U.S. CitiesCity-Data Forum Index
Happy Thanksgiving Day!
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 12-03-2012, 04:34 PM
 
1,752 posts, read 3,138,393 times
Reputation: 2082

Advertisements

Hello.
I have recently moved and have added rent and food expenses (was with the parents before). A year before moving, long before this oppertunity came up, I bought a used 2010 Toyota Corolla and am paying ! 350 a month with APR on 6.8% (high I know). At the time, a reliable car like this was much needed as I was commuting r/t 100 miles a day. Since the move, I've cut down the commute to about 20 miles r/t, but added in the expenses above. I no longer need the car, anad brought it to the Toyota dealership, which could only give me about $9K for the car. Right now I have about $16K left to pay on the car. I've put it up on Ebay and CL, but no bites. Called Toyota to see if they could help me, but I was told to look into a local bank or trade it in. I plan to look at my employer's credit union and have been in talks with a few dealerships to trade it in, but I'd still be paying $8,000 on the car even after the trade (which I guess I'll take it as a life lesson).

Can anyone come up with any other ideas?
Thanks
Rate this post positively Reply With Quote Quick reply to this message

 
Old 12-03-2012, 04:50 PM
 
Location: The Triad (NC)
31,181 posts, read 68,298,066 times
Reputation: 37039
Quote:
Originally Posted by leadingedge04 View Post
used 2010 Toyota Corolla and am paying 350 a month
I no longer need the car, and brought it to the Toyota dealership,
which could only give me about $9K for the car.
Right now I have about $16K left to pay on the car.

I've put it up on Ebay and CL, but no bites.
For how much? By that I mean... how much less than the $16,000 you owe?
If you got that amount... can you make up the difference?

Quote:
Can anyone come up with any other ideas?
A part time job should do it.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-04-2012, 11:16 AM
 
Location: home state of Myrtle Beach!
6,385 posts, read 20,056,272 times
Reputation: 3595
I know someone who bought a 2008 for $10k this year. You don't have to buy that "new" to get reliability out of a Corolla! Look at current ads to see what people are selling them for now and then price accordingly.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-04-2012, 11:40 AM
 
Location: Keosauqua, Iowa
9,261 posts, read 17,953,155 times
Reputation: 12592
The answer depends in part on what you plan to do if/when you ditch it. Get by without a car? Pull a couple thousand out of savings to buy a $2K beater? Finance a less expensive model at $8-10K?

If you're looking at one of the first two options, I'd look at local private party listings to see people are asking for similar models and list yours accordingly as myrc60 suggested. You'll get more selling it yourself to the new owner than you will get selling it to a dealership that needs to buy at wholesale so they can make a little money when they sell it. Just make sure to have funds available to cover the shortfall if you have to, whether it be cash or an unsecured note from the bank.

I wouldn't even consider the third option I mentioned. If you "trade down" you'll end up owing almost as much as you do now but for a lesser vehicle. Better to just suck it up and keep paying on what you've got.

Somebody mentioned a part-time job. This isn't a bad idea. You could give up your social life for a few months to make some extra money to put toward the car note. This might not be something that you'd want to sustain for the duration of the loan, but if you pay extra for a few months you might be able to refinance it and get a more manageable monthly payment without extending the repayment period.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-04-2012, 12:24 PM
 
Location: Vallejo
15,802 posts, read 17,786,529 times
Reputation: 14250
Ouch. How on earth do you still owe $16,000 on a used Corolla you bought a year ago? How much did you pay for it?

There doesn't seem to be much you can do. The APR isn't that bad, it's more that you paid more for a used Corolla than a brand-new one costs. If you just don't need a car at all, cut your losses. If you still need a car, tough it out. Part-time job might be a good idea. Refinancing isn't going to make a difference. No one is going to refinance a car for $16,000 that's only worth around $10-12k. I'm assuming with a 100 mile round-trip its got pretty high mileage which is part of why you're so upside down. And even if they would, going from 7% to 4% is only going to save $20 a month.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-04-2012, 06:46 PM
 
Location: home state of Myrtle Beach!
6,385 posts, read 20,056,272 times
Reputation: 3595
Quote:
Originally Posted by Malloric View Post
Ouch. How on earth do you still owe $16,000 on a used Corolla you bought a year ago? How much did you pay for it?

There doesn't seem to be much you can do. The APR isn't that bad, it's more that you paid more for a used Corolla than a brand-new one costs. If you just don't need a car at all, cut your losses. If you still need a car, tough it out. Part-time job might be a good idea. Refinancing isn't going to make a difference. No one is going to refinance a car for $16,000 that's only worth around $10-12k. I'm assuming with a 100 mile round-trip its got pretty high mileage which is part of why you're so upside down. And even if they would, going from 7% to 4% is only going to save $20 a month.
No, new Corolla's start around 18k these days! The loaded models are even higher, of course! I think its ridiculous how expensive they've gotten. I bought a 98 new for $13k and it was the LE package too. It's almost as if they moved the model up a 1/2 class or something since 98; the cars are bigger today!
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-04-2012, 09:53 PM
 
Location: Vallejo
15,802 posts, read 17,786,529 times
Reputation: 14250
Yeah, but over a year ago means he's paid down around $3,000-$4,000, so he paid around $20k for it. That's MSRP on a well equipped brand-new loaded LE. Paying MSRP for a used car = ouch. I bought new for that reason. I needed something quickly after my car was totaled and the insurance settled so I wouldn't be stuck with the rental fee. After I decided the used market was over priced for economy cars, I pretty much decided on the Fit. And what do you know, there's a 2005 Honda Civic (this was '08) on the lot. Guess what they wanted for it? $15,000. For a three-year-old Civic with north of 100,000 miles. The brand-new '08 EX models were, before even negotiating price at all, were in the low $17-range after the factory $1500 cash back.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-04-2012, 10:16 PM
 
4,173 posts, read 3,124,033 times
Reputation: 2629
Your best bet would be to refinance at the lowest interest rate possible. Do the research and make some calls, you should be able to beat 6.8% and lower your payment. Selling a vehicle at a loss and buying another is a losing proposition. Buying a beater and ending up putting money into maintenance (tires, brakes, battery) may be a bad choice. At least you will have reliable transportation for many years to come with minimal maintenance costs on the low mileage Corolla.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-04-2012, 10:21 PM
 
Location: home state of Myrtle Beach!
6,385 posts, read 20,056,272 times
Reputation: 3595
Quote:
Originally Posted by shaker281 View Post
Your best bet would be to refinance at the lowest interest rate possible. Do the research and make some calls, you should be able to beat 6.8% and lower your payment. Selling a vehicle at a loss and buying another is a losing proposition. Buying a beater and ending up putting money into maintenance (tires, brakes, battery) may be a bad choice. At least you will have reliable transportation for many years to come with minimal maintenance costs on the low mileage Corolla.
We spent well under $2K on our 98 over the years outside of regular maintenance, brakes, tires, etc. It is for that reason I bought another one this year! You can't go wrong with that value so at least you got a good car out of the deal OP.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-05-2012, 04:59 AM
 
5,380 posts, read 6,271,476 times
Reputation: 7177
Refinance the car for the same term or longer. The best places are offering 1.49-2.99%. If you shoot for the middle and get 2.49%, your payment drops to $283.96 for 5 years.
Auto loan calculator - Bankrate.com

There is a huge difference between retail value and trade-in. The bank will not value it at the 8k trade-in value for a loan. Retail value will be much higher. 16k is still too high for a 2010 Corolla though. Retail value is closer to $13-15k, depending on miles, condition, trim level, and region.

I refinanced my vehicle for 2.99% in the spring, but rates have dropped even lower in the last 6 months. My sister got ripped by the used car dealer and was financed for 7%, because she doesn't pay attention to interest rates. She refinanced for 2.49% from the local credit union, 2 months later. Credit unions are your best bet for the lowest rates. Each time, they used the retail value and not the trade-in value.

Penfed offers 1.49% based on retail value. DCU is another good place. I have used Patelco in the past.
Penfed 1.49% https://www.penfed.org/used-auto-loan/
DCU 1.99% https://www.dcu.org/index.html
Patelco 1.99% https://www.patelco.org/


You can also shop around for new car insurance quotes online from Geico, State Farm, etc. The savings will not be that big, but every dollar counts.

It's great that you left your parent's home for a job opportunity, but the opportunity stinks. I would look for something better or get a 2nd job.

Last edited by move4ward; 12-05-2012 at 05:56 AM..
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top