Sometimes sub-prime can be a good thing.

"Nibbles" (nibbles)
09/25/2014 at 17:13 • Filed to: tl;dr

Long read ahead, I'd give you a Vantage but images aren't working :(

Bad things do happen to good people. In 2008 I was working for one of the most profitable mutual fund companies in the US. Cash was rolling in and I was living the good life. I didn't have much debt to speak of so I decided to change that. Over the course of a year, I bought a 2008 Mitsubishi Lancer GTS with every option ticked save automatic transmission, a big-assed LCD tv, a couple new Xbox 360s, signed a lease on a very nice (and pricey) apartment and furnished it with all new crap. Totally within my means of living at the time; I was set. Everything paid on time until the recession hit and I found myself not only jobless but without a prospect in sight. Quickly that "within my means" phrase was out the window and I blew through my savings in a matter of months just trying to stay afloat. Then they were gone. Couldn't afford the lease, so I was homeless. Couldn't afford the payments, so the Lancer and all my fun stuff went away. I scrounged up what I could, bought an old Rodeo and headed for my hometown.

I quickly found employment there with a family friend. He is co-owner of an industrial services company and needed an "IT guy" to keep their spreadsheets on the up and up and he paid well. So well that I was able to get rid of the Rodeo (which, as a cash car, was barely operating) and get into a used V6 Mustang. The oilfield was seen as recession-proof, so the worry wasn't there. BIG MISTAKE as nothing was recession-proof. After four months of working my ass off, I was fired by the other co-owner while the family friend was in Jamaica for his daughter's wedding. Thankfully all I purchased this go-round was the Mustang, so what the hell. Pack up all my shit - again - and move back to Denver. Hated that shithole anyway.

I spent two months living on couches looking for employment. The BHPH place I purchased the Mustang from had an ignition override installed, so once the payment was late the car was done. I called 'em up, said "come get it I ain't afford it anyway" and went on with my business. For those keeping tally, that's two reposessions in two years. Days after the Mustang was gone, I found a job. With my tax returns I bought one of my "holy grail" cars - a 1987 Saab 900 SPG - for a grand. It ran like a top. I was back in business.

Fast forward a year. Got a girlfriend, SPG got totaled, girlfriend's dad sold me his old Volvo 850, girlfriend's truck got totaled, we bought a Ram 1500 (cash), Volvo died, moved to Fort Collins, bought another 900 (cash), Ram started eating transmissions. I was working in Boulder by this time and the wife just got a job. We needed a second vehicle that was reliable. We sold the Ram and went to the local Ford shop and they "got" us in one of her favorite vehicles, a 2002 Mustang GT. We had it a week before they called back and said financing wasn't happening. They stuck us in a 2007 Focus PZEV and we got an interest rate bordering on Colorado's legal maximum.

Despite the high interest, we made the payment on time, every time. A very short while later (with father-in-law's assistance) we purchased a house. Again, payments made on time every time. We hadn't made much of a dent in the previous debts, but we accrued enough savings to keep us afloat when I went through another two months of unemployment. Two years later, we're now making a sizable chunk of cash and both have very reliable employment.

A few days ago, we walked into CarMax. We were upside down on the Focus, we knew that, but wanted to get out from underneath that atrocious interest rate. We drove all manner of cars before deciding that a !!!error: Indecipherable SUB-paragraph formatting!!! fit the bill perfectly. We were doing numbers in our heads based on our current rates and easily expected the payment to be well over $500. Imagine our surprise when, due to our diligence in paying our sub-prime loan, we were handed an immediate approval from a tier 1 lender! Our rate was nearly halved from the previous loan. Single digits. The payment was much lower than we had expected and budgeted for. Not only are we now driving something we actually enjoy, but we're not tossing nearly as much money down the drain in the form of interest. We both feel better about writing that check each month. We're happier, more confident in our situation as a whole, and more comfortable. All thanks to that sub-prime loan.

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Sometimes second (or final) chances can be good things.

DISCUSSION (4)

ZHP Sparky, the 5th > Nibbles
09/25/2014 at 17:56

That was an interesting quick read. Glad things seem to be on the up and up for you, and you seem to have had a good support system (a home town to go to, a family friends business to work at even temporarily, friends with open couches, an understanding girlfriend). Bad things certainly happen to good people, and so many sadly don't have anything or anyone to fall back on.

Also, this bit in particular read like the episode of How I Met Your Mother where Barney explains his entire relationship with Robin to his fiancee in 30 seconds (also, you seem to have skipped the part where the girlfriend became a wife...assuming they're not separate individuals!:P) - I was almost cracking up: Got a girlfriend, SPG got totaled, girlfriend's dad sold me his old Volvo 850, girlfriend's truck got totaled, we bought a Ram 1500 (cash), Volvo died, moved to Fort Collins, bought another 900 (cash), Ram started eating transmissions. I was working in Boulder by this time and the wife just got a job.

At least from the write up you appear to have maintained a positive spirit and kept trying - keep it up and best of luck!

Nibbles > ZHP Sparky, the 5th
09/25/2014 at 18:07

Thanks! Yeah, I guess I left the marriage part out. That happened just over a year ago; calling her my wife in the end of your quote - whereas true now - wasn't true then :)

Same girl though. She's stayed by my side through some really deep shit and I have no intention of ever letting her go :)

ZHP Sparky, the 5th > Nibbles
09/25/2014 at 19:26

She sounds like a keeper, congrats!

George McNally > Nibbles
09/27/2014 at 21:05

Good stuff.....keep saving your money :-)

My wife and I are have saved our asses off for the last 30 years and are fortunate enough to have a good sized nest egg.

It was nice when we went to buy a new car earlier this year- we were prepared to pay cash for it, but we qualified for 0% interest for 3 years....so we are using Hyundai Motor Finances money for the next 36 months while we keep our money invested.