jsong83

i have an 06 wdp/ebony tl that i picked up 4 months ago. i think i made a bad decision because i got a job that doesnt pay me that much. i might see a raise soon but it not going to mean a HUGE difference so i dont think it will help me out with my monthly payments. i did a 3 year financing and im paying $600/month but at this rate and how much im making, i dont think i have the budget to be able to keep my car. my current monthly payment is over $750 for 3 years and i am about 1/6 through the payment plan.

before i bought the tl, i was strongly considering the 06 civic si. if i do a payment plan for that car with 3 year financing, the monthly payments are drastically reduced to low $300/month and that will help me a lot since im looking to start my IRA/401K to start saving money for the future and i cant do that with my current budget and TL payments.

can anyone explain the process of how to get out of my current financing and what i would have to do if i decide to switch over to the civic si. i co-signed with my dad for the financing so i can get a lower interest rate so would i need his permission if i wanted to switch cars, even if im making the payments?

the KBB value on my car is $30.4k for trade in and $32,585 for private party?
can anyone help me and explain the process since this is my first go around with this procedure?

oppnyc

My 2 c:
Do not trust KBB.
Think for youself: who would pay you 32 or 31 or 30 K for your used car if at any dealership in NYC area (at least) you can get NEW TL 06 w/o Navi for 28.5K and w Navi for 31.6-32K.
If someone is ready to pay ~30K for car why would he go for used car for same money???
Makes no sence to me.

Here is my proof: (see how many people want this car for 28K)
Acura TL 2006

Acura TL 2006

Acura TL 2006

Your options are:

1. Trade in (big hit)
2. Sell to private party (big hit too)
3. Find a way to save in other areas(eat -out, new pair of boots, etc) and keep TL.

davenlei

Why don't you just refinance the car for a longer term to bring down your monthly payment? I have refianaced my car with my credit union with two cars when the interest rates dropped. I had the option of shortening or extending the loan term as well. Many credit unions or online banks do that.

If you extend your loan to 5 years from the 3, your payment will probably be in the mid $400 range. If you come into some more money or get a better paying job, you can add more money to your payment and pay it off early.

carguyrob

Here is my $.02 too...

You put a sizable down payment down on this car. I would assume your original loan amount was between $19,500 and $20,000. You currently owe about $17,500 and $18,000. You will take a SERIOUS hit if you go to sell your car after just 4 months. That loss will just come out of the nice down payment you put down on the car.

You have a great car with reasonable insurance rates (the Civic Si could be expensive for a 23 year old). Why don't you consider refinancing your car for 48 or 60 months. A 48 month loan for $18K at 7.5% interest would run you $435 a month. A 60 month loan would run you $360 a month. A loan though the bank that you and your Dad use shouldn't be a problem because you have over 20% equity in the car.

The Civic Si is a great car, but you will pay full list price because they are really tough to get. You really won't save as much as you think.

Don't make the same mistakes that so many of the rest of us have made. Flipping cars is a VERY expensive hobby. Keep the car and just refinance it!

carguyrob

Great minds think alike davenlei!

ndabunka

I think I see your problem... 4 months into a 36 month period is...1/9th, not 1/6th. ...basic math. At least you appear to be learning your lesson quickly. Go to your dad and let him know that you realize that you made a mistake and want his help figuring out what to do next. The people on this forum don't give a flying rip about you (personally) and have no knoweldge of your other life situations. Your dad does (or at least should if he co-signed). You will NEVER get what you expect out of liquidating a car (ANY car). Since you've only owned it 4 months, you can throw out the KBB info as it's pretty useless at this point. Bottom line is that you ARE going to take a BIG loss to get out of your current situation. That may mean that you won't even be able to afford a new Civic once your done with the math on the NEW situation (no TL). The ONLY one who can help you with that is your dad. That's what he is there for! Good luck and let us know how it turns out.

PS - Forget about the 401(k) for now. Although you appear not to realize it, you sacrificed that for this car. Now, work on this car and then LATER deal with any 401(k) issues

PPS - You may not like the advice he gives you but you (by now) should learn to accept it and follow his guidelines.

mr_clean

i work in the auto financing industry.. i would recommend refinancing your car and extending your terms... you will lose big money if you sell or trade in your car...

plus.. if you extend your terms to lower your payment... you can always pay more each month when you do have the funds which will go towards the principle..

btw.. how much do you owe and what is ur current rate if you don't mind me asking?

davenlei

Carguyrob,

Yep. The only reason my post beat yours was that you elaborated more on what I was thinking as well.

jsong83

i dont know how much i owe but my rate is 2.9%.

i think i am just going to keep this car and sacrifice the money saving at this point and just start saving in 3 years. i dont really feel like refinancing since i dont want to be paying my car off still in 5 years and didnt know i could until i read some of the replies.

i know i can extend and pay off more than the required amount early and it could be applied to the principle but i dont feel like making payments for that long.
i figure if i keep the car and pay it off in 3 years, i can buy a civic si for very little cash while using my TL as trade in.

thanks anyways

sixsixfour

if you get to pay off the car, why trade it in for an Si? just keep the TL and buy the Si separately. TL > Si = BIG downgrade.

ding069

keep the TL and refinance. simple as that. your ass will be sore after you trade your car in, and you will be paying a SLIGHT bit less for a civic.

gomezine

selling a new car within a year of buying it is crazy. the lost is too much. good luck on your choice. i would extend your payments to 60 months and if you come into some funds just pay into the principle.

SteveP66

Acura TL or a Honda Civic ........ ? Go talk to Dad - he knows more about your circumstances and personal issues more than us.

mr_clean

oh ok.. you must have gotten the 2.9% special for 36months through Honda Financing..

but i agree with sixsixfour... buy the SI separately.. why would you wanna trade in a TL for an SI? but then again.. it's your car and you can do what you want...

pohljm

I agree completely with the talk to dad and the refinance ideas. I would not recommend the advice about postponing your savings plan. Most 401K plans match funds which is free money, and you should do everything in your power to take advantage of that and the sooner the better.

TL1999

keep it because you will take a big hit when trade in for the civic

plastikman

I traded my 05 TL in for a 06 RL and trust me, if you think your gonna get out under your TL easily your wrong. By the time you pay off what you owe on the TL, you wont like what your payment will be on the Honda. You say your strapped for cash? Well I would advise you to refinance or to keep paying on your current loan

jsong83

this is what im pretty much trying to say. i dont care about the fact that i would be trading down for a cheaper car. what i drive doesnt really matter to me.

but in order for me to save money for the future, trading in my car for a cheaper car is definitely an option i had to consider. but i would rather wait on saving until i pay off the car. in 3 years, when the payments are done, ill start putting a lot of money away then.