How Bad Of a Financial Decision Would it be for my partner to buy a car?

Submitted by Traditional_Link_555 t3_10q1e74 in personalfinance

I’ll try to lay out all the details as simply and concisely as possible.

First, my partner has pretty poor credit they are working to rectify (around 600 score at best).

Second, we are moving from Florida to Georgia in the next 6 months. Partners current car is old and beat up, and our concern is that even if their vehicle survives the trip up there, the hills and cold weather will kill it sooner, rather than later.

Third, the vehicle we are looking at purchasing is significantly more expensive in Georgia, than they are in Florida (generally 5-10k more for the same model regardless of new/used status). This, coupled with the 7% Georgia Ad Valorem tax means that it would probably be much cheaper to buy the car here in Florida, and eat the 6% sales tax +3% Ad Valorem tax upon transferring the title to Georgia when we move.

Fourth, and my main concern. Considering we have pets, and my partners credit score is already not great, it will likely be a bit of a challenge to find a place to live when we move to Georgia. Would a purchase of a new/used vehicle significantly affect our odds of approval for a rental home? Or is this mainly a concern of people looking to buy?

Any advice or resources you can point me towards would be greatly appreciated.

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MarcableFluke t1_j6n86mx wrote

The fact that you didn't include any useful information on the actual cost of the car and how much they make, I'm guessing it's going to be a pretty poor decision.

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Traditional_Link_555 OP t1_j6n8vdu wrote

Partner makes roughly 50k/yr and cost of the car to buy in Florida would be ~15k depending on condition/mileage. Same vehicle cannot be found for less than 23k in Georgia.

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MarcableFluke t1_j6nbv9c wrote

So someone could make up to $8k by just transporting a car one state over? Color me skeptical.

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Traditional_Link_555 OP t1_j6ncpzq wrote

I can’t speak to that, all I can say for certain is that the make/model of the vehicle they are looking at sells for much cheaper in Florida than it does in Georgia.

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MarcableFluke t1_j6ndon3 wrote

Sounds like an amazing money making opportunity through arbitrage. What make/model?

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Traditional_Link_555 OP t1_j6ne9v4 wrote

A Subaru Crosstrek - ideally 2016-2019 model year range.

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BlazinAzn38 t1_j6nlpzx wrote

I just went on Autotrader and used an Atlanta zip code and a 200 mile range and there’s plenty of cars in that range with average yearly mileage for less than 23K

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Traditional_Link_555 OP t1_j6nlwc5 wrote

Maybe I just completely whiffed my search parameters then, cause last time I checked it was outrageous the difference. Thank you for your input!

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LegendOfDave88 t1_j6n8351 wrote

What is the current car? Why would the cold kill it?

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Traditional_Link_555 OP t1_j6n8gy4 wrote

A very beat up Toyota Corolla, nearly 200k miles and 4-5 accidents reported prior to them owning it. I guess the main concern is more the hills & city driving than the cold, as the transmission is starting to give out.

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phil-l t1_j6nghd5 wrote

Maintenance is the key, not hills and cold. Example: I sent my son to Pittsburgh (cold and hills!) for school and work - in an '06 Honda Element that recently went past 250K miles. The vehicle is doing fine; no plans to replace it. What's really wrong with the Corolla that isn't worth fixing? I see Corollas in my area - with about 200K miles - listed for sale for $2K to $5K. Take a closer look; a transmission repair could actually be worth it.

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Traditional_Link_555 OP t1_j6nih2y wrote

You make a very good point. Really the main thing that’s bringing the cost of the vehicle way down is how many accidents it’s been in. 4-5 before my partner got the vehicle, with front end and rear end body damage, as well as definite (albeit not severe) frame damage.

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Liquidretro t1_j6nhaea wrote

Georgia is not that much colder then Florida. Yes the occasionally get some ice but that's rare. Toyota Corolla's are generally considered reliable, and without a ton of financial details here it doesn't sound like it would be a great idea to buy a car at the moment. Don't use the move to try and justify a new car that you want because of hills and cold.

I also don't buy the same car is $5-10k less expensive over a state line. You are missing something or the people advertising these prices won't actually sell for that price. If the price is true when the time comes to get the car you drive to get it for that much savings. I have done multistate road trips to get cars before, it can be fun.

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Oddity_Odyssey t1_j6ns88c wrote

Unless you move to north Georgia the hills and cold aren't a problem. The metro atl area is hilly not mountainous. Also the average winter twmp here is around 50. I wouldn't worry just yet.

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BoxingRaptor t1_j6n87zn wrote

> Partners current car is old and beat up, and our concern is that even if their vehicle survives the trip up there,

What about the car specifically makes you think that it won't survive a trip one state over?

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Traditional_Link_555 OP t1_j6n8l9o wrote

Nearly 200k miles, 4-5 accidents prior to partner owning it, next big repair will be the transmission, which is more expensive than the car is worth.

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Snoo1560 t1_j6nsy76 wrote

What makes you think the transmission is going out?

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jokerfriend6 t1_j6n8dfn wrote

It would be worthwhile to take care of housing first. I'm concerned about your partners low credit score. It would be best, if your credit is good to go for housing alone if your income is good enough. Getting housing with no debt will help. How is your car? Can you share a car for awhile?

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Traditional_Link_555 OP t1_j6n91lz wrote

My credit is ~750, I make 62k annually and we cannot share a car as my vehicle is manual and she cannot drive a manual transmission.

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BoxingRaptor t1_j6n9exm wrote

> my vehicle is manual and she cannot drive a manual transmission.

...This sounds like an easy problem with an easy solution. You could teach her how to drive stick in a couple of sessions over a weekend or two, and you have about 6 months to do it.

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Traditional_Link_555 OP t1_j6n9pa7 wrote

She isn’t comfortable driving my car, I have offered to teach her in the past. Believe me, that was the first thing I mentioned when we started talking about this.

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jokerfriend6 t1_j6n9rd7 wrote

Consider acquiring a used car with cash. Your partner has bad credit, if they get a car on credit their interest rates will be close to 23% and you will likely be bailing them out.

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Traditional_Link_555 OP t1_j6na3dd wrote

This may be something to consider. Would a leased vehicle still come with the same issue of very high interest rates?

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jokerfriend6 t1_j6nayv4 wrote

For them yes. What is your partner doing to improve her credit? I hate to say it but some people never learn about money and finances and it is beyond them. In such cases, a lot of times it is cheaper in the long run to buy them something simple and let them have it, vs financing. Never give them money directly.

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Traditional_Link_555 OP t1_j6nbecj wrote

I totally agree, although they are currently working on paying off existing debt & being more mindful with finances. They have paid off one credit card, and the last large bit of debt they have is student loans and a few thousand dollars in medical debt. Their credit has climbed significantly in the last 6-12 months, so there is definitely progress being made.

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jokerfriend6 t1_j6nbwoi wrote

Well keep on paying off debt to become free. I would see if I could borrow a car from a family member until the debt is paid off, or get a car from one who is looking to upgrade.

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Wandering_Lights t1_j6n8l5z wrote

How much do they make? How much is the car they want to buy?

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Traditional_Link_555 OP t1_j6n9bxq wrote

Partner makes ~50k, the cost of the car they’re looking at is ~15k depending on condition/mileage.

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Snoo1560 t1_j6nvh89 wrote

This is definitely not a good idea until you secure housing. Your partner's credit score will drop into the 500s as soon as she takes out a loan. There is a sub called r/mechanicsadvice. I'd suggest posting in that group describing exactly what the transmission is doing and see what advice you get. A lot of automatic transmission problems can be solved by simply changing the fluid.

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Dont____Panic t1_j6o4v97 wrote

If that’s remotely accurate, you can triple your income by simply transporting one car per month across state lines.

Sounds like a business idea!

But reading this thread, you’re looking for justification, not asking a question. Question is answered already.

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