Sup Acura people. I have a 2005 acura tsx satin silver. It has 50000k. My finance amount is 19,000 because I got it refinanced through acura before it was through honda. I was being choked by the 480 dollar payments now its 100 less but the finance rate went up. I was thinking to go into a newer car through the same dealer is it worth it or no. I wanted a newer model either the tsx or the TL type s with lower mileage. Any ideas or views on the situation would be greatly appreciated. Also please note I did modifications to the car which means the value goes down.

 

you said your finance rate went up? what did it go up to? How many years do you have left on that $19,000 loan?
what is the kelley blue book value for your car? how much do you think you can get in a private sale? how much for a trade in?

$19,000 is a lot of money. you're gonna end up upside down.

If thinking about a larger engine, think about more gas money. higher insurance rate.

 

yes indeed it went up. Before it was at 14000, but the payments were killing me at 480 dollars a month so i decided to get it refinanced and it went up to 20 grand because when you refinance the rate goes up. I believe the 19000 will be payed off by 2015, so i figure damn thats 5 years well will be 4 when 2011 hits. I am not driving the car alot, but I have been hooking it up, exhaust, lights, carbon fiber vynal on the hood. So yea at this point a private sale would be best. But wouldn't i have to tell the person its still being financed and they would be stuck with the payment. Unless i go for a newer car and the rest of the payoff will roll over to the newer car. I checked the value and its at 12000

 

You'll need to come up with ~$7,000 to get out of your car. Either that or finance a new car and they'll roll the negative equity from your current car into that loan.

So...in a nutshell...you decreased your payment by $100 and added ~$5,000 to your principle balance so that you'd have the money to pimp your ride?

 

That's bad, but will be worse if you roll the amount into a new car. You are in over your head. I suggest paying it down much more (or off) before you even think about getting something else. Yikes.

 

Yikes! it sounds like you bit off more than you can chew.
you're gonna be in debt for a long time.

Remember to live within your means.
Good luck.

 

Keep in mind, it's a 2005 model. To still be paying it off in 2015 is insane....

Making payments on a 10 year old car is not good.

 

The new car payment and negative equity thing is a vicious cycle. The only way you should be purchasing a new car is if you can afford to put a healthy down payment and/or if you plan on keeping the car for 3+ years.

I was in your position with a car when I was your age (not a re-fi...I rolled the negative equity from one car to another). I had that car for three years before I was no longer "upside-down" on the loan. If you have car ADD like I do...the smartest thing you can do is to hang onto your car until you can unload it and buy used from now on.

 

I agree guys and what ill do is pay at least 800 bucks twice a month which will have me paying off the car in less time and ill be beating the interest by a bit. then ill be okay

 

Yup. That sounds like a plan.

 

The new owner would buy it for what the car is worth, not what you financed it for.

I suggest halting the mods and putting everything you have toward paying off the car. You are digging yourself deeper and deeper with every mod you buy, instead of making bigger payments.

 

you're gonna throw 1600 a month towards the balance?
why didnt you do that the first time????

I thought you refinanced to get a lower monthly balance?

 

Yea your right lol, this way ill have the car to myself and when im done paying it off i can put some money aside for a newer one. Thats my best best

 

Nevermind, I see you already figured out the right thing to do.

 

you're gonna throw 1600 a month towards the balance?
why didnt you do that the first time????

Well the thing is I couldnt before wasnt making enough chedder ya know. Now working in my profession IT I can finally do whats right

 

Thank You all for your advice and for setting my head on straight. Ill def be sticking with my plan, but the thing is cars has always been my hobby and I know its an expesive hobby but for now making higher payments is key to having better finances

 

Live within your means.

 

At least you seem to have figured that out. There are a lot of people out there who haven't. Living under mountains of debt is no way to live.

 

Your so right about that, Im not looking to work forever just to pay off debts man. Im a smart dude and Im on my way to having a better life