buying/loan questions?

[telopyros]

So this is all just hypothetical but, please just go along with me here.

Say you bought a car for 14k exactly, pay off 2k of that, so now you owe 12k on said loan. you decide you want a smaller payment and cheaper price on insurance. So you want to move to a cheaper older car.
So you find a car that fits that criteria and costs 5k. Your car is appriased as a trade-in value of 10k. So no what, will the dealship pay off that extra 2k and tack it onto the new loan as negative equity? what are you other options, besides refiancing?

[Protege v2.5]

Yeah basically you would have a 7k loan.

[11secdsm]

Yep, if approved, it will get tacked on to your new loan. Other options? Pony up the cash to make up the difference.

[telopyros]

i figured with cash, just seeing my options i guess. Wanting to save as much as possible.

[Protege v2.5]

Or have mad negotiating skills

- knock some cash of the price of the car
- get more for the trade in.

Equals less tacked on to the loan.

[telopyros]

anyone have any REAL experience with this?

[11secdsm]

I'm not sure what you want to hear but there's no mystery in being upside down on your loan. It's a common thing these days. The only way to get ahead is to somehow purchase a vehicle for $2k less than it is worth. There's no other way around it.

[SRT60-1]

it really all depends on whether you go through your own bank or their banks. Their banks you can get away with it because they finance anything. If your credits good, they would even finance a car that a dealer is selling for 30k but the cars only worth 5k. Its all in the numbers. But most regular banks like our own personal banks will only finance the value of the car. You'd have to come up with the difference.

[telopyros]

I know i am going to take a hit, I am ok with that. Becasue in the long term i'll save more, saying all the numbers work out right

[turboman808]

Opps read it wrong.

Yeah your gonna end up owing 10k on the 5k car. We are talking a 2k difference. Unless the insurance now is 3k and goes to 1k it doesn't seem worth it.

10 hours at a minimum wage job a week and your all sorted out.

[telopyros]

over the course of 5 years, the difference is there....talking about saving roughly 200$ total a month so 2400$ a year, and if i were to put that way thats 12k all said and done.

Not to mention other savings...better MPG...87 vs 93 octance prices...parts cost...over all depreciation...

[jpalamar]

Originally Posted by 11secdsm

Yep, if approved, it will get tacked on to your new loan. Other options? Pony up the cash to make up the difference.

[turboman808]

Yeah thats what I don't get. It's alot of headache, fees etc to save a few grand.

I am doing really well for myself, am I completely out of touch or something? This just seems like such a stupid idea to me, all for saving if your lucky $3000 over the course of 3-4 years. Thats not even $100 a month.

Work overtime, sell some stuff on ebay, wash cars, mow lawns. Knock the loan out.

[telopyros]

It's not just 3000$ over the course of years.


I hate racking up miles on my 2006, it uses premium fuel, parts cost a decent buck, higher maintence due to turbo.

My pro's: Lower car payment, lower insurance payment, lower gas bill, lower repair bills, more money to save, less in monthly bills and restrictions on spending/saving

I tooka new job that pays less and is further away, so I am just seeing my options to put myself in the most ideal situation if possible.

What is my motor blows? 3500$ for a new motor, or have a honda that i can swap ANYTHING into for 1000$ and that is high for some of the d-series.

Having all those lower payments, gives me a larger cushion on monthly bills and then putting that money away at the end of the month. I am not looking fora quick way out.

[turboman808]

If I were you this is what I would do.

I would get a beater. $1000 geo metro and take your other car off the road. You'll save a ton on gas, keep your car, save a ton on insurance since you can just get liability insurance.

Bet if you really sat down and tried to figure it out that would be your best bet. Save you even more money and you get to keep your car.


Has everyone seen my daily drive? I have 5 cars all paid for and this is what I drive daily. Saves me alot of wear and tear on cars I actually give a **** about.

[telopyros]

more power to you...

[ThePrimerSuspect]

yea dude. you are out of touch. if you have a loan out on a car almost every bank is going to require you to have full coverage. i was upside down in my civic when i traded it. owed $8k and they gave me $5k for it. bought my new car for $18k so they paid off my civic, and i owed $21k on my SRT. pretty simple. the only thing was that the finance company (im pretty sure it was chrysler financial) made me get gap coverage cause i was financing more than the value of the car, but that was only like 4 bucks a month.

[05GT]

Originally Posted by telopyros

more power to you...

You know, you posted a thread for advice, and that is what you are getting, but you don't seem to want to accept it???

I'm confused.

What kind of answering exactly are you looking for?

Chances are you can't refinance. It's actually pretty hard to refinance most of the times. There is certain criteria that has to be met, and some companies don't even offer it. For example, I had a car loan through Valley National Bank. They won't refinance period.

How much are your monthly payments now?

[telopyros]

The "more power to you" comment was because i am not in incredible debt. i am just checking out my options and that is a last chance option. I am merely looking for options and experience with all this.

[white boy]

car payments FTL