jk, everyone can contribute.

on on of my last threads i posted about needing to either trade or get rid of my car. i went to a dealership yesturday and boy am i in a bad situation. (upside down)

heres my dilema.

i still owe $18,100 on my car
i have about 3 2/3 years left on the loan
my current APR is 14%

bunch of you guys mentioned that i really, really need to refinance.
(i definately need to drop my payment, i know have mortgage payment also)

so if you guys can maybe help me with the math (i suck at math) as to how mush i can save (if anything because it will be another 5 years again instead of 3 1/2)

lets say i go from a 14% to a descent APR aroun 7% or 8%.
what will i really save monthly and total on the loan?

what if i just give my car back. (is that a voluntary repo?) will i loose my new house if i do this?

thanks guys?

 

just call your bank and find out what you can do....how in the hell did you get a 14% intrest rate...that is horrible....get out asap

 

Wow 14% is really high. How much are they willing to give you on the car?? Or the better question is how much are you upside down by. You could trade in your car and eat up whatevers left over and let that place on top, at least that way with your new car and loan you'll be at a better rate then 14%. Are you trying to get rid of your TL?? WHY?! But if I were you, just refinance to a better rate, or if you trully want a different car do the figures on how much will be carrying over. Figure out how much is the car you want and add up all the fees such as tax, license, your negative equity on the car. And call a bank as well if you want to weigh out your options.

 

How long have you been paying your new house? Maybe you can get a line of credit on your house & the interest is tax dedcutable ... either way, get out of your current loan ...

good luck ...

 

$14.1k for 60 months at 8% = $367/month
$14.1k for 48 months at 8% = $442/month

$14.1k for 60 months at 7% = $358/month
$14.1k for 48 months at 7% = $433/month

If you give the car back you will still owe the difference between what you owe and what the bank sells it for. This is not a good option as you would still owe money on a car you don't have and also screw up your credit.

Your best bet would be to try to sell it on your own, even if you have to take a slight loss.

 

thanks guys, i know im pretty screwed. ill seee what i can l0wer my payment to. if not im just gonna suck it up...

 

they want to gimme 14k. which will put me 4k upsidedown i would rather keep the tl over anything else if im looking at another 5yrs on a civic or so, and only save 80 bucks

 

refiance through a bank, rates are running are around 6% if you have ok credit. Your best bet is a line of credit, I have my line of credit at about 2.5%.

Also here is a good calculator for payments:
http://www.cars.com/go/advice/financ....jsp?mode=full

 

you can probably eat the 4k in a lower intrest loan and come out the same as eating the 4k or however much upside down you are in a 14% intrest rate....it might make more sense to get a new car and eat the 4k with a decent rate ofcourse, or check with the bank and see how much they will loan you for the car and see what intrest rate you can get...either way, i wouldnt sit on that 14% rate....

 

Werd to this, it would make sense, I did the same thing. Although I did trade in my previous car on which I did have negative equity, I actually got an even lower rate then my previous payments with my other car.

 

I did the calculation at work. This is what you are looking at if you refinance 18,200 at 8%.
Upon credit approval of course. Is the house under your name or your sisters name.


Loan of 18,200.00 from 11/10/2008 at an Annual Percentage Rate of 8.000%.
Payment of 369.01 paid monthly.

Loan Amount: 18,200.00
Loan Date: 11/10/2008
Interest Rate: 8.000%

Payment Count: 60
Standard Payment: 369.01
First Payment Date: 12/10/2008
Final Payment: 368.58
Final Payment Date: 11/10/2013

Total Interest: 3,940.17
Total of Payments: 22,140.17

 

oh man, thank you so much!!! thanks for taking the time.

the house is under both our names. if i can drop my payment that much, or anywhere that price sounds like the best route. im gonna go to the dealer today to try an refinance

 

I would recomment going to your bank or a credit union just because you may be able to get a better rate. In consumer lending alot of places are going to look at your debt ratio hopefully the house didn't put you to far deep in that category. Make sure you bring an updated pay check stub and if they ask you your income make sure you calculate your gross income pre tax.

 

Well i can help you by telling you this. Go to the Pentagos federal credit union. You will need to have your credit score higher than 750, you make a bank account with them and then you can apply for finance. The rate they offer for cars is 5.15% I did mine, I owe 31k and added 8k and ended up financing 23k. And I use to pay 746 and now my payment is 427 for 5 years. How awsome is that, I pay 427 for a 50k car. Just go to the website and find somewhere near you can get some info or just go to the "CONTACT US" area and call them.

https://www.penfed.org,

 

We are a random bunch of car enthusiast with the love of Acura TL in common. I am sure most of us have general knowledge, skills and familiarity of interests and hobbies in many different fields however, what it sounds like you need is an expert in financial planning who can review your cumulative financial picture and make specific recommendations to keep both your car and mortgage and get you on the road to financial stability. The advice here on this forum is usually excellent, but I would not trust my financial well-being to a nameless and faceless internet poster who may or may not being giving you good sound advice.

 

What people are recommending is that he refinance his loan since 14% apr is TERRIBLE. Definitely refinance and save yourself some cash in the long run. Selling the car will cost you more in the long run than the refinanced loan will (unless you cannot find a lower rate for some reason).

 

Well if you have an additional questions you can PM. I work at a credit union so if you need help with anything just pm me.

 

you won't loose the house but it will affect ur credit. if you just bought a house, it will be unlikely that you will be able to refi the car unless you have EXCELLENT credit. Best bet is to see if the bank will refi it for you. have you made all of your payments on time? if so, then they should be willing.