Just wondering and your CC debt.
Just refinance at a credit union at a much lower rate.
Just refinance at a credit union at a much lower rate.
Bought a new Mazda CX-5
- Thread starter Nick R
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I agree with this. ^
Wow, what happened Nick? I was in on the early part of the thread where it was all peaches and cream and now you're getting rid of it because you somehow got forced into a deal you can't afford? Somethings not right here. I just went through the whole borrowing thing in April when we bought our Sienna. I don't see how it's possible to buy a new car then have the deal change after the fact. Now, I know the dealer is happy to let you drive away before the loan is approved because they want you attached to the car in case there are issues. But, if your original deal doesn't go through, you just hand them the keys back and you had a nice, extended test drive. What happened?
How much is the current payment @ 48 months ?
Originally Posted By: LT4 Vette
Just wondering and your CC debt.
Just refinance at a credit union at a much lower rate.
That's a great idea.
As I said above the Mazda isn't a bad car, keep it and get your money's worth out of it.
Its always cheaper long term to keep and drive, vs playing musical cars.
The worst financial move you can make is to do what your talking about. IE paying off the steep initial depreciation at a high interest rate, than selling and buying a used car. You get no financial benefit out of the Mazda that way.
If your dead set on dumping the Mazda, dump it right now, don't wait.
Just wondering and your CC debt.
Just refinance at a credit union at a much lower rate.
That's a great idea.
As I said above the Mazda isn't a bad car, keep it and get your money's worth out of it.
Its always cheaper long term to keep and drive, vs playing musical cars.
The worst financial move you can make is to do what your talking about. IE paying off the steep initial depreciation at a high interest rate, than selling and buying a used car. You get no financial benefit out of the Mazda that way.
If your dead set on dumping the Mazda, dump it right now, don't wait.
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But Nick must be having a difficult time paying rent and his car payment each month. Its best for him to keep the Mazda and drive it till it dies.
I wonder if his parents will help him out.
I wonder if his parents will help him out.
Originally Posted By: LT4 Vette
But Nick must be having a difficult time paying rent and his car payment each month. Its best for him to keep the Mazda and drive it till it dies.
I wonder if his parents will help him out.
Fortunately, I don't have to pay rent. I still live with my parents, which is fine by me since it's free, except mowing the lawn and/or cleaning. Maybe in the future, but for now I'm not paying rent.
But Nick must be having a difficult time paying rent and his car payment each month. Its best for him to keep the Mazda and drive it till it dies.
I wonder if his parents will help him out.
Fortunately, I don't have to pay rent. I still live with my parents, which is fine by me since it's free, except mowing the lawn and/or cleaning. Maybe in the future, but for now I'm not paying rent.
Originally Posted By: LT4 Vette
How much is the current payment @ 48 months ?
If he financed 30k over 72 mos at 4.79 the payment would be a hair under $500. Shortening the term to 48mos will increase the payment by about $200 per month. So figure $700 plus the $165 for insurance = $865. Plus gas and maintenance. That can easily add another $200 per month. Now were at $1065 per month.
How much is the current payment @ 48 months ?
If he financed 30k over 72 mos at 4.79 the payment would be a hair under $500. Shortening the term to 48mos will increase the payment by about $200 per month. So figure $700 plus the $165 for insurance = $865. Plus gas and maintenance. That can easily add another $200 per month. Now were at $1065 per month.
Originally Posted By: satinsilver
Originally Posted By: LT4 Vette
How much is the current payment @ 48 months ?
If he financed 30k over 72 mos at 4.79 the payment would be a hair under $500. Shortening the term to 48mos will increase the payment by about $200 per month. So figure $700 plus the $165 for insurance = $865. Plus gas and maintenance. That can easily add another $200 per month. Now were at $1065 per month.
That's pretty much spot on.Add about another $50 to that $700 and you have it right. Hence my extreme annoyance with the situation, which shouldn't have happened in the first place, but hindsight is 20/20 after all.
Originally Posted By: LT4 Vette
How much is the current payment @ 48 months ?
If he financed 30k over 72 mos at 4.79 the payment would be a hair under $500. Shortening the term to 48mos will increase the payment by about $200 per month. So figure $700 plus the $165 for insurance = $865. Plus gas and maintenance. That can easily add another $200 per month. Now were at $1065 per month.
That's pretty much spot on.Add about another $50 to that $700 and you have it right. Hence my extreme annoyance with the situation, which shouldn't have happened in the first place, but hindsight is 20/20 after all.
But why was $30k financed? Was the Cruze worth nothing at trade-in? The way I see it, if the Cruze was worth $15k, one should only have had to finance the balance. Unless a lot of negative equity was rolled into the loan, which could also have happened.
Originally Posted By: satinsilver
Shortening the term to 48mos will increase the payment by about $200 per month.
If increasing the monthly payment by only $200 is wreaking havoc in his personal finances, then this is a sign right there that he was spreading him self too thin in the first place, even with the 72 month loan. Not enough buffer left for the unexpected. Alas, it sounds like Nick has already figured it out at this point.
Time to move on, I guess.
Shortening the term to 48mos will increase the payment by about $200 per month.
If increasing the monthly payment by only $200 is wreaking havoc in his personal finances, then this is a sign right there that he was spreading him self too thin in the first place, even with the 72 month loan. Not enough buffer left for the unexpected. Alas, it sounds like Nick has already figured it out at this point.
Time to move on, I guess.
Originally Posted By: Hokiefyd
But why was $30k financed? Was the Cruze worth nothing at trade-in? The way I see it, if the Cruze was worth $15k, one should only have had to finance the balance. Unless a lot of negative equity was rolled into the loan, which could also have happened.
Sadly here is the fact of financing. I'd have to figure that BOTH the Focus and Cruze are in this loan.
Another reason for Nick to STICK with this vehicle, PAY off the large loan (I'd bet that upside down is the rule for many years) and enjoy the Mazda. Its a vehicle that will do him fine for a long time. For me and the miles I drive (and mindset I have) it would not work for me but Nick needs to STICK with this one and 5 years from now be done with it.
We can see he has learned a lot in the few years.
There should be a 12 step program on new car smell. It nails folks just like drugs....
Bill
But why was $30k financed? Was the Cruze worth nothing at trade-in? The way I see it, if the Cruze was worth $15k, one should only have had to finance the balance. Unless a lot of negative equity was rolled into the loan, which could also have happened.
Sadly here is the fact of financing. I'd have to figure that BOTH the Focus and Cruze are in this loan.
Another reason for Nick to STICK with this vehicle, PAY off the large loan (I'd bet that upside down is the rule for many years) and enjoy the Mazda. Its a vehicle that will do him fine for a long time. For me and the miles I drive (and mindset I have) it would not work for me but Nick needs to STICK with this one and 5 years from now be done with it.
We can see he has learned a lot in the few years.
There should be a 12 step program on new car smell. It nails folks just like drugs....
Bill
My cousin did the same thing until she was paying an absurd amount for a new VW Jetta at the time.
Only way to break the cycle is to do what she did, suck it up, stick it out, and learn a lesson. You own the car until its paid off than 3-4 years after that so you can put at least a decent down payment on another one.
Look at it this way, its like paying for college, you spend more than you need to on the Mazda and you get an education on financing purchases.
Only way to break the cycle is to do what she did, suck it up, stick it out, and learn a lesson. You own the car until its paid off than 3-4 years after that so you can put at least a decent down payment on another one.
Look at it this way, its like paying for college, you spend more than you need to on the Mazda and you get an education on financing purchases.
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Originally Posted By: Bill in Utah
Originally Posted By: Hokiefyd
But why was $30k financed? Was the Cruze worth nothing at trade-in? The way I see it, if the Cruze was worth $15k, one should only have had to finance the balance. Unless a lot of negative equity was rolled into the loan, which could also have happened.
Sadly here is the fact of financing. I'd have to figure that BOTH the Focus and Cruze are in this loan.
Another reason for Nick to STICK with this vehicle, PAY off the large loan (I'd bet that upside down is the rule for many years) and enjoy the Mazda. Its a vehicle that will do him fine for a long time. For me and the miles I drive (and mindset I have) it would not work for me but Nick needs to STICK with this one and 5 years from now be done with it.
We can see he has learned a lot in the few years.
There should be a 12 step program on new car smell. It nails folks just like drugs....
Bill
Luckily I was only $1,500 upside down on the cruze, the focus was completely paid off, one of the benefits of doing what we did, 4 cars for 3. What I am planning on doing, and I'm see sawing on this, is throwing whole comission checks at it for the next few months, and use my tax return to buy a used cavalier for like, $3,000, and pay that off within 2-3 months. I can relatively easily have no car payment by summer of next year if it works as planned.
Originally Posted By: Hokiefyd
But why was $30k financed? Was the Cruze worth nothing at trade-in? The way I see it, if the Cruze was worth $15k, one should only have had to finance the balance. Unless a lot of negative equity was rolled into the loan, which could also have happened.
Sadly here is the fact of financing. I'd have to figure that BOTH the Focus and Cruze are in this loan.
Another reason for Nick to STICK with this vehicle, PAY off the large loan (I'd bet that upside down is the rule for many years) and enjoy the Mazda. Its a vehicle that will do him fine for a long time. For me and the miles I drive (and mindset I have) it would not work for me but Nick needs to STICK with this one and 5 years from now be done with it.
We can see he has learned a lot in the few years.
There should be a 12 step program on new car smell. It nails folks just like drugs....
Bill
Luckily I was only $1,500 upside down on the cruze, the focus was completely paid off, one of the benefits of doing what we did, 4 cars for 3. What I am planning on doing, and I'm see sawing on this, is throwing whole comission checks at it for the next few months, and use my tax return to buy a used cavalier for like, $3,000, and pay that off within 2-3 months. I can relatively easily have no car payment by summer of next year if it works as planned.
So I again ask why $30,000 was financed here. What happened to the Cruze? Was it not traded in?
Did you not just read the previous post to yours where Nick says he was $1500 upside down on the Cruze?
BC.
BC.
He's lucky he was only $1500 upside down on the Cruze.
Originally Posted By: kkreit01
He's lucky he was only $1500 upside down on the Cruze.
Lucky??? You make payments on a car for 1 year, and you're still upside down on it. What's lucky about it?
He's lucky he was only $1500 upside down on the Cruze.
Lucky??? You make payments on a car for 1 year, and you're still upside down on it. What's lucky about it?
$1065 that is largely a mortgage payment. I would gladly drive a used car to build equity on a property, living in the parents basement kind of undoes any coolness that having a new car might have acquired IMO.
I find this troubling if this is the current trend our youth are heading in. Luckily I will show my kids how to avoid this mistake.
I find this troubling if this is the current trend our youth are heading in. Luckily I will show my kids how to avoid this mistake.
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