Tacoma from a teenager's POV

My thoughts exactly

 

Kid.
Mine was $125.

 

You mean that aside from the fact that their MONTHLY payment is now (after accounting for inflation) equal to what it used to actually cost for the ENTIRE (first) CAR?

 

That's no El Camino.
El Camino had a cargo capacity of more than 12 pounds.

 

Better than that.
Removal of airbag for automotive customers increases the number of dentistry customers.

I think that might be a conflict of interest. May be good idea to speak with an attorney.

 

His decision is actually the correct one, financially. He's not financing the truck at 9%, its probably what... 2.5? A great way to make a shit ton of money is to borrow money at a low rate to invest at a high rate.
So compared to spending the cash on the truck and ending up with a depreciating asset with no return, he's borrowed the money for it at a lower rate than he can invest the cash. End up with a depreciating asset AND an income.

 

Hell, my first ride was 50 bucks and should have been scrapped. 30k is positively insane.

 

Not necessarily financial advisers, but I'm sure that there are a lot of people who made mistakes and learned from them.

 

That’s what I figured.

 

You are seriously arguing that borrowing money at an interest rate to invest at a higher interest rate is better than not borrowing money and investing at a higher interest rate with ZERO risk?

 

You know, funny thing that I've observed over the years, is that the people who *act* rich, are most in reality just scraping by and buried in debt. The ones who are *actually* rich, are the ones who are somewhat reserved or conservative with their spending. You can't easily tell a rich person by meeting them on the street, but you can easily tell a poser.

 

And also in the event that something does go wrong (I am in no way suggesting that it will, just discussing a worst case "what if") and you end up in a bad situation, you talk to them WELL BEFORE you end up in default on your loan.

 

Maybe an Economics class....you don't own, if you are paying $500/mo. Just sayin

 

When someone takes out a loan, but parent cosigns, does that person actually start building a credit rating from the loan?

 

There's a girl that went to my school (also goes to my college) that drove a 25k Mercedes as her first car at 16. About a year later, she totaled it (running into a fence and into an open field with no other cars involved...), and she came back with a 2016 ford escape. It's all funded by her parents since she hasn't worked a day in her life. They also have a corvette (the worst years I might add) and some other "flashy" stuff. But most of the county knows they don't have what they think they have since everyone knows what they do for a living.

As for my family, my mom still loves to spend time getting the best deals on the smallest things (coupons), and we've never gotten any kind of flashy car. We have a Highlander, an sr5 tundra (like 2010 maybe), and some first Gen tacomas.

 

Still a good way to establish credit if he co-signed. My parents did that a couple times. Mom bought me a CD player for my truck ($300) when they first came out in the 90s. I paid and co-signed. Ended up with great credit in my late teens and early twenties.

 

I’m assuming his parents can cover the loan in the event something happens. I doubt they would take it otherwise. He screws up, parents get a new truck and take over payments.

 

At 18, it doesn't exist, since the law doesn't recognize you as even a partial human being until you turn 18.

 

@Loqu!to Welcome aboard, enjoy the new truck and take most if not all advice posted here with a grain of salt.

We have our lives to live and decisions to make on our own as do you. So buckle in and enjoy the ride of life!

 

You missed the point. He needs to inform his parents because when the loan is in default, his father will take a credit hit because of it, so he needs to let his father know that he can't make the payment so that his father WILL make it without the loan going into default. Its called being responsible.