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Old 07-01-2011, 09:13 PM
Bubaloo Bubaloo is offline
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Default Car Loan to much down grade?

Hi there

Just wanted to get some advice on car loans and debt hopefully some can comment. Few years ago I over spent on a truck. It's caught up with me after losing my job and having a huge pay cut. My payment per month is 806$ ( I know poor decision ) Right now I can afford about 300 Amd have just been racking up debt trying to keep it but I'm maxed out.
I owe 23000 on it. The vehicle is worth about 18000. My question is do u think it would be smart to go trade the vehicle I'n on a cheap car ( maybe 5000-10000) roll the balance onto that new loan re finance and have a payment of aonly 200-300 a month? Or sell the vehicle and pay the balance off with a loan of what's left and then have to buy a vehicle anyway?

I need a vehicle. It's part of the dilemma, but my truck drains me from gas money aswell. Car is the better option now. I'm not sure if trading to down grade is a good idea but either way I'm out money. Any thoughts?
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Old 07-05-2011, 08:30 AM
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DavidBibby DavidBibby is offline
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Default Re: Car Loan to much down grade?

Bubaloo,

That sounds like a better plan to me than doing nothing at all.

Since you are aware that if you trade down the car that you still over the $5000 difference (between the 23k you owe and the 18k that it's worth at the moment).. You can get yourself into a $5000 car with better gas mileage and sufficiently cut your payment down to something you can better afford.

Just make sure the dealer you go to doesn't try to screw you for more than the 5k difference you owe.

Good luck to you!
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Old 07-05-2011, 11:15 AM
littleroc littleroc is offline
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Default Re: Car Loan to much down grade?

It's better to be 7k in debt then 23k in debt. What I mean by that is to sell the truck for 18k and take out a loan for 7k to cover the difference and to buy a used 2k car to get you by for the time being. There are plenty of Toyota Camry's from the late 90's with high milaege that are very good cars. We've owned two of them. My wife currently has a 1998 Camry with 190k on it and it works great.
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Old 07-05-2011, 01:15 PM
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DavidBibby DavidBibby is offline
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Default Re: Car Loan to much down grade?

On second thought,

I like Littleroc's idea better!
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Old 07-07-2011, 11:39 PM
Bubaloo Bubaloo is offline
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Default Re: Car Loan to much down grade?

Thanks for the advice. When looking at it that way 7 k sounds slot better then 23k. Ill try and sell private first and take a loan for the balance and go from there. Thanks for the thoughts!
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Old 08-01-2011, 09:34 AM
kcot kcot is offline
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Default Re: Car Loan to much down grade?

great suggestion by
littleroc !
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