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Posted: 4/17/2008 10:02:49 AM EDT
[Last Edit: 4/17/2008 10:23:37 AM EDT by shawn21]
Looking to lower my monthly car payment and was wondering what the best option would be. The car KBB for 16,000 and i owe 15,000. It currently has 55,500 miles on it. What does ARFCOM say?

Dont have the exact numbers in front of me, by memory i believe the interest rate was around 6% and monthly payments are $450 a month. Got the car Jan. 2006 when it was new (learned a lesson never to buy another new car again). I really want to keep it but i would like to lower the monthly payment so if i would be able to trade it in for something cheap and not get screwed over too bad i would.

The car is a 2005 Dodge Neon Srt4 that had 8 miles on it when i picked it up. I was making alot of money at a different job at the time and i didnt care about the payment as much but now i have a new job making less and the extra money would help out alot.
Link Posted: 4/17/2008 10:04:27 AM EDT
The worst investment there is

BTW, what is your payment?

Interest rate?

Time left on payment plan?

You know, the important parts.
Link Posted: 4/17/2008 10:05:11 AM EDT
[Last Edit: 4/17/2008 10:05:35 AM EDT by thelastgunslinger]
What interest rate is your car loan at right now? How many more months of payments do you have?

Do you own a home?
Link Posted: 4/17/2008 10:07:58 AM EDT
I was not aware that you could refinance a car.  

You should sell it and take the bus until such time that you are able to afford a car.  By 'afford' I mean pay for it like you'd pay for a pair of pants....Cash in full.  
Link Posted: 4/17/2008 10:09:38 AM EDT
I can't imagine owing 15,000$ on a vehicle

Link Posted: 4/17/2008 10:11:23 AM EDT
Link Posted: 4/17/2008 10:16:32 AM EDT
Pay it off.  No car payment at all will be the result.  
Link Posted: 4/17/2008 10:18:34 AM EDT
[Last Edit: 4/17/2008 10:18:59 AM EDT by shawn21]

Originally Posted By wildearp:
Pay it off.  No car payment at all will be the result.  


I wish i could.....It would be nice.
Link Posted: 4/17/2008 10:22:07 AM EDT
Re-fi: NO
Trade in: NO

Sell and buy a $2000 honda: YES



I hate car payments.  Haven't made one in a long time and I don't plan on making one any time soon.
Link Posted: 4/17/2008 10:24:05 AM EDT

Originally Posted By 1shott:

Originally Posted By SevenMaryThree:
I was not aware that you could refinance a car.  

 



Depends on the bank. My bank lets me refi anytime I want. Thinking about refi the truck. The rate I have is 6% and the rate would stay the same, just lower the payment.


Huh?  How is that a good idea...ever?  

(hint: It's not.)
Link Posted: 4/17/2008 10:26:15 AM EDT

Originally Posted By 1shott:

Originally Posted By SevenMaryThree:
I was not aware that you could refinance a car.  

 



Depends on the bank. My bank lets me refi anytime I want. Thinking about refi the truck. The rate I have is 6% and the rate would stay the same, just lower the payment.


But it would extend the loan period. That's bad.
Link Posted: 4/17/2008 10:27:38 AM EDT
Loans are not a good idea. Especially when going into times of economic uncertainty.
Link Posted: 4/17/2008 10:34:13 AM EDT
[Last Edit: 4/17/2008 10:35:18 AM EDT by rdove]
ETA:  nevermind, I misread the post.
Link Posted: 4/17/2008 10:34:34 AM EDT
Not to rain on your parade, but a 2005 Dodge SRT-4 with 55k miles on it is not worth $16k.  Not unless you're looking at retail prices.  I have the same car as you with 9500 miles on it, and kbb lists its trade in value at just over $14k.  You've gotta be using the retail value, if I had to guess.

As a matter of fact, plugging in 55k in to kbb gets a trade in value of $11,850.........
Link Posted: 4/17/2008 10:36:52 AM EDT
[Last Edit: 4/17/2008 10:46:16 AM EDT by mr_camera_man]
Keep the car at it's current payment.  Here's why:

1.  You'll be paid off sooner, rather than dragging out the term on a refinance.
2.  You'll never get an auto refi loan at 6%.  Last time I looked, it was more like 8%.
3.  KBB eats lead paint chips when they put their books together.  NADA is a little closer to reality.  You're probably slightly negative in the car.

If you trade it, go with a cheap compact that has a 2.9% certified pre-owned financing promo.  Actually, that's probably the best way for you to get a smaller payment... get a lightly used Cobalt or Focus for around $9k-10k, and see who has the better financing promo.  GM is running 3.9 for 60 months on CPO Cobalts.
Link Posted: 4/17/2008 10:47:46 AM EDT
I'm a used car dealer.

According to current auction reports, the 05 SRT-4 with 55k miles has been bringing $11,000 on the wholesale market.  

If you trade it in, that's what you can expect.  KBB is a nice dream, but their numbers are almost always fantasy.  If you sell it yourself, you might be able to get close to 16 out of it, but its not likely.  

If I were you, I'd put it in the paper and try and get out of it for what you owe.  Just wash out of this one and get something you can afford a little easier.  
Link Posted: 4/17/2008 11:00:33 AM EDT
Link Posted: 4/17/2008 11:01:53 AM EDT
Link Posted: 4/17/2008 11:02:43 AM EDT
Link Posted: 4/17/2008 11:03:06 AM EDT
Link Posted: 4/17/2008 11:16:54 AM EDT
I would sell it, even if you have to take a small loss.  Buy a sub $2,000 car and drive it cheap.
Link Posted: 4/17/2008 11:25:38 AM EDT

Originally Posted By shawn21:
The car KBB for 16,000 and i owe 15,000. It currently has 55,500 miles on it. What does ARFCOM say?


KBB may quote you that price, but they will not buy it for that price. Meaning if you were to trade it in, you will probably get offered around 1/2 that price.

Refinancing will lower your payments, but extend the amount of time you are paying on it. You will essentially end up paying twice what the car is worth over time.

Selling it would be your best bet in this situation.
Link Posted: 4/17/2008 11:39:29 AM EDT

Originally Posted By xdoctor:
I'm a used car dealer.

According to current auction reports, the 05 SRT-4 with 55k miles has been bringing $11,000 on the wholesale market.  

If you trade it in, that's what you can expect.  KBB is a nice dream, but their numbers are almost always fantasy.  If you sell it yourself, you might be able to get close to 16 out of it, but its not likely.  

If I were you, I'd put it in the paper and try and get out of it for what you owe.  Just wash out of this one and get something you can afford a little easier.  




+1


Sell it for what you owe (or slightly higher if you can), then buy a USED car for significantly less.



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