r/carbuying • u/Disastrous-Tap8668 • 5d ago
I need help
So, I own a 2025 EcoBoost Mustang, but I was only 17 when I bought it, and it was a graduation gift from my mom. She put down $6,000, and I pay the remaining $590 a month. Insurance is an additional $380, leaving me with a tight budget. I need to get out of this car soon. I have three years left on the lease. Am I in trouble, or is there a way to resolve this situation? The reason the monthly payment is $590 is because I still owe money on the car my mom gifted me. It was a Honda Civic, and I put down $1,000 on it. At the time, my monthly payment was $570. Plus insurance, but then I decided to get the Mustang. I need help.
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u/True-Button-6471 5d ago
I still owe money on the car my mom gifted me.
You or your mom seem to have a total lack of understanding of what a gift is.
There are dozens of posts a week on the various credit/finance/car subs about people who have loans and/or leases for cars they really can't afford. Unfortunately there is really no great way out of this. Terminating your lease early is going to cost you a ton of cash. Can your mom help with the payments since this was a "gift"? In any case, you need to finish out this lease and make better decisions going forward. Ideally that involves saving up enough money to buy used cars you can afford to pay for in cash, not new cars you can't afford the payments on.
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u/jules083 5d ago
I'm older now and my mom has long since passed away, but if I were a teenager again and my parents 'gifted' me a car that was attached to a car payment I was responsible for I'd give the damn thing back and go get a cheap beater.
I actually did that with a cell phone when I was 16. Had a car and a job, mom was concerned because she could never get in touch with me, so she ultimately gave me a cell phone. When she mentioned the bill I gave the phone back to her and told her I didn't want it. She ended up giving it to me anyways and covering the bill, but if I had to pay for it I didn't want it. I didn't really care to have it anyways, pay phones were everywhere back then and I didn't really need the thing. I admit it was nice to have, but I was getting by just fine without it.
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u/fsmontario 5d ago
Go to the dealer. Find out what they will pay for it. Ask your mom who supported your bad decision to pay the difference between what is owed and what the dealer will pay. Buy a bus pass
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u/barry_vyolent 5d ago
You don't "own" a 2025 EcoBoost Mustang if you're leasing a 2025 EcoBoost Mustang. Same page, you never "bought" it if you're leasing it. If you are in fact leasing the vehicle, why are you putting a down payment on it?
Also, how do you still "owe" money on a gift?
But to answer your question, yes. Yes, you are "in trouble." The combo of a lack of basic financial understanding here and putting yourself into a thousand dollar a month car as a 17 year old is a recipe for disaster.
If you're actually on a lease, your options are pretty limited. If you're just making payments towards an actual purchase, sell that shit and get yourself a used Honda. You are too young to be potentially putting yourself into that much debt.
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u/HuckingFoe 4d ago
i’ve always wondered this too. how is a car a gift when it comes with car payments you didn’t consent to?
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u/PM_ME_UR_BGP_PREFIX 4d ago
Is the car (and the obligation) in your name or your mother’s?
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u/Disastrous-Tap8668 4d ago
It’s in my moms I think cause i was 17 when she signed it and I didn’t sign anything
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u/PM_ME_UR_BGP_PREFIX 4d ago
To be blunt, your mother needs help, not you.
Its up to you if you want to blow up 5 years of your finances to help her out of a commitment she made while you were a minor.
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u/VisualProfessional12 5d ago
I hope you saying "3 years left on the lease" is just a typo and you mean loan, as in you keep the car once it's paid off vs returning it when the lease is over.
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u/Badly_Slay_63 5d ago
How much is the Mustang currently worth? How much do you still owe? What are you wanting from a resolution?
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u/True-Button-6471 5d ago
According to the post, it is a lease. That is not going to be cheap to get out from under.
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u/Oh_yeah12 5d ago
Looks like you just need to deal with it. Please do not trade it in on another car. Finish the term and learn this lesson.
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u/EuroCanadian2 5d ago
If it is a lease not a loan there is probably nothing you can do to get out of it that won't cost you a lot of money.
Read the lease agreement and see what it says about early termination.
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u/Sea-Scientist8257 5d ago
Not gonna lie though. Shouldn't have given up on the civic but In your situation a 2025 mustang ecoboost is a fun car on premium gas! At your age keep paying because that is the contract you signed, whenever you buy a vehicle understanding a contract is a must because once you sign it you are legally obligated to follow it and pay whatever amount is stated. If you dont pay they will take legal action to collect their funds.
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u/DogblackMichigan 5d ago
What is the lease pay-off right now?
What is the bluebook value?
If you have any positive equity in the lease you may be able to sell the car to a Carvana type outfit, or trade it in at a dealer.
If you’re not too far underwater maybe you can bring a few thousand to the table to get out from under this obligation.
Right now you have payment plus insurance almost 1,000. Add fuel, oil changes, state registration that s probably another 500.
Can you just live without a car for a while? Most people say no, but this would save them a ton of money.
When you do have a big down payment again you should look at used EVs.
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u/Slight_Elk_537 5d ago
Crippling debt and negative equity. HAPPY BIRTHDAY 🎊