Last post on Mar 01, 2009 at 10:26 AM
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Car Buying, Car Financing, Automotive News
#10 of 49 Re: Possible layoffs looming [component81]
Jan 13, 2009 (9:50 am)
sooo... what are you down to? 3 years remaining?
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.
#11 of 49 Re: Possible layoffs looming [qbrozen]
Jan 13, 2009 (12:02 pm)
I agree completely - refinance it if you can and stretch the payments. If things work out and you keep the job you can always pay the old loan amount and shorten the loan.
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.
#14 of 49 Re: Possible layoffs looming [component81]
Jan 20, 2009 (3:41 am)
I would sell that Subaru. You have enough to worry about let alone trying to keep one of those cars operational. My brother was a mechanic for a Subaru dealer in California. He said he would never buy one after all he has seen go wrong with them.
#15 of 49 Re: Possible layoffs looming [ronvpr]
Jan 23, 2009 (3:08 pm)
Previous post a little harsh on Subarus and not very specific (ok to downgrade late 90's early 00's for headgaskets, but not the entire marque - we're not talking Yugos here...). I don't think the WRX is that problematic - it sounds like you are rationally examining the level of debt in your life and trying to find a solution. Unfortunately, the big depreciation hit means the buyer of your WRX will get a good deal. The lesson here is to pay cash. We have become a society than over-finances. If you do sell the WRX (and I'm not making that specific recommendation), you only come out ahead if you buy a replacement for cash. Buy something that has absorbed a massive depreciation hit and is easy to maintain yourself. I can't think of a job that requires a WRX commuter, unlike many sales jobs that require carrying clients, equipment, etc. Of course its fun, but with competition for few if any jobs, could count against you at some companies because you could be perceived as a risk-taker.
#16 of 49 1.5 Billion? How about a 4% interest rate adjustment on my car loan?
Jan 25, 2009 (7:31 pm)
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.
#17 of 49 Re: 1.5 Billion? How about a 4% interest rate adjustment on my car loan? [jocuto]
Jan 25, 2009 (10:32 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.
SUVs and Smart Shopper
#18 of 49 Re: 1.5 Billion? How about a 4% interest rate adjustment on my car loan? [jocuto]
Jan 26, 2009 (9:18 am)
OK, here it is, plain and simple. Nobody owes you anything.
we know we got you in to this
HUH?? Did you not call the police when the rep from Chrysler was holding a gun to your head to make you sign the contract? Yes, that's sarcasm. I'm sorry for where you are financially, but you have nobody to blame but yourself.
I am disheartened that someone could ok this loan
YOU ok'd the loan! You ASKED for it! Face it, if you had been denied at the time, you would have come here screaming about how Chrysler financial is not sympathetic to the credit-challenged for NOT giving you the loan in the first place. Now they gave you what you wanted and you complain anyway.
Again, yes, I feel bad for you. But blaming others is just not right and I find it deplorable.
#19 of 49 Re: 1.5 Billion? How about a 4% interest rate adjustment on my car loan? [qbrozen]
Jan 26, 2009 (10:59 am)
Two sentences picked out of a 2-page letter. If you read the whole entire letter I'm quite aware that Nobody owes me anything. The government doesn't OWE Chrysler Financial anything either do they????
I was comparing a car deal with a housing deal. Sure, you can refinance in a year, just like all the ARM mortgages could in 7 right?. This is what your brokers and dealers tell you. Everything will be fine.
So big guy, no one to blame but myself. Is that what you tell the auto workers who were layed off after 20-years of work too?? Is that what you tell people who tried to sell their homes (people who didn't buy into ARM mortgages) but only to realize the value had plummeted! Is that THEIR FAULT???
Again my point....Chrysler needed to be bailed out because the economy took a turn for the worse...EXAMPLE: PEOPLE ARE LOSING THEIR JOBS, SOURCES OF INCOME and ABILITY TO PAY FOR WHAT THEY COULD A YEAR AGO.
THIS IS NOT THEIR or MY FAULT rather a set of circumstances WE ARE ALL TRYING TO OVERCOME!!!!
So the government gives the bail out of Chrysler, but Chrysler won't so much as ease up on an interest rate for their customers.
That's my point...they still make money, I like Chrysler and millions of every day hard working people have been effected by layoffs economy this and that. So if someone says....hey you have to a filet tonight instead of filet and lobster to keep things going...you would think a filet would be ok. Everyone still survives.
Ignorance is bliss isn't it?
I really don't want your sympathy or anyone else's. I'm not BLAMING anyone, just pointing out the facts. Yes, I OK'd the loan. Many people ok'd buying a home and didn't expect the value of that home to plummet.
And to respond to your..."what I would have done assumption". You are incorrect. I would have been forced to look and purchase elsewhere.
It's a simple observation, one that continues to prove corporate greed, and then the public has to hear their crying and whinning to the government to help them on every major new outlet. But when it comes time to channel that into building back a successful business, clientel, and employment...they are on the same path that led them to their "bail out" woes.
Just think about it, maybe not from the perfect lifestyle or past you may have had in your life..,but in general.
Remember in the end....
You and I are helping to pay for the "bail out".