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Smart Shopper Purchasing Strategies - Questions & Success Stories
3423 messages, Last post on Apr 18, 2008 at 10:51 AM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
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Replying to: camperd (Apr 15, 2008 6:21 am) If you want fatherly advice , ask your father. Yes the posters (myself included) can get a bit sarcastic when they see what appears to be someone using a forum to justify a bad financial decision. If I went overboard to point that out I'm sorry and as some one else said, free advice is worth every penny you pay. For what it's worth, if you've made bad financial choices in the past and now have a high interest rate you should use that six figure income to pay off your loans and rebuilt your credit. I know of no way to erase negative equity by borrowing more. Maybe I'm just too worried about foreclosure and destitution to think of one. 
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Replying to: camperd (Apr 15, 2008 6:21 am) |
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Replying to: camperd (Apr 15, 2008 6:21 am) Regarding possibility of way yes you can get rid of negative equity without refinacing, paying off a current loan, etc I see a few illegal ones plus perhaps inheritance and sweepstakes. There is no free lunch - plain and simple. One-two, perhaps, not eight. Moreover, "value" on dealer's lot (retail) is something different than value in your garage (trade-in). No dealer would sell a car 8 thousand below its actual value. They'd get better price at an auction - so why selling it to you? Those not-so-nice comments came (mostly) after you reiterated that you still wanted that Caddy, even though it was clear to everybody it wasn't going to solve your negative equity, but rather put you deeper in debt (which you initially declared you didn't want). That contradiction made some people jump on you. Perhaps not nice - just remember, YOU asked the question 
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Yeah, in theory, it can go away w/o paying it. But, since NE is asset worth less than loan, you need to trade it for another asset/loan set up with a smaller difference. Besides, negative equity, like capital gains, really means nothing, UNLESS you sell the asset and have to pay the loan. Otherwise, it is just a theoretical number. Like a house. I can say I have 250K of equity, but unless I actually sell it, (or take a HELOC I guess), it is just a concept. And if it goes down to 240K next month, I did not "lose" 10K
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Replying to: stickguy (Apr 15, 2008 7:48 pm) That's the way I look at it too. I have to go through this when Mrs. jmonroe looks at our investments (401K, and others) and she happens to look on a bad day then says we lost money today. I say it's funny money and you only lose if its up today and you HAVE to take it out tomorrow and it's down tomorrow. That's when it's a REAL loss. Until then I don't want to hear about it. Once more and I'm going to change the password.  jmonroe |
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You still own the same tangible asset (the car, shares of a mutual fund, the house). what someone says it is worth at any point in time really doesn't matter, unless you actually sell it.
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Replying to: stickguy (Apr 17, 2008 8:40 pm) Not in my world, if you are recording these investments for a company any gain in value is not recorded until the investments are sold. However any loss in value is reported as unrealized loss and the investment is carried on the books at the market value until such time as the market value is higher than cost. in other words you record an investment at the lower of cost or market value. Thats your accounting lesson for the day now get back to work.
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Replying to: snakeweasel (Apr 18, 2008 4:59 am) OUCH! Tax season must be getting to you snakey. I've never known you to be so curt.  Maybe, you should consder a career in auto sales... where there is less stress and pressure. 
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There's still quite a bit of stock in new 2007 Miatas in my area, I even have a choice of color that I want. Anyone ever bought a new car almost a whole year after they hit the lot? What kind of a discount can you expect?
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Replying to: sellaturcica (Apr 18, 2008 7:32 am) Well, sitting in your driveway it loses about 20% a year. Why should it be different because it's sitting in some one else's drivway? You may want to give some consideration for the low milage. $24,000 -- 40% = $14,400 + $2400 for low miles ($0.10/mile) = $16,800. Remember. a 2007 is now a two year old car if the 2009's are about to come in. |
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