AUTO LOAN QUESTION

[nathan]

I have a 2003 ford expediition which is now worth only about 13k max as apraised by a ford dealer. The interest rate is 12% and I  still owe 19300k on this **bleep** truck. Navy federal would not refinance it because the market value is too low as compared to what I  owe;  cap one, hsbc, and roadloan declined my request to refinance. My monthly payment is 440 and I have not missed a payment for 15 mos. i would like to trade it for another car but i know i am way upside down. One dealer even told me i could be upside down by as much as 9k. I wonder if i will ever have any equity in this car even if I pay for 3-4 yrs. my current fico scores  are eq 589, ex 602, tu 587. Am i stuck with this deal, or do I have any other options. Has any body been in such a deep hole, and if so what did you do? Can I ask citiauto, the lien holder, to lower my interest rate with my good payments or should I just hope and pray that a tree falls and destroy this truck for me. Insurance and gap could get me out of this mess. My main concern here is how the retail value keeps falling giving me the impression that after paying off the car, it would be totally worthless. Please I would appreciate your advice and thanks for your time. Ford trucks are a joke in terms of resale value.

[CreditDrama85]

i wonder why roadloans or capital one did not approve? was it because of the negative equity issue?

[Anonymous]

I hope I can shed some light on this for you and I do hope most people read this because I am not one to keep up with forums, but I do like helping people. I have been in automotive retail for 9 years. I have a complete understanding of credit and history etc. I have to say that I have used my Fico as my guideline for the last 7 years.

First you are buried in the vehicle you are in, the only way out? pay more per month on the payment. Remember anything dishonest can and will catch up to you. You signed a legal binding contract to own that vehicle, you gave your word. You own it, now you have to pay for it.

OK, basics,,,,,,it does not matter what vehicle you purchase that all depreciate. Ultimate way to purchase a vehicle is with 20% down and finance for 48 months. If you finance for 72 months you need to pay 80.00 more per month from the very first payment, or you will always be buried in the vehicle you buy. any vehicle. Until you fiqure out that you will never be happy. So if you agree on a payment of 420 per month for 72 months be prepared to pay the 500.00 per month or dont get the friggin car. Geeeezzzzz,,,,, only purchase 12 percent of your gross monthly income. ya 12 percent. period. less if possible.

[Anonymous]

take wholesale x 115% there is your loan value, refinancing a vehicle is a terrible idea

[Anonymous]

Wow, that makes sense, I guess in the situation I'm in. I have a '07 Saturn Aura, LOVE IT!! However, I am going to Iraq for a year, so it doesn't make much sense for me to let it sit for a year. I owe a little less than $26.5K on it but when I tried to sell it, they only wanted to give me $16.5K on it, yeah makin' up over $10K on it, I don't think so.

So, I'm loaning it to my sister, she'll make insurance on it and whatever she can pay and at the end of a year when I get back and we've worked that year fixing her credit, she'll apply for a loan and buy it from me.

What's the worse that can happen? I know I'll continue to make payments, it won't be sitting for a year, she has a car to drive with her two liitle girls, and I can help her fix her problems...she doesn't make the insurance payments...I guess that's the worse, I'm not signing anything over to her.

[nathan]

Thanks for the advice POW. I guess my only strategy now is to pay a bit more each month. Do I have to let my lien holder put the extra payments towards the balance. My lien holder is citiauto. My armotization says I will pay off the car 12 mos earlier if I make extra 50.00 per month. I can deal with that.

[Anonymous]

Good advice here.

I personally REFUSE to be upside down on a car loan.