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need help making a hard financial decision!!!

We are going more and more into debt and I have decided that maybe we need to sell one of our vehicles or something. We have a 2007 Chevy colorado and a 2004 Durango lmt. Looked up online and the Chevy may sell for up to 16-17k,and the durango maybe 15k. We owe more than that on both of them. Actually we owe, about 16 on the Chevy, and 17 on the Durango. I LOVE my Durango. I don't want to get rid of it...but the payments on this thing are just over $500!! The payments on the chevy are just over $300. So you would think ok get rid of the one with higher payments right! But at the same time we have more overhead on that one. We are even debating selling them both to get a good used vehicle...but not sure how that would work. Would rather not trade because they always screw us over.
If we do go that route I would even be ok gettin a Minivan or something, but I don't know what to do. Just sell Chevy or both, or Durango

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batsonsgirl

Asked by batsonsgirl at 5:58 PM on Mar. 24, 2010 in Money & Work

Level 4 (38 Credits)
Answers (7)
  • If you can get by with one vehicle, I'd try to sell the one that you are more even on...what you owe vs. book value, then try to refinance the other for lower payments if you can or if you can't, then trade down.
    Jademom07

    Answer by Jademom07 at 6:09 PM on Mar. 24, 2010

  • You cant sell it out right (not trading) if you dont have enough money to cover the difference on the note. If you sell one for 13k and owe 16k on it, you have to have the 3k to get the title and give it to the new owner. And what you think it's worth, it's going to be less than that. Black book is what dealers use. Look up trade-in value and expect to get less than that. You need to trade them both in on a new vehicle that has a HUGE rebate to eat up some of the negative equity on both of them. a used car wont work b/c the bank wont allow you to tack on that extra negative equity you have.
    forevermom75

    Answer by forevermom75 at 6:45 PM on Mar. 24, 2010

  • Whatever vehicle you do try to sell, you are going to have to come up with the difference in order to do the sale. So, since you are closer, sell the Colorado. Get some money scraped together and put it up for private sale. If you are interested, I would check out the Dave Ramsey Group here on cafemom, those ladies have some great advice...it might just be to work out a good budget.
    Anonymous

    Answer by Anonymous at 7:31 PM on Mar. 24, 2010

  • I would attempt to refinance the payments. Owing more than a vehicle is worth isn't helpful unless you wait until you can at least break even.
    Anonymous

    Answer by Anonymous at 7:40 PM on Mar. 24, 2010

  • I agree with forevermom75. Owing $800 in car payments every month is a lot! Can you imagine what that money would do to your retirement fund?

    I would also recommend checking out Dave Ramsey's book, Total Money Makeover from your library. There are some excellent steps to getting out of debt in there.

    There is also a Dave Ramsey group on Cafemom if you want to check it out.
    Good luck :)
    Anonymous

    Answer by Anonymous at 1:36 AM on Mar. 25, 2010

  • thanks ladies for the great advice. i do understand that since we owe more than either of them are worth that we are pretty much screwed!! we still may be able to sell the Colorado if we can get about what we owe on it...i will check out the group and see if I get any advice that is helpful. i feel like I already spend nothing, we only pay our bills and buy groceries. nothing extra really. but our vehicle payments are killing us now that i am not working. we got ourselved into a pretty big mess having baby, buyin a house and a new truck and me not working all in the same year, then all the extra stuff we bought for our house. we are way over our heads
    batsonsgirl

    Answer by batsonsgirl at 10:18 PM on Mar. 25, 2010

  • If you are overwhelmed with debt and are looking for a way out I can offer you relief!

    If you would like to discuss your options with a professional please feel free to contact me @ 877-642-4812 or you can message me here. You can also visit my website dynastyfinancialservices.com

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    DFSNIKKI

    Answer by DFSNIKKI at 11:24 AM on Apr. 7, 2010

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