need advice!! Two Cars with huge payments...Looking to trade one in possible refi for the other one.

[vollybal]

Hello all,

Back in mid 2010 DW and I traded our cars in for new ones...hers 2010 chrylser sebring conv't and mine 2010 nissan altima. Needless to say our payments on them were not to great, 700 for the sebring @ 18% and 600 for the altima @ 18%. We are probably updise down on DW by around 6k and mine about 3k. Now she doesnt drive the conv't that much as it only has 4500 miles on it. She tells me that she wants to get into a SUV now instead of what she has now. and I like my car. So since the financing of those two cars my credit scores have gone up and right now I know that my EQ is at 621 and the TU(Walmart) is at 665. I am not sure about the EX one. I also have a repo on my credit from 2005(going to fall off in Oct.of this year). So based on that was wondering if this would be possoble:

trade in the conv't for a less expensive 2012 SUV, use the rebate to help make up for the upside downness of the conv't and in the process lower the payments(I would be happy paying 600 or less). THen if it is possible refi the altima as I really like the car but need to lower the payments becuase I believe my scores should allow me to this but I just wanted to run it by everyone to see if you see any other options or advice.

Thanks!!!

[Creditaddict]

Is your Altima financed through Nissan Financial?

If YES I would be looking at Nissan as #1 choice for her new car.... They will trust you now and if your car fico pulls anywhere near your current regular Fico with EQ and TU you could probably get Tier 1 rates with them (well tier 3 but that still is same rate with Nissan).

As far as your car and refi, Do you have a Credit Union you currently work with?

[vollybal]

Actually the altima is financed through capital one. I belong to first tech CU but I haven't done anything with them except deposit like 100 dollars last year...Not sure if that will help but could give it a try. Would you still go with Nissan? Just curious.

Thanks! 

[Creditaddict]

I would start with Credit Union. Tell them the plan and see if they think that's best and will give loan for it.

and then based on Refi or what not of Nissa, look to Nissan for the new SUV

or who is the conv. financed with?

[webhopper]

If that's all she drove why not sell the convertible and pay cash for the difference between what's owed and what it's worth. Be a one car family for a couple of months if you have to. I'm opposed to trading it in and getting screwed again on these cars, one of which was a mistake. I would totally check into refi on the Nissan. Does the wife work?

[StartingOver10]

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@webhopper wrote:
If that's all she drove why not sell the convertible and pay cash for the difference between what's owed and what it's worth. Be a one car family for a couple of months if you have to. I'm opposed to trading it in and getting screwed again on these cars, one of which was a mistake. I would totally check into refi on the Nissan. Does the wife work?

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+1  Sell her ride now.  Time to stop the growth of negative equity ....a temporary inconvience can help you in a big way.

Refi the other vehicle as soon as you can. If it is too far upside down to refi, accelerate your payments toward the principal balance until you can get it refi'ed to a decent rate. You will have the extra funds from not making the other car payment to make that happen quickly. Once you get a market rate on the Nissan and you aren't upside down, then consider purchasing something else for your wife to drive. Have a large down payment so you get a good rate and terms right from the beginning. Good luck.

[FrugalRican]

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@StartingOver10 wrote:

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@webhopper wrote:
If that's all she drove why not sell the convertible and pay cash for the difference between what's owed and what it's worth. Be a one car family for a couple of months if you have to. I'm opposed to trading it in and getting screwed again on these cars, one of which was a mistake. I would totally check into refi on the Nissan. Does the wife work?

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+1  Sell her ride now.  Time to stop the growth of negative equity ....a temporary inconvience can help you in a big way.

Refi the other vehicle as soon as you can. If it is too far upside down to refi, accelerate your payments toward the principal balance until you can get it refi'ed to a decent rate. You will have the extra funds from not making the other car payment to make that happen quickly. Once you get a market rate on the Nissan and you aren't upside down, then consider purchasing something else for your wife to drive. Have a large down payment so you get a good rate and terms right from the beginning. Good luck.

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+2

So you're upside down on two cars and your wife wants to go ahead and get something else, that is more than likely worth more than the car you are already upside down on? Does she know the situation you are both in?

[Anonymous]

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@FrugalRican wrote:

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@StartingOver10 wrote:

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@webhopper wrote:
If that's all she drove why not sell the convertible and pay cash for the difference between what's owed and what it's worth. Be a one car family for a couple of months if you have to. I'm opposed to trading it in and getting screwed again on these cars, one of which was a mistake. I would totally check into refi on the Nissan. Does the wife work?

---

+1  Sell her ride now.  Time to stop the growth of negative equity ....a temporary inconvience can help you in a big way.

Refi the other vehicle as soon as you can. If it is too far upside down to refi, accelerate your payments toward the principal balance until you can get it refi'ed to a decent rate. You will have the extra funds from not making the other car payment to make that happen quickly. Once you get a market rate on the Nissan and you aren't upside down, then consider purchasing something else for your wife to drive. Have a large down payment so you get a good rate and terms right from the beginning. Good luck.

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+2

So you're upside down on two cars and your wife wants to go ahead and get something else, that is more than likely worth more than the car you are already upside down on? Does she know the situation you are both in?

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+3.

[vollybal]

Thanks everyone for the advice...I actually know the owner of a new car dealership here and after talking to him and thinking about it the DW's car is too upside down to do anything with other than pay it down. So in the mean time, I did not want to do this but it will help in the long run, I am going to trade my car in for the SUV that our friend thinks will help us out. It is going to save us around $200 a month on payments since my car was so jacked up on APR(18%). IT is a brand new SUV and I am not that much upside down on it and with the rebate and deal he is giving us it works out well. Now I will take that $200 we are saving on that and apply it to to other car and hopefully in a year or so have a better picture...Also I will be taking over the driving of the DW conv't as she will get the SUV...Yes the sacrifices we make as I loved my car but I have to do was is best for the budget and family. I grew up with a conv't so I like them and they are fun in the summer time but I am sedan man now and maybe after the conv't I will be able to trade it(once it is taken care of) and get a nice infiniti...by that time I am sure everything will be great budget wise and I am sure the payments will be still way less than the $700 a month for the conv't as our credit is improving everyday thanks to this great forum and people on here!!!

[FrugalRican]

Is the SUV fuel-efficient? Do you travel a lot?

You might be saving $200 a month, but spending $50 to $100 more in gas.

Just another angle to consider.