Jedi54

iTrader: (7)

$700 payment?!

@ Erica: OUCH! Time for lots of jello and ice cream!

rglbegl

Erica - I would never take advantage of a woman. Especially a woman on novacaine

Keith - you do not NEED to make that payment until 1 day before the next payment is due. A late payment is not considered late until the following payment is due. This gives you at least a 29 day grace period.(except in february) So you could technically get away with NOT paying the payment.

kwescott

The payments are automatically withdrawn from my account...it was one of the reasons I was able to get such an awsome rate. I don't think I could cancel or alter the payment and still keep the loan. It is an idea though. I have no idea when the car will sell so it would be hard to rely on someone else in making my plans on car payments and such.

rglbegl

You can ALWAYS change that. They will charge you an extra .25% or whatever, but what do you care. Then you pay $709 after 29 days if you have to. If not, you just saved that $$$ for yourself.

You can also re-write your loan. Now that you only owe about $17k, you can re-write the contract for another 5 or 6 years and your payment would be about $400.

You have more options than you think. Banks never tell you about this because they do not want you going anywhere else. They want your rate $$

Jedi54

iTrader: (7)

he speaketh the truth.

rglbegl

I bet it is the same way with house loans, but Jedi is the master on the home loan scene.
I just finance cars

Jedi54

iTrader: (7)

ummmm, sort of but not really. Home Loans are much more difficult to alter then auto loans. Though it is POSSIBLE. Banks will from time to time offer 'loan modifications'. (but it's at the bank's discretion, not the customers)

rglbegl

On a car . . you can change loans as many times as you want. And almost ALL of them are simple interest, or no prepay penalty.

As long as you owe less on the car than the KBB value, which keith's is about $20,500, you can make any move you want. You can even call the bank and tell them to extend you loan by 1 month so that you can skip this month. Or like my bank (teachers credit union) you can get on a 9 months payment, 3 months off schedule.

Although it is not called equity on a car, just like in housing - equity is king

Jedi54

iTrader: (7)

yup!
home loans almost ALWAYS have a pre-payment penalty. The longer the prepay, the LOWER your interest rate. (it's another way of buying down your rate).
6 months of interest is an ugly price to pay to change your loan.

lesper4

iTrader: (3)

i think? one reason keiths car payment is so high is that you did 100% financing? if you have the money have you looked at getting a more expensive car and making a down payment so that the payment woudl still be in the price range you are looking for. that is one reason my car payments are so low. (that and i dont have navi)

well at least the guy is still intrested in your car!

kwescott

yeah Loren...100% financing on 38k out the door price on my car when I bought it. Casey and I both paid premiums on the car when we bought them...when they first came out. And, now they are not worth much on the used car market.

Beagle/Jedi.....so, should I just call my credit union and explain to them that I am planning on selling the car, but can't make the 700 payments (which I can, but just don't want to anymore )...ask them for the options they have available....or should I call and see what new loans are available....what would be the best way to approach it. I guess I'm just worried about credit ratings in refinancing a car loan..and then less than a month later, paying it off and looking to buy a new car.

Jedi54

iTrader: (7)

it won't hurt your credit. You'll need something showing proof of paying off the lien to your C.U. otherwise your new lender might think you're buying yet ANOTHER car. (Debt to Income ratios might start getting high)

From my experience, Credit Unions are pretty easy to work with. Call them and see what they can do for you. Try not to tell them that you 'cant pay this month' because then they'll notate your account that you've been put on a payment plan. Won't hurt your Credit Rating but might affect your ability to borrow from them in the future.

rglbegl

Yes, do both.
Call your current finance company and see what they will do. The easiest is tell them you want to skip this month and they will tack it on to the end of the financing. If they are not willing to help you, find another finance company. Since you are sitting pretty in the car, according to KBB, most any bank would pick up the loan easily. (they look at it as $20k+ in value vs. a $17k loan. That is a deal all day long)
And as for credit . . . . it will actually help if you moved finance companies. Now you have a paid satisfactory car loan, and a new loan that will be paid off REALLY soon. And once that one is paid off, now you have 2 satisfactory car loans from 1 car.

Start with your current finance company. They like you, you pay them money. They want to keep your money. And if they think you are about to go somewhere else, they will do what they can to keep you, and your money.

rglbegl

1. Nope, they new lender will see that it is a new loan on the same car. Therefore they will not need to see proof of pay off, cuz they are the ones paying it off. This is about the only time an automated system sucks, so make sure you talk to a human, not applying online.

2. Will not hurt you one bit. After you have a paid account with them, they will loan you money for anything you want. I have seen people with repossesed(sp?) houses, but they make every car payment on time. Their credit SUCKS, but they can buy cars all day long.



But it will affect your credit. When you open a new account, it lowers your score for a couple months. then it jumps back even higher. But again, when you buy a new car (*cough* Subaru *cough*) the finance guy will ask you about the recent car loan. Once you tell them the info, it is all good.

And DO NOT take the financing from the dealership unless thay can beat the rate you can get at your credit union. (highly doubt it, but give them a chance)


BTW - your credit union should just skip a month for you, and when the RX8 is paid off, they will give you a new car loan no question asked. Remember, they love you . .. and your money

Jedi54

iTrader: (7)

Lenders aren't always super quick to report to the bureaus. Better safe then sorry

rglbegl

Doesnt matter if the lender is quick to report. They will see that the loan is on the same car.Jedi is right If you have proof of a paid loan, even better. But if they see an open car account attached to a VIN#, they just need to make sure the new loan is on the same VIN

Jedi54

iTrader: (7)

no, I was referring to when he goes to finance his next vehicle the same month as paying off the 8

rglbegl

You are right, proof is nice. But the dealer will call the bank to verify anyway.

In other words, buy the next car during business hours.

Jedi54

iTrader: (7)

couldn't agree more on that one.

Detrich

wow, this is like car finance 101 class...

lesper4

iTrader: (3)

Yeah Just Get A Used Car Salsmen And A Banker Together And Bam!

FastRX8

That loan info is very interesting! I will definitely be making some calls later.

Re: Car Purchases
Whatever you decide, please don't deal w/ someone on commission. (Sorry used car salesmen)
Unless you're buying an exotic/luxury or a vehicle in high demand, you should never pay anything close to sticker.

I bought my '04 RX8 in '04.
Sticker = $31.5
KBB = $33.5
Purchase = $27.5
The fleet manager is always your friend.
I've sent several people to the same fleet manager. 2 for RX8's and one for a Mazda6.

I helped my parents get their new Avalon for way less than sticker through the fleet manager at Toyota.
(Of course these are only suggestions, but they will save you money.)

FastRX8

Speaking of "Suggestions"
Funny thing happened at the office today.

A few weeks ago, someone I work w/ asked me for some advice about purchasing a laptop.
Her & her husband wanted a laptop to take w/ them on trips.
We talked about what she needed, and what she didn't need.
I gave her a list of excellent laptops on sale at Best Buy/Circuit City/Fry's.
The most expensive one was $1000 and it was much more than she needed. Plus it came w/ a free router (which she needs) and a photo printer.
There were several good ones she could have used for around $750.

Today, she showed me the laptop they bought last night.
From HP Online, for $1750, which has less than the $1000 laptop I showed her .
I smiled outside , but laughed inside !

Detrich

creative financing is partially what got our economy into the sub-prime real estate mess. the banking industry went around peddling loans to ppl who couldn't afford them by overstating their income to push the loans thru. but, the buyers were irresponsible too by going along with it- due to their greed.

Jedi54

iTrader: (7)

^^^ OMG, why do people even BOTHER to ask if they're just going to do that!!!
Wow...