shipps Posted March 8, 2007 Share Posted March 8, 2007 In 05' I bought a brand new Chrysler 300 for approx $28,000 with a 12 % interest rate.My payments are $530 a month, and while I can still afford it I realize Iam not able to save very much money at all.I would trade it in for a bust down car but people say I will loose alot of money and still be making big payments on a piece of crap car.Other than re-financing do you guys have any advice? Quote Link to comment Share on other sites More sharing options...
santo=dorf Posted March 8, 2007 Share Posted March 8, 2007 Refinance, seriously. I didn't have enough credit to get my own loan for my Corvette for $30,000, but the dealer ship said they could probably get me 11%. I had my mom co-sign the loan with my credit union and by being a long time customer and using direct deposit, I have a 6.65%. My payment is $713 a month (4 years) but I keep paying off more than I need to. In fact yesterday I put $4500 towards it and I am now down to $16.7 k. Not too shabby considering I got the loan last April. Quote Link to comment Share on other sites More sharing options...
FlaSoxxJim Posted March 8, 2007 Share Posted March 8, 2007 QUOTE(santo=dorf @ Mar 8, 2007 -> 06:50 AM) Refinance, seriously. I didn't have enough credit to get my own loan for my Corvette for $30,000, but the dealer ship said they could probably get me 11%. I had my mom co-sign the loan with my credit union and by being a long time customer and using direct deposit, I have a 6.65%. My payment is $713 a month (4 years) but I keep paying off more than I need to. In fact yesterday I put $4500 towards it and I am now down to $16.7 k. Not too shabby considering I got the loan last April. Nice Car!! Sorry about your small penis. I Kid Because I Care® Quote Link to comment Share on other sites More sharing options...
DrunkBomber Posted March 8, 2007 Share Posted March 8, 2007 Id say either refinance or sell it privately and list it for a few thousand more than your payoff and use that money for a down payment on a new car. Since youve had it for only a little over a year and had a high interest rate youve more than likely only been playing interest and may even be close to upside down, and if thats the case might just be better trying to find someone to take over the payments. I did this with a friend once and it actually worked out better for both of us. Quote Link to comment Share on other sites More sharing options...
Texsox Posted March 8, 2007 Share Posted March 8, 2007 If it makes you feel any better, keep making payments on time and you are buying yourself better credit for the future. In a way, your rating is like money in the bank. Be very careful on someone taking over payments, if the loan is still in your name, it's your credit at risk if they default. And you are lucky to understand the savings game early in life. Compound interest is a wonderful thing. Quote Link to comment Share on other sites More sharing options...
shipps Posted March 8, 2007 Author Share Posted March 8, 2007 QUOTE(DrunkBomber @ Mar 8, 2007 -> 07:34 AM) Id say either refinance or sell it privately and list it for a few thousand more than your payoff and use that money for a down payment on a new car. Since youve had it for only a little over a year and had a high interest rate youve more than likely only been playing interest and may even be close to upside down, and if thats the case might just be better trying to find someone to take over the payments. I did this with a friend once and it actually worked out better for both of us. What would be the best forum to sell a car privately especially at what would be an expensive enough price to pay my car off? Quote Link to comment Share on other sites More sharing options...
DrunkBomber Posted March 8, 2007 Share Posted March 8, 2007 QUOTE(shipps @ Mar 8, 2007 -> 07:56 AM) What would be the best forum to sell a car privately especially at what would be an expensive enough price to pay my car off? Newspapers, autotrader.com, cars.com, craiglist, ebay(seriously), word of mouth. Also, when I said have someone take over payments i dont mean let them pay on your credit, I mean transfer the title at a currency exchange or something, pretty much just sell it for the payoff. Quote Link to comment Share on other sites More sharing options...
BigSqwert Posted March 8, 2007 Share Posted March 8, 2007 QUOTE(shipps @ Mar 8, 2007 -> 07:56 AM) What would be the best forum to sell a car privately especially at what would be an expensive enough price to pay my car off? I listed on autotrader.com and the car sold 2 days after the listing printed. Quote Link to comment Share on other sites More sharing options...
NorthSideSox72 Posted March 8, 2007 Share Posted March 8, 2007 QUOTE(shipps @ Mar 8, 2007 -> 12:37 AM) In 05' I bought a brand new Chrysler 300 for approx $28,000 with a 12 % interest rate.My payments are $530 a month, and while I can still afford it I realize Iam not able to save very much money at all.I would trade it in for a bust down car but people say I will loose alot of money and still be making big payments on a piece of crap car.Other than re-financing do you guys have any advice? 12% over what period? 5 years I would guess? Maybe 6? If its a 5 or 6 year loan, and you bought in '05, now is probably not the time to sell. You generally don't have much equity in a car until you are past halfway through the loan. The car value and loan value curves tend to be too close together until that point. Therefore, I'd refinance. And at 12%, unless your credit is poor, you will probably be able to go a lot lower. By the way, the typical car loan nowadays is probably more in the 6% to 8% range. So 12% is ridiculously high, and unlike a mortgage, you cannot deduct interest from taxes, and the linked asset is a declining one, instead of an appreciating one. Refinance. If you can't, then wait until the car value is above your loan balance with a little room to spare, and sell. Use the room to spare, as a down payment on another car. And make sure you shop around a lot more for your loan, because I'm sure you can get better than 12%. Quote Link to comment Share on other sites More sharing options...
Queen Prawn Posted March 8, 2007 Share Posted March 8, 2007 I would be careful about selling on ebay (not saying don't do it but be extremely cautious). There are many scams going on with the auto portion of their site. Brian used to do some buying and selling there, but after he was screwed over as well as several people he knows that have been gear heads for 20 someodd years, he has backed away from the keyboard when it comes to that site. Quote Link to comment Share on other sites More sharing options...
Chisoxfn Posted March 8, 2007 Share Posted March 8, 2007 QUOTE(shipps @ Mar 8, 2007 -> 05:56 AM) What would be the best forum to sell a car privately especially at what would be an expensive enough price to pay my car off? I hear ebay is pretty darn good when it comes to selling cars. Craigs list could be solid as well. I say if you can get out of it and sell it for more than your pay-off that it would be a go. Than use the difference on a downpayment and you should have credit so your rate will be less and just go with something less expensive. Quote Link to comment Share on other sites More sharing options...
knightni Posted March 8, 2007 Share Posted March 8, 2007 QUOTE(FlaSoxxJim @ Mar 8, 2007 -> 07:13 AM) Nice Car!! Sorry about your small penis. I Kid Because I Care® HAHAHAHAHA!!!! :uhoh Quote Link to comment Share on other sites More sharing options...
santo=dorf Posted March 8, 2007 Share Posted March 8, 2007 (edited) QUOTE(FlaSoxxJim @ Mar 8, 2007 -> 06:13 AM) <{POST_SNAPBACK}> Nice Car!! Sorry about your small penis. I Kid Because I Care® Thankfully I'm less than half irish, otherwise I would have BIG problems. Or would it be samll(er) problems? Edited March 8, 2007 by santo=dorf Quote Link to comment Share on other sites More sharing options...
aboz56 Posted March 9, 2007 Share Posted March 9, 2007 Here's a good piece of advice for the future: Don't buy a new car unless you can afford it comfortably. Hell I will probably never buy a brand new car simply because I don't think it's that great of a value due to the fact that it loses value immediately after driving it off the lot. The only car I've paid for thus far I paid cash for it simply because I didn't want a car payment. Quote Link to comment Share on other sites More sharing options...
THEWOOD Posted March 9, 2007 Share Posted March 9, 2007 QUOTE(BigSqwert @ Mar 8, 2007 -> 09:42 AM) I listed on autotrader.com and the car sold 2 days after the listing printed. When I sold my Jeep it took 6 hours from the time I listed it to when I had cash in my hand. Quote Link to comment Share on other sites More sharing options...
Rex Hudler Posted March 9, 2007 Share Posted March 9, 2007 Here comes my dad speech! What you should do totally depends on what you want out of life and what is important to you. If you want to get ahead, start building wealth (I have no idea how old you are, but the earlier the better) then you should sell the car, even if you are currently upside down. Even if you have to take a loss now, it will be better for you in the long run and sooner allow you to really save money. If having a cool car and keeping up with those in your "neighborhood" is more important, then suck up the payments and keep the car. By all means add an extra $100 to your payment whenever possible to help save some interest, but stop reading now. Waiting until you have "equity" in a car is a losing proposition. You will pay so much interest in that you could have used elsewhere that you are basically throwing money away. Think about it this way. Let's say you take a $2,000 loss on the car, yet are out from under the $500+/month payments. If you can suck it up and buy a $2,000-$4,000 beater temporarily you will win in the long run. You won't be stuck with paying loads of interest and watching your principal go down at a much slower pace than the value of your car. Buying a new car is a money losing proposition, unless you can just flat out afford it. At 12% you are not only losing, but getting punched in the face monthly. Sell it, buy a beater and use the money you are paying now to work yourself up to where you can pay mostly, if not all cash for a car. Buy a 3-4 yr old car coming off a lease. Buy a car with a good resale value. Today, 3-4 yr old cars still look new if taken care of. But rather than going straight into that, leverage the money you are paying out now. Start an emergency fund if you don't have one. Having great credit is wonderful and lovely. Working your ass off so you don't need credit is 10x more lovely. It takes sacrifice, but pays off big time down the road, especially if you are young and can start making your money work FOR you instead of against you. Quote Link to comment Share on other sites More sharing options...
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