I had been talking to a guy at work that had a $2500 used car for sale that was supposedly in very good condition. After seeing a couple pictures of the car and knowing how he takes care of his vehicles, we informed Tauni to see if she would be interested, which she definitely was. Since she had a savings account at our local America First Credit Union, I suggested that she and her mom go down there and see if she could qualify for a car loan. They actually quickly qualified her with proof of employment, but without any credit history, the interest rate would be about 13%. If Mary was willing to cosign the loan, the interest would drop to about 8%. Since she has always been thrifty with her money, mom and I agreed that we would trust her to follow through and be responsible for the loan. (However, I would not suggest this as advisable for all kids!)
|Tauni's newer ride. auto.aol.com|
Update: August, 2014 Well, it's almost two years now and Tauni's first car experience was a success. No accidents, one minor speed ticket, it didn't get stolen, and the car still ran great with no major breakdowns. She made all her payments on time every month and was able to save enough to pay the loan off early.
After obtaining a new job, which necessitated a much longer commute, she decided on purchasing a newer car a couple months ago. She found a good deal on a 2011 vehicle and we were able to sell the Honda for $2000, which helped in the affordability of her new purchase. With her now excellent credit history, obtaining financing at a decent interest rate was no problem. Good job Tauni!