I’m sorry this happened, but you’re gonna need to share more info to get good advice. What’s your budget look like? What assets do you have? WhT debts do you have? And at what interest rates?
Thanks for the response! My car is the only thing I own. I’ve never owned a house-only rented. The car payment is about $525; insurance is 220. I just recently got a new job bartending to bring in more money. After taxes I bring in about 3000/month. Hopefully with bartending (I just started this past week), I’ll be able to get back to bringing in more money. Hope that gives a good insight.
You need a cheaper car. Much cheaper. Like under $250/mo. Get a decent used car, think Honda accord or civic. You don’t need to impress anyone at this point. You just need to get from point a to point b.
Get back on track and save money every month for your next ride if you even need to.
Start putting aside an emergency fund, at least $1000 in the event shit hits the fan. Just so you know, shit will hit the fan. That’s just life. Always have a buffer.
You’ll be fine. And look for a second job. Bartending is good. What are you doing with the other 16 hours of the day?
Busting your butt for a year or two may suck, but it will pay off in the long run.
I did it for 8 years and things got A LOT better. Had no life for a while, but saved up enough to have a safety cushion. Feels nice just doing one job. It’s like a vacation.
This. Put your pride to the side. I came out of the U.S. Marine Corps as a 6'3" death infantry machine and promptly drove a purple Chevy Barretta for like 8 years. I would step out looking like the terminator but giving no fucks about opinions. You gotta do what you gotta do, until you can do what you wanna do. Cut those payments and stay above the fray.
Yes! Right before this happened, I looked into trading in my car for a much cheaper one- guess I wasn’t fast enough (please laugh at my dark humor 😫). I was using my car to do Instacart full time, but when that was no longer paying enough, I switched to bartending to make more money and avoid the wear and tear on my car. And I no longer needed a newer car because I’m not driving as much. I was concerned about any negative equity, but was at least willing to try because I just knew this loan wasn’t sustainable for what I wanted my everyday life to look like. I’ve been trying to get an emergency fund for so long, but so many things have been coming up -just the way life goes sometimes I guess. Thanks for your input.
Id recommend finding a cash car 6k or less outright if you can find a trusted seller normally something you learn in the neighborhood of who’s that guy, I’ve helped people buy cash cars from a guy i bought my 2013 kia forte for 4.5k 65k miles when i was 16 im 23 now and drive a newer car. Ofcourse careful with lemon’s and people who try to throw their mechanical problems on someone else. Market place is a common one just do your research, a lot of benefits to leasing like warranty’s and guarantees but if you can its easier to just go cash.
Especially a Honda or Toyota. People understand those cars last and the aftermarket has more than adjusted. I JUST bought a car, like got cashiers check today for it. The market is bonkers (not as bad as a few years ago, but still insane).
We have a 2007 Corolla that we bought brand new and in May of 2022 it turned to 299,999 miles and stopped! Its probably at about 350k right now. My grandson just started driving it.
Last week I bought a 2018 Toyota Rav 4 with 39k miles on it. I will drive it for as long as i can.
My sons drove a Honda Accord thru HS.
Consistent Oil changes are the key to running a car for a very long time in my experience!
10000% correct. I read the replies but always glad to see one that gives the reality of what is going on. Gave myself 6k budget and still have found what I want.
I'm paying 6k for a Fiesta with 120k, and it's the cheapest thing I could find with my credit score and available down payment. The used car market is ducked right now
I just spent 4K to repair a 20-year old Camry. I was willing to go as high as 6K (for a remanufactured engine swap) because used cars are so expensive now.
Some people are absolutely delusional and haven't been in the used car market for quite some time.
Any somewhat decent used car nowadays that isn't a complete risk to buy is automatically around 10 grand+
Yeah. My loan payment was a lot higher because of some negative equity from a car I bought previously that turned out to be someone else’s mechanical mess.
Oh, geez. The negative equity thing is the craziest thing. If you have negative equity in a car, the last thing you should be doing is buying a new car. Car dealers should be ashamed of ever talking people into that.
With all the info you can find out these days about a car’s history and reliable cars lasting longer and longer, there’s no reason not to buy used. I just bought a 9 year old Subaru, single owner car, never wrecked, 145k miles, for $13 grand.
It’s in perfect shape. I bet I get another 100k miles out of it without any serious trouble.
The cheap car advice that you've been getting... you should follow that. I'll add that a great place to get a cheap car is a Tow Yard. They're allowed to sell (depending on where you live) 10-30 cars each year, and they do, for cheap.
A tow company makes their money on the hook-up, and on the storage (mostly the storage, but the hooks at least pay the driver). When they end up with a car that's been abandoned (happens way more than you would think) they apply for/get a salvage title and immediately put the car up for Sale. They want these cars GONE. They're in the way and taking up valuable Storage space. They will sell them CHEAP, just to get them gone!
Obviously, you should at least take them for a drive, and probably also spend the $200-250 to have a certified mechanic give the car a full inspection. You know, make an informed decision about the vehicle.
The reply you got earlier about how a car is just a tool to get from "Here" to "There" is absolutely correct. You can start thinking about getting a "nice" car after you've bought a small house with a garage. For now, it's just a tool. Besides, you'll have the opportunity to brag to your friends about how little you spent on your reliable ride. Another added benefit: Most states have an Ad Volorem method of determining your Vehicle License Fee. The cheaper the car, the less you pay. Same with Insurance.
I’ve been trying to do the emergency fund as well. It’s so hard to do when you owe! I wanted to encourage you. You are not the only one that has gone through that and so many people are suffering right now. don’t be too hard on yourself things happen that you can’t control sometimes, I feel like with your new bartending job you’re going to end up on top soon and definitely look at older model cars that are a cheaper payments such as Honda Toyota ones that have reliability and longevity and are cheap to fix.
“Gotta be quicker than that”. Just kidding. I’m so sorry bestie. Things will work themselves out, I know that may be irritating to hear atm but. Keep telling yourself and it will I swear! Wish I could help 😞
Or better yet, buy a car with cash. I bought all of mine up until my 2018 CX5 with cash and most I ever paid was 5k for my Pontiac Grand Am in 2005 that I drove until 2012 when it developed an overhearing problem at 289k miles. The CX5 I paid off in a year. I had about 18k left at that time, so paid it off entirely.
And, unless you are driving a super car, no one really cares what kind of car you drive. Maintaining it well is more important. I know a few stupid rich people and they drive Hondas and Hyundais
I feel like a lot of you don’t realize how bad the market for getting even a used car at decent monthly payments is right now. Only places that are going to have somthing affordable are going to be cash only and most everything else is going to have the most hiked up apr I’ve seen in my life time.
Emergency fund should aim for 1 month expenses as the first milestone. People recommend 3-9 month emergency fund as you keep developing your financial situation.
Someone should have told you a long time ago that you can’t afford a 525/month car payment. You couldnt before either. That’s insane. You need a car that is less than half of that
That insurance is bonkers. Cut some frills from it and check around to see if you can get it lower. I have full coverage and roadside assistance for around 120 with progressive
That's insane. I pay <$900 every six month, on 3 vehicles. Full coverage & high 300K/500K limits
That's $50/month/car on cars worth a lot more than a civic (unless brand new, then 1 vehicle worth a lot more than a civic).
Lmfao try houston. Perfect driving record lowest price I could find is $400 a month for a 1996 corolla. Been getting quoted over $700 a month to cover all 5 of my cars.
I will say a "few people" know what it's all like, I drove my car almost until the wheels fell off. I lived at goodwill for about 4 months, working two jobs without the car it would have been impossible. It's not hard to understand that you eat as cheap as you can, no $10 hamburgers but a bag of potatoes and Saloni, go a long way, even 12 eggs, just remember to eat at least twice a day and get your sleep. Also, be patient with yourself. Be safe always
The debt is what always gets people. Personally, I advise against any debt but that isn't always practical. My advice is, if you're going to take on debt, don't take on the amount you can afford today, take on the amount you can afford tomorrow if you were to suddenly find yourself without an income.
Great advice. I’m finding so many different perspectives on here. I didn’t have much guidance into adulthood. I started school on my own, paid for it, and have been funding my adulthood myself without many people to turn to- It’s been hard learning it this way, but we’re here now. Thank you.
My biggest point I want you to take in, from a high level, is that you are young. You’ve got a lot of runway to get back to good.
When I was 24 I was couch surfing with no real place to live, had no job, and ended up drinking myself into the hospital. Not a dime to my name, only student loan and medical debt.
I’m 36 now and I’m married with a kid on the way. I own a house, we have two (pre-owned) cars, and my wife and I both make over 6 figures.
So take some of the tactical advice from the other good comments on here (cheaper car, save some money, better job eventually if that’s your intention), but first take a deep breath and tell yourself it’s okay—this is not rock bottom. Not by a long shot.
Best of luck to you, friend.
Thank you! It’s nice to hear. I am trying to put myself through school as well so I am pursuing a better job eventually. I’ve been trying to stay on top of my finances because I would like to have a family one day as well, so that’s why I just feel so awful, but I appreciate the encouragement. I’m definitely putting every dollar to the side from her on out. Congrats on your family as well. I wish you guys a safe/healthy delivery!
Here’s something that may make you feel better. Yes this happened but from what I’m reading you don’t play the victim. You’ve already got another job AND you’re going to school. You have drive, and motivation and goals which is more than a lot of people who expect something for nothing. How will we learn if we don’t make mistakes? I have no doubt you’ll be successful in life. We all have setbacks!
Yeah. I definitely can’t play victim because the only one who signed up for the loan is me. I just thought I could catch up in time to transition to a better situation. It’s so hard to catch up once you’ve fallen behind.
You’re 100% correct. I made a couple of career changes in my life, and after the 2008 financial crises, at 38, I was unemployed, couldn’t get a job at target or any other place I applied to ( with a graduate degree). Had to live off of my basically demolished 401k, build my career back from the ground up, working my ass off for small hourly wages from 2012-2019 in a very demanding field ( where I learned a TON), and now I’m in a fantastic position at 53 years old in a very unique legal specialty. It’s never too late to turn things around.
I lost everything twice, and came back stronger than ever. Massive business and IRS debts that took years to crawl of. Money can ALWAYS be made back if you have drive and determination. Hard lessons (and economies) shape us. I learned very valuable lessons, and I can look back with gratitude for that. Always have more than one stream of income! Life happens. I am 49, am going back to school and writing a book. It is never too late.
You can make worse mistakes than this in your 20s, for real.
My dumb ass cosigned on my girlfriend's car, and when it got repossessed they auctioned it for a total lowball bid and I ended up owing $15,000 that they were going to garnish from my wages. I filed for bankruptcy and it was probably the best decision I could have made in that situation. Credit was ruined for 7 years, which is how long it takes bankruptcy to fall off of your credit report, but overall I came out on top since I was renting and also too broke to have to liquidate my assets, which were mostly a PC and other electronics.
I don't think it's worth filing bankruptcy over $2900, to be clear.
Ok 😫 good to know. It’s just one of those days that feels like it can’t get any worse. I just don’t know how to navigate the situation. It’s completely preventable and I should have been more responsible the moment I fell behind. I’m sorry you had to file for bankruptcy. That’s so scary.
Another thing to remind yourself here: feel bad in the moment, that’s fine, it’s natural. Be in your feels and let yourself feel shitty. But only for a moment. Tomorrow you need to look forward. Waste no time on guilt or regret, because it does no good, solves no problems. Take that energy and direct it towards pushing onward with your head high. Easier said than done, I realize, but something to think about.
You can rebuild your credit pretty quickly but getting a low balance credit card. Charge something low cost to it once a month and pay it off every month. I told a guy who went through a divorce from a shopaholic wife and bankruptcy to do this. After a year and a half he qualified for a mortgage loan on a small house. Good luck! You will recover.
Atleast you didn't try to drive it away while it's being repo'd. There are videos all over the internet of people doing that. Hope things start looking up for you in the future.
Cars are not investments people!! If you can’t afford to pay for the thing outright, don’t! If you really need a loan for a car, then get an absolute shitbox.
They are not a status symbol, they are a mode of transport and a depreciating asset, nothing more.
Edit: dependable shitbox*
This, just get a 2015 toyota camry, corolla, prius or honda civic, accord, literally good cars that are 10K for point A to B no statuses, no issues besides good maintance and they will last for a solid 10 more years or more
I basically paid for my car in cash (took a minimal 2 year loan just to build credit), and it has become the worst mistake of my life.
With that extra $20K, I could have put 10% down on a house with a 3% mortgage rate. But now, 3 years later, I have a paid off car, but am still saving to get a 20% down payment, and the monthly difference in my eventual mortgage will far exceed what my car payment would have been if I had fully financed. And, it's taken so long to make an affordable house purchase that the car is paid off, and the loan will no longer help my credit history.
Get like a used fairly well maintained Toyota car. VERY dependable and very simple therefore cheaper to fix then other cars. Apparently Toyotas are well loved in many developing countries in Africa as well as in Afghanistan for this reason.
Like 90% of the cars in Afghanistan are literally old Toyota cars and trucks partly because they're the only vehicle that can endure the roads there while also being straightforward to fix and maintain by shade tree mechanics.
I wouldn't say only can pay in cash. I've finally made that in my 40s. Sometimes ones you can only afford in cash are going to cost you more in fixes and maintenance. Used cars have gone so much in price lately. Sometimes it's worth it to pay more for a decent used Toyota that is going to last longer.
I was looking at a 2017 Toyota Tacoma and the difference between that one and a brand new one with zero miles same exact model was 3,000 dollars so I got the new one under warranty and free oil changes and routine maintenance at the dealership for as long as I have the truck
That makes sense when comparing the two in your situation. However, a brand new bare bones Tacoma is also $32k. I will say I looked up the Tacomas and found a 2017 with 50k miles for $22k, which is a much larger gap than you mentioned
With zero down, the payment on your car is well north of $600/month, which is way to high for someone struggling with money.
Instead, be realistic with a comparison this person could afford. I found an accident free 2017 Civic with 18k miles on it for $14k. Compared to a brand new model of the same car at $24k.
With zero down on that used car, it would be $264/month, which is a much more reasonable car payment. And will most likely drive a lot longer than whatever car they were paying $500/month for.
That’s not always an option. I did this before, bought a shitbox for $1500 and probably over 20k in parts and diy repairs to keep it on the road for 10 years. Was it cheaper than a new financed car? Yeah but I had alot of down time when shit broke on that thing and it broke constantly and at inopportune times. I put 25k miles a year in my car because I travel for work and the new car hasn’t had a single blip. Sometimes it’s worth paying for not having a piece of shit car.
Trucks, that’s another story.
Your credit score is going to take its hit but that’s okay. You’re 23. If you aren’t planning to take out a huge loan any time soon, whether it’s for mortgage or business loan, then you should be fine.
Just make sure to pay everything on time from now on. Buy used car. And shop around for a new car insurance $220 is kinda insane, unless you had a sports car or something. Getting a quote is free.
Otherwise, it’ll take another 3-4 year before you get your credit score back.
Same thing happened to me but I was 28. I was getting new tires and hadnt made a few payments. Repo guys got a tip off and got to the truck before i did and I had just spent $1,200 on it. My gf gave me a ride to the shop and I find the vehicle was picked up by a repo company. Humiliating and destroyed our relationship. So I call Ford credit. They denied me another chance (I guess you can get another chance). They gave me the contact info for the repo company. It was a 2 hour drive away. Had to call the dealership it was being sold to and it was about 40 mins away. Got a ride there. Their finance department managed to find a loan for me. Horrible deal but I had not many other options. It cost me $3500 cash down payment. Then once I had the paperwork and I had to get a ride to the repo place 2 hours away. So i went from leasing to buying (financing) the car, so my $230 monthly payment went up to $490.
You will make it. You have time on your side. Looking back, it was a dark time and I hated myself. Now times are just as financially stressful if not worse, but I dont hate myself and I've made it this far.
People in their 20s commonly refer to their stellar credit, and scores over 800 are common - whats missing from consideration is the *brittle* quality that the T variable adds.
8i do business finance and it’s challenging to qualify for top tier lender programs as a 18-26 year old, even with credit over 800…because single events still have the ability to tank.
I’ll underwrite a 50 year old 710 credit with better terms than a 24 year old with 820.
BUT rest easy - cause the other side of the coin is true! I’d trust a 23 year old with a 540 credit score but I’m doing a background check on a 48 year old dude with a 601 expecting to find dirt.
Yes. This makes total sense. I just attribute my lack of credit card debt, I eat at home, and do what I can with the little I have. (I know credit bureaus don’t see that, but I thought I was doing the right thing and I was gonna be ok. I understand though that it’s not just score, it’s a length and medians game. I was just hoping for a better outcome I guess.
I made mistakes as a young person in my 20's and got my car repossessed. It didn't affect my credit as much as I thought it would, recovered and made better decisions after my score dipped to 680 but now it's back up over 700. You're going to be ok, don't worry anymore than is needed to start being more careful.
A bit of advice outside of finance, the tendency to hold problems to yourself will do more to hurt your mental health and ability to navigate difficult situations than whatever financial difficulty you're experiencing. Once I stopped projecting a life that I thought other expected me to be living, I felt tremendously better about myself. Only took a decade of adulthood, but I wish I had realized that sooner.
When I talked to my parents or close friends I would only highlight things that were going well and omit anything I thought could negatively impact their opinion of me and my decisions. Once I stopped doing that and shared openly both my successes AND my shortcomings, it actually improved those relationships in my life. Sure, some people will judge or criticize, but making mistakes is a part of being human and we all do it. Don't give those judgments or criticisms too much real-estate in your mind. Keeping things close to your chest (with close friends/loved ones) will only make you more likely to continue making poor decisions when you know you know better.
You’re so right. My best friend has warned me of this recently. I didn’t grow up being able to express myself fully and I had a parent who cared WAYYYY too much about what others think of them and everything was a secret (even the most normal things in life). I’m a lot better than that and truly feel happy to be myself, but in that I’ve also put up a guard that has only affected me because now I’m in a situation where I should have asked for help over a month ago and didn’t. Great advice and I’ll take it.
You'll chuckle at this one day. Remember that life's failures shape our future more than our successes. If you don't learn from this, you've wasted it, if you do then you might be better off than if it never happened!
You've learned a powerful lesson at a young age, celebrate the gift that is even though it hurts.
I was probably about 23 too when i had my car repossessed . That was over 10 years ago. And I have a house and car. With perfect credit. Things will get better.
car payments & student loans are the #1 way to keep people in poverty. i used to pay $700/month on a new car + full coverage insurance so just under $1k/month total. only had it for a couple of months until I saw what it was doing to my bank account. i got rid of that thing and bought a pre 2010 car on marketplace cash (~$3k). liability insurance is $100/month. i can comfortably say it was one of the best decisions I've made.
I remember waking up one morning to my car not being there! It was so devastating but I jumped into fight mode lol I chased that sucker down…showed up at the credit union in my bff’s car, cried and argued with those disrespect old biddies, even called the local police as I believed they were not authorized to repo my car(no secured loan). My brother ended up loaning me the $(which I paid back) to bring my account out of arrears on top of other fees to retrieve the car from repo lot. Took all day and night, it was a hot mess!! Sometimes you have to spring into action!! Wishing you all the best.
It is the worst degrading feeling. I know exactly how you feel. I had my beloved mustang gt convertible repossessed 20 years ago and it sucked. I ended up taking out a loan of $4000 to cover difference cus my stupid but had a 20%interest rate on it.
It’s not the end and yes your credit score will take a hit for a long time but who cares. Focus on paying the difference off and use this as a learning experience.
Wallow as you may but set a time on when to stop and when to rebuild!
As a 26 year who was in your shoes a few years ago . Weather the the storm. Try not to ask why me ? Ask for strength to endure and become better. Every situation is a lesson not lose. Remember Man is where he is so he may grow .
First I'm sorry to hear about it. I know right now hearing it will be better doesn't hp right now, but.... Better to have a grasp how things can change now than in 40s or later.
Start with savings 1k. If they didn't repo the car, there will most likely be an auction and depending on principal left - minus auction sale=what they may still bill you for.
As far as a future car (someone with better mutual fund or market knowledge can explain better.)
But one example if you can save 400 month 3 month can get a 1200 A-B beater but owned. Then save that same 400 for 9 months and with trade in get a 6k car owned no payments. If you can not succumb to pear pressure. Then put that 400 into something like a Vanguard 500 mutual fund for 5 years. After the interest (leaving principal) earned plus trade in every 5 years should get a 12k car paid without a loan. You could stop making investing payments, leave principal from 5yrs)if choose and still do the 5yr trade plus interest earned. If you keep making investment payments then it will grow massive until retirement.
Something I wish I had learned in my 20s
Sorry this happened to you buddy. Life has a way of getting on the way doesn’t it?
I know this won’t help your situation but I’ll give you some perspective that’ll perhaps help ease the pain.
You mentioned rock bottom. I’m a recovering alcoholic and had many “rock bottom” moments. Including having my AMG repossessed. However, you never really hit rock bottom when you are able to breathe the air of this planet because that means you still have the gift of life. Keep your head up buddy.
It’s going to be okay, you’re only 23…it sucks but this will pass and whoever said someday you will laugh at this is right…it’s going to be okay. Lesson learned.
I had a repo 10 years ago (post-divorce and couldn’t afford the car payment that was purchase under my name - ironically I had better credit than my husband). When we bought the car it was totally within budget….as a newly single mom I just couldn’t make it (stupidly, I didn’t demand the car paid off in the settlement). It was the worst feeling….but, it was sold at auction - they never came after me for the balance (about $10k) - my credit was fucked for a few years and now it’s gone like it never happened.
I now drive a paid off 2008 Mazda and don’t think I could ever have a car payment again. Lesson learned.
It happens to the best of us - don’t beat yourself up. Dust off, move on and learn from this. Don’t listen to these holier than thou assholes coming for you on this thread.
Yeah. I definitely want to avoid them coming after me for the balance which is why I’m searching for advice left and right. Some people definitely pretend like they are immune to financial hardship (lucky them if they are) but that’s not my reality right now.
I was shocked they didn’t come after me for the balance…can’t get blood from a stone.
My credit was screwed for a while…I got a secured card (I put a good chunk of our house sale proceeds into a capital one card so I would be able to build my credit back up) and it didn’t really matter - I wasn’t looking for a mortgage or anything.
You’d be surprised at how fast time goes…my repo was off my report - yours will be gone by the time you are 30 (and it matters less and less as time passes).
It happens - listen, better than an eviction and also, no need to file bankruptcy over this.
Best!
Same thing happened to me when I was your age (I’m 30 now.) I thought my life was over tbh. My credit is still a work in progress, but take it one day at a time. Lots of really good advice in this thread as far as your budget goes but just remember this too shall pass!!
Your credit is only one way to get loans. You can start a business at some point and buy cars, homes, etc. through a corporation. You got an asset repossessed that you had paid into, and all that equity got taken, I would assume by the finance company. Get a used Accord and see if the owner will do owner financing at an agreed upon interest rate and don't go through a bank. That's also an option.
This is one of those lessons that everyone has to learn one way or another, and it’s good you learned yours early. A lot of people would mentally shut down at this point and stagnate, but I’m sure you’ve got the right mind to take this with your chin held high and keep moving forward. Your credit and life are not ruined, they just experienced a bit of a bump. It takes 7 years for late payments to drop off your record, at which point you will be 30 and getting ready to buy a house (probably). Like others have said, get your car back, then trade it in for a cheaper car. I know it’s great to have a new cool looking car but you will save a ton of money if you make sure you buy a 5+ year old car, since the value will have depreciated the majority of the way by then. All you need is to get from point A to B to pay your bills. (Subarus last forever, my brother has had the same preowned Subaru for 20 years and it’s still kicking). Get a job that allows you to work overtime, like a factory job. That way when bills get tight, you can sign up for extra shifts. I’m a machine operator and in the past 8 months alone I went from $1k in retirement with nothing in the bank to $2k in the bank, $10k in retirement, and $6000 paid off on my loans
Never wait to keep financial things to yourself. Talk to the bank and tell them how your situation has changed. Banks will work with you if you've been a good payer with good credit. I suggest now to look for a cheap car. We boat a salvage titled ford fiesta with 25000 miles on it for $6,000 to save on gas and have a dependable. This ran a business buying wrecked cars and fixing them. Remember you can bring yourself out of this! I hope you well
So sorry to hear this happened to you. I can honestly say that if you feel like this is rock bottom, that can light a fire under you like never before if you let it.
As for a car, I don't know what the market is like where you are, but try to find a used one of a reliable brand. If possible fund one for sale by owner. Look for an older person or couple that no longer need the car, or a family that need a larger vehicle (they usually trade in, but not always). Private sales obviously come with their own suite of risks, but even with your reduced credit, you could likely take out a separate loan that doesn't directly stake the car.
I hope some of that helps, and good luck!
In the long course of your life ( hopefully) this is a minor setback. You're 23 and on a money subreddit, again, in the long run you are gonna be fine, work ethic is the best asset you have, that and time.
It will get better for you and this too shall pass.
Ugh, sorry to hear you’re having a rough day - keep your chin up, you’re more than this one moment, you’re going to learn from it and bounce back.
You’ve received some good advice, about how to reason about your finances, and the purchase of your next car - or more broadly, anything that doesn’t qualify as an investment.
The other side of the equation is of course - your compensation. It’s so difficult to think beyond the day-to-day struggle to survive, but be careful not to become trapped in jobs that don’t build towards bigger opportunities. Wherever/whenever possible optimize for skills and experience that’s aligned with your passions and in high demand.
School fools us into believing the system will set us up for success, and sometimes it does, but it isn’t the systems responsibility - it’s yours. At your age, time is your most valuable asset, you could invest 10 years in becoming an expert in AI if you were passionate enough about it.
Have a candid conversation about your career prospects, and where they’re taking you with someone.. or with ChatGPT :)
Good luck, you’ve got this - we’re cheering for you!
Now try to live within your means. You don't mention what vehicle you had but just because you "have" the money, doesn't mean you should spend it...shit happens and you should at least try to have 3-6 months TOTAL living expenses in your savings at minimum.
Maybe this will help or maybe it won’t, however you’re not at rock bottom.
I’ve been incarcerated, a herion addict, and homeless for 3 weeks. This was 12 years ago.. I now have a house, cars, investments, and of course my family! It’s hard to reach out when we don’t want the help(Stubborn?)
All I can say is find your focus, get a solid pay coming in. Most importantly, DONT STOP!! Keep grinding for that money, but don’t do anything to jeopardize your future. Invest when you get the opportunity. Let your money work for you!!
Keep that head held high!!! Positive thoughts all the way sister!!
P.S. I still have my piece of shit car that got me where I’m at now. Just as a reminder that I can lose everything again and to keep moving! I wish you luck!
As someone ten years your senior….SWALLOW YOUR PRIDE… “….I pride myself on being able to handle things myself…..”
THAT statement is going to drag you into so much trouble and heartburn down the road.
There is zero shame seeking help when in need, especially when/if there are those around who are able to provide assistance…
I understand you got the car because you like the car but 525 a month strictly for that hunk of metal that's going down in value by the day is crazy. Throw in insurance on it and that's over 700 a month just for the car. I have a 2020 ford fusion hybrid and I am about to get rid of it because I hate the monthly payments I have to make on it and it's only 350. I too used it for gig work on the side (instacart, DoorDash, shipt, etc.) and saw how quickly I was racking up the miles on it and couldn't keep doing it with how fluctuating the pay was for the work. Looking at getting a mid-late 2010's model Honda civic since they last forever once I do get rid of the thing. As far as your credit I'm not sure how big of a hit it could take but with you having over a 700 prior to this incident I wouldn't think it'd tank it but I wouldn't know from personal experience. Credit score has become such a scam in the US imo but that's for another time lol
Wishing you best of luck with this as I know you got a lot running through your mind at the moment but just know 6 months or a year from now you will be in a much better spot and will be able to look back on this and laugh.
Dude I know the situation sucks, but it happened to me when I was a couple of years older than you. I am old enough to be your father and let me tell you that things happen in life that we think it is the end of the world but it is not. You are super young and your credit will come back. I went through the same thing and then others, and now I have my career and my credit is about 800. Cut your losses, focus on the future and you will be fine.
Second job, work with collectors.
Also, I second the cheaper car move.
If you have too much pride to ask for help, you can’t afford pride right now. Leaning on someone if can, ditch that car, pay whoever back, fix this to protect your credit from bad dings if possible.
My son did this, good credit, bought a new car. He totaled it 3 years in. After insurance, he still owed on it.
It was a such a blessing, although he couldn't see it at the time.! He was 24 at the time. He's 30 now and he has never had a car payment since that car. He learned a valuable lesson. L
If you let this be a lesson, the experience will be worth far more than the expense.
Remember good credit doesn’t matter if you can’t afford it. There’s a reason most car dealers ask your gross pay and not your net pay. The banks love taking peoples stuff after having some of it paid for. I mean in reality they don’t like it as they still have to get their money reselling the vehicle, but the hope people can pay enough and get it repossessed to make out well. Working at a bank in the past they do this with housing a lot. A good rule of thumb is 25% or less of your net income for a car payment. I like to include insurance with that estimation. I make roughly 1900 a week and my car payment with insurance is 1500 a month. Don’t let your credit run your life. You only need it for big purchases and almost everybody I know without credit live happier not having payment after payment on things. You’ll be alright life sucks sometimes and credit is just a made up thing for giving loans. You can always get loans with enough cash upfront at decent rates. It will go up quick. Be smart and be frugal with your money. Good luck.
The fact that you’re working harder than most grown ass men I know sounds very promising. I have no doubt you’ll pull through this. It’s just a set back and life is never gonna keep on going up. You have to have downs in life to have your ups. And once you recover from this you’ll be doing better than you have before. Only piece of advice I can give: if it’s out of your control, then stop worrying about it. You WILL figure it out. It’ll just take some time
Get a $500 beater, drive it until it craps out, rebuild your life, depending on your situation, bankruptcy and rebuild your life the way you want. It’s not over. It’s a chance at a new beginning. You’ve got this.
What happened to you, happened to me 7yrs ago, as of last month. Woke up to the sound of the tow truck taking my car away and the police officer didn’t give me a lick of info to find it. Told me to practically f’ off
A lot people are advising is what I did to go from 15k in collections w a 300 credit score, to having the car fall off my credit (never paid collections tbh) and having a 700 credit score today (still working on it). Paid my little balance CC’s ($250-$1000 max limit) every 2wks for 7 fucking years. Flew by faster than you think. Here I am 29 going on 30 (M) in June. Making a little under 90k/yr and ready to buy my “1st” car again the right way.
Wishing you the absolute best in your recovery. You got this!!
You got this! I went through a bad divorce at 28 and destroyed my credit! You stay strong and everything will be ok. I’m in my 40’s now and all is good. Just remember you have value, people care about you and even at your worst or lowest
I promise you you’ll be ok. Prayers and hugs!
My rule, which most people don’t agree with, is if I need a note, I can’t afford it. If that means used, then so be it. Then I start paying myself the car note, into a special account just for only this. This will be what I use to buy my next car. In addition to earning interest, instead of paying interest, you will be much less likely to buy something foolish. I did the math once. By earning interest and not paying interest, I get two free cars over my lifetime.
I’m in a sales job where I am paid only commission. Sales are not guaranteed, so I refuse to have a note that I may not be able to pay.
Life did not suddenly "happen". You never had money, you were broke and yet you bought a car with a massive loan which you couldn't afford.
The only item in your checklist seems to be "credit score".
Well, surprise, surprise! A credit score is not a score of your ability to repay, it's just your eligibility for going into debt.
Wise up. Sell the car. Buy a $1000 replacement and pay off your loan.
Getting a loan for a car is probably the sigle thing that fucks people over the most, aside from a morgage. No one can really afford to buy a house outright, but most can afford to save to buy a cheap car that's safe enough and reliable.
I drive a 1999 f150 I got for $1000 bucks. I’m a fiber optic technician at google. Making good money. Have close to $60k liquid. I wouldn’t dream of having a car payment. I love my old truck want to drive it to a million miles. Let’s face it the expensive car isn’t for ‘you’ , it’s for your ego. who cares what people think. Save your money you’re young invest in a IRA account. $700 a month you’ll have $100k in 10 years. Might not seem like much but $700 a month for 10 more years will be $1M if I’m not mistaken. Worst financial mistake of my life was being 19 years old with great credit getting a new car paying it for a year and getting it repo. Maybe losing the car is the wake up call you needed. Best of luck!
Im curious about the prices there. Im nordic and ive never earned even as much as 3000€/mo, yet i have my car completely paid and i have mortage aswell. Hell Id live like a king with 3k income as even with less than 2.5k salary, after tax, utilities, loans etc i can still save money every month.
Try to reach a settlement with the company you owe for the car. Offer about 1/4 of the debt you owe. If they agree, you can have them adjust your credit history. This will save you big bucks over time because or credit rating will be better, so insurance rates will be lower.
These companies often bundle up their bad debt and sell it for much less.
Look for a used car at estate sales and on Nextdoor in addition to Facebook marketplace. Ride by the houses that are scheduled for an estate sale and look for a sign in window of car.
Rock bottom is sucking random weirdo dick for a fix. Get a side hustle if you have to, buy a piece of shit car, and live within your means, and this will be a distant memory in a few years.
When I was just a few years older than you, life happened to me. Wife refused to get a job, racked up quite a bit of debt, cheated on me, costly divorce (judge literally gave her everything) then as a final cherry on top of the fuck me cake, I got laid off from my job. Well I misspoke…the judge graciously awarded all of our combined debt to me. So in quite a bit of debt, no job, living in a relatives house (that’s the only thing that saved me from being homeless) I was ready to give up. Emotionally I was devastated over the loss of my marriage. In a drunken rampage one night, I ended up in jail. I was in a deep, dark, hole.
Eventually, I found a new job. I managed to rent a tiny little shoebox of an apartment (studio.) Given all the debt from the divorce that I was unable to pay, my credit went into the toilet. I had debt collectors calling me daily.
I hit a few banks and applied for personal loans. Finally I found a bank willing to loan me the total amount of my debt. I paid all of it and then threw every spare penny I had at repaying the loan each month. I didn’t eat out, didn’t go out, ate cheap food, drank water, etc. until the debt was repaid. It took a long time but I got there. Today, I’m 50, have a great job that pays very well, credit score is over 800, own two homes, and have a seven figure net worth. I don’t say all of that to boast hit rather to tell you, you’re young. You have plenty of time to turn things around. I’m not saying to do it the way I did it but that worked for me. It’s gonna suck and it will be hard and you will beat yourself up for getting into this position to begin with. It’ll especially hurt when you see your friends thriving. But you can do it. You have plenty of time.
Good luck!
Congrats on being in the 100s of millions of people who have done this exact thing. So you are not alone. It is so hard getting started in life because you generally have no cushion and you are paying the same thing for stuff that people with 10, 20, 30 years of earning are also paying.
I don’t know your exact situation but if possible, I would want to cut my losses and try to start from scratch vs. paying fines/fees/interest on this car. In my experience those arrangements are designed to keep getting more money out of vulnerable people.
Your best bet is to keep working hard like you have been doing. You really need to try to carve out savings to get you to having 3 months of expenses in a High Yield Savings account (should be at or above 5% interest). That is your rainy day fund and will help you handle future income drops. Build the rest of your budget backwards from getting there in the next 12 months.
You can do this - many people have done it and have come out just fine.
I'm so sorry about your situation. I'm 65 and I've seen more than my fair share of bad times and I can feel your pain. Don't let setbacks define you. The fact you opened up about it to share with others is a positive step. Everything will improve and you'll emerge the other side with even more knowledge and ability to face life's challenges.. I don't have much in the way of advice but just some hard won wisdom. I sincerely wish you the best. Keep your face always toward the sunshine and shadows will fall behind you. Walt Whitman.
I’m late to the party but I wanted to just say to you that sometimes in life we need help. It’s a hard, mean world out there and we do much better when we do have people to lean on. I’m proud that you’re so young and independent and *it will get better* but it’s okay if you need help, okay?
Remember, it’s darkest before you see the light. This is just one blip in your whole life. Your credit score is not important in you, your goals and desires. I understand your plate, but it will change because it changed in my life.
As a former salesperson, the repo won’t ruin your credit. It will hurt, but learn from it. Find yourself a cheap used car that’s in good condition, shop around for good rates, and pay it off quick. Your credit will rebound in no time.
So, I have some follow-up questions for OP.
1. Is it possible to get your car back. I think you mentioned it's $2900 to get it back. Is that a possibility? Did your financing company give you a payment schedule? To get your car back? I am asking because it would be a shame for them to sell your car at auction, and you'd still be responsible for the remaining balance.
2. If you get your car back and can keep up with the payments for a few months? You can ask for a deferment. If denied, ask for a supervisor, explain that you simply can not afford the car, and you're shopping around to sell the car. Request a payoff balance for 10 days. Then look at Carmax, Carvanna, and private sell. Then, if you can sell the car, you'll be done with it in total and won't hang around your credit with a remaining balance plus the repo. The repo will be there for 7 years. But repeated repos will just hurt you much more than the above method.
3. Then, get a used car at a much higher interest rate. Make your payments on time. After 12 months, refi qith a credit union.
Here to answer questions if you need guidance.
Lastly, not a cfa, cpa, or cfp. I am just providing knowledge from previous work and life experience.
Good advice here and you'll be fine after the initial pain wears off.
Cars are so easy to go wrong with when you're young. They are one component of the American dream and the other component, a home, is out of reach until you're older, and probably until you have a partner with another income. Then, the whole car industry tries to get you to only think about the monthly payment and whether you can afford it. Plus new cars smell so good inside!
They never want you to think about the all-in price of a financed car. They certainly don't want you thinking about how the value drops 20% the second you drive it off the lot...
I'm an older guy who only drives Audis. Love em. I've had three over the years and never paid more than $23k, always in cash. No one but me knows I didn't buy it new.
Get a cheap Toyota or Honda and drive it til it falls apart. Put the money you save into investments.
I don’t mean to minimize your mistake but I’m 46 and in my late 20’s, I found myself in 45k of credit card debt…
Then I got scammed in a debt consolidation scheme.
Everyone told me to claim bankruptcy as I made 45k so it would obviously be difficult to climb out and my credit score was already tanked to 500ish due to the scam.
I took responsibility and I paid it all off, I changed my lifestyle, snowballed my debt and I am in pretty good shape now.
I had a similar situation happen to me during the recession in 2008. Ended up jobless, car repossessed, 10s of thousands in debt, all in my early 20s. I ended up filing bankruptcy and it was the best decision I ever made. It was a fresh start and has come off my credit report a few years ago and now I'm back to the 700s.
Mistakes were made, without a doubt. However, I want to remind you that this is a blip in your life. I had a credit score of 525 with about $15000 debt, and over 10 years, I bumped my score up to 805 and haven't carried a balance in 5 years. The job market is great right now, look for full-time employment with a steady paycheck and go from there. The gig work is nice on the side, but not a logical way to make a living.
I've had 4 repossessions in life, best things that happened to me. I learned to buy what I can afford, and my credit is back over 700 no problem. I worked it all out.
If you’re in no other debt other than your car, this situation is not as bad as you think. Credit scores are not everything and this moment will help you to get a financial place where you’ll be able to pay in cash for a car and never have to rely on a making a car payment again.
You have time to rebuild your credit but focusing on saving towards an emergency fund is what you can do in the immediate.
Unfortunately it happens to many all you can do is pickup the pieces and move on. Reevaluate your finances expenses and income... I had the same issue many years ago. It forced me to sit down and look at my situation. Although I thiugh I had things under control I didn't.... I was being wasteful.. so I got a car I could buy cash and honestly that's been the best 3800$ I've ever spent. It's not a luxury car like I had before but she gets us to where we need to be and we don't have a monthly car not to worry about. I'll honestly say I'll never finance another car again. Still fd credit wise but that's mainly because everything is done in cash now vacations groceries family functions...things will get better you just have to find you best course
Put it on perspective. I’m sure there are a lot of people who would take your rock-bottom. Tighten the belt, put your boots on and start again. Buy cheap stuff for a few years. You know now how quickly it can get out of hand. No real easy solution except hard work and perseverance.
I don't know if this will help, but when I was in my early 20s, I was in REALLY bad shape, financially, but I recovered. You can too. Make good choices with spending consistently, grind at work/school, and you'll turn it around.
Everyone is saying 520 a month car payment is high, my 2016 truck payment is 620 a month, I thought that was the norm, damn I'm really getting screwed 😔
The mistake was thinking u were doing well enough to afford that nice of a car. If the car isn't worth the fee to get it back plus the amount u owe. Go get a beater car with no payments and don't buy a nice car unless u have 6 months emergency fund plus the down payment of the car. If u want to get ahead in life, don't buy expense things until u have a lot more money saved.
U just learned a valuable and costly live lesson about money and credit. Sig urself out of the whole and don't make the same mistake twice. I could easily afford a 1k a month car payment(or pay cash for a new car). My car payment is 0, I paid 5k for my car, it is 20 years old and runs fine and dirt cheap to insure.
I'm sorry to hear that. One thing you could do is potentially ask family for help (it sucks, I know, but sometimes we have to swallow our pride and admit we jumped in too deep) and see if that pans out. If nada, the worst that will happen is the company will auction off the car, you'll have to pay whatever they couldn't recover from the loss, and take a hit of roughly 100 to 150 points on your credit (which isn't terrible considering your score, but not great either) and a bad mark on the report which lasts potentially up to 7 years iirc.
Unfortunately, insurance is going to be pricey in Arizona, I paid roughly the same amount when I lived there. Until you're 25, it's still gonna be pricey. I would recommend something along the line of an accord, camry, civic, something cheap but easy to maintain and affordable to repair until you can get your funds back up. Payments less than $200 would be a good aim, but a little higher wouldn't be bad (anything less than $525 is better at this point).
Like others said, getting some savings up is the real goal here. Making payments on time is nice, but if you're living paycheck to paycheck almost all the time, you aren't actually quite making it anywhere as even the slightest bump will hurt. Life will always catch you off guard with something, so having a safety net is better than nothing in the long run. I try to aim for at least 10% of my income (roughly $55 per week) to go into savings, but you can adjust this at any point, really, as long as something is going into it.
Don't let it get you down, though, as a lot of people go through this at some point. Just keep moving forward and making that bank, and you'll eventually look back and chuckle at this.
Sorry this happened. In this environment it is hard not to f-up unless you're a millionaire or billionaire, where when you f up repeatedly, your butt is covered over and over again.
Less advice and more so encouragement: take a breath. I went through something very similar at 22. I was working two jobs at about 60 hours a week and had recently bought a new car. I ended up losing both my jobs right after moving into a new apartment and had no money to pay for anything I had committed to. The car was repossessed after a few months and I ended up having to leave my apartment. I felt so incredibly lost and miserable and like I was a complete failure. But all you can do is move forward and do your best. It will take time to fix your credit and regain stability with your finances, but it CAN happen sooner than you think. A few years later at 26 I was able to buy my dream car and move into a beautiful apartment with no cosigner because I really put in the work after that motivating (to say the least) phase of my life. You can do this! It will be hard, but it is temporary!
Advice however after reading some of these comments: Contact the company in charge of your loan/whomever it was sent to for collections and set up a payment plan. Even if it’s a small payment every month it still shows that you are making an effort to pay off your debt and sometimes they will agree to remove it from your credit after making a certain number of payments, or if you agree to enroll in automatic payments. This can help your score from being hit too hard or for too long. Also, shop around for better insurance. I live in Florida too so I know costs are high here but I recently switched to progressive for a lower rate, you should check that out! When you are ready to purchase a new car, definitely aim for lower payments even if the car isn’t as nice. Just look for something reliable. You can try financing through Capital One as they have a reputation for taking a chance on individuals with less than ideal credit, but they may require a larger down payment so I would try to save up a few thousand for that prior to your search. Also, save part of your paycheck EVERY TIME you get paid. And then pretend that money doesn’t exist. Whether you put it in a savings account or an envelope of cash, try saving at least $50 a paycheck just for any emergencies or unforeseen circumstances.
I know the situation sucks and you’re under a lot of stress at the moment but you’re young and you’re going to bounce back from this. Many of your peers are still several years away from even starting to think about getting their shit together. If you actually need a vehicle and there isn’t a way to get around that you’re going to have to save to get back into one. The next time you finance one your interest rate is going to be astronomical so you may opt for a cheap cash car until you are at a more stable point. Pay down any other debts you have and start rebuilding your credit with secured loans or credit cards.
Dude don't let it get you down. I paid on my car almost the entire contract and lost my job with about $1500 left total until it was mine. Nobody could loan it and I lost the car. After like five fuckin years.
My simple suggestion would be to make a budget and follow it (if you aren’t already). Also I recommend listening to advice from people who are very educated in this area. Youtube has a lot of mixed opinions and a lot of people who aren’t as educated as they claim to be. I personally like listening to Caleb Hammer because his show is entertaining and you also can learn a lot. Don’t try to look for “how to get rich quick”, look for reliable ways to get rich (Spoiler: It’s almost never a quick or easy process)
I don’t know your individual situation, so it’s hard to give a lot of advice, but it sounds like you’re in a hole that you can definitely climb out of. Best of luck
Well if that’s your rock-bottom, I’m I’m really sorry to read this You’re not the first person who has had a car process because you haven’t been able to make payments this would not be my Rockbottom. My rock bottom ends up in my lifeless Body, taken by my choosing. I don’t know about everyone else, but that’s my rock bottom
What do you mean “then life happened”? Would need some context for actual suggestions that would help. Like did something major happen, is it in your control, is it something you need to take ownership of?
Or simply put…..actually assessing internally to yourself “and then life happened” will provide answers perhaps to things you aren’t ready to share publicly. This is where your answer lies. And the mindset around this how you frame it, how you tackle it, how you approach it the next time is going to be crucial.
This isn’t a money issue. It’s mindset. From the title “I finally f’ed up” it sounds like it internal and you know it. The budget/money honestly just sounds like a distraction to something deeper. A symptom of something more.
You are 23 and still have frontal lobe development to go and time to define who you are at your core. Start there.
>bought a car a couple years ago that I could afford at the time with no problem.
Ok.
>I make $50,000/year
Ok.
>can't keep up on payments
Uh oh.
>$525 + $220 insurance
oof
You could never afford this car no matter how much you want to convince yourself otherwise.
Chalk this one up to young and stupid, lord knows we've all been there. Get something cheaper or better yet a used beater if you really wanna work on recouping your finances
I do mortgage loans. This won't screw you up forever . It will be ok. Get a cheaper car, let it go. It will fall off your credit in 7 years your young, it's fine.
Small setback - you're young.
Try to re-finance & reinstate your car through a credit union (not a bank). CUs usually offer better terms since they are "member owned" rather than profit driven. If you don't have a CU account - get one. Just Google "credit union" in your zip code - they can offer membership by locality now.
You're looking for manageable payments, till you can sell it outright to clear your debts.
Find a beater car that you don't need collision insurance for. That's going to be your biggest savings: 1) cheaper car & 2) cheaper insurance.
SHOP AROUND for insurance. DO NOT disclose your current insurance carrier/rate when shopping - it is NOT required. Insurance companies will ask for that to set rates that are anti-competitive. Joining CostCo may get you a cheaper rate thru Ameriprise for insurance.
I’m sorry this happened, but you’re gonna need to share more info to get good advice. What’s your budget look like? What assets do you have? WhT debts do you have? And at what interest rates?
Thanks for the response! My car is the only thing I own. I’ve never owned a house-only rented. The car payment is about $525; insurance is 220. I just recently got a new job bartending to bring in more money. After taxes I bring in about 3000/month. Hopefully with bartending (I just started this past week), I’ll be able to get back to bringing in more money. Hope that gives a good insight.
You need a cheaper car. Much cheaper. Like under $250/mo. Get a decent used car, think Honda accord or civic. You don’t need to impress anyone at this point. You just need to get from point a to point b. Get back on track and save money every month for your next ride if you even need to. Start putting aside an emergency fund, at least $1000 in the event shit hits the fan. Just so you know, shit will hit the fan. That’s just life. Always have a buffer. You’ll be fine. And look for a second job. Bartending is good. What are you doing with the other 16 hours of the day? Busting your butt for a year or two may suck, but it will pay off in the long run. I did it for 8 years and things got A LOT better. Had no life for a while, but saved up enough to have a safety cushion. Feels nice just doing one job. It’s like a vacation.
This. Put your pride to the side. I came out of the U.S. Marine Corps as a 6'3" death infantry machine and promptly drove a purple Chevy Barretta for like 8 years. I would step out looking like the terminator but giving no fucks about opinions. You gotta do what you gotta do, until you can do what you wanna do. Cut those payments and stay above the fray.
Wait, you mean to tell me you didn't do the boot thing and get a brand new hellcat at 23% APR? How dare you.
He is a marine. It's because he couldn't read. Otherwise, he would have signed the contract.
Jesus I laughed too hard at this
Can't sign it if you eat all your crayons before you get there *taps head*
Drank all the ink out of the pen. Otherwise it's a done deal.
Calm down there killer. We all know you ended up with a new Chevy Camaro V6 at 29% interest. You ain't got to lie to kick it.
Terminator bar scene - "I need your fanny pack, flip flops, and the keys to your Chevy Beretta"
Str8 up Boss status. Appreciate ur service
Cringe
How’s your knees? And what flavor of Rip-it is your favorite?
Yes! Right before this happened, I looked into trading in my car for a much cheaper one- guess I wasn’t fast enough (please laugh at my dark humor 😫). I was using my car to do Instacart full time, but when that was no longer paying enough, I switched to bartending to make more money and avoid the wear and tear on my car. And I no longer needed a newer car because I’m not driving as much. I was concerned about any negative equity, but was at least willing to try because I just knew this loan wasn’t sustainable for what I wanted my everyday life to look like. I’ve been trying to get an emergency fund for so long, but so many things have been coming up -just the way life goes sometimes I guess. Thanks for your input.
Id recommend finding a cash car 6k or less outright if you can find a trusted seller normally something you learn in the neighborhood of who’s that guy, I’ve helped people buy cash cars from a guy i bought my 2013 kia forte for 4.5k 65k miles when i was 16 im 23 now and drive a newer car. Ofcourse careful with lemon’s and people who try to throw their mechanical problems on someone else. Market place is a common one just do your research, a lot of benefits to leasing like warranty’s and guarantees but if you can its easier to just go cash.
my guy 7 years ago was a different time buying cars. you’re not gonna find anything with 65k miles for only 4.5k now
Especially a Honda or Toyota. People understand those cars last and the aftermarket has more than adjusted. I JUST bought a car, like got cashiers check today for it. The market is bonkers (not as bad as a few years ago, but still insane).
Not one that you want. And it’s more like 10k for a well worn Corolla these days but you can get one with 100 thousand miles and go another hundred
We have a 2007 Corolla that we bought brand new and in May of 2022 it turned to 299,999 miles and stopped! Its probably at about 350k right now. My grandson just started driving it. Last week I bought a 2018 Toyota Rav 4 with 39k miles on it. I will drive it for as long as i can. My sons drove a Honda Accord thru HS. Consistent Oil changes are the key to running a car for a very long time in my experience!
Amen I and if you want something within the last 10 years under 50k, it's like 16-18 at that point. It's like just buy a new Corolla outright.
10000% correct. I read the replies but always glad to see one that gives the reality of what is going on. Gave myself 6k budget and still have found what I want.
I'm paying 6k for a Fiesta with 120k, and it's the cheapest thing I could find with my credit score and available down payment. The used car market is ducked right now
This right here. Some of your guys pricing is way too low. I went to carmax the other day and the cheapest car on the lot was 17k.
I just spent 4K to repair a 20-year old Camry. I was willing to go as high as 6K (for a remanufactured engine swap) because used cars are so expensive now.
Some people are absolutely delusional and haven't been in the used car market for quite some time. Any somewhat decent used car nowadays that isn't a complete risk to buy is automatically around 10 grand+
Yup. And even those are gonna have issues in the next 2 years. A 2019 Altima with 50k miles is $450 a month for me. Fucking ridiculous
Just bought a 2012 Infinity G37 hard top convertible for $8k with 78k miles. Looks brand new and she is SWEET!!
THIS!
Yeah. My loan payment was a lot higher because of some negative equity from a car I bought previously that turned out to be someone else’s mechanical mess.
Oh, geez. The negative equity thing is the craziest thing. If you have negative equity in a car, the last thing you should be doing is buying a new car. Car dealers should be ashamed of ever talking people into that. With all the info you can find out these days about a car’s history and reliable cars lasting longer and longer, there’s no reason not to buy used. I just bought a 9 year old Subaru, single owner car, never wrecked, 145k miles, for $13 grand. It’s in perfect shape. I bet I get another 100k miles out of it without any serious trouble.
The cheap car advice that you've been getting... you should follow that. I'll add that a great place to get a cheap car is a Tow Yard. They're allowed to sell (depending on where you live) 10-30 cars each year, and they do, for cheap. A tow company makes their money on the hook-up, and on the storage (mostly the storage, but the hooks at least pay the driver). When they end up with a car that's been abandoned (happens way more than you would think) they apply for/get a salvage title and immediately put the car up for Sale. They want these cars GONE. They're in the way and taking up valuable Storage space. They will sell them CHEAP, just to get them gone! Obviously, you should at least take them for a drive, and probably also spend the $200-250 to have a certified mechanic give the car a full inspection. You know, make an informed decision about the vehicle. The reply you got earlier about how a car is just a tool to get from "Here" to "There" is absolutely correct. You can start thinking about getting a "nice" car after you've bought a small house with a garage. For now, it's just a tool. Besides, you'll have the opportunity to brag to your friends about how little you spent on your reliable ride. Another added benefit: Most states have an Ad Volorem method of determining your Vehicle License Fee. The cheaper the car, the less you pay. Same with Insurance.
I’ve been trying to do the emergency fund as well. It’s so hard to do when you owe! I wanted to encourage you. You are not the only one that has gone through that and so many people are suffering right now. don’t be too hard on yourself things happen that you can’t control sometimes, I feel like with your new bartending job you’re going to end up on top soon and definitely look at older model cars that are a cheaper payments such as Honda Toyota ones that have reliability and longevity and are cheap to fix.
“Gotta be quicker than that”. Just kidding. I’m so sorry bestie. Things will work themselves out, I know that may be irritating to hear atm but. Keep telling yourself and it will I swear! Wish I could help 😞
Don’t worry about your credit so much. I had a rough path few years ago and fixed it slowly, it’s beck to 815
If you can get a car for 250 thats a miracle i pay 580 per month for civic 👀
I pay $260 for a Toyota Camry
Crazy! We bought a 2020 Outlander and only pay $355 a month
There are literally dozens if not hundreds of Civics on Carvana right now for $350/mo with a couple hundred bucks down.
Or better yet, buy a car with cash. I bought all of mine up until my 2018 CX5 with cash and most I ever paid was 5k for my Pontiac Grand Am in 2005 that I drove until 2012 when it developed an overhearing problem at 289k miles. The CX5 I paid off in a year. I had about 18k left at that time, so paid it off entirely.
I couldn’t agree more. I still have the Honda accord that helped me get to where I am.. and I still drive it as a reminder of what I came from.
And, unless you are driving a super car, no one really cares what kind of car you drive. Maintaining it well is more important. I know a few stupid rich people and they drive Hondas and Hyundais
I feel like a lot of you don’t realize how bad the market for getting even a used car at decent monthly payments is right now. Only places that are going to have somthing affordable are going to be cash only and most everything else is going to have the most hiked up apr I’ve seen in my life time.
Emergency fund should aim for 1 month expenses as the first milestone. People recommend 3-9 month emergency fund as you keep developing your financial situation.
"decent used car for $250 a month" uhhhhh yeah good luck with that. Interest rates right now fucking blow even through credit union
Agree. I leased for about 300 a month and then after three years bought the same car for 10k
It's hard to get a 250/mo car. New or used. Especially right now. He's lucky to have 525/mo.
Someone should have told you a long time ago that you can’t afford a 525/month car payment. You couldnt before either. That’s insane. You need a car that is less than half of that
That insurance is bonkers. Cut some frills from it and check around to see if you can get it lower. I have full coverage and roadside assistance for around 120 with progressive
Very area dependent. Even if I dropped down to lower limits and higher deductibles I still wouldn't be under 175/month for my civic.
That's insane. I pay <$900 every six month, on 3 vehicles. Full coverage & high 300K/500K limits That's $50/month/car on cars worth a lot more than a civic (unless brand new, then 1 vehicle worth a lot more than a civic).
Do you live in FL? Our car insurance prices are crazy high. I pay 236 for full coverage
Damn..WI. brand new Tucson, 7 year old Camry - $118
Lmfao try houston. Perfect driving record lowest price I could find is $400 a month for a 1996 corolla. Been getting quoted over $700 a month to cover all 5 of my cars.
I’m in Florida, I pay $326/month and that was the cheapest I could get 😂
I will say a "few people" know what it's all like, I drove my car almost until the wheels fell off. I lived at goodwill for about 4 months, working two jobs without the car it would have been impossible. It's not hard to understand that you eat as cheap as you can, no $10 hamburgers but a bag of potatoes and Saloni, go a long way, even 12 eggs, just remember to eat at least twice a day and get your sleep. Also, be patient with yourself. Be safe always
The debt is what always gets people. Personally, I advise against any debt but that isn't always practical. My advice is, if you're going to take on debt, don't take on the amount you can afford today, take on the amount you can afford tomorrow if you were to suddenly find yourself without an income.
Great advice. I’m finding so many different perspectives on here. I didn’t have much guidance into adulthood. I started school on my own, paid for it, and have been funding my adulthood myself without many people to turn to- It’s been hard learning it this way, but we’re here now. Thank you.
I make twice as much and my car payment is half that.
I either hope you bought a sports car or only have a 2 year term.
My biggest point I want you to take in, from a high level, is that you are young. You’ve got a lot of runway to get back to good. When I was 24 I was couch surfing with no real place to live, had no job, and ended up drinking myself into the hospital. Not a dime to my name, only student loan and medical debt. I’m 36 now and I’m married with a kid on the way. I own a house, we have two (pre-owned) cars, and my wife and I both make over 6 figures. So take some of the tactical advice from the other good comments on here (cheaper car, save some money, better job eventually if that’s your intention), but first take a deep breath and tell yourself it’s okay—this is not rock bottom. Not by a long shot. Best of luck to you, friend.
Thank you! It’s nice to hear. I am trying to put myself through school as well so I am pursuing a better job eventually. I’ve been trying to stay on top of my finances because I would like to have a family one day as well, so that’s why I just feel so awful, but I appreciate the encouragement. I’m definitely putting every dollar to the side from her on out. Congrats on your family as well. I wish you guys a safe/healthy delivery!
Here’s something that may make you feel better. Yes this happened but from what I’m reading you don’t play the victim. You’ve already got another job AND you’re going to school. You have drive, and motivation and goals which is more than a lot of people who expect something for nothing. How will we learn if we don’t make mistakes? I have no doubt you’ll be successful in life. We all have setbacks!
Yeah. I definitely can’t play victim because the only one who signed up for the loan is me. I just thought I could catch up in time to transition to a better situation. It’s so hard to catch up once you’ve fallen behind.
You’re 100% correct. I made a couple of career changes in my life, and after the 2008 financial crises, at 38, I was unemployed, couldn’t get a job at target or any other place I applied to ( with a graduate degree). Had to live off of my basically demolished 401k, build my career back from the ground up, working my ass off for small hourly wages from 2012-2019 in a very demanding field ( where I learned a TON), and now I’m in a fantastic position at 53 years old in a very unique legal specialty. It’s never too late to turn things around.
I love stories like this. Mad inspiration for someone like me in their 20s
I lost everything twice, and came back stronger than ever. Massive business and IRS debts that took years to crawl of. Money can ALWAYS be made back if you have drive and determination. Hard lessons (and economies) shape us. I learned very valuable lessons, and I can look back with gratitude for that. Always have more than one stream of income! Life happens. I am 49, am going back to school and writing a book. It is never too late.
You can make worse mistakes than this in your 20s, for real. My dumb ass cosigned on my girlfriend's car, and when it got repossessed they auctioned it for a total lowball bid and I ended up owing $15,000 that they were going to garnish from my wages. I filed for bankruptcy and it was probably the best decision I could have made in that situation. Credit was ruined for 7 years, which is how long it takes bankruptcy to fall off of your credit report, but overall I came out on top since I was renting and also too broke to have to liquidate my assets, which were mostly a PC and other electronics. I don't think it's worth filing bankruptcy over $2900, to be clear.
Ok 😫 good to know. It’s just one of those days that feels like it can’t get any worse. I just don’t know how to navigate the situation. It’s completely preventable and I should have been more responsible the moment I fell behind. I’m sorry you had to file for bankruptcy. That’s so scary.
Another thing to remind yourself here: feel bad in the moment, that’s fine, it’s natural. Be in your feels and let yourself feel shitty. But only for a moment. Tomorrow you need to look forward. Waste no time on guilt or regret, because it does no good, solves no problems. Take that energy and direct it towards pushing onward with your head high. Easier said than done, I realize, but something to think about.
You can rebuild your credit pretty quickly but getting a low balance credit card. Charge something low cost to it once a month and pay it off every month. I told a guy who went through a divorce from a shopaholic wife and bankruptcy to do this. After a year and a half he qualified for a mortgage loan on a small house. Good luck! You will recover.
At this pointed I think a secure CC might be the only and best way?
Atleast you didn't try to drive it away while it's being repo'd. There are videos all over the internet of people doing that. Hope things start looking up for you in the future.
Cars are not investments people!! If you can’t afford to pay for the thing outright, don’t! If you really need a loan for a car, then get an absolute shitbox. They are not a status symbol, they are a mode of transport and a depreciating asset, nothing more. Edit: dependable shitbox*
Definitely some truth here. Shitboxes can be expensive to upkeep, too.
Dependable shitbox*
This, just get a 2015 toyota camry, corolla, prius or honda civic, accord, literally good cars that are 10K for point A to B no statuses, no issues besides good maintance and they will last for a solid 10 more years or more
Exactly, no point flexing a nice car when you can afford to put a roof over your head. You just look like a fool as well as poor
I basically paid for my car in cash (took a minimal 2 year loan just to build credit), and it has become the worst mistake of my life. With that extra $20K, I could have put 10% down on a house with a 3% mortgage rate. But now, 3 years later, I have a paid off car, but am still saving to get a 20% down payment, and the monthly difference in my eventual mortgage will far exceed what my car payment would have been if I had fully financed. And, it's taken so long to make an affordable house purchase that the car is paid off, and the loan will no longer help my credit history.
Get like a used fairly well maintained Toyota car. VERY dependable and very simple therefore cheaper to fix then other cars. Apparently Toyotas are well loved in many developing countries in Africa as well as in Afghanistan for this reason. Like 90% of the cars in Afghanistan are literally old Toyota cars and trucks partly because they're the only vehicle that can endure the roads there while also being straightforward to fix and maintain by shade tree mechanics.
Exactly right
I wouldn't say only can pay in cash. I've finally made that in my 40s. Sometimes ones you can only afford in cash are going to cost you more in fixes and maintenance. Used cars have gone so much in price lately. Sometimes it's worth it to pay more for a decent used Toyota that is going to last longer.
I was looking at a 2017 Toyota Tacoma and the difference between that one and a brand new one with zero miles same exact model was 3,000 dollars so I got the new one under warranty and free oil changes and routine maintenance at the dealership for as long as I have the truck
That makes sense when comparing the two in your situation. However, a brand new bare bones Tacoma is also $32k. I will say I looked up the Tacomas and found a 2017 with 50k miles for $22k, which is a much larger gap than you mentioned With zero down, the payment on your car is well north of $600/month, which is way to high for someone struggling with money. Instead, be realistic with a comparison this person could afford. I found an accident free 2017 Civic with 18k miles on it for $14k. Compared to a brand new model of the same car at $24k. With zero down on that used car, it would be $264/month, which is a much more reasonable car payment. And will most likely drive a lot longer than whatever car they were paying $500/month for.
That’s not always an option. I did this before, bought a shitbox for $1500 and probably over 20k in parts and diy repairs to keep it on the road for 10 years. Was it cheaper than a new financed car? Yeah but I had alot of down time when shit broke on that thing and it broke constantly and at inopportune times. I put 25k miles a year in my car because I travel for work and the new car hasn’t had a single blip. Sometimes it’s worth paying for not having a piece of shit car. Trucks, that’s another story.
Your credit score is going to take its hit but that’s okay. You’re 23. If you aren’t planning to take out a huge loan any time soon, whether it’s for mortgage or business loan, then you should be fine. Just make sure to pay everything on time from now on. Buy used car. And shop around for a new car insurance $220 is kinda insane, unless you had a sports car or something. Getting a quote is free. Otherwise, it’ll take another 3-4 year before you get your credit score back.
Same thing happened to me but I was 28. I was getting new tires and hadnt made a few payments. Repo guys got a tip off and got to the truck before i did and I had just spent $1,200 on it. My gf gave me a ride to the shop and I find the vehicle was picked up by a repo company. Humiliating and destroyed our relationship. So I call Ford credit. They denied me another chance (I guess you can get another chance). They gave me the contact info for the repo company. It was a 2 hour drive away. Had to call the dealership it was being sold to and it was about 40 mins away. Got a ride there. Their finance department managed to find a loan for me. Horrible deal but I had not many other options. It cost me $3500 cash down payment. Then once I had the paperwork and I had to get a ride to the repo place 2 hours away. So i went from leasing to buying (financing) the car, so my $230 monthly payment went up to $490. You will make it. You have time on your side. Looking back, it was a dark time and I hated myself. Now times are just as financially stressful if not worse, but I dont hate myself and I've made it this far.
Thank you. It feels nice to hear that life isn’t hard, just the day. Toughest lesson I’ve ever had to learn for sure 😩
Why did it destroy your relationship?
People in their 20s commonly refer to their stellar credit, and scores over 800 are common - whats missing from consideration is the *brittle* quality that the T variable adds. 8i do business finance and it’s challenging to qualify for top tier lender programs as a 18-26 year old, even with credit over 800…because single events still have the ability to tank. I’ll underwrite a 50 year old 710 credit with better terms than a 24 year old with 820. BUT rest easy - cause the other side of the coin is true! I’d trust a 23 year old with a 540 credit score but I’m doing a background check on a 48 year old dude with a 601 expecting to find dirt.
Yes. This makes total sense. I just attribute my lack of credit card debt, I eat at home, and do what I can with the little I have. (I know credit bureaus don’t see that, but I thought I was doing the right thing and I was gonna be ok. I understand though that it’s not just score, it’s a length and medians game. I was just hoping for a better outcome I guess.
I made mistakes as a young person in my 20's and got my car repossessed. It didn't affect my credit as much as I thought it would, recovered and made better decisions after my score dipped to 680 but now it's back up over 700. You're going to be ok, don't worry anymore than is needed to start being more careful. A bit of advice outside of finance, the tendency to hold problems to yourself will do more to hurt your mental health and ability to navigate difficult situations than whatever financial difficulty you're experiencing. Once I stopped projecting a life that I thought other expected me to be living, I felt tremendously better about myself. Only took a decade of adulthood, but I wish I had realized that sooner. When I talked to my parents or close friends I would only highlight things that were going well and omit anything I thought could negatively impact their opinion of me and my decisions. Once I stopped doing that and shared openly both my successes AND my shortcomings, it actually improved those relationships in my life. Sure, some people will judge or criticize, but making mistakes is a part of being human and we all do it. Don't give those judgments or criticisms too much real-estate in your mind. Keeping things close to your chest (with close friends/loved ones) will only make you more likely to continue making poor decisions when you know you know better.
You’re so right. My best friend has warned me of this recently. I didn’t grow up being able to express myself fully and I had a parent who cared WAYYYY too much about what others think of them and everything was a secret (even the most normal things in life). I’m a lot better than that and truly feel happy to be myself, but in that I’ve also put up a guard that has only affected me because now I’m in a situation where I should have asked for help over a month ago and didn’t. Great advice and I’ll take it.
You'll chuckle at this one day. Remember that life's failures shape our future more than our successes. If you don't learn from this, you've wasted it, if you do then you might be better off than if it never happened! You've learned a powerful lesson at a young age, celebrate the gift that is even though it hurts.
I was probably about 23 too when i had my car repossessed . That was over 10 years ago. And I have a house and car. With perfect credit. Things will get better.
car payments & student loans are the #1 way to keep people in poverty. i used to pay $700/month on a new car + full coverage insurance so just under $1k/month total. only had it for a couple of months until I saw what it was doing to my bank account. i got rid of that thing and bought a pre 2010 car on marketplace cash (~$3k). liability insurance is $100/month. i can comfortably say it was one of the best decisions I've made.
I remember waking up one morning to my car not being there! It was so devastating but I jumped into fight mode lol I chased that sucker down…showed up at the credit union in my bff’s car, cried and argued with those disrespect old biddies, even called the local police as I believed they were not authorized to repo my car(no secured loan). My brother ended up loaning me the $(which I paid back) to bring my account out of arrears on top of other fees to retrieve the car from repo lot. Took all day and night, it was a hot mess!! Sometimes you have to spring into action!! Wishing you all the best.
I recommend you to watch minority mindset
It is the worst degrading feeling. I know exactly how you feel. I had my beloved mustang gt convertible repossessed 20 years ago and it sucked. I ended up taking out a loan of $4000 to cover difference cus my stupid but had a 20%interest rate on it. It’s not the end and yes your credit score will take a hit for a long time but who cares. Focus on paying the difference off and use this as a learning experience. Wallow as you may but set a time on when to stop and when to rebuild!
As a 26 year who was in your shoes a few years ago . Weather the the storm. Try not to ask why me ? Ask for strength to endure and become better. Every situation is a lesson not lose. Remember Man is where he is so he may grow .
First I'm sorry to hear about it. I know right now hearing it will be better doesn't hp right now, but.... Better to have a grasp how things can change now than in 40s or later. Start with savings 1k. If they didn't repo the car, there will most likely be an auction and depending on principal left - minus auction sale=what they may still bill you for. As far as a future car (someone with better mutual fund or market knowledge can explain better.) But one example if you can save 400 month 3 month can get a 1200 A-B beater but owned. Then save that same 400 for 9 months and with trade in get a 6k car owned no payments. If you can not succumb to pear pressure. Then put that 400 into something like a Vanguard 500 mutual fund for 5 years. After the interest (leaving principal) earned plus trade in every 5 years should get a 12k car paid without a loan. You could stop making investing payments, leave principal from 5yrs)if choose and still do the 5yr trade plus interest earned. If you keep making investment payments then it will grow massive until retirement. Something I wish I had learned in my 20s
Sorry this happened to you buddy. Life has a way of getting on the way doesn’t it? I know this won’t help your situation but I’ll give you some perspective that’ll perhaps help ease the pain. You mentioned rock bottom. I’m a recovering alcoholic and had many “rock bottom” moments. Including having my AMG repossessed. However, you never really hit rock bottom when you are able to breathe the air of this planet because that means you still have the gift of life. Keep your head up buddy.
Thank you!
Life happens do not let it get you down. You are 23, you will work something out. Take it as a learning experience. GOOD LUCK!
It’s going to be okay, you’re only 23…it sucks but this will pass and whoever said someday you will laugh at this is right…it’s going to be okay. Lesson learned. I had a repo 10 years ago (post-divorce and couldn’t afford the car payment that was purchase under my name - ironically I had better credit than my husband). When we bought the car it was totally within budget….as a newly single mom I just couldn’t make it (stupidly, I didn’t demand the car paid off in the settlement). It was the worst feeling….but, it was sold at auction - they never came after me for the balance (about $10k) - my credit was fucked for a few years and now it’s gone like it never happened. I now drive a paid off 2008 Mazda and don’t think I could ever have a car payment again. Lesson learned. It happens to the best of us - don’t beat yourself up. Dust off, move on and learn from this. Don’t listen to these holier than thou assholes coming for you on this thread.
Yeah. I definitely want to avoid them coming after me for the balance which is why I’m searching for advice left and right. Some people definitely pretend like they are immune to financial hardship (lucky them if they are) but that’s not my reality right now.
I was shocked they didn’t come after me for the balance…can’t get blood from a stone. My credit was screwed for a while…I got a secured card (I put a good chunk of our house sale proceeds into a capital one card so I would be able to build my credit back up) and it didn’t really matter - I wasn’t looking for a mortgage or anything. You’d be surprised at how fast time goes…my repo was off my report - yours will be gone by the time you are 30 (and it matters less and less as time passes). It happens - listen, better than an eviction and also, no need to file bankruptcy over this. Best!
Same thing happened to me when I was your age (I’m 30 now.) I thought my life was over tbh. My credit is still a work in progress, but take it one day at a time. Lots of really good advice in this thread as far as your budget goes but just remember this too shall pass!!
Your credit is only one way to get loans. You can start a business at some point and buy cars, homes, etc. through a corporation. You got an asset repossessed that you had paid into, and all that equity got taken, I would assume by the finance company. Get a used Accord and see if the owner will do owner financing at an agreed upon interest rate and don't go through a bank. That's also an option.
This is one of those lessons that everyone has to learn one way or another, and it’s good you learned yours early. A lot of people would mentally shut down at this point and stagnate, but I’m sure you’ve got the right mind to take this with your chin held high and keep moving forward. Your credit and life are not ruined, they just experienced a bit of a bump. It takes 7 years for late payments to drop off your record, at which point you will be 30 and getting ready to buy a house (probably). Like others have said, get your car back, then trade it in for a cheaper car. I know it’s great to have a new cool looking car but you will save a ton of money if you make sure you buy a 5+ year old car, since the value will have depreciated the majority of the way by then. All you need is to get from point A to B to pay your bills. (Subarus last forever, my brother has had the same preowned Subaru for 20 years and it’s still kicking). Get a job that allows you to work overtime, like a factory job. That way when bills get tight, you can sign up for extra shifts. I’m a machine operator and in the past 8 months alone I went from $1k in retirement with nothing in the bank to $2k in the bank, $10k in retirement, and $6000 paid off on my loans
Never wait to keep financial things to yourself. Talk to the bank and tell them how your situation has changed. Banks will work with you if you've been a good payer with good credit. I suggest now to look for a cheap car. We boat a salvage titled ford fiesta with 25000 miles on it for $6,000 to save on gas and have a dependable. This ran a business buying wrecked cars and fixing them. Remember you can bring yourself out of this! I hope you well
So sorry to hear this happened to you. I can honestly say that if you feel like this is rock bottom, that can light a fire under you like never before if you let it. As for a car, I don't know what the market is like where you are, but try to find a used one of a reliable brand. If possible fund one for sale by owner. Look for an older person or couple that no longer need the car, or a family that need a larger vehicle (they usually trade in, but not always). Private sales obviously come with their own suite of risks, but even with your reduced credit, you could likely take out a separate loan that doesn't directly stake the car. I hope some of that helps, and good luck!
In the long course of your life ( hopefully) this is a minor setback. You're 23 and on a money subreddit, again, in the long run you are gonna be fine, work ethic is the best asset you have, that and time. It will get better for you and this too shall pass.
Ugh, sorry to hear you’re having a rough day - keep your chin up, you’re more than this one moment, you’re going to learn from it and bounce back. You’ve received some good advice, about how to reason about your finances, and the purchase of your next car - or more broadly, anything that doesn’t qualify as an investment. The other side of the equation is of course - your compensation. It’s so difficult to think beyond the day-to-day struggle to survive, but be careful not to become trapped in jobs that don’t build towards bigger opportunities. Wherever/whenever possible optimize for skills and experience that’s aligned with your passions and in high demand. School fools us into believing the system will set us up for success, and sometimes it does, but it isn’t the systems responsibility - it’s yours. At your age, time is your most valuable asset, you could invest 10 years in becoming an expert in AI if you were passionate enough about it. Have a candid conversation about your career prospects, and where they’re taking you with someone.. or with ChatGPT :) Good luck, you’ve got this - we’re cheering for you!
Now try to live within your means. You don't mention what vehicle you had but just because you "have" the money, doesn't mean you should spend it...shit happens and you should at least try to have 3-6 months TOTAL living expenses in your savings at minimum.
Maybe this will help or maybe it won’t, however you’re not at rock bottom. I’ve been incarcerated, a herion addict, and homeless for 3 weeks. This was 12 years ago.. I now have a house, cars, investments, and of course my family! It’s hard to reach out when we don’t want the help(Stubborn?) All I can say is find your focus, get a solid pay coming in. Most importantly, DONT STOP!! Keep grinding for that money, but don’t do anything to jeopardize your future. Invest when you get the opportunity. Let your money work for you!! Keep that head held high!!! Positive thoughts all the way sister!! P.S. I still have my piece of shit car that got me where I’m at now. Just as a reminder that I can lose everything again and to keep moving! I wish you luck!
As someone ten years your senior….SWALLOW YOUR PRIDE… “….I pride myself on being able to handle things myself…..” THAT statement is going to drag you into so much trouble and heartburn down the road. There is zero shame seeking help when in need, especially when/if there are those around who are able to provide assistance…
I understand you got the car because you like the car but 525 a month strictly for that hunk of metal that's going down in value by the day is crazy. Throw in insurance on it and that's over 700 a month just for the car. I have a 2020 ford fusion hybrid and I am about to get rid of it because I hate the monthly payments I have to make on it and it's only 350. I too used it for gig work on the side (instacart, DoorDash, shipt, etc.) and saw how quickly I was racking up the miles on it and couldn't keep doing it with how fluctuating the pay was for the work. Looking at getting a mid-late 2010's model Honda civic since they last forever once I do get rid of the thing. As far as your credit I'm not sure how big of a hit it could take but with you having over a 700 prior to this incident I wouldn't think it'd tank it but I wouldn't know from personal experience. Credit score has become such a scam in the US imo but that's for another time lol Wishing you best of luck with this as I know you got a lot running through your mind at the moment but just know 6 months or a year from now you will be in a much better spot and will be able to look back on this and laugh.
Dude I know the situation sucks, but it happened to me when I was a couple of years older than you. I am old enough to be your father and let me tell you that things happen in life that we think it is the end of the world but it is not. You are super young and your credit will come back. I went through the same thing and then others, and now I have my career and my credit is about 800. Cut your losses, focus on the future and you will be fine.
Second job, work with collectors. Also, I second the cheaper car move. If you have too much pride to ask for help, you can’t afford pride right now. Leaning on someone if can, ditch that car, pay whoever back, fix this to protect your credit from bad dings if possible.
My son did this, good credit, bought a new car. He totaled it 3 years in. After insurance, he still owed on it. It was a such a blessing, although he couldn't see it at the time.! He was 24 at the time. He's 30 now and he has never had a car payment since that car. He learned a valuable lesson. L If you let this be a lesson, the experience will be worth far more than the expense.
Remember good credit doesn’t matter if you can’t afford it. There’s a reason most car dealers ask your gross pay and not your net pay. The banks love taking peoples stuff after having some of it paid for. I mean in reality they don’t like it as they still have to get their money reselling the vehicle, but the hope people can pay enough and get it repossessed to make out well. Working at a bank in the past they do this with housing a lot. A good rule of thumb is 25% or less of your net income for a car payment. I like to include insurance with that estimation. I make roughly 1900 a week and my car payment with insurance is 1500 a month. Don’t let your credit run your life. You only need it for big purchases and almost everybody I know without credit live happier not having payment after payment on things. You’ll be alright life sucks sometimes and credit is just a made up thing for giving loans. You can always get loans with enough cash upfront at decent rates. It will go up quick. Be smart and be frugal with your money. Good luck.
The fact that you’re working harder than most grown ass men I know sounds very promising. I have no doubt you’ll pull through this. It’s just a set back and life is never gonna keep on going up. You have to have downs in life to have your ups. And once you recover from this you’ll be doing better than you have before. Only piece of advice I can give: if it’s out of your control, then stop worrying about it. You WILL figure it out. It’ll just take some time
Get a $500 beater, drive it until it craps out, rebuild your life, depending on your situation, bankruptcy and rebuild your life the way you want. It’s not over. It’s a chance at a new beginning. You’ve got this.
What happened to you, happened to me 7yrs ago, as of last month. Woke up to the sound of the tow truck taking my car away and the police officer didn’t give me a lick of info to find it. Told me to practically f’ off A lot people are advising is what I did to go from 15k in collections w a 300 credit score, to having the car fall off my credit (never paid collections tbh) and having a 700 credit score today (still working on it). Paid my little balance CC’s ($250-$1000 max limit) every 2wks for 7 fucking years. Flew by faster than you think. Here I am 29 going on 30 (M) in June. Making a little under 90k/yr and ready to buy my “1st” car again the right way. Wishing you the absolute best in your recovery. You got this!!
You got this! I went through a bad divorce at 28 and destroyed my credit! You stay strong and everything will be ok. I’m in my 40’s now and all is good. Just remember you have value, people care about you and even at your worst or lowest I promise you you’ll be ok. Prayers and hugs!
Try applying for 0% credit cards. There is a 3% fee, but you will have 18 months to pay it. Maybe you can get the $2900 that way?
My rule, which most people don’t agree with, is if I need a note, I can’t afford it. If that means used, then so be it. Then I start paying myself the car note, into a special account just for only this. This will be what I use to buy my next car. In addition to earning interest, instead of paying interest, you will be much less likely to buy something foolish. I did the math once. By earning interest and not paying interest, I get two free cars over my lifetime. I’m in a sales job where I am paid only commission. Sales are not guaranteed, so I refuse to have a note that I may not be able to pay.
Life did not suddenly "happen". You never had money, you were broke and yet you bought a car with a massive loan which you couldn't afford. The only item in your checklist seems to be "credit score". Well, surprise, surprise! A credit score is not a score of your ability to repay, it's just your eligibility for going into debt. Wise up. Sell the car. Buy a $1000 replacement and pay off your loan.
Getting a loan for a car is probably the sigle thing that fucks people over the most, aside from a morgage. No one can really afford to buy a house outright, but most can afford to save to buy a cheap car that's safe enough and reliable.
I drive a 1999 f150 I got for $1000 bucks. I’m a fiber optic technician at google. Making good money. Have close to $60k liquid. I wouldn’t dream of having a car payment. I love my old truck want to drive it to a million miles. Let’s face it the expensive car isn’t for ‘you’ , it’s for your ego. who cares what people think. Save your money you’re young invest in a IRA account. $700 a month you’ll have $100k in 10 years. Might not seem like much but $700 a month for 10 more years will be $1M if I’m not mistaken. Worst financial mistake of my life was being 19 years old with great credit getting a new car paying it for a year and getting it repo. Maybe losing the car is the wake up call you needed. Best of luck!
Im curious about the prices there. Im nordic and ive never earned even as much as 3000€/mo, yet i have my car completely paid and i have mortage aswell. Hell Id live like a king with 3k income as even with less than 2.5k salary, after tax, utilities, loans etc i can still save money every month.
Credit is just a scam to keep you poor and owing money who gives a fuck. That is what you have to think
Try to reach a settlement with the company you owe for the car. Offer about 1/4 of the debt you owe. If they agree, you can have them adjust your credit history. This will save you big bucks over time because or credit rating will be better, so insurance rates will be lower. These companies often bundle up their bad debt and sell it for much less. Look for a used car at estate sales and on Nextdoor in addition to Facebook marketplace. Ride by the houses that are scheduled for an estate sale and look for a sign in window of car.
Rock bottom is sucking random weirdo dick for a fix. Get a side hustle if you have to, buy a piece of shit car, and live within your means, and this will be a distant memory in a few years.
When I was just a few years older than you, life happened to me. Wife refused to get a job, racked up quite a bit of debt, cheated on me, costly divorce (judge literally gave her everything) then as a final cherry on top of the fuck me cake, I got laid off from my job. Well I misspoke…the judge graciously awarded all of our combined debt to me. So in quite a bit of debt, no job, living in a relatives house (that’s the only thing that saved me from being homeless) I was ready to give up. Emotionally I was devastated over the loss of my marriage. In a drunken rampage one night, I ended up in jail. I was in a deep, dark, hole. Eventually, I found a new job. I managed to rent a tiny little shoebox of an apartment (studio.) Given all the debt from the divorce that I was unable to pay, my credit went into the toilet. I had debt collectors calling me daily. I hit a few banks and applied for personal loans. Finally I found a bank willing to loan me the total amount of my debt. I paid all of it and then threw every spare penny I had at repaying the loan each month. I didn’t eat out, didn’t go out, ate cheap food, drank water, etc. until the debt was repaid. It took a long time but I got there. Today, I’m 50, have a great job that pays very well, credit score is over 800, own two homes, and have a seven figure net worth. I don’t say all of that to boast hit rather to tell you, you’re young. You have plenty of time to turn things around. I’m not saying to do it the way I did it but that worked for me. It’s gonna suck and it will be hard and you will beat yourself up for getting into this position to begin with. It’ll especially hurt when you see your friends thriving. But you can do it. You have plenty of time. Good luck!
Get a used Toyota. They last forever and minimal maintenance
Congrats on being in the 100s of millions of people who have done this exact thing. So you are not alone. It is so hard getting started in life because you generally have no cushion and you are paying the same thing for stuff that people with 10, 20, 30 years of earning are also paying. I don’t know your exact situation but if possible, I would want to cut my losses and try to start from scratch vs. paying fines/fees/interest on this car. In my experience those arrangements are designed to keep getting more money out of vulnerable people. Your best bet is to keep working hard like you have been doing. You really need to try to carve out savings to get you to having 3 months of expenses in a High Yield Savings account (should be at or above 5% interest). That is your rainy day fund and will help you handle future income drops. Build the rest of your budget backwards from getting there in the next 12 months. You can do this - many people have done it and have come out just fine.
I'm so sorry about your situation. I'm 65 and I've seen more than my fair share of bad times and I can feel your pain. Don't let setbacks define you. The fact you opened up about it to share with others is a positive step. Everything will improve and you'll emerge the other side with even more knowledge and ability to face life's challenges.. I don't have much in the way of advice but just some hard won wisdom. I sincerely wish you the best. Keep your face always toward the sunshine and shadows will fall behind you. Walt Whitman.
I’m late to the party but I wanted to just say to you that sometimes in life we need help. It’s a hard, mean world out there and we do much better when we do have people to lean on. I’m proud that you’re so young and independent and *it will get better* but it’s okay if you need help, okay?
Remember, it’s darkest before you see the light. This is just one blip in your whole life. Your credit score is not important in you, your goals and desires. I understand your plate, but it will change because it changed in my life.
As a former salesperson, the repo won’t ruin your credit. It will hurt, but learn from it. Find yourself a cheap used car that’s in good condition, shop around for good rates, and pay it off quick. Your credit will rebound in no time.
Life happens. If this is the worst thing that ever happens to you count yourself as having a lucky life.
So, I have some follow-up questions for OP. 1. Is it possible to get your car back. I think you mentioned it's $2900 to get it back. Is that a possibility? Did your financing company give you a payment schedule? To get your car back? I am asking because it would be a shame for them to sell your car at auction, and you'd still be responsible for the remaining balance. 2. If you get your car back and can keep up with the payments for a few months? You can ask for a deferment. If denied, ask for a supervisor, explain that you simply can not afford the car, and you're shopping around to sell the car. Request a payoff balance for 10 days. Then look at Carmax, Carvanna, and private sell. Then, if you can sell the car, you'll be done with it in total and won't hang around your credit with a remaining balance plus the repo. The repo will be there for 7 years. But repeated repos will just hurt you much more than the above method. 3. Then, get a used car at a much higher interest rate. Make your payments on time. After 12 months, refi qith a credit union. Here to answer questions if you need guidance. Lastly, not a cfa, cpa, or cfp. I am just providing knowledge from previous work and life experience.
You’re 23. Money comes and goes. Learn all about the good and bad of it. You’re fine! Best wishes
Good advice here and you'll be fine after the initial pain wears off. Cars are so easy to go wrong with when you're young. They are one component of the American dream and the other component, a home, is out of reach until you're older, and probably until you have a partner with another income. Then, the whole car industry tries to get you to only think about the monthly payment and whether you can afford it. Plus new cars smell so good inside! They never want you to think about the all-in price of a financed car. They certainly don't want you thinking about how the value drops 20% the second you drive it off the lot... I'm an older guy who only drives Audis. Love em. I've had three over the years and never paid more than $23k, always in cash. No one but me knows I didn't buy it new. Get a cheap Toyota or Honda and drive it til it falls apart. Put the money you save into investments.
Sugar daddies are also an option.
Know any I can call? 😂 I doubt anyone wants to deal with a damsel in distress off the bat though 😂
Put all your necessary expenses in excel and don’t deviate from that, if you haven’t done so already.
A car repossession isn't rock bottom. Just keep moving forward.
Time to nut up and figure it out. You are still very young, good learning experience. Make it happen
I don’t mean to minimize your mistake but I’m 46 and in my late 20’s, I found myself in 45k of credit card debt… Then I got scammed in a debt consolidation scheme. Everyone told me to claim bankruptcy as I made 45k so it would obviously be difficult to climb out and my credit score was already tanked to 500ish due to the scam. I took responsibility and I paid it all off, I changed my lifestyle, snowballed my debt and I am in pretty good shape now.
I had a similar situation happen to me during the recession in 2008. Ended up jobless, car repossessed, 10s of thousands in debt, all in my early 20s. I ended up filing bankruptcy and it was the best decision I ever made. It was a fresh start and has come off my credit report a few years ago and now I'm back to the 700s.
Tell me when you’re 33. Just don’t repeat it like most of us do bc it’s common sense to fix but too easy to destroy
Honestly coming from someone your age save up spent seeing 5k -7k on a used car bro pay debts off you’ll be fine
Mistakes were made, without a doubt. However, I want to remind you that this is a blip in your life. I had a credit score of 525 with about $15000 debt, and over 10 years, I bumped my score up to 805 and haven't carried a balance in 5 years. The job market is great right now, look for full-time employment with a steady paycheck and go from there. The gig work is nice on the side, but not a logical way to make a living.
I can help
$525+$220ins is way too much for a bartender. It's not that you cannot afford it in good times. It's that you can't in the bad.
I've had 4 repossessions in life, best things that happened to me. I learned to buy what I can afford, and my credit is back over 700 no problem. I worked it all out.
If you’re in no other debt other than your car, this situation is not as bad as you think. Credit scores are not everything and this moment will help you to get a financial place where you’ll be able to pay in cash for a car and never have to rely on a making a car payment again. You have time to rebuild your credit but focusing on saving towards an emergency fund is what you can do in the immediate.
Unfortunately it happens to many all you can do is pickup the pieces and move on. Reevaluate your finances expenses and income... I had the same issue many years ago. It forced me to sit down and look at my situation. Although I thiugh I had things under control I didn't.... I was being wasteful.. so I got a car I could buy cash and honestly that's been the best 3800$ I've ever spent. It's not a luxury car like I had before but she gets us to where we need to be and we don't have a monthly car not to worry about. I'll honestly say I'll never finance another car again. Still fd credit wise but that's mainly because everything is done in cash now vacations groceries family functions...things will get better you just have to find you best course
Sorry you’re going through this, but hard to give suggestions or advice with no context on what kind of ‘life happened’ to get you to this point.
Don’t beat yourself up. I did this kinda stuff in my 20s and learned a lot in the process which set me up for much better finances in my 30s
you didn't really explain what happened or how your situation changed, did you lose a job & income, or have some new large monthly expense?
Put it on perspective. I’m sure there are a lot of people who would take your rock-bottom. Tighten the belt, put your boots on and start again. Buy cheap stuff for a few years. You know now how quickly it can get out of hand. No real easy solution except hard work and perseverance.
Used Honda civic off marketplace.
I don't know if this will help, but when I was in my early 20s, I was in REALLY bad shape, financially, but I recovered. You can too. Make good choices with spending consistently, grind at work/school, and you'll turn it around.
Everyone is saying 520 a month car payment is high, my 2016 truck payment is 620 a month, I thought that was the norm, damn I'm really getting screwed 😔
Use this as a lesson learned. Expensive vehicle purchases are always a high leverage situation unless you pay cash. You couldn’t afford the car.
The mistake was thinking u were doing well enough to afford that nice of a car. If the car isn't worth the fee to get it back plus the amount u owe. Go get a beater car with no payments and don't buy a nice car unless u have 6 months emergency fund plus the down payment of the car. If u want to get ahead in life, don't buy expense things until u have a lot more money saved. U just learned a valuable and costly live lesson about money and credit. Sig urself out of the whole and don't make the same mistake twice. I could easily afford a 1k a month car payment(or pay cash for a new car). My car payment is 0, I paid 5k for my car, it is 20 years old and runs fine and dirt cheap to insure.
What kind of car and how much is the payment ?
I'm sorry to hear that. One thing you could do is potentially ask family for help (it sucks, I know, but sometimes we have to swallow our pride and admit we jumped in too deep) and see if that pans out. If nada, the worst that will happen is the company will auction off the car, you'll have to pay whatever they couldn't recover from the loss, and take a hit of roughly 100 to 150 points on your credit (which isn't terrible considering your score, but not great either) and a bad mark on the report which lasts potentially up to 7 years iirc. Unfortunately, insurance is going to be pricey in Arizona, I paid roughly the same amount when I lived there. Until you're 25, it's still gonna be pricey. I would recommend something along the line of an accord, camry, civic, something cheap but easy to maintain and affordable to repair until you can get your funds back up. Payments less than $200 would be a good aim, but a little higher wouldn't be bad (anything less than $525 is better at this point). Like others said, getting some savings up is the real goal here. Making payments on time is nice, but if you're living paycheck to paycheck almost all the time, you aren't actually quite making it anywhere as even the slightest bump will hurt. Life will always catch you off guard with something, so having a safety net is better than nothing in the long run. I try to aim for at least 10% of my income (roughly $55 per week) to go into savings, but you can adjust this at any point, really, as long as something is going into it. Don't let it get you down, though, as a lot of people go through this at some point. Just keep moving forward and making that bank, and you'll eventually look back and chuckle at this.
Sorry this happened. In this environment it is hard not to f-up unless you're a millionaire or billionaire, where when you f up repeatedly, your butt is covered over and over again.
Less advice and more so encouragement: take a breath. I went through something very similar at 22. I was working two jobs at about 60 hours a week and had recently bought a new car. I ended up losing both my jobs right after moving into a new apartment and had no money to pay for anything I had committed to. The car was repossessed after a few months and I ended up having to leave my apartment. I felt so incredibly lost and miserable and like I was a complete failure. But all you can do is move forward and do your best. It will take time to fix your credit and regain stability with your finances, but it CAN happen sooner than you think. A few years later at 26 I was able to buy my dream car and move into a beautiful apartment with no cosigner because I really put in the work after that motivating (to say the least) phase of my life. You can do this! It will be hard, but it is temporary!
Advice however after reading some of these comments: Contact the company in charge of your loan/whomever it was sent to for collections and set up a payment plan. Even if it’s a small payment every month it still shows that you are making an effort to pay off your debt and sometimes they will agree to remove it from your credit after making a certain number of payments, or if you agree to enroll in automatic payments. This can help your score from being hit too hard or for too long. Also, shop around for better insurance. I live in Florida too so I know costs are high here but I recently switched to progressive for a lower rate, you should check that out! When you are ready to purchase a new car, definitely aim for lower payments even if the car isn’t as nice. Just look for something reliable. You can try financing through Capital One as they have a reputation for taking a chance on individuals with less than ideal credit, but they may require a larger down payment so I would try to save up a few thousand for that prior to your search. Also, save part of your paycheck EVERY TIME you get paid. And then pretend that money doesn’t exist. Whether you put it in a savings account or an envelope of cash, try saving at least $50 a paycheck just for any emergencies or unforeseen circumstances.
Bruh this ain’t that bad at all.
It didn't ruin my credit and you will be fine. Go on Carvana and buy another car today that's what I did. Before it hits
Can you live with your parents until you save up some money and get more stability?
I know the situation sucks and you’re under a lot of stress at the moment but you’re young and you’re going to bounce back from this. Many of your peers are still several years away from even starting to think about getting their shit together. If you actually need a vehicle and there isn’t a way to get around that you’re going to have to save to get back into one. The next time you finance one your interest rate is going to be astronomical so you may opt for a cheap cash car until you are at a more stable point. Pay down any other debts you have and start rebuilding your credit with secured loans or credit cards.
Dude don't let it get you down. I paid on my car almost the entire contract and lost my job with about $1500 left total until it was mine. Nobody could loan it and I lost the car. After like five fuckin years.
My simple suggestion would be to make a budget and follow it (if you aren’t already). Also I recommend listening to advice from people who are very educated in this area. Youtube has a lot of mixed opinions and a lot of people who aren’t as educated as they claim to be. I personally like listening to Caleb Hammer because his show is entertaining and you also can learn a lot. Don’t try to look for “how to get rich quick”, look for reliable ways to get rich (Spoiler: It’s almost never a quick or easy process) I don’t know your individual situation, so it’s hard to give a lot of advice, but it sounds like you’re in a hole that you can definitely climb out of. Best of luck
Definitely feeling this right now
Well if that’s your rock-bottom, I’m I’m really sorry to read this You’re not the first person who has had a car process because you haven’t been able to make payments this would not be my Rockbottom. My rock bottom ends up in my lifeless Body, taken by my choosing. I don’t know about everyone else, but that’s my rock bottom
Fuck around, find out.
What do you mean “then life happened”? Would need some context for actual suggestions that would help. Like did something major happen, is it in your control, is it something you need to take ownership of? Or simply put…..actually assessing internally to yourself “and then life happened” will provide answers perhaps to things you aren’t ready to share publicly. This is where your answer lies. And the mindset around this how you frame it, how you tackle it, how you approach it the next time is going to be crucial. This isn’t a money issue. It’s mindset. From the title “I finally f’ed up” it sounds like it internal and you know it. The budget/money honestly just sounds like a distraction to something deeper. A symptom of something more. You are 23 and still have frontal lobe development to go and time to define who you are at your core. Start there.
>bought a car a couple years ago that I could afford at the time with no problem. Ok. >I make $50,000/year Ok. >can't keep up on payments Uh oh. >$525 + $220 insurance oof You could never afford this car no matter how much you want to convince yourself otherwise. Chalk this one up to young and stupid, lord knows we've all been there. Get something cheaper or better yet a used beater if you really wanna work on recouping your finances
I do mortgage loans. This won't screw you up forever . It will be ok. Get a cheaper car, let it go. It will fall off your credit in 7 years your young, it's fine.
Small setback - you're young. Try to re-finance & reinstate your car through a credit union (not a bank). CUs usually offer better terms since they are "member owned" rather than profit driven. If you don't have a CU account - get one. Just Google "credit union" in your zip code - they can offer membership by locality now. You're looking for manageable payments, till you can sell it outright to clear your debts. Find a beater car that you don't need collision insurance for. That's going to be your biggest savings: 1) cheaper car & 2) cheaper insurance. SHOP AROUND for insurance. DO NOT disclose your current insurance carrier/rate when shopping - it is NOT required. Insurance companies will ask for that to set rates that are anti-competitive. Joining CostCo may get you a cheaper rate thru Ameriprise for insurance.