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MineCoast
Premium
join:2004-10-06
127.0.0.1

Getting rid of new car...

I currently owe $18,000 on my 2012 car and KBB value for private party for very good condition is $14,000, a difference of $4000. Paying $4000 is much better than paying $18,000 over 6 years.

Is there any other option that I might be missing as well? I was thinking that perhaps I could do some type of owner financing but that seems very risky.


Gbcue
Premium
join:2001-09-30
Santa Rosa, CA
kudos:8
Reviews:
·AT&T U-Verse
said by MineCoast:

I currently owe $18,000 on my 2012 car and KBB value for private party for very good condition is $14,000, a difference of $4000. Paying $4000 is much better than paying $18,000 over 6 years.

Is there any other option that I might be missing as well? I was thinking that perhaps I could do some type of owner financing but that seems very risky.

Trade it in and hope the dealer will pay off the entire loan.

You could also just stop paying and let it get repo'ed.

What car is this?


No_Strings
Premium,MVM,Ex-Mod 2008-13
join:2001-11-22
The OC
kudos:6
Presumably, the Kia Forte discussed here: »A used Prius?


MineCoast
Premium
join:2004-10-06
127.0.0.1
reply to MineCoast
2012 Kia Forte.

If I had only knew what the future held for me, I wouldn't have bought the car. I bought it because I needed something better on gas as I was driving 140+ miles 5-6 days a week but my life situation has changed and now only drive maybe 20-30 miles a day and car insurance is much more expensive where I am staying now, almost double that of where I was staying before.

Repo is completely out of the question... doing my best to keep my credit clean right now. I had thought about just trying to pay this car off as quickly as I can like making 3x or 4x payments each month... but would really break me for a year or two while I do that.

If I have to keep the car, then I will have to keep it. It isn't a huge deal, just would making everything so much easier not having a car payment, but it is what it is. I could just pay off this one and drive it for 10-15 years and enjoy not having a car payment, will just take 6 years to get there at current rate.


The Pig
I know you want to be me
Premium
join:2009-09-11
reply to MineCoast
KBB prices are NOT written in stone!


MineCoast
Premium
join:2004-10-06
127.0.0.1
said by The Pig:

KBB prices are NOT written in stone!

Of course they aren't, but it does give some point of reference.


CylonRed
Premium,MVM
join:2000-07-06
Bloom County
reply to MineCoast
I personally would double the payments and pay it off in 3 years and drive it till the wheels fall off. When the value gets to about $5K drop collision and increase the deductible as high as you can stand.

If you told insurance you were driving the car 140+ miles and now are not - be sure to tell them the new miles - it should drop your rates.
--
Brian

"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain


MineCoast
Premium
join:2004-10-06
127.0.0.1
said by CylonRed:

I personally would double the payments and pay it off in 3 years and drive it till the wheels fall off. When the value gets to about $5K drop collision and increase the deductible as high as you can stand.

If you told insurance you were driving the car 140+ miles and now are not - be sure to tell them the new miles - it should drop your rates.

Thanks! I forgot to change the mileage so I'll call them tonight and update that.

nonymous
Premium
join:2003-09-08
Glendale, AZ
reply to MineCoast
said by MineCoast:

2012 Kia Forte.

If I had only knew what the future held for me, I wouldn't have bought the car. I bought it because I needed something better on gas as I was driving 140+ miles 5-6 days a week but my life situation has changed and now only drive maybe 20-30 miles a day and car insurance is much more expensive where I am staying now, almost double that of where I was staying before.

Repo is completely out of the question... doing my best to keep my credit clean right now. I had thought about just trying to pay this car off as quickly as I can like making 3x or 4x payments each month... but would really break me for a year or two while I do that.

If I have to keep the car, then I will have to keep it. It isn't a huge deal, just would making everything so much easier not having a car payment, but it is what it is. I could just pay off this one and drive it for 10-15 years and enjoy not having a car payment, will just take 6 years to get there at current rate.

You are either happy with the purchase or not. Even though fewer miles to drive you can still say need reliable transportation to get to work etc. plus better gas mileage.
Maybe time to shop for car insurance.

nonymous
Premium
join:2003-09-08
Glendale, AZ
reply to MineCoast
said by MineCoast:

2012 Kia Forte.

If I had only knew what the future held for me, I wouldn't have bought the car. I bought it because I needed something better on gas as I was driving 140+ miles 5-6 days a week but my life situation has changed and now only drive maybe 20-30 miles a day and car insurance is much more expensive where I am staying now, almost double that of where I was staying before.

Repo is completely out of the question... doing my best to keep my credit clean right now. I had thought about just trying to pay this car off as quickly as I can like making 3x or 4x payments each month... but would really break me for a year or two while I do that.

If I have to keep the car, then I will have to keep it. It isn't a huge deal, just would making everything so much easier not having a car payment, but it is what it is. I could just pay off this one and drive it for 10-15 years and enjoy not having a car payment, will just take 6 years to get there at current rate.

You are worried about car insurance price yet think you can make 3 to 4x the payments? Shop for better car insurance. Plus if there is no penalty to prepay even 2x a much will drastically change things not even your 3x to 4X.


The Pig
I know you want to be me
Premium
join:2009-09-11
reply to MineCoast
Go to a bad neighborhood and leave the keys in it, or did you opt for the cheapest insurance you could find?

dave
Premium,MVM
join:2000-05-04
not in ohio
kudos:8
Reviews:
·Verizon FiOS

1 recommendation

reply to MineCoast
said by MineCoast:

$4000 is much better than paying $18,000 over 6 years.

But that's not the right comparison.

It is "paying $18000 for transportation for the next N years" versus "losing $4000 plus playing $X for transportation for the next N years", because your need for transportation has not gone away.

Since you're going to sell the car for less than you owe, I assume the replacement transportation will need to be financed too - so I don't see how this even achieves the goal of having no car payment. Unless maybe $X is so low you can pay it out-of-pocket, but that suggests the likelihood of an unreliable purchase and risk of high mechanic bills.

As a side issue, I can't see how spending a lot of money you didn't have, to save money on gas, ever got computed out as a way to save money.

nonymous
Premium
join:2003-09-08
Glendale, AZ

1 edit
reply to MineCoast
Thing is sure you are traveling less now. That is fine and all but you still need reliable transportation. Then things may change again in another 6 months or year and you need to travel a hundred miles for work. But you sold the reliable transportation and have another old car again with the same problem you did before.
Unless you are a shade tree mechanic your older vehicle may have started to really cost you. Unless you have really horible buyers remorse and hate the car keep it if you can. Other thread you said 5 year bumper to bumper that is always good even if you have to fight a dealership sometimes.

I mean we could look back on our SUV. Could have got a car with better gas mileage cheaper. Should have got another brand. Should have saved some and waited and got a more expensive better brand.
We could have buyers remorse or just pay for it and drive it into the ground for the next 6 to 10 years. We have already taken little trips where our old car would never go off road and being 11 years old just the Phoenix heat is getting to it I am sure. I would it rather it let me down in town than 500 miles away visiting relatives or on a vacation. Why any new vehicle is good.
My wife says do not complain as well karma may come back and bite you.


r81984
Fair and Balanced
Premium
join:2001-11-14
Katy, TX
Reviews:
·row44
reply to MineCoast
I say keep the car. I dont thing there is any way to come ahead by taking $4K loss and buying another older car for around $8K (which is what you would have to spend to get something decent) unless your finacing is really, really high.
If you have 2% or less dont even worrry about it.

Hopefully a 2012 Kia Forte is built well and will not have any problems or costs (beyond oil, tires, and brakes) for the next 10+ years.
If it is built well you will come out ahead.
If it ends up needed major repairs in the next 5 years then you could lose more than $4K, but there is no way to know.
--
...brought to you by Carl's Jr.


r81984
Fair and Balanced
Premium
join:2001-11-14
Katy, TX
Reviews:
·row44

1 edit
Wow...I just read this:
said by MineCoast:
It's a 72 month loan at 14.01% interest
I still dont think selling it is a good idea with an instant $4K loss as you will still have to buy another car and finance.

I would look into getting a lower interest loan every few months until you find someone willing to give you well under 10%. Refinancing with a lower interest loan is your answer, not selling the car to buy another one.
A lower interest loan can drastically reduce your monthly payment.

Read this: »www.edmunds.com/car-loan/refinan···oan.html
Car refinancing is quick and easy according to edmunds and they have links in the article to online refinancers.

--
...brought to you by Carl's Jr.

nonymous
Premium
join:2003-09-08
Glendale, AZ

2 edits
said by r81984:

Wow...I just read this:

said by MineCoast:
It's a 72 month loan at 14.01% interest
I still dont think selling it is a good idea with an instant $4K loss as you will still have to buy another car and finance.

I would look into getting a lower interest loan every few months until you find someone willing to give you under 10%. Refinancing with a lower interest loan is your answer, not selling the car to buy another one.
A lower interest loan can drastically reduce your monthly payment.

Read this: »www.edmunds.com/car-loan/refinan···oan.html
Car refinancing is quick and easy according to edmunds and they have links in the article to online refinancers.

Keep it and refinance later if you can. Paying on time and cleaning up your credit after a bankruptcy helps. So in a year or so it may be easier to refinance.

We had a bad period and got a really bad car rate one time. It was an odd loan. If paid on time it would reduce a little every few months. Started high and ended just bad.
Plus even now we do not get 2%. Wish but no. It is way lower than 14 and some above 2%. Did get a few things way reduced cost like the extended warranty though. Then a good price on SUV.
Though did hear some deals on used cars around us that made me shudder on interest rates and prices of the used cars plus extended warranties that just cost. By the time they where done sounded like they paid as much for a used car as we were for a new SUV.
So yes some do get 2% or less financing for 5 or more years. Plus perfect price and everything thrown in free like 100,000 10 year warranty and lunch with the dealership owner.
But like said i do hear some bragging on a used car with 70,000 miles on it with yucky interest and high priced extended warranty paying ugh a month for many years. It still could be better for me but it could be worse for you.
Like my wife says karma. I start bitching I don't have 2% financing I might not even have a vehicle later.
For now we camp and fewer hotels on vacation. An offset and my young son loves it. I am getting older but heck tent camping has charms and well now reading bears get into cabins and show up eating popcorn on your sofa tents may be safer.
You change things. You end up with another vehicle that is turning unreliable. Sure it is cheaper. Yet you are late to work or wife late to work school. It happens more often. You are finally fired. Turn homeless. that is way better than paying a higher interest rate. Your boss that has the cheap interest rate and new car just fired you as you had a used unreliable vehicle. Now you are homeless.
Now you wish you had the expensive interest rate. Given time and cleaning up your credit both your insurance and if done in say a year or so before the car is too old refinance it.
edit : keep happy not racking up the miles on it now so should last more years.

nonymous
Premium
join:2003-09-08
Glendale, AZ
reply to Gbcue
said by Gbcue:

said by MineCoast:

I currently owe $18,000 on my 2012 car and KBB value for private party for very good condition is $14,000, a difference of $4000. Paying $4000 is much better than paying $18,000 over 6 years.

Is there any other option that I might be missing as well? I was thinking that perhaps I could do some type of owner financing but that seems very risky.

Trade it in and hope the dealer will pay off the entire loan.

You could also just stop paying and let it get repo'ed.

What car is this?

Your a PE and brag. What do you know about bad credit. Repo'd is bad suggestion makes thing worse. Not a positive suggestion. More like %&(* #&*.

Bob4
Account deleted

join:2012-07-22
New Jersey
Reviews:
·Optimum Online
reply to r81984
said by r81984:

Refinancing with a lower interest loan is your answer, not selling the car to buy another one.

Good advice. Also, paying on time every month will help the OP's credit rating.


CylonRed
Premium,MVM
join:2000-07-06
Bloom County
There generally is a reason an interest rate is 14% and it will take a few years to build credit back up to what it needs to be to get a much lower rate. He can shop but I would not expect a sharp drop or a drop to 10%.
--
Brian

"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain


r81984
Fair and Balanced
Premium
join:2001-11-14
Katy, TX
Reviews:
·row44

1 edit
I would try every 6 months to see what is offered.
(your fico get lowered temporarily when you apply for loans for up to 6 months, so spacing it out every 6 months means it goes back up before you try again)

But you never know what others are willing to offer right now as a base line unless you try. It is possible the dealer purposely goes with a higher rate than what the OP can actually get by shopping around.

If the OP can find someone willing to cosign on the car with good credit then he can get a good rate and a much lower payment. I assume he could not find someone though.

He should get a "secured" credit card from a bank or credit union and pay it in full each month. This along with his car payments being on time would increase his credit score after 6 months.
--
...brought to you by Carl's Jr.


r81984
Fair and Balanced
Premium
join:2001-11-14
Katy, TX
reply to MineCoast
»www.credit.com/blog/2012/04/7-ti···kruptcy/
--
...brought to you by Carl's Jr.


Lone Wolf
Retired
Premium
join:2001-12-30
USA
kudos:1
Reviews:
·Verizon Online DSL
reply to MineCoast
said by MineCoast:

Is there any other option that I might be missing as well? I was thinking that perhaps I could do some type of owner financing but that seems very risky.

There are ads on the TV for »us.webuyanycar.com/ . Try putting your info in and see what they offer.

I have never used the service nor do I recommend it. Just a stab at trying to help.