This consumer has an old car and is wondering about how to buy a $30,000 car with a bad credit rating. Old cars that break down often are usually not a good investment. They cost a lot of money to repair and they are potentially unsafe as well. Bald tires, poor brakes, and rusty muffler systems are just a few of the problems with older cars. The last thing you want is a breakdown on an expressway somewhere in rush-hour or on a dark street at night in a bad neighborhood. . After an expensive tow to a repair shop you may feel it is not worth spending any more money on it.
Many consumers left to their own devices are not good money managers. It often takes a team effort as this consumer has found out.
His girlfriend appears to be the better one at managing a budget and making sure that all of the bills are paid on time. This is often the case with many couples where one of the partners is better at money management. It is extremely important to pay all bills on time and stick to a budget in today’s world.
While all of this is good, he still has a bad credit record and will have a hard time finding a lender willing to give him a loan. He might be better off if he and his girlfriend apply jointly for a bad credit car loan. She likely has a much better credit rating than he does. It would mean that she would be assuming the risk for the loan if he defaulted. This responsibility would also apply if there was a breakup in the relationship!
This becomes a very personal decision on their part with regards to applying for a loan to purchase a car. They need to be committed to a long-term relationship as well as committed to repaying the car loan. Both partners will be required to sign all of the ownership and loan documents.
This consumer if he applies jointly with his girlfriend could probably qualify for a low interest loan for his car. The car would be equity towards the loan. If he failed to make his payments, his girlfriend would need to meet the payment requirements for the car or it could potentially be repossessed. This is an important decision that they both must take since it would affect both of their credit ratings going forward. More discussion is required and information about his girlfriends credit rating is needed before a final decision can be made with regards to the car loan.