Need advice about my car

Discussion in 'Homesteading Questions' started by TedH71, Nov 20, 2006.

  1. TedH71

    TedH71 Well-Known Member Supporter

    Messages:
    3,714
    Joined:
    Jan 19, 2003
    Location:
    Bel Aire, KS
    It's a 2001 Ford Focus ZX3. I'm making payments on it.. $401 something a month. Girlfriend/fiancee has a car she pays $350 a month and it's a brand new car while mine is used. She wants me to give the car back to the dealership so we can use only that car and save myself $ since I'm working part time. She is asking me to save $ to buy a car used in cash. We plan to get married and are going to have a baby in April. I'm being very resistant to the idea of giving up my car but I've been unable to pay car insurance on it. I also found out thru a physical prior to being hired that I may have diabetes and high cholestrol. Will be talking to a doctor soon this week about it. The tests are saying I'm borderline diabetes which is scary. My mom and two older brothers have it. I'm adopted so who knows where I got it from? One of my brothers had stomach surgery which made his diabetes no longer in his body because he lost weight. The other one takes pills for it..my mother has to have a insulin pump attached to her 24/7 to keep her going. So advice anyone?

    I do have a friend who graduated from college with a mechanic certification (ASE) and says he can find me good used car/truck deals. I've been considering getting a part time job installing tile so...
     
  2. moopups

    moopups In Remembrance

    Messages:
    7,102
    Joined:
    May 12, 2002
    Location:
    In beautiful downtown Sticks, near Belleview, Fl.
    Diabetes comes in two forms type, 1 and 2. Type 1 is juvenile onset, the body does not make enough energy for growing children therefore the use of insulin is necessary to boost the energy level.

    Type 2 is the most often found in adults diabetes whom do not have such as children. It is a condition controllable by diet in a lot of cases. Avoid all white foods. White breads, white potatoes, white rice, ect. Instead eat wheat breads, sweet potatoes, brown rice, ect. I am type 2 diabetic but no longer take any meds for such via a corrected diet. Your age, ethnic background, eating habits all contribute to your susceptibility.

    A far as the car portion of your post goes, that is too vague of an amount of details to be assistful.
     

  3. Ruby

    Ruby Well-Known Member Supporter

    Messages:
    5,458
    Joined:
    May 10, 2002
    Location:
    Texas
    I would think since you can't afford insurance on your car, then it's not doing you much good. I would say get an older car that you can pay cash for. Probably 3 or 4 months at 400 dollars then you could pay cash for a good used one. Since you and girl friend are expecting a baby you are going to need all the money you can get.

    As for the diabetes, moopups is correct. If you only have type 2 then it can be controled with diet, along with the collestrol.
     
  4. Cabin Fever

    Cabin Fever Life NRA Member since 1976 Supporter

    Messages:
    15,598
    Joined:
    May 10, 2002
    Location:
    Between Crosslake and Emily Minnesota
    I'd say you have a pretty smart fiancée. Your #1 priority right now is preparing a home for your child. Let the car go along with the insurance premiums...you likely save $500+ a month. Get rid of as much debt as possible and find a job.... preferably with health insurance. Work as many hours and as many jobs as possible, so Mom can stay home with the new baby.

    Lay off the sweets and eat healthy.
     
  5. cfabe

    cfabe Well-Known Member

    Messages:
    1,526
    Joined:
    Feb 27, 2005
    Location:
    Mid-Michigan
    How much do you still owe on the car? With a payment like that on a focus, you probably bought it new, and a 2001 should be close to paid off by now. If you can sell it and get out from under it, consider that, but otherwise it might be best to finish out the loan and then have a paid-for car that, hopefully will last you a while longer.
     
  6. tiogacounty

    tiogacounty Well-Known Member

    Messages:
    1,069
    Joined:
    Oct 27, 2005
    whatever you do, get your head straight about what it means to "give the car back to the dealer". If you can sell it for what you owe, by all means do it. If you are seriously upside-down (you owe a lot more than the car is worth), get some professional financial counciling before you get the urge to drop the car off at the dealer. First of all, your relationship is with whomever you are making the payments to, which many, or may not be the dealer. So if it's a bank loan, the dealer doesn't care if you drop it off of his lot, or in a lake, it's got nothing to do with him. Second, realize that there will be a steep price to pay for walking away from a loan. A default will blow a hole in your credit that will take a long time to repair. Sorry to read of your difficulties, be sure to understand your next moves, and good luck.
     
  7. Herb

    Herb Well-Known Member

    Messages:
    120
    Joined:
    Jun 24, 2006
    If you owe less than a year on the car, I'd keep it. If not, sell it. Letting it be repo'ed is not a good option. It will ruin your credit and you may need it later down the road.
     
  8. Pony

    Pony STILL not Alice Supporter

    Messages:
    19,813
    Joined:
    Jan 6, 2003

    Like the man said.

    All the best to your fiancee, your baby, and YOU! :)

    Pony!
     
  9. TedH71

    TedH71 Well-Known Member Supporter

    Messages:
    3,714
    Joined:
    Jan 19, 2003
    Location:
    Bel Aire, KS
    Bank loan was done thru the dealer so if I was to give up the car it would be directly at the dealer's place. I owe about $18k. Bad credit already due to college loans and hospital bills from way back. My goal is to pay off the debts I have (about $4k) plus start paying the college loans (about $12k). I got a part time job at a local library plus just got a job offer teaching American Sign Language part time at a local community with a possiblity of going full time next fall if I can get certification (simple process really since I'm a native signer). I am planning on going back to school as people already know here at HT. The classes will pay me $450 per credit hour and I would be teaching two classes at 7 credit hours per week (or so I think) which is a pretty good deal. Will be getting one free class if I decide to attend that community college...if full time, I think I would get more free classes. I am also up for a postal exam next week which pays $12.63 an hour and it's a clerical job..lots of typing which I'm good at if I pass the exam.

    I know I need to stay off sweets..my biggest flaw is I like 'em! I do not want to be like my mother and brothers who have it (I'm adopted but extremely close to my family) and constantly watching my diet and denying myself some certain pleasures in life :rolleyes: Guess I do need to buckle down and start watching what I eat.
     
  10. rambler

    rambler Well-Known Member Supporter

    Messages:
    8,360
    Joined:
    Jan 20, 2004
    Location:
    MN
    It is hard to reply to such threads without sounding like I/we are judging you. Please take things said as just friendly advise, not being critical. :)

    Assuming good average condition, Kelley Blue Book suggests your car is worth $5-6000 on a good day. Obviously, you have racked up some missed payments & overcharges on this vehicle, to be owing $18,000 on it yet after 5 years.

    You do need to figure out a way to deal with this. It doesn't make sense to be paying 3x what it is worth yet. Something has to change. It is a boat anchor, & dragging you down. You need that money for other things.

    On the other hand, that _is_ your obligation, and just returning it to the dealer & not paying should & will have a negative effect on your credit for some time to come. I really hate to recommend that.

    I've never had a vehicle loan, so I'm not sure what options you have. Others can help maybe with ideas.

    A friend of mine went for a postal job, & then found out they are tilted towards non-civilian folks. It is rare for a 'regular person off the street' to get one. Good luck, but don't be too disappointed......

    For the college job, I'm reading it that you will get $3150 a week, which of course isn't right. Perhaps 1/10th that? Or $1260 a month?

    Hope you can work it out. It is hard to get a ship righted again, but well worth it for all the good you have coming your way. Best of luck, and sounds like your gal has some things worked out on the numbers, she will be a big help to you.

    --->Paul
     
  11. TedH71

    TedH71 Well-Known Member Supporter

    Messages:
    3,714
    Joined:
    Jan 19, 2003
    Location:
    Bel Aire, KS
    No, I bought this car at $12k 5 months ago. No missed payments. I just have bad credit which was the only way I could get the car but I was told there were other ways to get lower car payments and to give the car up so that I could save $$ to buy a car cash. Makes more sense that way. BTW, the college job would be $1260 a month. I also am already working part time for the city of Wichita library....plus I still get disability which I'm trying to cut off or get out of but it's a big help..I'm deaf if that helps.
     
  12. rambler

    rambler Well-Known Member Supporter

    Messages:
    8,360
    Joined:
    Jan 20, 2004
    Location:
    MN
    Thanks for the fruther info. You did say a 2001 car right?

    My best on getting it all worked out. You will if you put your mind to it. I don't think I'm qualified to help out, I don't have an ideas.

    --->Paul
     
  13. clovis

    clovis Well-Known Member

    Messages:
    9,511
    Joined:
    May 13, 2002
    Here is the real problem:

    Your girlfriend is giving you the WORST advice I have ever heard.

    If you let the loan company (dealer or bank) take the car back, it will impact you tremendously!!!!!

    They WILL sell the car for whatever they can get for it. They might choose to sell it for $1500, or $4000. They will subtract what they get for your car from the balance you owe. Then, they will sue for a judgement against you, and sue you for the remaining balance.

    Remember, you made a decision to buy the car, not rent it.

    Ten years from now, they will still be chasing you for the balance owed, plus interest and other fees. You can bet that the interest will be 20% or more.

    A voluntary repo will TRASH and RUIN your credit. Wanna buy a house anytime soon?
    What do you think a bank will think of that???

    Here is my suggestion, which I strongly believe you should SERIOUSLY consider:

    Quit thinking about the total amount due....the balance plus interest. What is done is done, you need to move forward and upward.

    Option 1 is to sell the car for what you can get for it, and get a loan from a credit union or bank for the balance, which will be an unsecured loan. This might be really tough to get since you say you have bad credit. Still much much better to pay off the balance after you sell it....even if the loan is $7000....than to completely trash your credit!!!

    Option 2 is go to every bank in town and try to get the car refinanced at a lower rate.
    My wife was paying 12% on a car note when we married, but I shopped around and got it re-financed for 5.9%. Saved us almost $1500. If you have been paying on time and have established good standing with this loan, you might have a good chance at saving alot of money.

    Option 3 is to realize you bought a car you couldn't afford, and get additional job, throwing everything you can earn at the car note. If you got fired up, you could easily earn $1000 a month doing something. You could make $1000 working at Wal Mart. This loan would be paid off in no time if you put all $1000 a month towards the note. With this option, you still have a good car, you save and build your credit, and you learned a valuable lesson.

    This is probably not the harsh words you wanted to read, but it is sound and safe advice.

    Save your credit...you will be thankful down the line.

    In the mean time, check out daveramsey.com It really does work, and its free.

    clove
     
  14. clovis

    clovis Well-Known Member

    Messages:
    9,511
    Joined:
    May 13, 2002
    TedH71,
    If you are not sick of me yet, give some more clarification.

    You said the loan was done thru the dealer. Does that mean the loan was brokered by the dealer to a lending institution? Or, was the car purchased at a buy-here-pay-here lot?

    Who do you make the payments to? A bank or to a used car dealer?

    clove
     
  15. mightybooboo

    mightybooboo Well-Known Member

    Messages:
    11,301
    Joined:
    Feb 10, 2004
    Location:
    So Cal Mtns
    No,dont need to say it.

    BooBoo
     
  16. Hoop

    Hoop Well-Known Member

    Messages:
    799
    Joined:
    Jan 1, 2003
    Location:
    Northern Wisconsin
    First of all, ignore the judgemental cretins and their hateful bile.

    You are where you are. Your goal is to put this situation behind you. Unfortunately, it won't be easy. The dealership took advantage of your bad credit and sold you a vehicle at two - three times what it was worth. You signed the papers and are now legally obligated to pay for it.

    Do NOT "turn the car in" to the dealer. They will sell at an auction for whatever it brings. The car is an 01 so it will likely sell in the $3000 range, as vehicle auctions bring wholesale prices. This leaves YOU on the hook for the remaining $15000. They will hound you endlessly and make your life miserable until it is paid off. Even hear of the term "wage garnishment". It will probably happen. They will take a bite out of your paycheck until the loan is paid off.
    In addition, your credit will go down the tank. If your credit tanks, this will be a horrendously bad situation. Many employers do a credit check on potential employees. Bad credit generally means "didn't get the job".


    Do everything possible to pay this loan off. If it means taking a 2nd or 3rd job, do it. Pay the loan off ASAP.

    With parenthood approaching, you'll be required to step up to a higher rung of the ladder of responsibility. This includes financial responsibility.
     
  17. FarmerJeff

    FarmerJeff Well-Known Member

    Messages:
    100
    Joined:
    May 5, 2003
    Sell the car privately. Try listing it on Craig's List, which is free. Here is the link for your area. http://wichita.craigslist.org/ Look up the value on kbb.com and add 10% to determine your sale price.

    I have sold two vehicles on Craig's List for 10-20% more than book value. Here is a tip: Although I hate to spend money, spending $120 to have the car professionally detailed will likely gain you $500-1000 in sale price. That is a GOOD investment.

    Be patient, don't pull the trigger if the first potential buyer haggles with you too much. If you are uncomfortable haggling with a buyer, enlist a friend. Its always a good idea, whether you are buyer or seller, to have a few people on hand at the viewing. Not trying to be a jerk, but it creates subtle intimidation which works in your favor.

    Finally- here is the best advice I was ever given about vehicles: Always buy used low mileage vehicles, and expect to get 1 year or more of use for every $1000 you pay. If you are prepared to pay $7000, does it look like the car will last seven years? Good luck and eat well!
     
  18. Auric

    Auric Registered Doofus

    Messages:
    362
    Joined:
    Jul 18, 2005
    Location:
    Central Wisconsin
    I know where you're coming from. Luckily there are lots of low-carb and no-carb foods and sweets. Just go easy on the sweets, as they can come back to haunt you if you eat too many at a time (speaking from personal experience). Cut out as many carbs as you can from your diet and you will lose weight and therefore, possibly avoid the whole diabetes issue. This includes anything starchy, like foods derived from potatoes, rice, corn, beans, and flour. All of these foods WILL affect your blood sugars. If you drink soda, either switch to diet sodas or quit altogether. You will see a dramatic change in this alone. Stock lots of stuff that is "safe" for you, as you'll still feel like snacking from time to time. Just have to be smart and prepared for these times. I'm down 40 pounds, and if I can do it, I know anyone can.

    P.S. There are other benefits too, like increased libido and stamina...
     
  19. Beeman

    Beeman Well-Known Member

    Messages:
    6,977
    Joined:
    Dec 28, 2002
    Location:
    East TN

    First question is what was the actual selling price of the car and how much is the principle left on the loan? I am amazed that you have no insurance on a financed car as that is generally a requirement, I wouldn't drive it without insurance. Can you come close to clearing the principle of the loan by selling the car? It seems they hosed you on interest to get you financed so possibly the principle isn't out of reach. Do your best not to turn the car in, your bad credit will get worse and you will owe money on the car you no longer have, which you might end up doing anyway but possibly not as much.
    Can you girlfriend sell her car and come out on it? I really hate to tell you but I don't think the two of you can afford 2 cars, never mind 2 financed cars. Your girl's pregnancy is obviously going to put her out of work and stop her cash flow which I guess is paying for her car so that will be the next issue. You possibly shouldn't even think about taking college courses free or not and should focus on increasing your cash flow by working more.
    Sorry for the hard advice but reality sucks and the only way to pay off debt is make more money no matter what the credit repair,debt consolidation and finance people tell you. The good news is you're young and that if learned this lesson will make you a much more financially responsible person. If not learned you will do it all over again.
     
  20. Danaus29

    Danaus29 Well-Known Member Supporter

    Messages:
    20,048
    Joined:
    Sep 11, 2005
    Location:
    Ohio
    Gotta add my 2 cents worth, YOU CANNOT SELL A CAR WITHOUT A CLEAR TITLE!!!!! If you OWE MONEY for the car YOU DO NOT HAVE A CLEAR TITLE!!!! The best you can do is work extra jobs and pay the car off ASAP. You probably signed papers with the loan company where you will be responsible for a HUGE early pay-off penalty. If so you need to research other financing and see if your interest savings would offset the early payoff. A word of advice for next time, check the Blue Book value before signing sales papers. A hard lesson but it will benefit you next time. You cannot turn the car back to the dealer, even if it is a "buy here pay here" outfit. The never really finance their own loans and they will come after you for the remainder of what you owe. Do you truly owe more than what you agreed to pay for the car??? I know taxes and title are added to the loan amount but $4000 worth??? Another point about the insurance is your bad credit affects your insurance price, sounds stupid but that's the way it works. You do have options, file chapter 13 which affects your credit but can help you get things back together, you can fight and struggle to pay off your debt and pray nothing happens to your ability to earn a living, or you can keep burying yourself in debt until the collection agencies are forced to take action. What you decide is up to you. Dh and I were in a similar situation with credit cards and hospital bills years ago. We paid as much a month as we could afford. He worked overtime like you wouldn't believe ( I had just had dd, and stayed home with the baby) and just kept paying until we got it done. $35,000 in credit cards, most at 19.99% interest. Now we have excellent credit so it can be done but you really have to make a lot of sacrifices.

    Good luck getting out of debt, you can do it if you work at it hard and long enough.

    Congratulations on the baby. May it bring much joy and happiness to your lives.