Selling With an Outstanding Loan

Sean,

Have you spoken with the folks who hold "the paper" on your automobile??? This would the first step that you should take. Give them a call, then let us know what their debt management team said.............

Sincerely,

Bill S.

Fao, Sean wrote:

How much do you owe on it?

I still owed $4900 for my 95 GT and was able to sell it for $5200 and I kept the remaining balance. The bank gave me the title. Then I signed it over to the buyer.

First, of all I'm no banker ( but I play one on TV!) so your mileage may vary....

Are you getting another cheaper car? I traded a vehicle to a dealer for a vehicle worth much LESS than my trade in.( '98 F 150 4X4 for an Escort Wagon, don't ask OK!) They wrote me a check for the difference which I applied to the outstanding debt. There was still a small balance owing but I paid it off with a smaller interest personal loan ( lowering my payments) The upside is I didn't pay ANY taxes as it was a trade in so that helped on the whole balance. You still have to dicker for the deal though.

If you don't get another car then just pay off as much of the loan as you can with the proceeds of the sale and get a small loan to pay the rest off maybe borrow a bit more for your personal stuff ( school books etc) if you want and then make smaller payments for the new loan's amortization period. This may sound like a step back but it's all about monthly payments not the lump sum price.When you're in your 30's and your bank gives you a AA+ credit rating you'll thank yourself for persevering! HTH StuK

BTW Horsepowered.com SUCKS

Hey Sean, Being in a similar boat, here is something that I did. Since Interest rates have gone down, try talking to your lender and see if they can refinance the GT for you, at a lower rate, maybe stretch it out one more year. You may be able to lower your payments enough to keep your baby... you never know unless you ask.

I refinanced mine, with 3 years left on the payments, dropped my interest rate 3 points and saved about $100 a month, and am still paying off on the same date as I was on the previous loan. Yep, I am horribly upside down on the car, but It'll be paid off in 2 years and I just don't care... I like it that much.

Hope you can find something similar.

Kate

| > I still owe a significant amount on the car and like most used vehicles, | > it's worth less now then I owe on it. If I take it into one of those | > "We'll pay off your loan, no matter what you owe" deals, I'm certain | > they'll let me in on the catch (I'm guessing the remainder is added to | > the loan you take out on the new car). | >

| > What are my options? I've already tried to accept the fact that I'm | > going to be loosing a significant amount of money but the less I loose | > out on, the easier it will be to accept it. | >

| > I greatly appreciate any advice or the name and number of any morons | > dumb enough to do a loan transfer :-). | >

| > Sean | >

|

There's an idea. I hadn't thought of trying that but I will definitely look into it.

Thank you,

Sean

SVTKate wrote:

Also check into other insurance companies to save money. Never hurts to get quotes. Some banks offer insurance quotes from different ins. co's as well.

said.............

I owe approximately $20,000 and KBB says it's worth $16,250 on trade-in and I see a ton of morons on eBay selling their 2002 GT convertibles for less then that. Also, most of the ones on eBay have a lower mileage then I do (It was my every day driver to and from work and I've racked up close to 33,000 miles already). I wish I could work out a deal like you did but I simply owe too much.

Sean

The Mustang is the only car I have right now so I would have to get another one. I do like SVTKate's suggestion but I'll have to give my loan company a call and see exactly what my monthly payment would be. I have the feeling I'm going to be living paycheck-to-paycheck for the next four or so years unless I get a little $2,000 4 cylinder that I can pay off at time of purchase.

I wish somebody could explain to me how cutting taxes on the rich, cutting funds on the colleges and raising tuition on the poor, was a good thing.

Thanks for the advice,

Sean

They wrote

lowering my

helped on the

bit more for

payments for the

about monthly

Your predicament has nothing at all to do with any of that. The sad truth here is you purchased more car than you can afford, and you're learning the hard way why that's a dumb thing to do. Here's hoping that this is a lesson that will stick with you for the rest of your life, and that you don't get into REAL trouble (like having your car repossessed, or destroying your credit rating by missing some car payments). If I were you, I would trade down to something within my means, even though that means I'd have to finance not only the cost of the replacement car but the difference between what I owe on the Mustang and what it's worth. Painful, yes, but it's the best way out.

Good luck!

Yes you bought a car that maybe was more than you could afford. Yea if aid to colleges was increased it might ease your burden but your still in debt for $20,000. I know the times look extremely bleak. I always seem to be either getting out of school or out of work when the economy is in the crapper. Can't blame "W" because I don't think he really is running the country. Your best bet is to try and refinance which I wish you luck in doing. Another option is to go back to the dealer you bought the car from and see if they can get you into a different USED car for a lower payment plan. Either way you have a long haul and I wish you luck. You didn't say what your major is or what school your going to. Just curious.

Well, a few ideas. You might ask your lender for refinance options. You can shop around to other lenders. You're looking for a lower interest rate and/or longer loan term (though a longer loan term increases the total finance charges compared to a shorter term at the same interest rate). I've never done it but I know people that have negotiated with the lender for a longer term to control the payments.

If you trade it in now, you'll have taken the initial depreciation hit on this new car (you bought it new, right?) and then, if you buy another brand new car, you'll take the depreciation hit on that one too. Might was well just burn money. So, your best possible outcome is to find a way to control your cash-flow so you can keep this car as mentioned above. In any case, I rather suggest you not jump into another brand-new car right away.

If you own a home and have equity appreciation, you might consider an equity loan to pay off the car loan, which then clears the title to you, at least you'd be in a stronger position to sell/trade it.

With all of the manufacturer incentives to buy new cars, the market is flooded in relatively nice used cars and it's driving down the prices. It's a bad time to sell a used car (a good time to buy one, though).

Dana

I am emphatically not interested in paying more taxes so college kids can have "luxury" cars. A used Toyota is a fine car for a college student.

Dana

Sean, you don't have to defend yourself. Tell them to get stuffed. StuK

I got loans also. Took the full 7 years to pay them off. As for 30K a semester, well look at public colleges rather than Private Colleges or Ivy League Schools. I would have loved to gone to Cornell, but settled for a public University due to funds. I got my degrees, got a job, got married and never whined about what the goverment should do for me.

Son, people like you make me puke. What was Clinton doing bombing the hell outta Serbia? People who trash 'Dubya' for taking the fight to the terrorist rather than letting them stage acts of terrorism on American soil are sad. You're damned right that I rather see my tax dollars being used to bring stability to part of the world than see some spoiled kid drive a new car and go to grad school. You need to suffer a little to appreciate things that you have. BTW, you're listening way too much to your professors and not living in the real world.

Just be a man and pay off your debt. Be a man a find a way to pay for school like the rest of us did, instead of whining about the cost while you're driving a new car. Sacrifice. Work harder. You are not owed a living, and not owed Graduate School, and damned sure not owed the luxery of driving a new car.

Ralph 'Get your head outta your professors' ass and get into the real world' Snart

Well dude, if my wife and I could get by on Ramen noodles and Black Label beer getting our degrees, then others can too.

If you want to help Joe College out, I'll set up a paypal account that you can donate toward his degree.

Life ain't fair. When my wife went on LTD due to her MS, our income was cut tremendously. I guess that I should curse the Gods and blame the president that SSD and her disabilty insurance doesn't pay the exact amount that she was getting before her disability.

You need some perception on life; the car is a hunk of metal, a material possession that can be replaced. Your health and future can't; maybe I'm being a total asshole here, but realize that the car is holding you back from your graduate degree. Learn from it, and remember not to chase the rainbow of materialism in the future.

If I could make my wife healthy again, I'd give up every damned material possession that I have, because they can be replaced. Grad School will come if you want it bad enough, but there will be sacrifices during the journey.

What part of "I later realized the error in my judgment when I left school earlier then I should have and I am making all the necessary changes in my life to accommodate for that mistake." did you not understand? It's obvious that I've already come to grips with the fact that I might have to sell my car or I wouldn't have started this post in the first place. If I had said that I was planning on working the next

20 years of my life to save up for college and then I was going to quit work to go back, would you be happier? With or without the car, I'm going to need help. If you're saying you worked your way through college, I find it very hard to believe you went to graduate school.

If you asked me, you sound like you're the one with the problem. You have every appearance of being mad at the world because of your wifes sickness. I'm sorry that you or anybody else has to go through that, I really am. But don't take out your pain and misery on me just because you don't see things from my point of view.

Sean

I was accepted to The University of South Carolina School of Medicine in

1998, but my wife's illness interupted that. You are coming accross as thinking that you're superior to others because you're a college student. Get over yourself; I'd rather work with a group of illegals that appreciate the chances taht they have in America than some snotty, superior college student.

Go back to your Psy 101 textbook, because you have me wrong; I'm pissed off at spoiled, whiney kids who have not a clue what life is about and think that they 'deserve' Grad School. I have a hint for you - stop listening to your professors indoctrination, move out of your parents house and have to earn everything you get, then get back to me. You're a spoiled kid who is not getting any sympathy. Enjoy the Mustang.

Ralph 'Smarter than you'll ever know' Snart

"Fao, Sean"

Okay, try reading that again. I didn't say YOU. I said "they" and "those".

It wasn't all about one thing, it was about multiple things. And there's proof that the WMA was moved but that it WAS there originally. Syria playing sides. They just might get bit if they don't wisen up. How do you know what info the president had access to? I don't think he needed to fabricate anything. Of course I've seen things that were covered up on purpose to protect the publics sensabilities; to protect our own innocence as a society. Trust me, it can be necessary sometimes.

Scott W. '66 HCS SRA, Medical Services Technician

72d Medical Group, 72d ABW United States Air Force 1994-1998 Humanitarian Service Medal (Oklahoma City Bombing)