No. of Recommendations: 2
FlippoHip,

You wrote, Unless he died in a car crash that totaled the car. (OK, he didn't. It was a sudden illness...but that would be a very good reason why she needs a new car.)

She needs a new car because the 1992 Geo Tracker she is driving is a death-trap. It was dad's car, and he hated it and it was always breaking down, but he couldn't afford a new one. She is a 76 year old diabetic with a heart condition and it's left her stranded more that a dozen times. I don't live close enough to come get her when it breaks down (I am 3 counties away) and he isn't around to help her now. The new car was $6k.


Actually totaling the car wouldn't be a sure-fire reason. If he had collision insurance, the insurance company would pay to replace it. At a minimum, the insurance company would owe his estate for the loss. Or the insurance of the person that hit him would, even if he'd died as a result. Of course he might have only carried liability, but that's not advisable unless he also had funds to buy something as a replacement. (I'm assuming he'd have had those funds in a joint account that would have transferred to your mother at death.)

Anyway, it sounds like your mom had a good reason for needing a new car. I'm not sure it's a good reason for you to buy it for her, but its already done. I just don't think it's smart for people to be helping other people, when they don't have their own house in order. And it just makes it harder for you to get your house in order at this point.

Also why didn't you consider taking a loan out against your mom's new car? You can borrow against used cars you know. And there's a good chance you could get a better rate than the 12% APR on that personal loan. Even if the car is in your mother's name, just have her take the loan out and you make the payments. It could save you some cash. And yes, most banks and credit unions will let you borrow against a used car even after you've purchased it - it just has to be new enough and be worth enough to make it worthwhile to them.

- Joel
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement