Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.īankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. Ideally you should never be even a little upside down on a car loan.We are an independent, advertising-supported comparison service. People should have enough down payment to secure the best loan terms and a practical monthly payment. Buying a car that will be upside down for 3-5 years is a terrible idea. I do strongly agree with the general attitude on fiscal responsibility in car buying. Once you try to add 1-2 additional desired features, your pool shrinks pretty rapidly. There are millions of used cars that fit the bill. If all you want is "a car" that is reliable and economical, you are in luck. Most of the ones around 3 years old were only a couple thousand less than what I ended up buying.Ĭertain portions of the used car market are not as advantageous as the market in general. ![]() Most of those cars aren't a great idea to buy if they're over 5 years old, unless you can obtain a full service record and they've had only one owner. To give you an idea of what I wanted, I was comparing the Fiesta ST, the Golf GTI, and other similar hot hatches and small four door cars. There were no used models to be found.Īdditionally, the type of car I was looking for requires too much searching or haggling to find a good used example. My car was relatively new to the US market but well proven in Europe. When I was car shopping, I was looking for a particular kind of car - not a particular model. But if you're able to choose between a car you like and a car you hate, the more practical solution is not always the desirable one. It is less practical to buy a new car than a used car. Some people on PF fail to recognize that wants can intersect with practicality - they aren't parallel lines. Oh I'm familiar with depreciation rates - I just think using the word "always" in that way implies that all financial advice is universal. These remain on your credit report for 10 years, make it virtually impossible to obtain financing anywhere for anything and often allow a plaintiff to pursue remedy through wage and/or property executions. If you do owe money after the car sells, it's in your best interest NOT to have a judgment levied against you. If you can negotiate a settlement, get it all in writing before you pay. It also might help if you show goodwill and assist the repossession (give them back all keys, documents and make sure car is empty of personal belongings). You might be able to negotiate a settlement of this amount if you have a lump sum to pay the lender. You'll want to check the laws in your state. ![]() And you could be responsible for the deficient balance on the loan. Keep in mind that having a repo on your record will make it very difficult to find auto financing for a long time.Ĭars go for about 70% of FMV at auction. Kind of hard to salvage anything good out of this. Made sense for me, not saying it would for everyone. However, I got my car back, can work and will save up some $ over the next few months and when I'm ready to "get out" of Chapter 13, find a lender who will loan to me either in or right out of a Chapter 13 because the second you come out, all your debt is once again due (like your car, which will be repo'd again if you don't get rid of it first). ![]() I rolled in a slight amount of CC debt I had which really didn't amount to much. I filed Chapter 13 which allowed me to get my car back immediately after the papers were filed, no questions asked. ![]() I had NO other option to get the car back, didn't have money in the bank to buy a beater and needed to get to work to make money. I owe(d) about $10k on my car when it was repo'd and they wanted the remainder of the loan paid in full or else they would keep it, sell it, I'd be responsible for the remainder after it was sent to auction. Similar situation happened with me a few months ago. Here, please treat others with respect, stay on-topic, and avoid self-promotion.Īlways do your own research before acting on any information or advice that you read on Reddit. Get your financial house in order, learn how to better manage your money, and invest for your future. Banking Megathread: FDIC, NCUA, and your cash.Private communication is not safe on Reddit. Scam alert: Ignore any private messages or chat requests.
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