I'm the car guy for our family and have been for 25 years. Great neice has just graduated high school, works, and has been saving her money. Had $1000 and could afford a $200 month p'ment. She called me asking if I would go look at an 07 Accord, 185k mi, $7000 on a buy here pay here lot. She is green as grass and her family has no knowledge. The buy here pay here was 24% and a $370 pymnt. Not hardly.

I agreed to help and called my longtime friend, business neighbor and car lot owner and told him what he had to work with. He got her financed w/out a co-signor, p'mnt of $185 and put her in a 2015 Ford C-Max Energi, corporate car w/82k miles, every option and looks new. She is tickled and I am amazed at the efficient use of space. I had plenty of room in backseat lots of headroom and that's usually tight. sales price was $8600 plus $169 dealer fee. He would charge his own mother that.

I gave her a serious dutch uncle lecture on the value a great credit score has and stressed do not ever be even one day late. Two days early is perfect. I suggested a bank acct w/auto pay. If she handles this loan right it will give her a future leg up.

I think the old man advice took and she wrote the nicest thank you note. She did the deal on her own at age 18, all I did was opened the door. That deserves a hat tip to both that young lady and the dealer for making the deal happen. 3rd generation car guy whose family I've known and done business with since the 80s. Got their start as car wholesalers and have connections with all the new car dealers for the good trade ins. They buy nothing but quality and now have 2 lots, both very clean, nice and low overhead. Dad runs one and the kid runs the other. The kid's a bit of a gambler and will make a deal on medium high end merch. They always sell and he will do his best to trade with you. dad is traditional and has the wholesaler fast nickle built in him, he goes for good trucks, work vans and family vehicles. They are a community asset and they move several cars.

Very nice looking car!!!

What interest rate did she get on her own? I have helped purchase two vehicles for both our oldest kids. It was my loan and them as a second. I told each when they had enough money to not loose on a repossession it will be done.

They both had great job references and our son had over 5 years on a job at $28 an hour. Best he could do on his own was 18 percent. Just could not see them pay that much. Dealer could not even beat the 5.25 percent the credit union offered

I have not seen the paperwork so it may be p'mnts for the rest of her life. lol. Kid worked fast. Called me about 3 to see if I could go next day. I talked buy here pay here down and said let me make a call. Told my pal the story and he said have her call me. Next thing I know it's 9 pm and Anna has a car. I'd never heard of a C-Max.

That sir is how family is supposed to work. You did right by her and helped educate her in the process. All of that will benefit her in the long run.

4 years of payments at $185 won't be hard for an 18 year old, ya done good!

1st timer loan payments shouldn't be a giant worry or major concern,
You did well.

Loan payments should be looked forward too, and obtainable.
Not
Be a constant source of angst and worry .

After a few months ,you may want to teach her about how using her extra funds to pay the balance off early, actually saves her money ,in the long run.

A banker friend ( at a very early age) pointed across the lobby of the bank one day.
He said to me,

" Do you see that wonderful office ?
and that guy in it ,doing nothing ?

The reason he gets up in his very nice house every day, gets dressed in wonderful suits and sets around all day, is because
You !

Are nice enough to NOT
pay your loan off early"

If you pay your loan off early, he does not get as much interest.

Think about him setting in his air conditioned office, while you are at your job, or
When you are prioritizing your spending.

I've never, not paid a loan off early, in my whole life.

That was all the incentive I ever needed.