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Smart Shopper Owe more than it's worth... I'm upside down and I can't get up!
1160 messages, Last post on Oct 22, 2009 at 7:11 PM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
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Replying to: audia8q (Sep 28, 2006 5:53 am) |
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Replying to: suvgal (Sep 26, 2006 6:21 am) stick it out. You have a nice car to drive for the next 44 months. In this case, i would suggest getting an extended warranty (normally I would not) not unless you have sufficient savings to cover anything major. I believe the vehicle has 5 year/60k powertrain warranty so your transmission and major engine components are covered for the lease period. You'll still have to pay for brakes, tires, maintenance, etc. this is why most people only lease up to a 3 year period. Minimal out of pocket cost do to maintenance. Tires and brakes normally last 3 years and maintainence during this time is mostly oil changes. good luck.
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that no dealer will touch it. They don't care how buried you are, or how it is financed. They just want a chance to get you in a new set of wheels if there is any possible way to git 'er done. You are right about the 5/60 powertrain warranty, although I think the poster was planning to be over miles. But, on a Toyota 9and the highlander has proven to be reliable), even if you hit 75K in 5 years, the odds are in your favor that nothing expensive is going to go wrong (that would be covered by the warranty). Maybe if you were planning to go out 7-8 years and 100k the warranty would make sense? But for 5 years, i like the idea of putting the cost of the warranty into a bank account instead
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Replying to: stickguy (Sep 29, 2006 5:43 am) She owes over $16k just in lease payments, plus you have the residual that needs to be paid to the leasing company. Probably over $27k total. The car is only worth $22k. That is lot to roll over into a new car loan. I agree the Highlander has been reliable. The extended warratny is more for the OP peace of mind. Personally, i would roll the dice and not purchase the warranty. |
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Replying to: dtownfb (Sep 28, 2006 11:57 am) Thanks for the advice. I haven't been online for a few days. I'll explain. This wasn't necessarily an impulse buy - I knew I wanted a Highlander - however, you are correct in the Leasing 101 department - I never did a lease before in my life and yes I got taken. dtownfb is right on the money as to what I am upside down so I might as well keep the HL until the lease is up and suck up the losses on extra mileage and such. If I do plan to lease after this, I am well-armed to do so. I didn't find Edmunds until after my lease - I had used KBB before. I wish I had - I really would have known what I was doing. Financially, I could afford to pay for repairs or even pay the amount upside-down, no problem. To me that doesn't make financial sense though (the paying off) cause I probably won't get exactly what I want after that for similar lease payments. Actually, I figured it out and the only way it made financial sense was that is I was only 3K upside down, I'd even out because if I did pay for the warranty and the extra mileage, I'd be actually paying about $441 a month (~$2600 (mileage) and $800 (warranty)). Unfortunately, I couldn't do that. Yes, I realize I made a huge mistake leasing for 5 years (apparently not the only one since I saw a few people in similar situations on the lease swapping sites including one that went for 6 years) but I guess we'll have to call this a lesson learned and I'll know better for next time. Thank you all. |
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We are currently paying to "own" a 2003 Chevy TBlazer with about 25 monthly payments left of about $650. Extended warranty will end in July '07. Since we no longer want to "own" this vehicle and continue to put hard earned money into a vehicle that is obviously unreliable. Our plan is to add $200 over our regular payment to reduce the debt we owe. Expected to have about $3k for down payment on the Acura TL. As of right now, I think the '03 TBlazer with 90k miles is only worth $5k. Does anyone have a really rough idea what the payment will be when it comes time in October 2007? Our credit is good, so no issues there. With online companies like e-Loan, People First, is it possible they would do a deal like this? Thanks for any input! |
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Replying to: mookie14 (Oct 21, 2006 4:43 pm) This question can't be answered with the information that you have provided. You need to provide the current loan balance, term of loan and interest rate to be able to calculate a payoff balance. Also, if your car loan has a prepayment penalty, the cost of accelerating your loan payments may end up costing you, not saving you. My suggestions to you: (1) Assess your overall financial situation and prioritize your loans. If you have credit card debt at 18% and a 7% car loan, for example, then paying off the credit cards is a better use of your money. All things being equal, pay off the higher interest rate loans first. (2) In the future, don't buy cars on payments. By focusing on payments, it is more likely that you will pay too much for your car, get too little for your trade-in, pay too high of an interest rate and/or get bad terms, such as high "origination fees" and prepayment penalties in your loan documents. Instead, negotiate the purchase price as low as possible, then borrow the money with the lowest rate and best terms possible, and you will end up with the lowest possible payment naturally. If you can't afford the payment that is the result of that number crunching, then you can't afford the car. |
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Replying to: mookie14 (Oct 21, 2006 4:43 pm) Whatever you do, keep paying it down until you have no more negative equity. You do NOT want to keep rolling over balances again and again. It will only get you in deeper and deeper. |
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Replying to: mookie14 (Oct 21, 2006 4:43 pm) |
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Replying to: mookie14 (Oct 21, 2006 4:43 pm) As mentioned earlier, you need to supply some additonal information. It looks like you are trying to do as much as possible to pay this vehicle off in the next year or so. At your current pace, you'll have close to 120k on the vehicle. Check to make sure it is a simple loan and no prepayment penalty in the contract. With the extra $200 in each payment, it should help reduce the loan. It probably won't be paid off by next October, but you will ahve a manageable amount. If you like the Acura TL, you should consider the Accord EX. About $5000 cheaper and not much difference in performance. |
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