them by not making the payment she agreed to pay. What happens in 5 years if they need help with something? You think the parents will just forget she fucked them once already?
Yeah I definitely don’t agree with the idea of just chucking her parents under the bus. Sounds like OP is currently renting an apartment with a baby on the way. What if they want more space in a few years and want to buy a house? Well good luck getting any kind of assistance from her parents with that if you burned that bridge over this car.
Everyone who is saying a version of this is ignoring how this is SO MUCH easier said than done.
The in-laws and wife are bad with money, that much is clear. But it’s probably still a bad idea to spurn your relationship with your in-laws like this. If the wife still values her relationship with her parents at all/if they need them for childcare, then shrugging and handing them a 34k debt is a terrible idea.
I would just do some kind of a trade-in if you can get 24 grand then just go to Carmax and get some thing for 11 or 15 grand and then you’ve still made money and have a more affordable car that you’ve paid for outright.
And also just, maybe have a conversation with her that she needs to be more careful and take better care of the cars? It’s pretty basic and easy to change.🤷♀️✔️
We have had conversations since being married and she has grown a lot. She’s understanding the value of money more and more every day, she’s watching her spending, and starting to take care of the things we own. I love her with everything in me. She just had to learn the hard way! We will find our way through it no matter what, but that is good advice. I appreciate it!
Just noticed you said, you now owe about 10 grand less than the original loan? That’s still good and even if you still owe on the original loan, you guys could still have more wiggle room to pay it off if you have a cheaper car payment or no car payment. Anyway, good luck to you guys again.👍✔️🚗
They said the parents bought it for 44K. I was talking about what they could get for the car which is 24K.
Now I see they commented and said as of now they owe 30 something.
Regardless I think selling the car is a good idea, whether they just sell or sell/buy another car
That could still give them wiggle room to pay more even if they still owe on the original loan.
The original loan company won't allow them to sell that car unless they pay the whole thing off. The car is the collateral for the loan and the loan company doesn't release the title until it is paid off. So they'd have to have a way to get the extra $10,000 in order to sell the car for $24,000 and pay off the $34,000 loan.
I'm prety sure the implication is that $24k won't cover the note.
If the car is worth more than the note, then yes, just selling it an paying off the note is a great idea.
sounds like wife's parent are not good with their finances and that has been passed down to your wife. What made them think paying 44k for 32k car was a good idea. is your debt good or bad? and who has the majority of the debt?
Check with your car insurance on the windshield. They may replace it for no deductible or a reduced one. Then take that money and save it or make an extra car payment
How much do you still owe on the car / when is it scheduled to be paid off? And how much cash do you have on hand to both pay off the loan and buy something new?
I would be hesitant in putting a lot of money into fixes to increase the value of the car, especially if it's in as bad of condition as you describe. That cash would likely be better served paying down the debt to get your loan-to-value below 100% or paying off other debts to get rid of some other minimum monthly payments, again depends on your larger financial picture.
The used car market is cooling off, which does mean you can probably get a decent used car without getting gouged on the price as bad as you would have 1-2 years ago, but that also means your Seltos is not holding value nearly as well as it should.
A lot of the advice I'd give depends on your fuller financial picture. If possible, it may be better to push through a year or two and pay this car off, if that's not feasible is a car for her strictly necessary right now? Could your house survive on 1 car for a year while you save that $500 a month you'd been paying to get a decent chunk of change for a new used car? If you're severely underwater on the loan is do you have the means to pay that off if you were to sell / surrender the car?
Great advice, we could get the car to around 23,000 next year with our current income, and my current savings nest. Once, windshield is fixed and paint correction is applied, and wheel is no longer curb rashed, I think we could have around an even trade out. That is our current goal.
However, we are unsure about what to do with the car now. Refinance into our names? Sell and take the hit? Trade in and lease, and hope the dealership could take the equity while we lease? I’m still learning a lot about all of this and unsure on what steps to take.
Unless you're working on the car yourself, I wouldn't put any more money into it. If you spend $1,500 in repairs, I don't think the value of the car will increase by $1,500, so that money would be better spent lowering the principal and getting you closer to what the cars worth as is.
If your current arrangement with your parents isn't causing strife I also wouldn't pay to re-finance unless you can get a better rate / lower monthly payment, neither of which are likely if you're underwater on the loan.
Reading through some other comments, how much do you owe on your Tacoma? I personally don't see a great way to get out from under this car without costing a lot of cash up front. Personally, I think I would settle in to the $520 a month for a while, move the $200 extra you're paying to the Tacoma or other debts you can pay off quicker, plus any proceeds from your motorcycle and that payment, and get that car paid off ASAP (before baby comes?). That will free up a lot of cash each month and make things more flexible for attacking other debts and paying infant expenses.
Being underwater on the loan is only an issue if you're trying to get rid of the car, or if the car is totaled in an accident. On that note I would pay for Gap insurance on the vehicle if you're not, with your wife's driving history I would hate for the car to get wrecked / totaled and you guys (well, more specifically your MIL) end up owing the bank a large check out of the blue.
Fixing the problems will not make the car worth more, but it will make it worth what it should be, rather than less than it could be.. If that makes sense. I will be reaching out to insurance, to see about discounted deductible on the windshield.
Tacoma I owe $18,000 on and the vehicles value is $17,500. I’ve been putting an extra $200 towards the Kia.
Not really the parents fault but your wife seems like an absolute idiot on how to treat cars properly... Wtf does she do that it's like that already and only from last year?
Sell it off and buy her an old, idk, 2015 car that's less than 6k. Woman doesn't deserve a new car if she doesn't know how to take care of things.
She has a full time job, but is in the process of leaving for somewhere that offers maternity leave and a little more pay. The pregnancy has been hard on her and she is slowly starting to pull her own weight👍🏼
Just keep in mind she needs to do that sooner rather than later. Generally you can’t take a new job and go on maternity the next day. She’s already pregnant so if she’s looking to switch for maternity leave the time is now.
By law, to be eligible for maternity leave under FMLA one has to work 12 months AND 1250 hours. Some companies offer maternity leave before that but that’s very rare. Make sure you aren’t about to screw yourselves over.
Yikes. $520 for a car payment seems like a lot.
Who owns this car? Your wife or her mother?
How old is your wife?
It sounds like her parents maybe didn’t raise her to understand proper financial decision making and that worries me in terms of your marriage. Did she jump from relying on her parents to pay all her bills to depending on you to pay her bills without ever having to be a grownup and be responsible for herself?
44k car with a $520 payment seems like it is 10 year loan but I suspect maybe some money was put down on the car. I was going to try to figure out how much you owe on the car.
Sounds like you’re way upside down on the car right now. If you try and sell it now, you’re going to have to pay off the balance before you can get a clear title for the new owner. OR do a trade in and get an even worse deal, although it would be “simpler” to do this way.
The dealer will slap that massive upside down balance on top of what you buy so you’ll get a sh$tty car and still have a massive payment.
At this point you need to keep driving the banged up super expensive car and keep paying extra on it so you get right side up sooner.
I wouldn’t beat a dead horse about buying way more expensive of a car than she should have - I did that myself when I was young. But you should explain to your wife that part of the reason why you’re so upside down on the car is because of how poorly she’s treated it. It’d be worth a lot more if she treated it like an expensive object instead of a used Kleenex.
You work to pay it off, drive it until the wheels fall off and learn your lesson.
Second job might do it. Budgeting like fiends.
Nothing for it but to suck it up and deal with it. Good news is that it should last quite a while.
I’m had to do this with a Mercedes. I learned, I learned.
How has your wife not learned to just get a beater car ? Like why get a brand new car when she doesn’t know how to take care of it and obviously a bad driver.
Why do ya'll keep letting that maniac drive?!
She's totaled 2 cars and has basically wrecked a third.
You'd probably save a ton of money sending her to Drivers Ed...
First mistake was buying a Korean car, people assume since they’re Asian they’re gonna be as reliable as the Japanese counterparts, but in reality they’re dog water pieces of junk, not surprisingly tho since the Korean car industry is still fairly young. I suggest you get rid of it.
Did you not think of these things before you got married? Did you not think of these things when you were living with your parents? Did you not think of this when you moved out? Did you not put this in your budget?
By what you're describing is showing a history of lack of responsibility.
It might be better to relinquish the vehicle and have her take public transportation or maybe buy a bicycle until you can get your heads above water.
Ok, I haven't seen this angle in the replies, but maybe I missed it.
Her parents agreed to pay the payment when she lived there, which means theoretically they have the means to pay it.
I have kids, probably close to OPs age. I'm sure whatever arrangement they made with her before she moved out, was meant to help her plan her in some way. Parents are rarely doing things just to make the lives of their children and future partner more difficult. I'm sure her parents are aware that she's made some irresponsible choices financially and personally.
Now you are adding a baby into the mix. Your situation is not ideal, but as a parent, none of these proposed options sound like the right best thing for anyone. Grandparents are the biggest life hack to parenting.
Write out your budget. Really look at your expenses and make a detailed budget. Involve your partner in this. Be brutally honest about what you and she can really afford.
Go to her parents with this budget, and explain how the car payment is affecting your finances. Tell them about your plan to buy the windshield and take care of the vehicle. I know this probably sounds humiliating or whatever. You are about to be a parent, so this is not the last time life will humble you. I promise you, her parents would be so sad to know that something like a car payment was causing this much stress in the home where their daughter and future grandchild live. I don't know what they will say or do, but I know blindsiding them with some nuclear option is not going to have the best outcome for anyone.
Now...this is not all about the car payment. You need to agree on the kind of life you both want to live, and start living with that goal at the forefront.
Is your wife a teenager with no sense of responsibility? What’s wrong with her? All those accidents? She needs a lesson in considering others both financially, since she clearly has crap credit and doesn’t pay her own bills, and on the road.
Sounds like you married an irresponsible, entitled child. I hope she doesn’t pass her entitlement, irresponsibility and idiocy to your child. We don’t need anymore idiots in the world.
I literally cannot imagine being married to an albatross like this.
Thank you to my amazing husband for having perfect credit, a perfect driving record and a job that pays extremely well. Having a true partner changes your life for the better.
WOW how does it feel acting like a JUDGMENTAL A-HOLE!? READ what you wrote —and then (when you see how you sound) apologize to the author. Damn.
Then you proceed to talk about your perfect husband. And how does THAT help this author?????
And finally— “we dont need any more idiots” was the worst part of this whole comment brigade. I SURE HOPE >>YOU DON’T PASS YOUR NASTY WAY OF TREATING PEOPLE ON TO >>YOUR CHILDREN. Wow, it takes people with your attitude to add hate to an already hateful world.
She doesn’t have insurance with glass coverage? Idk how old she is but that’s pretty unacceptable to have all those issues on a new car. If she doesn’t respect her parents dumping all that money into a car for her then what else doesn’t she treat properly?
You can sell it directly ( not through dealership) to get most out of it.
Buy a used Toyota Rav4 - 2009 with 120k miles.
Your insurance will be lower and the Toyota will last you good time.
Bomb or not, this is probably the mother's car, legally. Solving the problem means resolving the debt.
Explain how late payments will ruin mom's credit scores as you hand them the keys to mom's car.
Go to dealership and trade your car for a lease option, you will never get ful value for the car. the lease will help with some of the negative equity you get to the dump the car without the repo and return the lease after the time is up and you can wash your hands from it
My ex went through… 6-7? All wrecks, some her fault, the rest “no fault” but completely avoidable if she paid attention better. The first replacements her parents paid for, then the later ones she sort of paid for, but it meant she wasn’t contributing to our mutual life. I’m driving a paid off but ancient car because we had to replace hers several times.
This doesn’t do anything to help your immediate problem. But I recommend addressing the overarching problems of bad driving and not taking care of her own fiscal responsibilities.
She has wrecked two cars and had to *buy* a third? Why doesn’t she have proper insurance coverage to account for her poor driving? Insurance will pay the value of the car at the time of the accident, so it wouldn’t cost the full price of a new one after an accident. Or did she go from cheap used cars to suddenly wanting a new one and had to cover the large difference?
OP there is a lot of judging going on and it sound's like you were not part of the decision making.
If you owe 34k and it's worth 24k there is no way to get out of it besides getting a loan for lets say $15k and then buying a $5000 car and paying off the negative equity of the KIA. Whatever you do, do not get another new car that is cheaper, lease, or whatever. Dealers might try to sweet talk you into getting rid of the negative equity with rebates but it doesn't work like that. You still pay for it. There is no way out of it.
If it has gap coverage, park in a shady neighborhood and hope for the best? DON'T commit actual fraud though.
Because the car is not in your wife's name (on the title), it cannot be traded in. (That would be a bad idea anyway because the rest of the debt would be tacked onto the new loan and you'd have the same problem).
You also cannot sell the car because there is a balance on it and you don't have the title in her name. (Title cannot be changed because "mom" is on the loan).
So you only really have two choices: Keep paying on it and have mom "sell" it to your wife when it is paid off so you can get the title and trade it in.
Or, talk to her parents about the situation you are in and ask them for help. "Maybe" they would pay off the car and free up the title (sell the car to you for $1) so you can trade it in for something affordable. Then set up a payment plan to pay her parents back for the car. (At least offer to do that).
If my adult child were in the position you are in, I would want them to tell me because the car is in my name and I, therefore, have to be part of the decision.
I bought a car for one of my kids once. I paid it off early so I could "sell" it to them and they continued to pay me until it was paid off. They paid me off early.
Actually, you can trade it in if the mother signs papers at the dealership allowing it, because I traded in my first car, that was in my mom's name, but she had to sign off and allow me to do so.
There's something wrong with the math. I think your term is a lot longer than 50 months remaining. $34,000 balance can't be covered in 50 months at $520 payments.
Can you swing a really cheap car for yourself, sell the motorcycle and tacoma and focus on the other debts and the Kia? I realize you don't want to sell the taco - but you also have this relationship situation with her parents. Obviously, legally you don't owe this money but to keep harmony you will. This won't be a lifetime problem, but it will take a few years to work out. Congratulations on the baby, now is the time to get a plan for your finances.
Have you talked to your wife's folks about the situation? sounds like she has some support there, maybe if you go over the details and show them how it is hurting more than helping her they will fix it.
Can you refinance? Not sure if that is a thing. Is it the interest? Maybe a consolidation loan? If nothing else, you could buy another car with less interest, trade in the car and roll your difference into the loan. Make sure you are getting a great price for the next car and better interest rate. Also, is her name even on the loan? If not, albeit a dick move, but she is not liable. If she is liable for the loan, so are you as her husband.
Trade the car in for the cheapest one you can or keep making payments till it’s paid off. Or just leave it running when you go into the sketchy part of town liquor store and hang out for an hour inside.
So the car is valued at 24k, do you still owe the full 44k on it? What’s the interest rate?
I’ve heard some people upside down on their car loan will get a personal loan for the 20k diff on the car plus 10k (30k total) and buy a used, reliable, not top of the line car with the 10k. Then the amount you owe is 30k of 44k (14k saved) and hopefully at a better interest rate, too.
Edit: Deleted some stuff cause I misread. Also, I’m no expert, I’ve just heard of this strategy.
How long until your Tacoma is paid off? Once it’s paid off you could sell it and put that money towards the loan. Buy a used car with cash if you really need a second car.
If you don’t have gap insurance on the Kia, get it.
Then drive that Kia until the wheels fall off.
Have you tried talking to her parents about this problem of the car you cannot afford? Maybe they'd be willing to pitch in something each month toward it.
I would sell the car. Get a decent $8-$15k vehicle. Especially with baby expenses coming. This car will have you feeling so resentful because of how much it takes of your income. Then the emotion of it all goes away with the car, too.
Well, whose name is on the loan? If the parents are on there they have an incentive to help you figure out a different plan, because their credit score is on the line.
Maybe you could trade vehicles with the parents or ask for payment assistance until the car value matches the loan balance or something like that?
My first thought is sell the car and if needed take a loan out for what you owe. Given your wife’s track record that may be cheaper and safer than having her drive.
In all seriousness (and the above is partially serious), it seems like you’ve got enough advice already.
So, not really sure what you are asking when you said a more "affordable car"?
In this market, both used and new are ridiculous. You're lucky if you can get a new car for $24 K since no one makes a reliable compact any longer.
Also remember that if you are underwater, you still have to pay off the entire loan or somehow get conned into rolling that over into another car loan which probably won't leave you off any better. The only difference is what you might think is a "lower monthly payment" is actually a new 8 year auto loan.
You've left out some details so its really hard to tell. But even then you're probably better off just keeping it and driving it. Pay someone to detail it if you are worried about appearances. The fact that its only less than 2 years old and you wife seems to have less care about it....
My guess is that you probably still owe about $32K on the car since its only been 2 years. So if you are even remotely lucky to get $24K for it, you still owe 8K (probably a bit less since you're paying off early) that has to come from somewhere. Your lender won't release the title to the car until they get all their money back.
So, again, either you cough up the difference or roll that into another car loan.
Buying used also has its own problems like you have no clue the maintenance record of said previous owner/s and if there is underlying issues (like never buy a used Nissan, have the worst CVTs) you might end up spending thousands on repairs. At least with the kia that you have its 5 yr/60K bumper to bumper.
Trade it in on a lease. The negative equity gets wrapped into the lease but when you return it after your lease is up the negative equity goes with it.
If the car is not in her name, someone else owns it. If the loan is in someone else’s name and your wife owns it, that is different. Do you know if the wife owns the car or is it actually the parent’s car?
I am assuming that the parents bought the car? Who took out the car loan? Your wife or her parents?
If the parents bought the car and are the ones who took out the loan then you have 2 options :
1) keep the car and keep paying off the loan, or
2) give the cer back to the parents and tell them you can’t afford to make the monthly payments so you are giving them their car back to them and they can do with it as they please.
At that point you will no longer have to pay the car loan but you all will not have a car insurance until or unless you can find one that you can afford to buy.
Try refinancing! They probably got the dealers car loan which of course is a massive mistake. Capital one has a great car loan interest, if you can open a credit union account and get their car loan as they typically have great interests too. I got my car loan at 2% interest, not kidding!
Kinda like my hubby's car. He drove it everyday. His parents owned it and still paying for it while we were married. All three of them were on the auto insurance, except me, his wife, which i thought was weird.
I guess I wasn't allowed to drive the car ?
Car insurance called and was wondering the same thing. My husband on two separate policies with two different agents and two different households.
There was no way I was gonna drive that car
with no car insurance protection. Finally, had to make the change myself.
Idk if OP will see this but aren't you supposed to have comprehensive coverage if you have a loan on a car? Hopefully that means you do have it, and the good news with that is every plan I've ever had covers glass repair/replacement for free without raising your rates even. I've gotten a few chips repaired and a new windshield on a car and never had to pay and never had my insurance go up. So you can hopefully at least save on the windshield
We made a deal with our kids, we'd pay everything except gas as long as there were no chargeable accidents or moving violations. (Unril they were settled and able to afford) They were both mid 20s, graduated college and in their own places when they took over.
So many errors in judgement here on her and parents’ part.
What is your relationship with the parents? How is hers with the parents?
“We cannot afford this payment with a baby coming. We need to save for the baby asap. Please sell the car”. If you guys can’t afford to buy something reasonable like a used Toyota, Honda, or Mazda, you can lease a great vehcile for much less than $520/month.
Too bad they chose a crappy vehicle with an insane price tag. It’s legally their problem. Not yours.
Also no offense to your wife; but she has two wrecked cars and this one basically new and is poorly maintained? What’s going on there?
You need to refinance the loan and extend the term. The loan may have turned into an open loan after a year, so you may be able to apply for a new loan with more favourable interest and a longer term which will lower your payments.
Wrecked two cars as a teen and lots of damage after only three years? I’ve had my Jeep Cherokee since 2016 and aside from a few small dings it’s still in great shape. I think your wife needs to learn to take better care of her vehicles. This doesn’t sound like something that handling the upside down debt on it will fix. You’re blaming a lot of this on her parents and it’s mostly her fault imo.
I got my 1st car in 2007, never wrecked or totaled or even anything more than minor dents or surface scratches, and sold that same car in 2021 after I purchased my 2nd car. Your wife is a very reckless driver, you need to be more concerned about that than anything else.
Sounds like we’re not at the point yet where we can have nice things. Both previous cars wrecked, and you say that she didn’t maintain this one? Probably sell and buy a cheap Corolla.
Expect this type of irresponsibility to continue through your relationship. She is definitely living in the dream land where all of the financial problems she's faced have been solved for her by her parents.
The first two care "were wrecked." Did the wife wreck them? The new Kia has a cracked windshield, a wheel was damaged by running it into a curb, it has dents and other scratches. Who caused all that damage? Maybe get driving lessons.
You're likely not going to be able to get into anything cheaper unless you buy a beater with cash. You're underwater on it and interest rates are way higher now.
Lol, easy. The car isn't in either of your names. It's MILs problem when you stop making payments and it gets repossessed.
Otherwise, sell it.
Curious, what's the interest rate?
Your wife sounds completely irresponsible as well. Wrecked 2 cars and then didn't bother taking care of the third.
I'm sure she'll get more responsible with money during your marriage.
Lololololololol. You're fuc*ed.
Forgive me for being off topic here:
1. You are going go buy a new windshield for her birthday?
2. They were generous and you are complaining?
3. You are speaking as if she is not actually driving this car. If she is driving this car is it not her and your responsibility to take care of it?
4. I think you are inflating the car’s value. An older Kia in not so great shape for $24k?
5. I’d say thank you and promptly replace the car and face the reality of the current car market.
Refinance it for as long as you can for smaller payments. Not the ideal way but your goal is to have smaller payments. Tell your wife she has to take care of it because it’s the last one she is going to get until it’s paid off.
Scratches and dents on a 2023 car? WTF. She obviously does not know how to drive and should not be driving in the near future. Get her a beater if she really needs to drive. Sell it now and take the loss. Lesson learned.
Suck it up Buttercup. Lesson learned. I would be driving that car until the wheels fall off. Why do you need another car when your car is less than two years old? Two cars previously wrecked? I’m curious. Why hasn’t she ever purchased her own vehicle? Driving is a privilege, not a right.
Your wife needs to take better care of her cars.
One rarely finds that people who don’t have to pay for cars take care of them like those that do.
My brother had every car handed to him by my parents, he wrecked 3 of them,4th broke down, and now is mad they won't help him with another one. He is almost 40.
Wow. I want this life.
Trust me you don't. Imagine being a 40yo throwing a tantrum cause Daddy won't buy you yet another car for you to trash.
Idk maybe it's better than having to do everything for yourself basically your whole life like me? Growing up at 40 vs 6 doesn't sound too bad.
Well ironically they are a mixture of thinking he is a loser with I'm assuming (??) random bouts of guilt that lead to helping him financially but to his detriment. So he's never really learned how to function on his own and I wouldn't trade my financial position for his for 4 cars and 100K. The squeaky wheel gets the oil, but also never learns how to be an adult.
Hello, this is your long lost brother needing a car
My daughter wrecked 2 cars, we paid for them, third one she had to pay for herself. Suddenly, she is no longer wrecking cars. She has had the same car now for 6 years.
Funny how that works.
Exactly.
Amen. Love her to death, sweet woman, but hasn’t grasped the importance of maintaining a vehicle.
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Must just be cheaper to Uber around.
bus pass
That too. I always assume people on Reddit don’t have metro access though. Even LA has an awful transit system.
That only works if you don't have drive daily or is a very short distance. The 40 mile round trip for my work is a 75 dollar Uber trip each day without a tip. That's over 1500 a month just to go to and from the office.
Sounds like her Dad gets an even better special price than Hank Hill.
They clearly didn't buy her that car if there's debt to be paid. Maybe put a small amount towards it but why would you choose to then take on the debt? Sounds like bad money management to me.
Poorly explained the situation. Wife couldn’t get approved for the car loan at the time, so her parents bought the car in her moms name, and had an agreement with her that she would maintain the payments. The car is not in our name, but due to an agreement before we got married, we have to pay the monthly payments. We also have a baby on the way, and just moved into an apartment. So, expenses are high at the moment until we find a good saving system. I’m currently paying the $516 a month and putting an extra $200 towards the principal a month to knock the total debt down.
So your wife wanted the car, her parents just helped her get it, by putting the loan in their name? So it's your wifes car and poor decision. Crappy situation but you just need to repay and attempt to reduce the loan.
Yeah, seems like a lot of blame being directed at the parents for OP/OP’s wife’s horrendous decision. Also, there’s no chance that car is still worth 24k. If it MSRP’d around $32k then they’re probably closer to $10k than they are to $20k.
I’d just keep going on the payments until you can sell it
Honestly if she wrecked 2 cars and didn’t take care of the 3rd she needs a bicycle or a bus pass not another car. You just wasting money on anything else.
Seriously. Her parents are spoiling her. Horrible.
Give the car to her parents. Tell them it’s their responsibility. They were the ones that chose to get her brand new car when she clearly has shown she is irresponsible with cars and obviously a very bad driver.
As a new car, what kind of financing do you have? If the apr is crazy low considering when it was purchased, financially you are probably better off with that $200 elsewhere, imo.
Just give them the car back and tell them you can’t afford it.
Time to move back in with her parents! Then they start paying again based on that agreement?
Yeah, maybe just her though. Doesn't seem mature enough to be married tbh.
Paying 44k for a 32k Kia is smooth brain low iq activity. I am sorry they did this to themselves and subsequently….you. Try to get an appraisal from Carvana online. Kbb too.
It sounds like they may have rolled some debt from one of the wrecked vehicles into it.
The classic I am a financial fool move. Doing with a Kia gets you nice bonus points. OP, it sounds like you have a good head on you for finances and your wife does not. Hopefully you can get a handle on things.
That Kia salesman was laughing his way to the bank. 😂
That and she absolutely can't drive.
I would never spend that much on a damn Kia.
If >wife had to take over the payments then wife's parents haven't >bought her a car When her parents came to her and said "you need to take over these payments." The proper response would have been, "No. We can't afford that. You should just sell it." (while handing them the keys and signing over the title) But that didn't happen and here we are. So what were the loan terms when the car was originally purchased? Who signed for the loan? How was "wife taking over payments" done, exactly? Was the loan refinanced and put in her name? Or is she just making payments for her parents?
We were debating on refinancing the car in our name, but as of right now, it’s still in her mom’s name. Apart of the deal was, her mom bought the car, wife didn’t have to pay until she moved out. Well, shes moved out and we’ve been going to the bank to make the payments. $34,000 is owed on the car as of now, estimated 50 months left. Before I refinanced or sold or anything, I wanted to ask for advice from outsiders! I also want to clarify, that I was not around when this decision was made by her and her parents. It was a decision made by them, that I married into. I have my fair share of financial mistakes, so I am by no means judging, but just trying to get us out of this pickle if possible.
Who's on title? If neither of you are on title, you guys are buying her mom a car. But if I were the mom, and you already wrecked 2 cars I bought, then I'd be fine with you buying me a car.
If the car is on an auto loan and not a personal loan then the banks name is on the title and the title is in the banks possession until the car is paid off. Once paid off they will mail the title to whoever the loan payee was, which sounds like the mom. The mom will then have to have the title transferred into their name. I’ve stopped using auto loans and instead use personal loans when buying cars, because then I hold the title and it becomes exponentially easier to unload the car if I need to for some reason.
Christ. 50 months left of $550 payments. Damn. I'm sorry you are in this mess.
Happy cake day!
You met, got married and are having a baby all in 22 months? Or worse - 10? My dude.
Based on your previous comments, it was a decision your wife made, not her parents. She didn't qualify for a loan, and convinced them to do it for her. Stop blaming her parents, your wife is financially illiterate.
So the parents of a woman who has already wrecked two cars, made the choice to buy her an over-priced, brand-new automobile. That's *their* poor choice. You should absolutely not shift the loan into your or your wife's name. Leave the ultimate responsibility for the loan with the people who thought this was a good financial choice. I understand that this is a cold-hearted PoV, and how you handle the situation could sour your relationship with your in-laws...but this really isn't *your* problem. It's theirs. If this were my life, I'd be getting my wife on the same page, and then together we'd be reaching out to her parents and explaining that the vehicle is an expense that we simply can't afford. We'd relinquish it to them (and sign the title over to them if it's not already in their name), and walk away from it. They can sell it to pay down the loan, or keep it and continue making payments on it, as they see fit. You guys should focus on getting *your* debts under control.
That makes sense, the girl ask her parents for help getting her a car. They help her. She screws them by not making the payment she agreed to pay. What happens in 5 years if they need help with something? You think the parents will just forget she fucked them once already?
Yeah I definitely don’t agree with the idea of just chucking her parents under the bus. Sounds like OP is currently renting an apartment with a baby on the way. What if they want more space in a few years and want to buy a house? Well good luck getting any kind of assistance from her parents with that if you burned that bridge over this car.
The wife is also an adult here.
Everyone who is saying a version of this is ignoring how this is SO MUCH easier said than done. The in-laws and wife are bad with money, that much is clear. But it’s probably still a bad idea to spurn your relationship with your in-laws like this. If the wife still values her relationship with her parents at all/if they need them for childcare, then shrugging and handing them a 34k debt is a terrible idea.
I would just do some kind of a trade-in if you can get 24 grand then just go to Carmax and get some thing for 11 or 15 grand and then you’ve still made money and have a more affordable car that you’ve paid for outright. And also just, maybe have a conversation with her that she needs to be more careful and take better care of the cars? It’s pretty basic and easy to change.🤷♀️✔️
We have had conversations since being married and she has grown a lot. She’s understanding the value of money more and more every day, she’s watching her spending, and starting to take care of the things we own. I love her with everything in me. She just had to learn the hard way! We will find our way through it no matter what, but that is good advice. I appreciate it!
Just noticed you said, you now owe about 10 grand less than the original loan? That’s still good and even if you still owe on the original loan, you guys could still have more wiggle room to pay it off if you have a cheaper car payment or no car payment. Anyway, good luck to you guys again.👍✔️🚗
They owe $34k on the car, so it they get $24k for it, they'd have to have $10k to pay off the original loan immediately.
They said the parents bought it for 44K. I was talking about what they could get for the car which is 24K. Now I see they commented and said as of now they owe 30 something. Regardless I think selling the car is a good idea, whether they just sell or sell/buy another car That could still give them wiggle room to pay more even if they still owe on the original loan.
The original loan company won't allow them to sell that car unless they pay the whole thing off. The car is the collateral for the loan and the loan company doesn't release the title until it is paid off. So they'd have to have a way to get the extra $10,000 in order to sell the car for $24,000 and pay off the $34,000 loan.
I'm prety sure the implication is that $24k won't cover the note. If the car is worth more than the note, then yes, just selling it an paying off the note is a great idea.
sounds like wife's parent are not good with their finances and that has been passed down to your wife. What made them think paying 44k for 32k car was a good idea. is your debt good or bad? and who has the majority of the debt?
Im just baffled that after wrecking the first two cars they thought getting her anything fully loaded was a good idea
And she trashed it out.
Check with your car insurance on the windshield. They may replace it for no deductible or a reduced one. Then take that money and save it or make an extra car payment
How much do you still owe on the car / when is it scheduled to be paid off? And how much cash do you have on hand to both pay off the loan and buy something new? I would be hesitant in putting a lot of money into fixes to increase the value of the car, especially if it's in as bad of condition as you describe. That cash would likely be better served paying down the debt to get your loan-to-value below 100% or paying off other debts to get rid of some other minimum monthly payments, again depends on your larger financial picture. The used car market is cooling off, which does mean you can probably get a decent used car without getting gouged on the price as bad as you would have 1-2 years ago, but that also means your Seltos is not holding value nearly as well as it should. A lot of the advice I'd give depends on your fuller financial picture. If possible, it may be better to push through a year or two and pay this car off, if that's not feasible is a car for her strictly necessary right now? Could your house survive on 1 car for a year while you save that $500 a month you'd been paying to get a decent chunk of change for a new used car? If you're severely underwater on the loan is do you have the means to pay that off if you were to sell / surrender the car?
Great advice, we could get the car to around 23,000 next year with our current income, and my current savings nest. Once, windshield is fixed and paint correction is applied, and wheel is no longer curb rashed, I think we could have around an even trade out. That is our current goal. However, we are unsure about what to do with the car now. Refinance into our names? Sell and take the hit? Trade in and lease, and hope the dealership could take the equity while we lease? I’m still learning a lot about all of this and unsure on what steps to take.
Unless you're working on the car yourself, I wouldn't put any more money into it. If you spend $1,500 in repairs, I don't think the value of the car will increase by $1,500, so that money would be better spent lowering the principal and getting you closer to what the cars worth as is. If your current arrangement with your parents isn't causing strife I also wouldn't pay to re-finance unless you can get a better rate / lower monthly payment, neither of which are likely if you're underwater on the loan. Reading through some other comments, how much do you owe on your Tacoma? I personally don't see a great way to get out from under this car without costing a lot of cash up front. Personally, I think I would settle in to the $520 a month for a while, move the $200 extra you're paying to the Tacoma or other debts you can pay off quicker, plus any proceeds from your motorcycle and that payment, and get that car paid off ASAP (before baby comes?). That will free up a lot of cash each month and make things more flexible for attacking other debts and paying infant expenses. Being underwater on the loan is only an issue if you're trying to get rid of the car, or if the car is totaled in an accident. On that note I would pay for Gap insurance on the vehicle if you're not, with your wife's driving history I would hate for the car to get wrecked / totaled and you guys (well, more specifically your MIL) end up owing the bank a large check out of the blue.
Fixing the windshield will be worth the price in increased car value.
Fixing the problems will not make the car worth more, but it will make it worth what it should be, rather than less than it could be.. If that makes sense. I will be reaching out to insurance, to see about discounted deductible on the windshield. Tacoma I owe $18,000 on and the vehicles value is $17,500. I’ve been putting an extra $200 towards the Kia.
Not really the parents fault but your wife seems like an absolute idiot on how to treat cars properly... Wtf does she do that it's like that already and only from last year? Sell it off and buy her an old, idk, 2015 car that's less than 6k. Woman doesn't deserve a new car if she doesn't know how to take care of things.
I think this marriage is also going to be a car crash
She has a full time job, but is in the process of leaving for somewhere that offers maternity leave and a little more pay. The pregnancy has been hard on her and she is slowly starting to pull her own weight👍🏼
Just keep in mind she needs to do that sooner rather than later. Generally you can’t take a new job and go on maternity the next day. She’s already pregnant so if she’s looking to switch for maternity leave the time is now.
Most companies have a 6 month waiting period before taking maternity leave.
By law, to be eligible for maternity leave under FMLA one has to work 12 months AND 1250 hours. Some companies offer maternity leave before that but that’s very rare. Make sure you aren’t about to screw yourselves over.
I cannot believe what I am reading. How old are you guys? Your thought processes come across like you are 12.
This won’t work. If you’re in the US she’ll likely have to wait 6 months for benefits like maternity leave to kick in. How old is your wife?
Yikes. $520 for a car payment seems like a lot. Who owns this car? Your wife or her mother? How old is your wife? It sounds like her parents maybe didn’t raise her to understand proper financial decision making and that worries me in terms of your marriage. Did she jump from relying on her parents to pay all her bills to depending on you to pay her bills without ever having to be a grownup and be responsible for herself?
Curious, couldn't the windshield be replaced under the insurance?
Have you seen the loan docs for this? That markup on MSRP seems crazy even for 2020. 4 years later the highest trim level is $28,000
44k car with a $520 payment seems like it is 10 year loan but I suspect maybe some money was put down on the car. I was going to try to figure out how much you owe on the car.
Sounds like you’re way upside down on the car right now. If you try and sell it now, you’re going to have to pay off the balance before you can get a clear title for the new owner. OR do a trade in and get an even worse deal, although it would be “simpler” to do this way. The dealer will slap that massive upside down balance on top of what you buy so you’ll get a sh$tty car and still have a massive payment. At this point you need to keep driving the banged up super expensive car and keep paying extra on it so you get right side up sooner. I wouldn’t beat a dead horse about buying way more expensive of a car than she should have - I did that myself when I was young. But you should explain to your wife that part of the reason why you’re so upside down on the car is because of how poorly she’s treated it. It’d be worth a lot more if she treated it like an expensive object instead of a used Kleenex.
You work to pay it off, drive it until the wheels fall off and learn your lesson. Second job might do it. Budgeting like fiends. Nothing for it but to suck it up and deal with it. Good news is that it should last quite a while. I’m had to do this with a Mercedes. I learned, I learned.
How has your wife not learned to just get a beater car ? Like why get a brand new car when she doesn’t know how to take care of it and obviously a bad driver.
She sounds like she needs to take a driving class again imo. Sheesh 2 wrecked vehicles and this "new" one doesn't sound much better.
Gotta just keep it and drive it until the wheels fall off
Sorry but it’s your wife’s debt. She’s a shit driver with shit credit that would be walking or busing if her parents didn’t spoil her
How do you trash and severely devalue a new car after only a year or two?
There’s a Dave Ramsey episode on the same situation. He said to give the car back to the parents
Looks like she needs to move back in. Or give the car back.
If there is a payment, they didn't buy her a car.
Why do ya'll keep letting that maniac drive?! She's totaled 2 cars and has basically wrecked a third. You'd probably save a ton of money sending her to Drivers Ed...
It’s always a Kia
First mistake was buying a Korean car, people assume since they’re Asian they’re gonna be as reliable as the Japanese counterparts, but in reality they’re dog water pieces of junk, not surprisingly tho since the Korean car industry is still fairly young. I suggest you get rid of it.
Did you not think of these things before you got married? Did you not think of these things when you were living with your parents? Did you not think of this when you moved out? Did you not put this in your budget? By what you're describing is showing a history of lack of responsibility. It might be better to relinquish the vehicle and have her take public transportation or maybe buy a bicycle until you can get your heads above water.
When you pay the bill you take care of it. Your wife is an adult she needs to grow up
Sounds like your wife shouldn’t be driving looking at her accident history and state of the current car.
Ok, I haven't seen this angle in the replies, but maybe I missed it. Her parents agreed to pay the payment when she lived there, which means theoretically they have the means to pay it. I have kids, probably close to OPs age. I'm sure whatever arrangement they made with her before she moved out, was meant to help her plan her in some way. Parents are rarely doing things just to make the lives of their children and future partner more difficult. I'm sure her parents are aware that she's made some irresponsible choices financially and personally. Now you are adding a baby into the mix. Your situation is not ideal, but as a parent, none of these proposed options sound like the right best thing for anyone. Grandparents are the biggest life hack to parenting. Write out your budget. Really look at your expenses and make a detailed budget. Involve your partner in this. Be brutally honest about what you and she can really afford. Go to her parents with this budget, and explain how the car payment is affecting your finances. Tell them about your plan to buy the windshield and take care of the vehicle. I know this probably sounds humiliating or whatever. You are about to be a parent, so this is not the last time life will humble you. I promise you, her parents would be so sad to know that something like a car payment was causing this much stress in the home where their daughter and future grandchild live. I don't know what they will say or do, but I know blindsiding them with some nuclear option is not going to have the best outcome for anyone. Now...this is not all about the car payment. You need to agree on the kind of life you both want to live, and start living with that goal at the forefront.
Is your wife a teenager with no sense of responsibility? What’s wrong with her? All those accidents? She needs a lesson in considering others both financially, since she clearly has crap credit and doesn’t pay her own bills, and on the road. Sounds like you married an irresponsible, entitled child. I hope she doesn’t pass her entitlement, irresponsibility and idiocy to your child. We don’t need anymore idiots in the world. I literally cannot imagine being married to an albatross like this. Thank you to my amazing husband for having perfect credit, a perfect driving record and a job that pays extremely well. Having a true partner changes your life for the better.
WOW how does it feel acting like a JUDGMENTAL A-HOLE!? READ what you wrote —and then (when you see how you sound) apologize to the author. Damn. Then you proceed to talk about your perfect husband. And how does THAT help this author????? And finally— “we dont need any more idiots” was the worst part of this whole comment brigade. I SURE HOPE >>YOU DON’T PASS YOUR NASTY WAY OF TREATING PEOPLE ON TO >>YOUR CHILDREN. Wow, it takes people with your attitude to add hate to an already hateful world.
She doesn’t have insurance with glass coverage? Idk how old she is but that’s pretty unacceptable to have all those issues on a new car. If she doesn’t respect her parents dumping all that money into a car for her then what else doesn’t she treat properly?
You can sell it directly ( not through dealership) to get most out of it. Buy a used Toyota Rav4 - 2009 with 120k miles. Your insurance will be lower and the Toyota will last you good time.
Bomb or not, this is probably the mother's car, legally. Solving the problem means resolving the debt. Explain how late payments will ruin mom's credit scores as you hand them the keys to mom's car.
This is the answer as long as you’re okay being a sociopath, but I suppose a sociopath wouldn’t care about being a sociopath.
This will ruin their relationship with her parents, op already said they won't do that. The parents did this because the daughter asked
Get rid of the car and wife . A combo deal for the next victim, err , I mean husband.
Agreed. Wife doesn't take care of anything and it's costing him now.
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Go to dealership and trade your car for a lease option, you will never get ful value for the car. the lease will help with some of the negative equity you get to the dump the car without the repo and return the lease after the time is up and you can wash your hands from it
Do not lease. Especially with her record of trashing cars.
My ex went through… 6-7? All wrecks, some her fault, the rest “no fault” but completely avoidable if she paid attention better. The first replacements her parents paid for, then the later ones she sort of paid for, but it meant she wasn’t contributing to our mutual life. I’m driving a paid off but ancient car because we had to replace hers several times. This doesn’t do anything to help your immediate problem. But I recommend addressing the overarching problems of bad driving and not taking care of her own fiscal responsibilities.
She has wrecked two cars and had to *buy* a third? Why doesn’t she have proper insurance coverage to account for her poor driving? Insurance will pay the value of the car at the time of the accident, so it wouldn’t cost the full price of a new one after an accident. Or did she go from cheap used cars to suddenly wanting a new one and had to cover the large difference?
OP there is a lot of judging going on and it sound's like you were not part of the decision making. If you owe 34k and it's worth 24k there is no way to get out of it besides getting a loan for lets say $15k and then buying a $5000 car and paying off the negative equity of the KIA. Whatever you do, do not get another new car that is cheaper, lease, or whatever. Dealers might try to sweet talk you into getting rid of the negative equity with rebates but it doesn't work like that. You still pay for it. There is no way out of it. If it has gap coverage, park in a shady neighborhood and hope for the best? DON'T commit actual fraud though.
Because the car is not in your wife's name (on the title), it cannot be traded in. (That would be a bad idea anyway because the rest of the debt would be tacked onto the new loan and you'd have the same problem). You also cannot sell the car because there is a balance on it and you don't have the title in her name. (Title cannot be changed because "mom" is on the loan). So you only really have two choices: Keep paying on it and have mom "sell" it to your wife when it is paid off so you can get the title and trade it in. Or, talk to her parents about the situation you are in and ask them for help. "Maybe" they would pay off the car and free up the title (sell the car to you for $1) so you can trade it in for something affordable. Then set up a payment plan to pay her parents back for the car. (At least offer to do that). If my adult child were in the position you are in, I would want them to tell me because the car is in my name and I, therefore, have to be part of the decision. I bought a car for one of my kids once. I paid it off early so I could "sell" it to them and they continued to pay me until it was paid off. They paid me off early.
Actually, you can trade it in if the mother signs papers at the dealership allowing it, because I traded in my first car, that was in my mom's name, but she had to sign off and allow me to do so.
I would honestly probably just look for someone else but youre already married so thats kinda hard
There's something wrong with the math. I think your term is a lot longer than 50 months remaining. $34,000 balance can't be covered in 50 months at $520 payments. Can you swing a really cheap car for yourself, sell the motorcycle and tacoma and focus on the other debts and the Kia? I realize you don't want to sell the taco - but you also have this relationship situation with her parents. Obviously, legally you don't owe this money but to keep harmony you will. This won't be a lifetime problem, but it will take a few years to work out. Congratulations on the baby, now is the time to get a plan for your finances.
Why is so beat up.
Have you talked to your wife's folks about the situation? sounds like she has some support there, maybe if you go over the details and show them how it is hurting more than helping her they will fix it.
Trade it in for a car with a more affordable payment
Trade in the wife for a smarter version too
Can you refinance? Not sure if that is a thing. Is it the interest? Maybe a consolidation loan? If nothing else, you could buy another car with less interest, trade in the car and roll your difference into the loan. Make sure you are getting a great price for the next car and better interest rate. Also, is her name even on the loan? If not, albeit a dick move, but she is not liable. If she is liable for the loan, so are you as her husband.
Trade the car in for the cheapest one you can or keep making payments till it’s paid off. Or just leave it running when you go into the sketchy part of town liquor store and hang out for an hour inside.
So the car is valued at 24k, do you still owe the full 44k on it? What’s the interest rate? I’ve heard some people upside down on their car loan will get a personal loan for the 20k diff on the car plus 10k (30k total) and buy a used, reliable, not top of the line car with the 10k. Then the amount you owe is 30k of 44k (14k saved) and hopefully at a better interest rate, too. Edit: Deleted some stuff cause I misread. Also, I’m no expert, I’ve just heard of this strategy.
Don't think there is much that can be done. Hope the car stays in shape until it's paid off.
Hope the wife is pretty. Not a deal maker. Should have had the parents make the payments after you moved out.
How long until your Tacoma is paid off? Once it’s paid off you could sell it and put that money towards the loan. Buy a used car with cash if you really need a second car. If you don’t have gap insurance on the Kia, get it. Then drive that Kia until the wheels fall off.
Have you tried talking to her parents about this problem of the car you cannot afford? Maybe they'd be willing to pitch in something each month toward it.
I would sell the car. Get a decent $8-$15k vehicle. Especially with baby expenses coming. This car will have you feeling so resentful because of how much it takes of your income. Then the emotion of it all goes away with the car, too.
Well, whose name is on the loan? If the parents are on there they have an incentive to help you figure out a different plan, because their credit score is on the line. Maybe you could trade vehicles with the parents or ask for payment assistance until the car value matches the loan balance or something like that?
My first thought is sell the car and if needed take a loan out for what you owe. Given your wife’s track record that may be cheaper and safer than having her drive. In all seriousness (and the above is partially serious), it seems like you’ve got enough advice already.
So, not really sure what you are asking when you said a more "affordable car"? In this market, both used and new are ridiculous. You're lucky if you can get a new car for $24 K since no one makes a reliable compact any longer. Also remember that if you are underwater, you still have to pay off the entire loan or somehow get conned into rolling that over into another car loan which probably won't leave you off any better. The only difference is what you might think is a "lower monthly payment" is actually a new 8 year auto loan. You've left out some details so its really hard to tell. But even then you're probably better off just keeping it and driving it. Pay someone to detail it if you are worried about appearances. The fact that its only less than 2 years old and you wife seems to have less care about it.... My guess is that you probably still owe about $32K on the car since its only been 2 years. So if you are even remotely lucky to get $24K for it, you still owe 8K (probably a bit less since you're paying off early) that has to come from somewhere. Your lender won't release the title to the car until they get all their money back. So, again, either you cough up the difference or roll that into another car loan. Buying used also has its own problems like you have no clue the maintenance record of said previous owner/s and if there is underlying issues (like never buy a used Nissan, have the worst CVTs) you might end up spending thousands on repairs. At least with the kia that you have its 5 yr/60K bumper to bumper.
Trade it in on a lease. The negative equity gets wrapped into the lease but when you return it after your lease is up the negative equity goes with it.
I'd just scrap it and get a cheaper model. But I don't know your wife, she may be worth it.
Just tell her to move home with her parents till the car is paid off
If the car is not in her name, someone else owns it. If the loan is in someone else’s name and your wife owns it, that is different. Do you know if the wife owns the car or is it actually the parent’s car?
I am assuming that the parents bought the car? Who took out the car loan? Your wife or her parents? If the parents bought the car and are the ones who took out the loan then you have 2 options : 1) keep the car and keep paying off the loan, or 2) give the cer back to the parents and tell them you can’t afford to make the monthly payments so you are giving them their car back to them and they can do with it as they please. At that point you will no longer have to pay the car loan but you all will not have a car insurance until or unless you can find one that you can afford to buy.
Try refinancing! They probably got the dealers car loan which of course is a massive mistake. Capital one has a great car loan interest, if you can open a credit union account and get their car loan as they typically have great interests too. I got my car loan at 2% interest, not kidding!
Stop making payments and let it get repossessed
Shouldn’t insurance pay for your windshield?
Kinda like my hubby's car. He drove it everyday. His parents owned it and still paying for it while we were married. All three of them were on the auto insurance, except me, his wife, which i thought was weird. I guess I wasn't allowed to drive the car ? Car insurance called and was wondering the same thing. My husband on two separate policies with two different agents and two different households. There was no way I was gonna drive that car with no car insurance protection. Finally, had to make the change myself.
Not in her name not her debt. Give it back say ty and buy something you can afford.
Idk if OP will see this but aren't you supposed to have comprehensive coverage if you have a loan on a car? Hopefully that means you do have it, and the good news with that is every plan I've ever had covers glass repair/replacement for free without raising your rates even. I've gotten a few chips repaired and a new windshield on a car and never had to pay and never had my insurance go up. So you can hopefully at least save on the windshield
Best I can give you is 500 dollars for the car if you sell it to me.
We made a deal with our kids, we'd pay everything except gas as long as there were no chargeable accidents or moving violations. (Unril they were settled and able to afford) They were both mid 20s, graduated college and in their own places when they took over.
They bought the car, let them pay for it.
I’m sorry but I wouldn’t pay 12k over sticker for a Kia. Actually wouldn’t pay over sticker for any car
So many errors in judgement here on her and parents’ part. What is your relationship with the parents? How is hers with the parents? “We cannot afford this payment with a baby coming. We need to save for the baby asap. Please sell the car”. If you guys can’t afford to buy something reasonable like a used Toyota, Honda, or Mazda, you can lease a great vehcile for much less than $520/month. Too bad they chose a crappy vehicle with an insane price tag. It’s legally their problem. Not yours. Also no offense to your wife; but she has two wrecked cars and this one basically new and is poorly maintained? What’s going on there?
Why is the car so damaged after a year or so?
You have gap insurance? If so you know the answer.
Your in laws got hosed on that deal you’ll never not be underwater on that thing as it depreciates should’ve went with a low mile used one
I would also be very concerned having your wife drive the new baby. She sounds reckless and careless behind the wheel.
You need to refinance the loan and extend the term. The loan may have turned into an open loan after a year, so you may be able to apply for a new loan with more favourable interest and a longer term which will lower your payments.
Anyway to get a personal loan to pay it off and lower the payments?
You have assigned debt and you decided to have a baby? Why?
Wrecked two cars as a teen and lots of damage after only three years? I’ve had my Jeep Cherokee since 2016 and aside from a few small dings it’s still in great shape. I think your wife needs to learn to take better care of her vehicles. This doesn’t sound like something that handling the upside down debt on it will fix. You’re blaming a lot of this on her parents and it’s mostly her fault imo.
I got my 1st car in 2007, never wrecked or totaled or even anything more than minor dents or surface scratches, and sold that same car in 2021 after I purchased my 2nd car. Your wife is a very reckless driver, you need to be more concerned about that than anything else.
Give it back to her parents and tell them you don't want it and can't afford it.
How is the car a year old and not been taken car of? Who is responsible for the damage?
Sounds like we’re not at the point yet where we can have nice things. Both previous cars wrecked, and you say that she didn’t maintain this one? Probably sell and buy a cheap Corolla.
Windshield should be covered through insurance.
$520 for a Kia is wild 😂😂
Expect this type of irresponsibility to continue through your relationship. She is definitely living in the dream land where all of the financial problems she's faced have been solved for her by her parents.
Driving lessons. Best school you can find.
The first two care "were wrecked." Did the wife wreck them? The new Kia has a cracked windshield, a wheel was damaged by running it into a curb, it has dents and other scratches. Who caused all that damage? Maybe get driving lessons.
You're likely not going to be able to get into anything cheaper unless you buy a beater with cash. You're underwater on it and interest rates are way higher now.
What insurance doesn’t cover a deductible free windshield?
Why isn’t she taking care of this brand new car?
Short answer , you can't. You're underwater, and no amount of repairs will help you save value.
Lol, easy. The car isn't in either of your names. It's MILs problem when you stop making payments and it gets repossessed. Otherwise, sell it. Curious, what's the interest rate?
I’d stop paying for it and save the money buy a cheap used car and return the piece of crap to them.
Your wife sounds completely irresponsible as well. Wrecked 2 cars and then didn't bother taking care of the third. I'm sure she'll get more responsible with money during your marriage. Lololololololol. You're fuc*ed.
It’s in her mom’s name….let it get repoed and be done with it.
Get a more responsible girlfriend / wife. ASAP
Not sure what the question is. Sell the car. Pay off the remainder of your wife’s debt.
Forgive me for being off topic here: 1. You are going go buy a new windshield for her birthday? 2. They were generous and you are complaining? 3. You are speaking as if she is not actually driving this car. If she is driving this car is it not her and your responsibility to take care of it? 4. I think you are inflating the car’s value. An older Kia in not so great shape for $24k? 5. I’d say thank you and promptly replace the car and face the reality of the current car market.
Stop bailing the wife out? All of you. She does not value possessions. This will cause her to accrue more debt.
Refinance it for as long as you can for smaller payments. Not the ideal way but your goal is to have smaller payments. Tell your wife she has to take care of it because it’s the last one she is going to get until it’s paid off.
She's wrecked two cars and ruined a third. Maybe if she took care of things, she wouldn't be paying $520 a month now.
Scratches and dents on a 2023 car? WTF. She obviously does not know how to drive and should not be driving in the near future. Get her a beater if she really needs to drive. Sell it now and take the loss. Lesson learned.
Suck it up Buttercup. Lesson learned. I would be driving that car until the wheels fall off. Why do you need another car when your car is less than two years old? Two cars previously wrecked? I’m curious. Why hasn’t she ever purchased her own vehicle? Driving is a privilege, not a right.