Car Loan Question

[Joel Owens]

So I have a childhood friend with a heart of gold but he always seems to get behind the 8 ball financially.

He went to one of these bad credit places and he owes 250 a month for a car worth 1,800 and payoff is about 4,000. He is fixing to finish music recording school as an sound tech in about 3 months and then should be able to land a job.

My brother owns a car dealership and I can get the same car much cheaper or his current car this car place made a buyout offer. Is there a way once they pay off on a loan to put the car in a trust where the title cannot be pawned again for money? I am trying to get my friend to stop making excuses for his life and start learning budgeting skills. Current buyout offer is 2,500 but too high. My friends credit is trashed.

I was thinking a low interest loan and if he doesn't pay me as promised then repo person comes out. I would already have it in the documents that if one payment is late the order is already signed to execute.

Thoughts??

[Roy N.]

@Joel Owens

I've done this with both a brother and one of my trades.  In both instances, they paid me back on schedule, but neither seems to have learned the intended lesson that came with the loan and experience.

If you do it, see it as an act of kindness to help out a friend and do not have high expectations for long-term behavioural change ... be delighted if it happens, but not disappointed if it does not occur.