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If you want DRAMA don't read this :)

Posted by on Dec. 14, 2009 at 11:20 AM
  • 12 Replies

I am sure i won't get a lot of answers to this since it's not filled with drama but hey I will give it a try.

A few months after my husband and I started dating he made a horrible decision to buy a car that was $14k with his dad as a cosigner (it was used and waay overpriced) At the time it wasn'y my problem, but he has regretted it ever since we started having kids because we are COMPLETELY upside down in the loan, our credit has been screwed up lately, etc. We owe $8000 still and the MOST we could get for trade-in is $3500 in excellent condition...but it needs at least $1200 in repairs. And, if we tried to sell it, we would need to be able to pay off the loan in full..we MIGHT be able to get $4k for it if we are lucky. Now, it's our family car, and it's been giving us a lot of trouble...and we have a few different choices. We are tired of paying for one repair after another on  TOP of this loan, and they won't refinance it to help lower our payments (adding years to the term is more what we want than anything) I just wondered what other people in this position would do, we looked into trading in for a car that is better, cheaper to repair, but only around $6k and put $2500 of tax money down, making it to where it would only at roughly $1500 to our loan, but by starting a new one with 5 years instead of 2 1/2 we figured it would lower our payments. But now I am starting to think we might be better off to shell out the $$ to get it repaired..but we really want to lower our payments because between the car and his student loans we're being swallowed. Anybody have ideas?If yo

by on Dec. 14, 2009 at 11:20 AM
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Replies (1-10):
heidi37217
by on Dec. 14, 2009 at 11:27 AM

Have you tried to get a personal loan and take it to pay if off. You could probably get a lower payment that way. I don't recommend trading it in because you would still be upside down on the loan by a couple grand. What kind of repairs need to be done? Does it have over 100k miles on it?

MamaBloom777
by on Dec. 14, 2009 at 11:27 AM

Wow...that sucks :(  I hate that you're going through this.  When DH & I first met, he had a pretty crappy car too.  Eventually, we got around to trying to trade it in for a new(er) car.  He had a Saturn & we got something in the mail about their new Saturns & getting $1,000 off or something like that.  We ended up taking in his old car & trading for the brand new car.  He owed more than what his old car was worth (though not by the amount that you guys do), so what happened was, they just added the amount we still owed to his new car loan.  It made the payments higher than what they were, but it was worth it b/c the old car was about to fall apart.  This comes with a warning though b/c buying a brand new car is pointless...the minute you drive it off the lot, you've lost money. 

Maybe you could go to a dealership & see what kind of deals they could do for you.  There's no harm in going in & telling them your situation & seeing what you can do.  You can always turn around & go home in your old car.  Dealerships are dying to get rid of inventory & it being the end of the year, even more so!  I wish you good luck. Its a tough decision & one that you have to live with for 5 or 6 years...but you will figure it out! 

SouthernShawnee
by on Dec. 14, 2009 at 11:27 AM

I honestly don't know hun but here's a bump for ya!! =D

mommyto1son
by on Dec. 14, 2009 at 11:32 AM

Why not put the money into it to fix the repairs then try trading it in or selling it, you'd probably get more money if the repairs are done already.

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Cavalrybaby02
by on Dec. 14, 2009 at 11:32 AM

We have one of those that we're  upside down on, it sucks.  Luckily it's not our family car, though, it's DH's to and from work car.

It's an SUV and we bought it in Colorado right before the gas prices shot way high.  Now, it's worth about 2k and we owe about 3-4k on it (it used to be close to 6k).  As opposed to my car that is worth about 7k and we owe about 3k on it.

We've been paying extra each month so we can get it paid off faster and we're paying both cars off at tax time this year. 

Honestly, the best thing you can do is pay to get it repaired and get it paid off asap.  Then you can trade it in, owing nothing on it, and use it as a down payment.  OR you can just keep it until it dies and save up your payment money as a down payment for a new car.  And try not to get something that you will be upside down on (like look for major rebates).

25beengoodtome
by on Dec. 14, 2009 at 11:34 AM

Sorry about your bad times. My DH bought a used Oldsmobile ~ excellent & reliable car. He handles all the maintenance & repairs himself - weather permitting. 

~Marie - I'm Absolutely ADDICTED TO CAFEMOM - and loving it!!
RiverPhenix
by on Dec. 14, 2009 at 11:35 AM

DO NOT trade it in. Trust me I did this two times and it only screwed me in the end. My mom told me to just keep the first car I had, pay it off, and not have a car payment. Did I listen? Noooooo, and in the end after three cars I ended up paying $30,000 for a Chevy Cavalier!!!! That was all the interest and all the roll over from the two previous cars.

Unfortunately, you are better off to just fix it, keep it, and pay the loan until it is paid off. I am sure this is not what you wanted to hear but like I said I know your pain.  Plus, when you roll over money from another car the bank/lender can charge you a higher interest because they consider that high risk, which I didn't know until it was too late!!!


NewMom2RAD
by on Dec. 14, 2009 at 11:37 AM

the difference in trade in from the condition it's in, to excellent, is only $1k. In order to do all the repairs it would cost at least double that. If we were to repair it and keep it, we wouldn't do anything about the body damage.And in that case, it's a VW and when they start having repeated issues, you might as well throw it off a cliff lol. they are the kinds of cars that are incredible forever and when they go they go. And repairs are more pricey...I want an american car lol.

Quoting mommyto1son:

Why not put the money into it to fix the repairs then try trading it in or selling it, you'd probably get more money if the repairs are done already.


chrystal458
by on Dec. 14, 2009 at 11:38 AM

your loan should be simple interest so if you pay it off early you will not owe the entire amount i would take the money from taxes put it on the vehicle begin the repairs so you can get around and in a year or so it will be paid off raiseing your credit score therefore making it eaiser to get a better car via finance.

Cavalrybaby02
by on Dec. 14, 2009 at 11:40 AM

There pretty much aren't any cars anymore that are "American Cars".  Most cars have most of their parts made in other countries, even though they may be assembled in the US...

I think I read somewhere that Toyota and Honda are the closest to an "American" car these days.  :)  I could be wrong on the makes, though, but they were "foreign" cars that had the most American made parts in them.

Quoting NewMom2RAD:

the difference in trade in from the condition it's in, to excellent, is only $1k. In order to do all the repairs it would cost at least double that. If we were to repair it and keep it, we wouldn't do anything about the body damage.And in that case, it's a VW and when they start having repeated issues, you might as well throw it off a cliff lol. they are the kinds of cars that are incredible forever and when they go they go. And repairs are more pricey...I want an american car lol.

Quoting mommyto1son:

Why not put the money into it to fix the repairs then try trading it in or selling it, you'd probably get more money if the repairs are done already.

 


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