YACT: How to get out of car loan?

Page 2 - Seeking answers? Join the AnandTech community: where nearly half-a-million members share solutions and discuss the latest tech.

BatmanNate

Lifer
Jul 12, 2000
12,444
2
0
Holy mother of God, I need to become a financial advisor. If it is this easy, I could make a killing.
 
Aug 23, 2000
15,511
1
81
Originally posted by: Shanti
I know how it feels. I've got a 9500 balance on my car loan. I could maybe get 8000 privately, while dealers will give me 5000-6000 on trade.

What others have said is true. There is virtually no way anyone is going to loan you 7000 for a 5000 car. Definitely not a bank. And even on the small chance that a dealership could make something work, you are still screwed because if your car is worth13,500 on the street, the dealer wont' give you any more than 10,000 on trade. And for 5,000, they'll sell you a car that's worth $3500 on the street. So you end up with like a 10,000 loan on a 3500 car.

Basically, trading in an upside down car at a dealership is only going to get you a lot more upside down.

Your best bet is to stick it out, maybe try to pay extra if you can, until you can sell the Civic to a private party for what you owe on it. You'll get a lot more out of it this way than you would by trading it in. Then go buy a much cheaper car.

How is your credit?
Can you qualify for a car loan through your bank or credit union?

If so, you are much better off buying a car from a private party. At least then, if you get a decent deal, you start off owing exactly what it is worth. Buy from a dealer again and I can guarantee you will be several thousand dollars upside down as soon as you sign the papers.

EDIT: by the way, aside from being a felony, totalling the car wouldn't help you anyway because the insurance company will only pay what the car is worth, not what you owe on it.
Unless you bought the GAP insurance dealers offer. for 50cents a month i was all over that.

You might see if you can find a paco or chewie and give hime $50 and tell him the doors are unlocked.
File insurance claim, and bam, car paid off.
 

kranky

Elite Member
Oct 9, 1999
21,000
111
106
Originally posted by: JeffreyLebowski
You might see if you can find a paco or chewie and give hime $50 and tell him the doors are unlocked.
File insurance claim, and bam, car paid off.
I'm sure your daughter would be proud of your stance on insurance fraud.
 

flot

Diamond Member
Feb 24, 2000
3,197
0
0
What kind of idiot couple goes and loses money on two identical cars, and then buys two more identical cars that they then lose money on?!?
 

HappyPuppy

Lifer
Apr 5, 2001
16,997
2
71
Maybe you and your 'ol lady should put off getting married and grow up first.

^that is said very seriously.
 

Christoph

Senior member
Jan 9, 2001
217
0
0
- Doesn't it creep you out to both drive the same car?

- When you say "we both pay about $2000/yr for insurance" do you mean you pay $2000 each? That seems kinda high, can you shop that around? Are you on separate policies? If so, can you save money by being on the same policy? Dunno if your insurer will do that if you're not married, but they might, particularly if you're living together.
 

spidey07

No Lifer
Aug 4, 2000
65,469
5
76
You're kinda screwed.

I really suggest talking to somebody who knows how to manage money. Like parents or friends.
 

Cyberian

Diamond Member
Jun 17, 2000
9,999
1
0
Originally posted by: Redhotjrm

Alrighty, that's what I thought, just making sure there wasn't a way around it. I work two jobs now, over summer, both $10/hr. I can afford the car payment, but it is hindering me in the savings process for my future obligations (wedding/honeymoon). I guess I'll stick with the Honda for another 8-12 months until it evens out... sell it to pay off the loan, and jump into a cheaper car.
Pay off the Hondas first!
Then start to save for your wedding.

 

Eli

Super Moderator | Elite Member
Super Moderator
Oct 9, 1999
50,422
8
81
I take it you haven't seen all the media coverage about "GiveUps" lately? ;)

Drive your car into lake michigan. :p

(Have no idea how it really works, take this advice at your own risk)
 

Ness

Diamond Member
Jul 10, 2002
5,407
2
0
you could see if you could "Sell" by finding someone to take over the remainder of the payments and take the car.

I dunno, i'm not exactly banking/loan saavy, but that's the thought that came to my mind.
 

RossMAN

Grand Nagus
Feb 24, 2000
78,794
262
116
Originally posted by: ness1469
you could see if you could "Sell" by finding someone to take over the remainder of the payments and take the car.

I dunno, i'm not exactly banking/loan saavy, but that's the thought that came to my mind.
That would not work for 2 reasons:
1) You're talking about someone assuming the loan, that rarely happens these days. The buyer would have to apply for their own loan, if approved it would payoff Redhotjrm's loan.
2) Then you run into the next problem. the buyer's bank will only lend up to 80 - 100% of the car's value which is $13,500 however Redhotjrm owes $15,900 so he has to come up with the $2,400 difference which he doesn't have.

He can get rid of the car legally but it's going to require working your ass off, saving up EVERYTHING until you have around $2500-$3000 then sell it, payoff the difference and you're done.
 

OS

Lifer
Oct 11, 1999
15,581
1
76
Originally posted by: JeffreyLebowski
You might see if you can find a paco or chewie and give hime $50 and tell him the doors are unlocked.
File insurance claim, and bam, car paid off.

Amateur, if you're going to commit insurance fraud there are other, more profitable ways. :Q



 

OS

Lifer
Oct 11, 1999
15,581
1
76
you can race people for pinkslips and use the car you won to pay off your loan.

oh wait.
 

Jzero

Lifer
Oct 10, 1999
18,834
1
0
Originally posted by: HappyPuppy
Maybe you and your 'ol lady should put off getting married and grow up first.

^that is said very seriously.
LOL
I was thinking the exact same thing.
 

Red

Diamond Member
Aug 22, 2002
3,704
0
0
Originally posted by: Jzero
Originally posted by: HappyPuppy
Maybe you and your 'ol lady should put off getting married and grow up first.

^that is said very seriously.
LOL
I was thinking the exact same thing.
Please expand on your thoughts. We are very mature 20 year olds who made a financial mistake... which I am sure you have never done in your life. I posted to get advised by Anandtechers, but ignorant flamers like the two referenced above always seem to crap on threads. No loss here though!
 

waggy

No Lifer
Dec 14, 2000
68,145
10
81
Originally posted by: Redhotjrm
I won't be in the hole by having a 10k wedding... we are saving cash for it. And believe me, I would honestly have a $69.95 drive through wedding if I could, but my ol' lady wouldn't settle for that. Besides, I'll only do it once! I had the SC2 first... then she bought one. And then, I talked her into getting a Civic... so I'm not the whipped one =)
oh my. you are not to bright are you?

didnt you think about what you were doing before you signed? why in the blue hell are you thinking of spending $10k on a wedding when you are so far in debt? do you understand what happens if they repo the cars?


you both are NOT ready for marriage. you need to do some growing up and understand how the real world works. while $10/hour is good in some places it is NOT enough to have so much debt and then throwing a 10k wedding on it. bah

IF i was you i would pay off the cars first. IF she does not like it then explain to her if you mess up your credit now it will take years to fix. bad credit means no house and can even hurt chances of some jobs.

best advice is to get a 2nd job and pay it down till you can sale it. but then that aint going to help you. you still need a car to get to/from work. so you will have to take onother loan and buy onother car. heh have fun
 

Rudee

Lifer
Apr 23, 2000
11,218
2
76
Originally posted by: waggy
Originally posted by: Redhotjrm
I won't be in the hole by having a 10k wedding... we are saving cash for it. And believe me, I would honestly have a $69.95 drive through wedding if I could, but my ol' lady wouldn't settle for that. Besides, I'll only do it once! I had the SC2 first... then she bought one. And then, I talked her into getting a Civic... so I'm not the whipped one =)
oh my. you are not to bright are you?

didnt you think about what you were doing before you signed? why in the blue hell are you thinking of spending $10k on a wedding when you are so far in debt? do you understand what happens if they repo the cars?


you both are NOT ready for marriage. you need to do some growing up and understand how the real world works. while $10/hour is good in some places it is NOT enough to have so much debt and then throwing a 10k wedding on it. bah
Agreed. Strangely enough, these two deserve each other. #1 cause of divorce is related to finances, and I can predict this couples future. Not good....
 

Red

Diamond Member
Aug 22, 2002
3,704
0
0
Originally posted by: waggy
Originally posted by: Redhotjrm
I won't be in the hole by having a 10k wedding... we are saving cash for it. And believe me, I would honestly have a $69.95 drive through wedding if I could, but my ol' lady wouldn't settle for that. Besides, I'll only do it once! I had the SC2 first... then she bought one. And then, I talked her into getting a Civic... so I'm not the whipped one =)
oh my. you are not to bright are you?

didnt you think about what you were doing before you signed? why in the blue hell are you thinking of spending $10k on a wedding when you are so far in debt? do you understand what happens if they repo the cars?


you both are NOT ready for marriage. you need to do some growing up and understand how the real world works. while $10/hour is good in some places it is NOT enough to have so much debt and then throwing a 10k wedding on it. bah

IF i was you i would pay off the cars first. IF she does not like it then explain to her if you mess up your credit now it will take years to fix. bad credit means no house and can even hurt chances of some jobs.

best advice is to get a 2nd job and pay it down till you can sale it. but then that aint going to help you. you still need a car to get to/from work. so you will have to take onother loan and buy onother car. heh have fun
Why does every post have to start with "arE YOU two fvcking dumb or something"? How many times have I posted that I made a mistake and I am looking for financial advice. I can afford the cars, and I guarantee I know more about credit than 99/100 people here. I work for Citibank, have completed numerous readings on the calculations of the Big Three (Equifax / TransUnion / Experian), etc. I CAN AFFORD the car... I was simply asking if there was a quicker way than simply paying it down and then selling it to buy a cheaper car. Apparently the answer is NO... and therefore my original assumption is correct. So how can I not be bright? We are not getting married until we are out of college (2 years, we are both juniors) and 10k for a wedding is very mild according to the average cost of a wedding.
 

Red

Diamond Member
Aug 22, 2002
3,704
0
0
Originally posted by: Rudee
Originally posted by: waggy
Originally posted by: Redhotjrm
I won't be in the hole by having a 10k wedding... we are saving cash for it. And believe me, I would honestly have a $69.95 drive through wedding if I could, but my ol' lady wouldn't settle for that. Besides, I'll only do it once! I had the SC2 first... then she bought one. And then, I talked her into getting a Civic... so I'm not the whipped one =)
oh my. you are not to bright are you?

didnt you think about what you were doing before you signed? why in the blue hell are you thinking of spending $10k on a wedding when you are so far in debt? do you understand what happens if they repo the cars?


you both are NOT ready for marriage. you need to do some growing up and understand how the real world works. while $10/hour is good in some places it is NOT enough to have so much debt and then throwing a 10k wedding on it. bah
Agreed. Strangely enough, these two deserve each other. #1 cause of divorce is related to finances, and I can predict this couples future. Not good....
Read my other post. I make $10/hr because I am still in college... I'm 20. I'll be graduating in two years and I also do real estate on the side. Don't you think we already know that finances are the major cause of divorce? We don't have to keep up with the Jones'.... we are very mature, responsible, and our relationship has a foundation built on love and Christianity. What experience do you have with predicting future marriages? I am a credit card collector... I have people tell me all day long they are getting divorces b/c their spouse is not paying their bills on time. Once we get out of credit card debt, we aren't using credit cards anymore except for mileage use... (using credit card like checking account... pay all bills, make all purchases, etc with card to get miles, then pay it off with one check at end of month).

I am starting to learn that some Anandtechers really get off on the "holier than thou" theory here, but fortunately I've owned everyone so far in this thread... so please refrain from trying that tactic again. I made a mistake and I sought advice. I received good advice along with a larger reception of BS.

 

scorp00

Senior member
Mar 21, 2001
994
0
71
You couldn't sell it for $13,500, buy a car for $5000, then pay the rest($8500) on the loan? You'd still be paying $340/month but it should be paid off quickly, plus you'd save on insurance and you could put that towards payments too.

Or maybe i'm missing something, I always pay cash for cars. :D
 

Red

Diamond Member
Aug 22, 2002
3,704
0
0
Originally posted by: scorp00
You couldn't sell it for $13,500, buy a car for $5000, then pay the rest($8500) on the loan? You'd still be paying $340/month but it should be paid off quickly, plus you'd save on insurance and you could put that towards payments too.

Or maybe i'm missing something, I always pay cash for cars. :D
Wish it worked that way... banks require the full loan to be paid before they release the title... that is why I would have to come up with ~2500 in cash if I were to sell the car for $13500.
 

ASK THE COMMUNITY