car loans lmao

[The Notorious LOL]

okay so lately in reading the homeowners thread I began to realize just how much I dislike being in someones pocket regarding finance.


About a year ago I purchased a 2001 Corolla for $10,000. It was under book, so they were able to take my shitty liability ass Maxima on a trade to balance things out...now, the more I think about it the more I realize I am potentially lining myself up to be in that same situation. What happened before was the value of the car tanked and the money owing exceeded that, so financing was a bitch and a half.


Now, with $10k owing on it, and book at $8k...Im kinda stuck. I dont necessarily dislike the car, but I dislike $260 a month payments. I would prefer to just sell it outright and get some peice of crap that I owe nothing on, but that would require less owing on the car, or some sap buying it for $2,000 over book. I have debated borrowing against my 401k to pay it down but Im not sure if thats smart. Any clever fucks have any real sage advice lol?


Also, refinancing at this point yields no real change. Ive looked into it

[yeahwho]

I've got nothing but I can tell you I bought a brand new Toyota Corolla in 1995 and it now has 178,000 miles on it. So the past six years has been a relatively cheap ride. I also own a van (94)and a 3 cylinder GEO Metro (96) I drive to work, they're all in great shape and paid for, but it's only been the past 5 years I've been able to drive w/o payments. I had to suffer forever with those payments. But in the end it is worth it, the backend of the purchase has yielded some big mileage and cross country driving.

The Corolla is only worth $1600-$2000 now, the sound system and tires cost me more than that, so I will prolly gut the CD/Tuner and speakers out of it soon. Time to jump in all over again I just switched jobs and have a 160 mile commute coming up. Mitigating factor the company pays traveltime and mileage, plus a meal per diem. WooHoo.

[alruggs]

Don't borrow against your 401k. I would just pay a little extra towards your principle every month and pay it off a little quicker.

[The Notorious LOL]

yeah thats what I assumed. I was hoping there was some fantastic silver bullet solution someone had :mad:

[Yeti]

And you are worried about a water heater.
First of all do not borrow against your 401k for a car. If it has front airbags find a large oak tree and drive into it head on.

If you do not like that option.....I would decide on a hooptie that I like and check around with some dealerships about a trade-in. Another option would be to pay it down below the blue book value and sell it.

See, you may call me a faggot and Bob calls us homeowners homos but this faggot/homo does not have a car payment or debt. Blaaaaaaaaaaaaa.

[kll]

As alruggs said, DON'T borrow against your 401K... you'll be penalized heavily...

Haha... this is great timing, but I think the only way (or one of the only ways) you can borrow against your 401K and not get fucked is if you are using the money on a first-time homebuyer loan...

[Yeti]

As alruggs said, DON'T borrow against your 401K... you'll be penalized heavily...

Haha... this is great timing, but I think the only way (or one of the only ways) you can borrow against your 401K and not get fucked is if you are using the money on a first-time homebuyer loan...


Now, there is a good idea. An equity loan is a good option but I stray from credit and loans. I would pay it down and sell it or find a reputable dealership to talk turkey.

[The Notorious LOL]

actually often times while in traffic I think "y'know...I wouldnt mind someone just smashing into me and totalling this thing"



basically this stems from a few years ago having a good job and irresponsibly spending rather than paying off my old car. Because of that, my current loan has to carry that balance along. I could have theoretically waited until the shitbox was paid off to buy something new, but the windshield wipers were broken, the timing belt was about to go, as was the transmission, and the engine in general. It was a high quality solid machine.

[Documad]

Do you have a loan that allows you to make extra payments toward principle?

One of my secrets is that I had huge car payments taken out of my paycheck every two weeks and I paid off my car loan in 2.5 years. Then, I had the same amount put into savings so I get very little paycheck in my checking account and it makes me think that I've never had a raise in all these years. :)

[marsdaddy]

I look at the cost of the car as not just the monthly payment or blue book, but maintenance and repairs, too. My guess is you have had no repairs and just routine maintenance with the Corolla. So, just keep driving that thing until the situation changes. And keep up with the maintenance. If you do the math, let's say you keep the car for 5 more years, your actual costs will be $167 per month.

I can understand not wanting to owe anyone money, but on the other hand, there is this nice little economic theory about the net present value of money.

Of course, if you owned a home, blah blah blah.