Past Due: Radio 151 – Will You Cosign A Car Loan For Me?
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I received a phone call last week from “Paul” (name changed for purposes of the show). Paul wants to buy a new car because his current vehicle needs a lot of maintenance to pass inspection, which might cost close to the vehicle’s current value. The dealership told Paul that he needs a cosigner on the loan, or else he can expect his monthly payments to be 25% more without one. Paul turned to me for options.
Paul’s situation revealed some very substantial flaws in his financial belief system. I found four major red flags in this situation and talked them through with Paul on the phone. Today’s show is a review of those red flags:
1) The issue of cosigning
2) Borrowing to establish a credit history
3) Buying a brand new car
4) Misunderstanding needs and wants
I concluded with my recommendation for Paul, the actual outcome, and how that will impact him going forward.
If you have a specific question, I’d be happy to answer it and further cultivate the wisdom the of Past Due Radio masses. The experiences of our listener base provide plenty of insight we all can learn from; don’t hesitate to ask – I’m happy to help!