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Being that I still owe about $10,000 more on the car than I could get for it, I would consider that to be an unacceptable loss. If I sold it, I would have no vehicle and I would still owe the bank $10,000 that I couldn't pay. I would be better off to just stop making my payment and allow it to be repossessed, taking the seven-year credit hit than attempting to sell it at the current time.
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What kind of car did you get and what was the loan amount for? Just curious... I made the mistake of doing the exact same thing, bought a brand new 2014 Mustang GT, loaded, zero down, finally was able to trade it in after making 17 payments at $575 a month, rolled over some negative equity into a new 6 year loan on a Ford Escape but lowered my monthly payments to $422... Plus the car is much more practical... If you keep the millage down as much as possible and keep making payments you won't have to wait the whole 6 years... On my current loan with the negative equity from the Mustang on top of financing the new Escape I'm 11 payments in and figure to be a solid 5 grand underwater, but I have kept the millage low at 13k, so I figure by year 3 or 4 I might be able to slide out of the loan, if I even want to.. maybe I'll just keep it for as long as possible... Lesson learned now though.. I wouldn't have bought the new cool Mustang if I could go back, but it was fun for a while, good memories, but the fun doesn't last as long as the car payments....
Being that I still owe about $10,000 more on the car than I could get for it, I would consider that to be an unacceptable loss. If I sold it, I would have no vehicle and I would still owe the bank $10,000 that I couldn't pay. I would be better off to just stop making my payment and allow it to be repossessed, taking the seven-year credit hit than attempting to sell it at the current time.
OP, be very careful of doing this, especially as you hope to relocate and get a new job at some stage. It is very common for companies to check credit history these days and you may end up taking yourself out of the running for some great jobs this way. You also may hurt your chances for finding a decent apartment in a new location this way. Do your research about the impact this could have on your life before you move forward. You don't want to make a bad decision a disastrous one.
Do you have a high interest rate on your car loan? Perhaps you can refinance to a lower rate.
Can you possibly relocate to somewhere you don't need a car to get around, and then sell the albatross? Some people find going without a car to be very freeing! Just be sure to talk to your insurance agent, to find out if you will have trouble getting car insurance again after a "gap." That happened to me in my 20's when I was without a car for a couple of years.
As for coming out, I can't relate 100% because I'm straight, but straight people often stay alone because it's simply too much bother to get out there and find the right person (this might be even harder when you're gay, since there are fewer of you).
Meanwhile, others have such a strong drive to partner up that they can let nothing stand in their way (and sometimes make mistakes, but that's another story).
People get contacted by recruiters all the time trying to get them to relocate to another state.
Where do you want to live? Look for jobs in those areas and contact staffing firms too. Because those are great to quickly allow you to relocate and get hired in another area, and from there you can look for a direct job with an employer.
Maybe you are putting up obstacles like this that prevents you from taking action to improve your life. Finding a job in another city/state and relocating to it, is not an impossible task because people do this every day.
What eastcoastguyz says above is absolutely true, and good advice!
Also, rather than contacting just temporary work staffing firms, you can contact staffing firms that recruit for full-time non-temp jobs. It works really well.
You learned from the experience and know what to do next time, that's a huge improvement. No need to punish yourself any further with it. You don't need to stay in a loan for 6 years, sell the car!
Can you possibly relocate to somewhere you don't need a car to get around, and then sell the albatross? Some people find going without a car to be very freeing!
The above is good advice. You do seem to love cars (or very nice cars) but it's quite common to live in cities which have good mass transit without a car.
I lived in 8 different states and cities, all without a car.
OP, imagine if you were very, very poor, living in a very small town with no opportunity for job/career at all, and having no parents, no relatives, no car, just having enough money to pay for three simple meals a day, and you still had enough to pay for a bus fair to move to somewhere else that could give you opportunity to find a job that pays reasonable wage or salary, and you could find some friends and be happier than where you were. And eventually you would have more opportunity to find a better job, what would you do? I think you would move. Yes?
That was the condition I was in when I just finished HS many years ago. Luckily, I had a few friends who were living in a very big city. I was very scared to move because all my life up to 18 I never went to anywhere else. But finally I had a gut to move. Just had a backpack and got on the buss traveling for four days, four nights, stopped here and there, and arrived to a very big city with so many high rise buildings and so much lights. This BIG city was/is so beautiful! LOL. I was very scared and bewildered. But I survived and did well. Now look back, I feel good I made that decision to move, and think I can be proud of myself. :-)
You just need to push yourself out of your "comfort zone" if you want some change. Be brave, have gut. It's much easier to move when you are young and single. 31 is still young. Don't wait until you get older or get married with someone you don't feel like to and just for the sake of your parents or to shut the talks of people off. They talk anyway. You don't want that, right? So you talk to yourself, encourage yourself. Make some change, the sooner the better. Whatever happens, it's not the end of the world. You can do it.
Wish you all the best.
Last edited by AnOrdinaryCitizen; 07-14-2017 at 02:34 PM..
You learned from the experience and know what to do next time, that's a huge improvement. No need to punish yourself any further with it. You don't need to stay in a loan for 6 years, sell the car!
Right now if I sold the car, I would still owe the bank about $10,000 and I wouldn't have means of transportation. It simply isn't feasible right now. However, I am considering, once I get my payoff amount below what the car is worth, selling it and moving somewhere where I don't need a car.
Quote:
Originally Posted by JPrzybylski07
Lesson learned now though.. I wouldn't have bought the new cool Mustang if I could go back, but it was fun for a while, good memories, but the fun doesn't last as long as the car payments....
I now tell people this as soon as they mention buying a new car. The "new car" experience lasts about six months. After that, the excitement wears off and you are stuck with the payment. That's why I always recommend people never buy more car than they need or can afford and also buy pre-owned if possible. There are exceptions, but new cars are one of the worst financial investments a person can make. It took my current situation to make me understand that.
Quote:
Originally Posted by DebNashua
OP, be very careful of doing this, especially as you hope to relocate and get a new job at some stage. It is very common for companies to check credit history these days and you may end up taking yourself out of the running for some great jobs this way. You also may hurt your chances for finding a decent apartment in a new location this way. Do your research about the impact this could have on your life before you move forward. You don't want to make a bad decision a disastrous one.
Do you have a high interest rate on your car loan? Perhaps you can refinance to a lower rate.
I agree with this, which is the number one reason I haven't went that route. I worry that allowing my car to be repossessed will cause problems when it comes to finding housing or employment in a new city.
In terms of refinancing the car, my current interest rate is 3% so it's not like I can go any lower. I looked into that about a year ago and there wasn't much I could do.
Right now if I sold the car, I would still owe the bank about $10,000 and I wouldn't have means of transportation. It simply isn't feasible right now. However, I am considering, once I get my payoff amount below what the car is worth, selling it and moving somewhere where I don't need a car.
I now tell people this as soon as they mention buying a new car. The "new car" experience lasts about six months. After that, the excitement wears off and you are stuck with the payment. That's why I always recommend people never buy more car than they need or can afford and also buy pre-owned if possible. There are exceptions, but new cars are one of the worst financial investments a person can make. It took my current situation to make me understand that.
I agree with this, which is the number one reason I haven't went that route. I worry that allowing my car to be repossessed will cause problems when it comes to finding housing or employment in a new city.
In terms of refinancing the car, my current interest rate is 3% so it's not like I can go any lower. I looked into that about a year ago and there wasn't much I could do.
I wouldn't get rid of the car as long as I could still pay the payment. Pay it off and then keep the car as long as possible. Put 200-300k miles on it.
I have a truck I bought brand new 16 years ago. 230k miles now. It is still in great condition and no problem going 300k+ miles.
OP, if you're stuck with the car, what can you do to pay it down faster? Can you get a second job? Put all that money towards the car; even if it's just a few hundred a month it will make a difference.
When I was paying my student loans, I started putting an extra 200 a month towards it and I was really surprised how good it made me feel seeing the numbers drop faster.
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