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Owe more than it's worth... I'm upside down and I can't get up!

1186 messages,  Last post on Jul 16, 2012 at 2:49 PM

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Messages Page 115 of 119

#1137 of 1186 Re: Owing more than it is worth [euphonium] by fezo

May 17, 2009 (7:29 pm)

Replying to: euphonium (May 17, 2009 4:49 pm)
Absolutely! When I dumped that Rabbit I took a bit of a bath and lived with a well used Nova until I was back on my feet. That was with a three year loan on the Rabbit. I can't imagine what would happen with a 5 or 6 year loan like they'll do now.
 
Taught me about how loans are structured as well as a valuable lesson on what a slightly used car is worth vs a new one. That's now coming up on 30 years ago but it's still fresh.

#1138 of 1186 Re: Owing more than it is worth [fezo] by lokki

May 18, 2009 (6:08 am)

Replying to: fezo (May 17, 2009 7:29 pm)
I learned a valuable lesson though the problems of a friend back in the 80's. She bought a Camaro. Did everything herself and was very proud of handling it by herself. (She was 21 or 22, I think). In one of those things that just happen to to 21 year olds she managed to drive though one of those medians with a v-shaped trench in it (to slow down cars that drive through the median) come out the other side, and hit an on-coming BMW. The Camaro was repaired, after a fashion, but she wanted to get rid of it.
 
Well, she had a six year loan(unheard of in those days) AND it wasn't a simple interest loan AND of course they skinned her on the interest rate since she didn't have any credit history. Basically about the first 4 years of her payments did nothing but pay the interest on the loan. She is probably still driving that car.
 
So - the lesson - I always make sure that that my car loan is a simple interest loan. Even in the 80's I thought they were the norm, but trust no one, particularly when you're borrowing money from them!

#1139 of 1186 Also in a hole... by zachrikature91

May 21, 2009 (10:48 am)

I bought a 1995 saab 900 v6 last summer for $5K, expensive i know, but it was in perfect condition with all maintenance records. five weeks later the motor died with 82K miles... bad timing belt. that was another $2200. I still owe $6K, should i sell to get a cheaper, more economical car and take the loss to pay a chunk of the money off, or should i keep it and finish the payments?

#1140 of 1186 saab by stickguy

May 21, 2009 (11:05 am)

Well, the T Belt was more of a fluke thing. So, if the car was otherwise in gret shape and well maintained, it still is (only better, since you know the T belt, etc. are good to go!)
 
Might as well keep it, if you do the math. And I am assuming you won't get 6K for it, and you will owe that 6K (and if it is a car lona, you have to come up with it when you sell the car.
 
Say you owe 6K, and can sell it for 4K. You have to come up with 2K out of pocket just to get back to even. Then, you have to take out a new loan for the next car.
 
Taking into account the 2K that wil ljust vaporize out of your bank account, what are you going to get for enough less in payments to make it worth while?

#1141 of 1186 Re: what ever happened to.... [benjaminh] by blueiedgod

May 29, 2009 (8:08 am)

Replying to: benjaminh (May 17, 2009 5:24 am)
Yeah. I had an 87 Jetta. Nice handling. Nice manual. Functional package. And yet, at the same time, total, total unreliable junk. It's amazing that VW has survived in the US as long as it has given that they did that to generations of customers....Is their reliability better now?
 
I had a '91 Jetta, and after that experience, I would never buy anything remotely associated with VW, be it VW it self, Audi, Porsche... they los this customer for life. I went back to Honda has ave not looked back.

#1142 of 1186 'upside-down-ness' by tomcatt630

Jun 24, 2009 (9:19 am)

Hmm, some imports are 'unreliable'? Aren't they "all supposed to be better"? [sarcasm] Euro cars are tempremental.
 
Anyway, 'upside-down-ness' is one of the causes of the 'auto meltdown', hardly anyone can afford to trade in, and then the dealers complain? They are the ones adding all the 'profit makers' to the sales prices!

#1143 of 1186 Re: 'upside-down-ness' [tomcatt630] by joel0622

Jun 24, 2009 (2:07 pm)

Replying to: tomcatt630 (Jun 24, 2009 9:19 am)
They are the ones adding all the 'profit makers' to the sales prices
 
GASP!!!!!!!!!
 
A retailer is adding profit to the price. Those greedy bastards, I can't believe they are not selling them for what they paid and just break even on every sale.

#1144 of 1186 Re: 'upside-down-ness' [tomcatt630] by dtownfb

Jun 26, 2009 (9:58 am)

Replying to: tomcatt630 (Jun 24, 2009 9:19 am)
I just bought a used car two weeks ago. No problem trading my car in. it was paid off back in 2007. financed for four years; will pay off in 3 years and won't think about replacing for 5 years.
 
Being "upside down" is not a problem if you wait until your car is paid off before buying another one. Never understood why people who must finance to afford a new car feel they "need" a new car every 3-4 years. All you are doing is putting yourself at the mercy of the dealers.

#1145 of 1186 Re: 'upside-down-ness' [joel0622] by dtownfb

Jun 26, 2009 (9:59 am)

Replying to: joel0622 (Jun 24, 2009 2:07 pm)
"profit" is a dirty word

#1146 of 1186 Re: 'upside-down-ness' [dtownfb] by fezo

Jun 26, 2009 (10:50 am)

Replying to: dtownfb (Jun 26, 2009 9:58 am)
Yeah, but you wrecked the "What's the best vehicle for my needs" by buying a Camry.
 
I mean we could tell everyone that the best vehicle for their needs would be a Camry and be right more often than we'd wrong. At least you could have done a Subaru....
 
And you'll never be upside down either way.

Messages Page 115 of 119

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