Need VERY HELPFULL advice for a friend, thanks Options

[supra12big]

I am posting for a friend, heres his story from him.

Ok, i am debating something right now, and looking for some advice on what i should do. Heres the story: (Right now i have to only pay for my car insurance and car loan= $320/month plus my credit card bill) I live in michigan and im 19, my dad had lost his job back in december and hes flying to go to an interview in san diego as we speak. Now if he gets the job i am debating whether or not i should move down there with my family, or stay. The thing is, im not sure if i can support myself....i took out a 5,400 dollar loan about 2 months ago to buy my $11,600 srt4 and i pay $215/month for insurance. I work partime @ $9.45/hour and i am going to community college full time (so i dont make that much but i plan on working 2 jobs in the summer). If i do stay i have a good freind that would be able to let me stay at his house (if not then im defenitely moving to cali). I really dont want to start a whole new life over there and i would also have to sell my car if i moved there. Basically if i stay, i would have to finish paying my car off, pay for school, all my necessities, and i dont know about health insurance or what? For car insurance, i am under my families plan so i dont know if i have to be taken out or whatever. Im looking for advice with people that had to do something like this on their own, so looking for some MATURE help/advice. What would you do? and let me know if theres other stuff i need to think about living pretty much on my own.

thanks people, its a hard time right now.

[95CelicaST]

Purchasing a newer car with a loan on a part time sub-$10/hr job was the first mistake.

When you're in school you need to minimize the amount of money leaving your wallet each month and maximize savings. I didn't buy my new car until I graduated and was making over $20/hr.

My suggestion (although you probably won't heed the advice of people on teh intarwebz) is that you sell the Neon, get rid of that car loan (I hope you're not upside down(owe more than it's worth) on that loan now). Grab some cheap transportation, and start saving money. Is the car registered to you? Or your parents? If you're on their plan it must be in their name, and will need to be registered to their new address in California, which will require CA plates, which means the car would have to be in CA to pass inspections. Besides, if your family moved to California and your insurance is in their name your insurance card would have a California address and you're in MI. Some police officers would think that was awfully suspicious.


Sell the car, save your money, be less stressed out. Yay!

[93Mr2T]

Purchasing a newer car with a loan on a part time sub-$10/hr job was the first mistake.

When you're in school you need to minimize the amount of money leaving your wallet each month and maximize savings. I didn't buy my new car until I graduated and was making over $20/hr.

My suggestion (although you probably won't heed the advice of people on teh intarwebz) is that you sell the Neon, get rid of that car loan (I hope you're not upside down(owe more than it's worth) on that loan now). Grab some cheap transportation, and start saving money. Is the car registered to you? Or your parents? If you're on their plan it must be in their name, and will need to be registered to their new address in California, which will require CA plates, which means the car would have to be in CA to pass inspections. Besides, if your family moved to California and your insurance is in their name your insurance card would have a California address and you're in MI. Some police officers would think that was awfully suspicious.


Sell the car, save your money, be less stressed out. Yay!

I wouldnt consider it a mistake at the time because i only needed to pay for car insurance, the loan, and credit card bill and i am bringing in about $600 a month (during school). In about a few weeks, my semester is over and im going to be working 2 jobs, my goal is to be bringing in about $1000-$1200 per month and im going to start paying off the car.

I took out a 5,400 dollar loan to buy the car (it was 11,600) So i dont owe more than its worth. I used to have cheap transportation but i had very bad luck with the last few cars i have owned, (which made me spend alot of money on them). The car is registerd under my name, i am the only driver listed on the insurance paper but im in my family plan.

Ill see how everything turns out, could be soon, could be in a few months. So i will think about all of this car insurance and talk with my dad and see whats possible for me to do. I just wanted to see what other people thought about this. thanks for the respones.

This post has been edited by 93Mr2T: Apr 14, 2009 - 11:03 AM

[richee3]

I wouldnt consider it a mistake at the time because i only needed to pay for car insurance, the loan, and credit card bill and i am bringing in about $600 a month (during school). In about a few weeks, my semester is over and im going to be working 2 jobs, my goal is to be bringing in about $1000-$1200 per month and im going to start paying off the car.

I took out a 5,400 dollar loan to buy the car (it was 11,600) So i dont owe more than its worth. I used to have cheap transportation but i had very bad luck with the last few cars i have owned, (which made me spend alot of money on them). The car is registerd under my name, i am the only driver listed on the insurance paper but im in my family plan.

Ill see how everything turns out, could be soon, could be in a few months. So i will think about all of this car insurance and talk with my dad and see whats possible for me to do. I just wanted to see what other people thought about this. thanks for the respones.

You got some 'splaining to do... So the car is registered in your name but is on your parent's insurance plan?

BIG no-no. In any small event, like a fender-bender, it doesn't make that big of a difference. But if anything major ever happens, and your parents turn in a claim to the insurance company, you're in deep sh*t. The company will simply laugh at your parents. They are turning in a claim for something they don't own. That's something insurance companies will never tell you. If you have no insurable asset, you get nothing. If your parents' names aren't on the title of that car, and you wreck it, you're up a creek. The insurance companies love cases like that because they get to take all of your money and when something happens, they don't have to give any of it back. That being said, you also worded it so your plan might be available to include you and your car. I'm a little bit confused.

Anyway... I'm a firm believer in not creating debt for myself. I strayed from that a few weeks ago and just about went out and bought a new car. But I'd rather pay cash and not have to ever pay interest or be forced to make payments, no matter what my situation is. And right now, my situation is very similar to yours. I'm 19, working two jobs already and going to school full-time. I'm working 40 hours a week already, making $1000 per month like you are wanting to. I have enough money that I COULD make payments if I wanted to, but man, if I was locked into paying your insurance and loan payments, I wouldn't have a whole lot left over. I'd say your best bet is to sell your car and pay the loan off to keep your credit intact. Stay with your family in California so that they can support you while you try to get your feet off the ground out there, and try to find two jobs that would suit you well. I guess I'm saying combine your two plans. Stay with your family, sell your car, work in California, and do your best.