WWYD if you were ds26

[LaughingCat]

To me it depends on what else he could get, for example, if he's going to be paying more than 4200 for anything else

 -- then IF the rogue has been reliable otherwise -- then I would pay for the transmission (don't care about the junkyness of the car such as paint or ac etc--  only the reliability of not breaking down i.e. the transmission is the first issue in a while)

-- but sounds like you are saying it is not reliable? -- in which case I would scrap it and buy another car

However I would buy a cheap car, which does not sound like your truck?  I would NOT buy a 13k known reliable truck over an unknown reliability 4-5k junker for example (made up #'s obviously).   

But really, in this particular case -- I would just keep driving my Mom's car until she said no more, and work to save up as much as I could for a new car in the meantime.

(from the mom side perspective -- a lot of my opinion of what I would be willing to do would depend on the size of the loan of the one currently drivable car)

[Emba]

I can’t say what I would do in that situation. None of the options look good, and it’s hard to tell which is “less bad” without firm numbers. Like how much can he really get if he sells the car to a salvage yard?

 But it seems like they might have to be a one car household at some point in the near future, so I would have v them looking at all the options. Can he drive her to work, and then she pays a coworker to take her home? Can any other carpool type arrangements be worked out, for example he carpools to work with a coworker, and his wife picks him up after work? Is there any public transportation at all? What about bicycle?  And a lot depends on his wife. If she’s not committed to working together for the best for both of them, everything will be harder, and her past track record is terrible for that, iirc.

Edited May 3, 2023 by Emba

[Calm37]

10 hours ago, Scarlett said:

Has he ever heard of a difference of 6k on the loan? 

6K is a very small difference in the car business. Pickups are selling for 100K plus. If he needs a copy of his gap policy, he could contact the dealership where he purchased it. 

[Scarlett]

34 minutes ago, Calm37 said:

6K is a very small difference in the car business. Pickups are selling for 100K plus. If he needs a copy of his gap policy, he could contact the dealership where he purchased it. 

Surly there is a limit though based upon value? This car was only worth $12k. But either way I am not involved in that whole desk. I heard him telling his dad about the gap policy and then heard he still owed on it. 

[Scarlett]

38 minutes ago, Emba said:

I can’t say what I would do in that situation. None of the options look good, and it’s hard to tell which is “less bad” without firm numbers. Like how much can he really get if he sells the car to a salvage yard?

 But it seems like they might have to be a one car household at some point in the near future, so I would have v them looking at all the options. Can he drive her to work, and then she pays a coworker to take her home? Can any other carpool type arrangements be worked out, for example he carpools to work with a coworker, and his wife picks him up after work? Is there any public transportation at all? What about bicycle?  And a lot depends on his wife. If she’s not committed to working together for the best for both of them, everything will be harder, and her past track record is terrible for that, iirc.

I am not sure why you think they will have to be in one car family. He will either fix the transmission and drive it or not fix it and salvage it and then get something else.

[Calm37]

4 minutes ago, Scarlett said:

Surly there is a limit though based upon value? This car was only worth $12k. But either way I am not involved in that whole desk. I heard him telling his dad about the gap policy and then heard he still owed on it. 

A gap policy covers the difference between the loan balance and the insurance payout. That's all it's for. I'm sorry, sounds like something is off, and I know you are not in the details of all this. 

[Scarlett]

1 minute ago, Calm37 said:

A gap policy covers the difference between the loan balance and the insurance payout. That's all it's for. I'm sorry, sounds like something is off, and I know you are not in the details of all this. 

Right. I mean who knows. Hopefully whatever he owes isn’t much. 
 

I remember something about gap not paying for payments he was behind in so maybe that was  it. 

[Annie G]

23 minutes ago, Scarlett said:

Right. I mean who knows. Hopefully whatever he owes isn’t much. 
 

I remember something about gap not paying for payments he was behind in so maybe that was  it. 

If he was paying for gap insurance as part of his car payment (which he was behind on) then he might have lost gap coverage because he didn’t pay the premium.  

[Scarlett]

17 minutes ago, Annie G said:

If he was paying for gap insurance as part of his car payment (which he was behind on) then he might have lost gap coverage because he didn’t pay the premium.  

Could be. I just don’t know. 

[Scarlett]

Small update.  
 

Dh gave ds26 the quote and he agrees it is too much to spend to repair the Rogue. 

Ds26’s mom called him and said she wants her car back.

Ds26’s gap insurance did not cover all of the loan.  He was apparently too far upside down.  That happens when you are paying 27% interest. (Is that even legal?)

He has ‘hired’ an attorney to sue the dealership where he bought the Kia (not Rogue) because he claims they did not repair the recall that caused the fire before they sold the Rogue to ds26.  I guess the hope is he will get enough to pay off the rest of the loan and pay the attorney.

Ds26 told Dh he was thinking about getting another loan to consolidate the two loans he has on two cars that are dead.  You know at over 20% interest.  Dh told him that was a very very very bad idea and to just stop for a minute and breathe.  He asked him, how much money can you come up with in 30 days if you throw every penny in the pot INCLUDING the money you are both spending on foolish habits (vaping) . He said he did not know he would have to think about it and put pen to paper.  
 

So hopefully he will do that and listen to dh’s advice.  I told Dh, well I guess the homeschool board was right and they will have to figure out how to get by with one car until he gets those loans paid off.  

Edited May 4, 2023 by Scarlett

[WildflowerMom]

Honestly, he may have a case against the dealership if they didn't repair it.  

[Scarlett]

2 minutes ago, WildflowerMom said:

Honestly, he may have a case against the dealership if they didn't repair it.  

Yes he may.  Hopefully to at least get him out from under that loan. 

The banker loaning him money at 27% interest should be ashamed.  

[Bootsie]

1 hour ago, Scarlett said:

Dh gave ds26 the quote and he agrees it is too much to spend to repair the Rogue. 

 

Ds26’s gap insurance did not cover all of the loan.  He was apparently too far upside down.  That happens when you are paying 27% interest. (Is that even legal?)

He has ‘hired’ an attorney to sue the dealership where he bought the Rogue because he claims they did not repair the recall that caused the fire before they sold the Rogue to ds26.  I guess the hope is he will get enough to pay off the rest of the loan and pay the attorney.

 

I am confused.  Was it a Rogue that caught on fire (and was totalled) AND another Rogue that needs a new transmission?  

With these additional pieces of information, it sounds as if the situation was something like:

Borrowed $18,000 for a car with a 27% interest rate loan.  On a 5-year loan, that would be a payment of about $550 per month.  The gap insurance would cover the difference on the balance of the loan, if he was current on his payments, and the totalled value of the car.  But, if he was behind a couple of months on payments when the car was totalled there would be over $1000 that the gap insurance did not cover because that shortage was not due to the loan balance being more than the depreciated value of the car--it was due to lack of making payments on a time basis BEFORE the fire occurred.  

[Scarlett]

2 hours ago, Bootsie said:

I am confused.  Was it a Rogue that caught on fire (and was totalled) AND another Rogue that needs a new transmission?  

With these additional pieces of information, it sounds as if the situation was something like:

Borrowed $18,000 for a car with a 27% interest rate loan.  On a 5-year loan, that would be a payment of about $550 per month.  The gap insurance would cover the difference on the balance of the loan, if he was current on his payments, and the totalled value of the car.  But, if he was behind a couple of months on payments when the car was totalled there would be over $1000 that the gap insurance did not cover because that shortage was not due to the loan balance being more than the depreciated value of the car--it was due to lack of making payments on a time basis BEFORE the fire occurred.  

there were two cars. A Kia that caught fire and a Rogue that transmission went out. 

[Bootsie]

1 minute ago, Scarlett said:

there were two cars. A Kia that caught fire and a Rogue that transmission went out. 

then I am confused by this:

"He has ‘hired’ an attorney to sue the dealership where he bought the Rogue because he claims they did not repair the recall that caused the fire before they sold the Rogue to ds26.  I guess the hope is he will get enough to pay off the rest of the loan and pay the attorney."

 

[Scarlett]

Just now, Bootsie said:

then I am confused by this:

"He has ‘hired’ an attorney to sue the dealership where he bought the Rogue because he claims they did not repair the recall that caused the fire before they sold the Rogue to ds26.  I guess the hope is he will get enough to pay off the rest of the loan and pay the attorney."

 

Oh sorry. My error. That should have read Kia