Hey at least you did not spend $50000 on a truck!
Trade-in or Keep?
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Originally Posted By: 4wheeldog
Originally Posted By: Throt
Originally Posted By: Vikas
Originally Posted By: Throt
My payment is less than $200 a month, so I could pay this car off long before the 5.5 years is up, which I have full intentions of doing. I'm going to start doing double monthly payments. APR is 3.96%.
Definitely keeping it! Thanks guys!
I am suspecting that the loan you have on this does not allow pre-payment. Most used car loans when originated at the dealers are like that. Please prove me wrong by saying that you took a loan from your local credit union and there is no pre-payment penalty.
There is a pre-pay off penalty but only a measly $150. I did the amortization, I have to pay it off 8 months early to save enough interest to cover that $150.
Don't pay it off early......Put the extra money in savings. Drive the car at least until you own it outright. Then, you will not pay the $150 penalty, and you will have a few grand in the bank.
It is amazing how much harder it is to waste money, when you actually HAVE it, rather than making payments of money you don't have. (Read that last sentence twice.....It is not intuitive, but it is the secret to financial independence.)
Yup. Now that I no longer have a car payment, I want to spend the money on Jeep goodies. But I don't.
Originally Posted By: Throt
Originally Posted By: Vikas
Originally Posted By: Throt
My payment is less than $200 a month, so I could pay this car off long before the 5.5 years is up, which I have full intentions of doing. I'm going to start doing double monthly payments. APR is 3.96%.
Definitely keeping it! Thanks guys!
I am suspecting that the loan you have on this does not allow pre-payment. Most used car loans when originated at the dealers are like that. Please prove me wrong by saying that you took a loan from your local credit union and there is no pre-payment penalty.
There is a pre-pay off penalty but only a measly $150. I did the amortization, I have to pay it off 8 months early to save enough interest to cover that $150.
Don't pay it off early......Put the extra money in savings. Drive the car at least until you own it outright. Then, you will not pay the $150 penalty, and you will have a few grand in the bank.
It is amazing how much harder it is to waste money, when you actually HAVE it, rather than making payments of money you don't have. (Read that last sentence twice.....It is not intuitive, but it is the secret to financial independence.)
Yup. Now that I no longer have a car payment, I want to spend the money on Jeep goodies. But I don't.
Originally Posted By: millerbl00
No market for it. Sold mine with 60000 miles for $6500. Maybe the market is cheaper here. No one uses the KBB around here.
My point was a quick fast look--without knowing options or condition I took a fast guess. Did not feel like looking up nada at the time. Trade in is lower than private.
Not sure why being upside down is problem. Only if you need to sell is it an issue.
No market for it. Sold mine with 60000 miles for $6500. Maybe the market is cheaper here. No one uses the KBB around here.
My point was a quick fast look--without knowing options or condition I took a fast guess. Did not feel like looking up nada at the time. Trade in is lower than private.
Not sure why being upside down is problem. Only if you need to sell is it an issue.
I've always been afraid of it just because if you wreck the car, the bank wants the rest of the money that the insurance isn't going to pay ... or you have to get expensive gap insurance.
I had to keep fighting that one with Ford Credit when I got the focus. I put down ~30% ... I was never upside down.
I had to keep fighting that one with Ford Credit when I got the focus. I put down ~30% ... I was never upside down.
Originally Posted By: millerbl00
That car sell for around $5000 around here. $11000 is a little high.
Dealers get more because they will finance to anyone.
That car sell for around $5000 around here. $11000 is a little high.
Dealers get more because they will finance to anyone.
Originally Posted By: Miller88
I've always been afraid of it just because if you wreck the car, the bank wants the rest of the money that the insurance isn't going to pay ... or you have to get expensive gap insurance.
I had to keep fighting that one with Ford Credit when I got the focus. I put down ~30% ... I was never upside down.
Ah good point, forgot about that.
Still, if one has an emergency fund, you could always dip into that and then buy something brand new with zero down. Not the best way by any means to keep a set of wheels around, but one method. Does not bother me to be upside down on my Camry, although I base that on tradein--perhaps ins co would be more fair in that event.
I've always been afraid of it just because if you wreck the car, the bank wants the rest of the money that the insurance isn't going to pay ... or you have to get expensive gap insurance.
I had to keep fighting that one with Ford Credit when I got the focus. I put down ~30% ... I was never upside down.
Ah good point, forgot about that.
Still, if one has an emergency fund, you could always dip into that and then buy something brand new with zero down. Not the best way by any means to keep a set of wheels around, but one method. Does not bother me to be upside down on my Camry, although I base that on tradein--perhaps ins co would be more fair in that event.
Insurance company, I believe, would pay the 'fair market value'.
Originally Posted By: Miller88
Insurance company, I believe, would pay the 'fair market value'.
Usually they pay nadaguide retail. That's why it's crazy to pay more than retail because the insurance companies won't give you more than retail if you crash it on the way home.
Insurance company, I believe, would pay the 'fair market value'.
Usually they pay nadaguide retail. That's why it's crazy to pay more than retail because the insurance companies won't give you more than retail if you crash it on the way home.
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