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Smart Shopper Making Car Payments in Hard Times
49 messages, Last post on Mar 01, 2009 at 10:26 AM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
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I might be unemployed by the end of March. This will be the third year in a row the company has done layoffs. I survived the first two rounds, but I could be on the chopping block this time. On the the point. I have an 18,000 balance on my loan, payments are 468 a month. I bought the car new, and am almost even with the private party value. (06 Subaru WRX) With no guarantee of walking into a job with the same pay, I would like to have a lower payment. Best idea I can think of would be to sell and buy a car around the 9-12k range. Am I thinking right, or should I be looking at another option? |
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Replying to: component81 (Jan 12, 2009 7:44 pm) You keep your WRX, continue to make payments, and the credit union won't have another vehicle on their list to sell or auction. Talk to them now and see what they will do to help you. Good Luck. 
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Replying to: component81 (Jan 12, 2009 7:44 pm) refinance it now while you still have a job. It will extend the loan (let's say refi for 5 years), but if you still have a job, you can keep making larger payments and pay it off early.
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Replying to: qbrozen (Jan 13, 2009 9:50 am) Selling the car would probably cost you in the grand scheme of things plus you'd end up in a car you don't like as much. Best of luck. |
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Replying to: component81 (Jan 12, 2009 7:44 pm)
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Replying to: ronvpr (Jan 20, 2009 3:41 am)
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1.5 Billion... In the latest economic recession I feel victim to a slow real estate market and corporate layoffs. For the last year I have struggled to make my car payment on time...but eventually Chrysler financial received the monies necessary to continue on with my car loan. At rate...of 13% interest. At the time of purchase, a special favor was called in to Chrysler Financial from the dealership in which I purchased the car. I had a low credit score and commission only job for a source of income. Since taking on the loan, again, I have made late payments, my credit score has improved over 100 points. Now in a time where most people including myself can no longer support themselves the same way they could a year ago I came to you for help. I did not give up, file for bankruptsy or ignore the calls and wait for the car to be reposessed. Instead I asked for an interest rate reduction, a refinance anything to help me keep the car and keep paying on it. Chrysler Financial was given 1.5 billion to help ease it's financial woes, but for their customer, they are willing to do nothing. My car was financed way above what should have been legal. I like many others drove off the dealership lot upside down in my car. In hopes that my real estate job would enable me to pay the car off early. After real estate tanked, I found another job. I was layed off 2 weeks before Christmas. I did not again give up, file for unemployment and sit around thinking about bankruptsy but instead diligently searched for another job that would hold up better in a shaky economy. I found it. In healthcare. A skilled nursing home specializing in Alzheimer's and Dimentia. Although my pay would be $15,000 less a year, it was a long term choice. In the mean time I have a car that I pay $570/mo for. No it's not a BMW. Rather a Mazda 6 with 99K miles on it. At 13% interest it's easy to see that even adding on a couple years to the loan as well as dropping the interest rate to even 9% would still be financially beneficial to Chrysler Financial and also enable me to keep the car. But as every customer service agent repeatedly explains to me...Chrysler Financial will not help. They suggest going to another financial institution to refinance. The problem is this...like an arm mortgage, my car CAN NOT be refinanced unless I have about $3,000 to put down. This is because the market value is MUCH less than what I owe on the vehicle. A common, old and much repeated story. If I had the $3,000 I would one, pay Chrysler or two refinance at a better rate. My question is this: Chrysler Financial received their bail out money. When your agents tell me over the phone, that I signed the contract and it is my responsibility I have to wonder where yours is? Will you continue to unethically lend money? When you do and your customers need help, will you turn your back and say sorry, we know we got you in to this, but we will do nothing for someone who is willing to work hard, answer our phone calls and try to do what's right? There is no question as to why your company needs bail out money. There is no question why a large percentage of your customers are looking for a bail out, or rather help. When people ask me who your car is financed through, what will be the future reputation spread from "word of mouth"? I am disheartened that someone could ok this loan (like so many mortgage brokers did) walk away and say sorry there is nothing we can do to help. Even the banks will help homeowners reduce their interest and give the people who are trying to do what's right the help they need and deserve. Just like Chrysler Financial needed in their time of need. Please only pass this email along to someone who cares. Cynthia Weber Account# 1013664533 |
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Replying to: jocuto (Jan 25, 2009 7:31 pm) I would hope that some of the bailout money would go to provide some help to people in financial duress. Unfortunately, that does not appear to be in the cards. By the way, the bailout for Chrysler Financial was only announced less than than two weeks ago and I don't believe they have actually received any of it yet. Technically, it is a loan and it does come with some strings attached. First, the money is intended to help make loans to new car buyers and, second, the cars that they sell to those customers will become the collateral for the government loan. I'm sorry to say that doesn't do any good for people already out on a financial limb.  tidester, host SUVs and Smart Shopper |
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