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No, he bought it around 2½ years ago on a six-year loan. He's paying about $440/month, plus around another $125/month on insurance, plus or minus.
I'd rather have him own the car outright, so that all he needs is liability insurance, and a budget for emergency repairs.
Yeah, I like the "learn a lesson" part, definitely! Might need to go this route, ultimately.
But there have been a few ideas offered in this thread that I'm going to look at further over this weekend.
Thanks again, bradykp.
good luck! i think if he could have afforded it, he chose a good car. in 4 months, i'll own one of my cars outright and will start saving a bundle on insurance! checked KBB yesterday and it has my value at $13,000 still (private party)! so i'm happy about that one.
Disclaimer: I am not suggesting anything illegal,,, but what would happen if say it disappeared and someone drove it over a cliff and it caught on fire, again, I'm not saying anyone should do that nor anything illegal, just curious.
Get a part-time job to make the monthly payments. If you manage to sell the car you will only be able to buy a POS car and then face huge repair costs.
Save yourself the hassle and credit score and work another job until it is payed for. At least then you still have a reliable car. Toyota's last forever!
Disclaimer: I am not suggesting anything illegal,,, but what would happen if say it disappeared and someone drove it over a cliff and it caught on fire, again, I'm not saying anyone should do that nor anything illegal, just curious.
then you'd have a loan and no car, and whatever money the insurance gives you for the car.
Disclaimer: I am not suggesting anything illegal,,, but what would happen if say it disappeared and someone drove it over a cliff and it caught on fire, again, I'm not saying anyone should do that nor anything illegal, just curious.
Why even bring that up? You know it's illegal.
And that does nothing for your negative equity (market value vs loan balance) unless you had gap insurance: The ins will pay market value (say 13-14k) and you owe the bank 15k. You still owe the bank the remainder.
To even contemplate insurance fraud over ~$1,500 (assuming you even have gap insurance) would be the dumbest thing I've heard all week
There is a sweet spot for private party sale and that is on desirable cars and cars whose owners owe more than trade value, but less than retail value. In that scenario both sides are getting a deal. Suffice to say the car we are talking about doesn't fall into either category unless you priced it at around $12,500 and now you are back to looking at throwing $2,500 of your own money at it to get the deal done.
The best thing to do in this scenario is to simply hold onto the car and keep making the payments until you build equity or can accumulate enough cash to make up the difference.
I'm not sure I agree. If you hold on to the car for, say, 6 more months (at ~$400/month payments), you've not only thrown the $2,500 but you've also spent another 6 months worth of insurance, maintenance, etc. That could plausibly be another $1k-1,500 depending on how much his insurance is...
The issue of selling privately (title held by bank) can be resolved by either paying off the balance to get the title in hand or, this may be possible locally, meeting at said bank where buyer pays his purchase price (and you make up the loan balance difference) to get his title immediately.
I'm not sure I agree. If you hold on to the car for, say, 6 more months (at ~$400/month payments), you've not only thrown the $2,500 but you've also spent another 6 months worth of insurance, maintenance, etc. That could plausibly be another $1k-1,500 depending on how much his insurance is...
The issue of selling privately (title held by bank) can be resolved by either paying off the balance to get the title in hand or, this may be possible locally, meeting at said bank where buyer pays his purchase price (and you make up the loan balance difference) to get his title immediately.
but the poster is having trouble affording the car payment. i would think if they could come up with the $1500 to cover the difference between the sale and the loan, then they wouldn't be in such a bind with the payment in the first place.
insurance on a 2007 camry in NJ can't be much worse than $1500 for the year. i guess it could be $2,000, but even that's a stretch.
best thing to do is hold on to the car (it's a good car afterall) and figure out how to make the payments for now. selling it privately is virtually impossible unless you can make up the difference.
Thanks Tony. The car is a 2007 Camry. It has about 50k miles on it. Kelly says it should be worth about $14,300 (rough estimate) as a private resale (I haven't yet checked trade-in value). He still owes about $15k.I think he'll really need to keep his future payments at around $150-$200/month.
50K miles on a 2007 car is a lot.
Interest rates are lower now, I have never tried to refinance a car, but its worth looking into.
but the poster is having trouble affording the car payment. i would think if they could come up with the $1500 to cover the difference between the sale and the loan, then they wouldn't be in such a bind with the payment in the first place.
insurance on a 2007 camry in NJ can't be much worse than $1500 for the year. i guess it could be $2,000, but even that's a stretch.
best thing to do is hold on to the car (it's a good car afterall) and figure out how to make the payments for now. selling it privately is virtually impossible unless you can make up the difference.
Very smart post. Even though NJ has the highest insurance rates in the country, his insurance has to be around $1500 per year. And that's not bad in NJ.
He's young. Have him work a part-time job until the car is paid off. Then is credit will be better and he still has a reliable car. There are no magical secrets here. He would lose (pay more) by getting rid of it, even though he was over his head at the get go.
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Might need to go this route, ultimately.
