If you currently have adult children and parents who are still very active, it can mean that you have to take the responsibility of helping two different generations. When it comes to automobiles, there is a chance that your child and your parent may need one at the same time. When this happens, it may be out of your price range to help finance a car for each. Here is a method for helping your child and parent happily each have a car to drive at the same time.
Find out who qualifies best for auto loans.
Automobile financing depends on a number of different credit reporting factors. Have both your parent and your child apply for auto financing. Figure out who qualifies for auto financing with the lowest interest rates and most affordable payments. Allow this person to be the person who gets a brand new or certified pre-owned vehicle.
Fix the old car or a hand me down.
Once one person applies for and receives and auto loan, you should fix up the old car or hand-me-down car of this person for the other party. Be sure to get the car painted, so that it looks new and have a tune up immediately. Get any necessary issues solved so that the car runs well. If there are any issues with the interior of the vehicle, install new seat covers and trade out the floor mats. Make the hand-me-down car as visually appealing and easy to drive as possible.
Create a small payment for the hand me down car .
Depending on the worth of the hand me down car, make sure that the person who purchases the older car pays a fair market value price for the vehicle. Depending on their income, have them make small monthly payments on the vehicle to the other party or to yourself. This will help the person with the auto loan with a small monthly income increase and it will aid the other party in learning what it is like to have an auto loan.
Act as the liaison for payments
As parents age, it can be easy that they forget about payments or paying a bill. For children who are just getting started, budgets may be tight and they may need wiggle room of a few days. For this reason, you should handle the payments for each as the liaison. Have them get their payment to you by a specific date, while you manually take care of the car payments to actual lenders, if you are not brokering the loan yourself.
For more information about financing options, contact a company like Western Avenue Nissan.