Buying my friend a car, best way to handle?

Discussion in 'Planes, Trains & Automobiles' started by ReturnFire333, Oct 19, 2014.

  1. An older gentleman in our neighborhood has a '97 Honda Accord for sale with 88,000 miles on it. Talked him down to $1900 cash. My friend works at taco bell making 30+ hours a week, he is a notoriously hard worker and they know it there, so his job stability SHOULD be good. This is a friend I've known since childhood not an acquaintance. However on the negative, he's been working there for 6+ months and hasent saved a dime.
    To help get him on his feet with a vehicle and off the highway on a bicycle (homie rides 10 miles to and from work on a highway everyday, and I'm tired of taking him to work at 5:45am) I'm looking at buying the car for him (pending Honda multi point inspection on Monday.)
    What would be the best way to handle this with the least risk for me? What I'm thinking right now is I buy the car cash if the inspection checks out, I have the guy put the title in my name, and I hold onto the car, the keys, and the title, until my friend saves up money for registration/insurance, and pays me back atleast $950 if not the entire $1900 before I give him the car and the title. I might make him pay me the entire $1900 that way if something happens to his job or he doesn't pay me back I can just sell the car for my 2 grand back. 
    Are there any other ways to handle this so that I get my money and he can drive the car? Obviously I'll be writing out a promisary note for small claims court if anything falls through I can take it to court, but if I have the car in my name I can just sell it for my money back. I trust my friend though but with money it's A game all the time.

  2. Fuck fronting the money dude, A lot of people have lost good friends for far less than $1900.
    Your friend would of sorted a car out if he hated riding to and from work everyday.
  3. #3 ReturnFire333, Oct 19, 2014
    Last edited by a moderator: Oct 19, 2014
    Good advice. Which is why I'm planning on basically buying the car and holding onto it until he pays me back, and if he doesn't for some reason, sell the car.
    I'm looking at being a leinholder on the car, but what if the car gets into an accident? I've spent $1900 on the car and it gets totaled? I would have to trust him to pay me back in good faith for the car or fuck with small claims court. I think the best bet would be to hold onto the car and title until he pays the entire $1900, then sign it over. I don't see how I could get screwed over that way.
  4. I will just say this; if you do end up buying your friend a car don't be surprised if he doesn't pay you back fully or in a timely fashion.  It can ruin friendships but you can also look at it as you helped out a friend when he needed it.  He knows and maybe if one day you're down on your luck and need help, he will be there, especially if he's in an even better position.
    Your idea about holding the car is a good idea, he can use the car for work and whatever but needs to bring it back by the end of the day, and you can just drop him back home or he could ride his bike from your place.  
    Either way, good luck.
  5. if 1900$ is easy money for you {for some of  us it is} then do it. however, be prepared to take a 1900$ loss and the loss of his friendship if it doesn't work out. if you feel he is trustworthy then do it. just remember many friendships have ended for less.
    with that said, it could also be that you make a life long and loyal friend out of it too. i tend to look on the bright side of things so i would see it in this way. you are a good friend to look after him like you do. friends like that have a tendency to become life long and more family then anything else. good luck to you!
  6. He might not pay you back if he's not expecting to have to buy a car
    If I hold onto the car and title until he pays me back, I don't think I can take a loss. If he loses his job or something I just sell the car for my money back.
  8. I 'sold' a set of rims to my buddy for his gfs mazda. Personally, I know he is the major source of income, and gf is back in school to be a nurse. So for me, having stupid stock rims taking up space, and waiting a couple months for $ doesn't hurt my feelings. But if I had to buy him rims, then wait on $, it probably wouldn't happen. I am one of the most financially stable of my group of friends, and I don't care about buying beers or food, because with good friends that stuff reciprocates. It's an investment into your money and friendship, I would probably buy him the gas engine for his bike rather than a car.  
  9. If buddy cant save 1900, buddy cant afford to drive.. you're a good friend to consider it though, hope it works out
  10. #10 TimothyTheFirst, Oct 22, 2014
    Last edited by a moderator: Oct 22, 2014
    personally I wouldn't do it, but if it's something you really want to do, I think you've got the best plan.
    can he afford insurance?  because if he'll be driving it every day but you own it you should probably make sure it has insurance decent enough to cover your losses if it were to get totaled or something.
    unless I made like 6 figures or more and it didn't really matter I wouldn't let anybody borrow 1900.
  11. So you're gonna buy him a car and have it sitting in your driveway for several months while saves up $1900? Meanwhile he will still be asking you for rides/riding his bike on the hwy... It seems like it could get complicated.

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  12. OP, you seem like you have all the terms pretty well worked out but remember:
    "Never lend anything you're not willing to give away."
    Imagine if your friend destroys the car and never pays you back. How would you feel about it? 
    Either way this will be a good test of your friend's integrity. Will he try and take advantage of your kindness or will he be earnest to pay you back out of gratitude. If he takes advantage, drop him as a friend because he's a user and users never change and they'll suck you dry.
  13. This is the kind of shit I would never involve myself in.
    You take the guy to work every morning? Is the guy your boyfriend or something? I mean, even with my very best friend, I wouldn't dedicate every single morning to taking them to have some serious loyalty to this guy.
    I agree, this car is going to need payments, maintenance, gas, insurance, etc and this guy isn't going to be able to afford it.
  15. I lent my cousin 2,000 dollars to stop his car from being repossessed.
    Well his car was repossessed anyway and he never attempted to pay me back.
    I don't regret it for 3 reasons:
    1) I had tens of thousands in my bank account at the time.
    2) I feel I did the right thing trying to help out a close family member
    3) I was prepared to lose the money and view it as a final gift.
    Ultimately it was proven that my cousin didn't deserve any future loans but I have no regrets for the reasons stated.
  16. Lastly I would go over the monthly expenses with your friend.
    Write down how much he would need for food, clothes, weed, rent, insurance, gas, unexpected car repairs, etc.
    If he can't afford it then continue to car pool but make him pay for your gas..
  17. He should be able to get a loan at a credit union for $2000. If not and you let him drive it while making payments have it in your contract that he is reqiured to carry full coverage insurance.
  18. Tell him to get a loan at a bank, anyone (working full time hours regularly) can take a check stub to a credit union or local bank and get a few thousand dollar loan.
    He's been working full time for 6 months and hasn't been able to get himself a point a to point b car? Thats bullshit, sounds like he doesn't have his priorities straight and you giving him this car in faith that he'll pay you back will ruin everything between yall.
  19. If he hasn't saved money for a car then why does he need a car?
    Granted he rides his bike everywhere but some people are like that.
    I don't own a car because I'm to dam lazy and poor to pay for one.
  20. Are u paying for car ins. or is he? There's a lot of things that could make this a sticky situation with only a couple of good outcomes. Risk/reward..
    Imo this sounds like a bad idea. Hats off to u for wanting to help your friend though.

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