should i do smaller truck payments?

FerrariTruck

FerrariTruck

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Well i wondering if theirs anything i can do to get smaller truck payments. I bought my truck for 29k in jan. No down payment and the term is 36months. So payments are lil over 900 bucks. At the time i was getting my loan done 3 years seemed like a reasonable time to pay it off. However now a year later, it seems that i have no money saved up, other debts like school and tools are still there since i'm only making small payments. It seems that each month i'm getting nowhere and just keeping my head above the water. Well i'm startin to think i need to make some changes, would it be a good idea and is it possible to extend the loan terms from the original 3 years to 5 years therefore allowing me to make a smaller interesrt payment? I think if i did this it would allow me to get rid of the smaller debts i have and eventually allow me to save up money. I've considered getting rid of it but i dont know how i would deal with the heart break let alone the dissapointment of getting sh*t for it.
 
yup, what chris said...refinance, and drop your payments. Depending on your interest you should have paid a decent amount in 1 year on a 3 year loan.

Get a used auto refinance w/ low interest and you will be good to go...

The cons are you will be paying some interest money, and you will stretch the loan out longer...the good news is depending on how much you owe, your payments wont be high at all...especially after a years worth (on a 36 month term)

Talk to Big Perm too, he is in the auto loan business and can give you some pointers. I would go to a credit union for rates, there usually cheaper then your local bank. Also check Bankrate.com to compare loans and use there calculator to see what your payments would be :)

-Red
 
I disagree a refinance will be at a higher interest rate...and just prolongs the pain...

Paying interest is what is killing you.. Try to stop buying anything on credit if possible...

A Family loan to clear you debts can be an option sometimes...paying your family 5% and using the $$ you borrow to pay off high interest CCs and the like will get you back above water
 
Well. you could goto capital one auto finance.. I dont know what you rate is but they offer 7.45% on the auto refinance if you have good credit.

I would venture to guess that your loan is at a balance of around 20k or so..

If you refies at 36 months, at 7.5%, your payments would be 622.00

If you did a 48 month your payment would be around 483.

http://www.capitalone.com/autoloans/index.php
 
azpyroguy said:
Well. you could goto capital one auto finance.. I dont know what you rate is but they offer 7.45% on the auto refinance if you have good credit.

I would venture to guess that your loan is at a balance of around 20k or so..

If you refies at 36 months, at 7.5%, your payments would be 622.00

If you did a 48 month your payment would be around 483.

http://www.capitalone.com/autoloans/index.php
Click to expand...

Thanks, i actually have my loan with capital one. I checked it out and under one of their FAQ's it states that they will not refinance an existing capital one loan. I guess i need to seek a credit union. Also one thing i notice on my balance that seems kind of wierd to me is that my balance doesnt decrease the amount of which i send in. Instead of the balance decreasing by the $900, it only decreases by 800. Is this normal?
 
Yup...your lucky 800 is going to principal !! Usually they get there interest upfront on full amortized loans like that, as the time goes by, the principal will increase and the interest will decrease (ex: now 800 principal 100 interest. In 2 years - 850 principal 50 interest. In almost 3 years - 890 principal 10 interest), you get the point :D

Once again..try bankrate..its real good when finding places to call around for the best interest. I saw used auto refi's going for high 6's OAC (basically over 700+ credit)

-Red
 
RedSrt007 said:
Yup...your lucky 800 is going to principal !! Usually they get there interest upfront on full amortized loans like that, as the time goes by, the principal will increase and the interest will decrease (ex: now 800 principal 100 interest. In 2 years - 850 principal 50 interest. In almost 3 years - 890 principal 10 interest), you get the point :D

Once again..try bankrate..its real good when finding places to call around for the best interest. I saw used auto refi's going for high 6's OAC (basically over 700+ credit)

-Red
Click to expand...

yeah.. what patrick said.. if you getting 800 bucks to principal you must have a really good interest rate...

When I bought my truck.. I had zero interest on it.. took some fighting and screaming.. but DCX did it...
 
Try Newport News Shipbuiding Credit Union. I think at one point they were offering 4.9% on a used car loan. I don't know if they still do...but I would check them out....
 
Nowwhat said:
I disagree a refinance will be at a higher interest rate...and just prolongs the pain...

Paying interest is what is killing you.. Try to stop buying anything on credit if possible...

A Family loan to clear you debts can be an option sometimes...paying your family 5% and using the $$ you borrow to pay off high interest CCs and the like will get you back above water
Click to expand...
I agree with Nowwhat....Suck it up until the truck is paid for. Then you can pay off all your other debts. ;)

Stretching it back out just puts more of you $$ into the bank's pocket.
 
I'm on the suck it up side of the fence as well. Plenty of ways to make side money if you really want to keep it. If you can't afford it sell it.
 
what they said, i have always tried to keep finance terms as short as possible.
 
Agreed. Interest is lost money unless it can be itemized in your tax return. Sometimes, that's not even good enough.

With $800 a month going into your principal, you've got a good deal going. It will be over sooner than you expect.:) Pay up and keep it on all four.:burnout:
 
At $900 a month on a $29k loan, your pay-off should be no more than $22k, if not less.....let's say $22k x 60 months x 6.99% (prime on used :dontknow: )....anyway, that's about a $440 payment (for every $5k financed at prime on 60, it's about $100 in payment)

The advantage here is your payments are fixed, you never have a pre-payment penalty, and you're already in an equity position on your unit.....other loans, including credit cards and tools, often come at a much higher rate.....I actually think your idea of a refi is a good one....take the remaining $460 each month, pay-off your credit cards and other loans at a record pace.....once complete, you can double up on payments and make $900 a month....it might cost you a few bucks, but one slipped up late payment on a credit card (ie, they forget to ship a statement)....can cause interest to go through the roof and really hurt you.....

My advice....refi, get your revolving debt and personal loans paid, and then double back up on the truck....I say this with all due respect to those with differing opinions, but this is the safest, most cost effective route IMHO....

Good luck bro....
 
I go for refinance, sure if you go full term of loan your putting more money in the banks pocket. Trick is to pay as much as you can on principle over your regular payment. Like Red said the money to intrest ratio will get smaller as the loan goes on.

However its kinda like rob Peter to pay Paul. If your eating can beans and sitting in the dark at home becuase of bills. Sometimes you have to refinance.

Im kinda in the same boat however my payments are not near as high as yours. I have three cars and together all three take a nice morgage payment i could be putting down on a house. But sometimes bro you have to stop and say what is life about. If your single and dont have kids. Then live your life man. You cant take money with you to the grave. And life is short. One minute your hear next your not.

Im about to refiance mine , i gotta get my payments down. Im with a credit union and they are by far the best , easy, and painless way to go. Fortuanlly im a DOD Contractor and im able to use the military credit unions which save me tons of bank.

Do you have any family in the military. If so i would check out these credit unions.

Try to stay away from Name banks. Like SunTrust, Bank of America, etc.. They will really screw you.

Pentagon Federal Credit Union
Navy Federal Credit Union
Marine Federal Credit Union

Like somone said its not easy, but there is allways side jobs, parttime jobs, and weekend jobs for extra income if its that bad.
 
Don't want to sound like an elitist, but now is the time to make a commitment.

Pay interest on your home loan and nothing else. Bite the bullet now...do not buy another vehicle on credit. Wait an extra year or two while you save the money necessary...you do the math...if you never pay another dime of interest on vehicles...over 50 years, compute the savings....I decided early to never do it again...the ability to negotiate with a check book in your hands is also a wonderful tool. Even if you can't do it now plan to pay cash for the next one, no ifs, ands, or buts...if we were in a very high inflationary period I might change my mind and pay back with deflated dollars, but inflation is under control now...

FerrariTruck...if you own a home refinance using a home equity loan...you can at least write off the interest at tax time. But do whatever you have to, to get to where you pay cash next time. This may not be helpful now...but it is great advice for the future...

Sorry, I do tend to lecture...
 
Prof said:
Don't want to sound like an elitist, but now is the time to make a commitment.

Pay interest on your home loan and nothing else. Bite the bullet now...do not buy another vehicle on credit. Wait an extra year or two while you save the money necessary...you do the math...if you never pay another dime of interest on vehicles...over 50 years, compute the savings....I decided early to never do it again...the ability to negotiate with a check book in your hands is also a wonderful tool. Even if you can't do it now plan to pay cash for the next one, no ifs, ands, or buts...if we were in a very high inflationary period I might change my mind and pay back with deflated dollars, but inflation is under control now...

FerrariTruck...if you own a home refinance using a home equity loan...you can at least write off the interest at tax time. But do whatever you have to, to get to where you pay cash next time. This may not be helpful now...but it is great advice for the future...

Sorry, I do tend to lecture...
Click to expand...

Thats what I did...I used the equity in the house...dont owe a dime except for a house payment..ok, a large house payment LOL :dontknow: :p
 
Chuck B said:
I'm on the suck it up side of the fence as well. Plenty of ways to make side money if you really want to keep it. If you can't afford it sell it.
Click to expand...
Agreed.

Have you got some spare time? Pick up some part-time work to make the extra $$. Then avoid pissin' it away!

And ONLY use a credit card if you have to cash to pay it off each month. NEVER pay interest if you can help it!
 
Prof said:
Don't want to sound like an elitist, but now is the time to make a commitment.

Pay interest on your home loan and nothing else. Bite the bullet now...do not buy another vehicle on credit. Wait an extra year or two while you save the money necessary...you do the math...if you never pay another dime of interest on vehicles...over 50 years, compute the savings....I decided early to never do it again...the ability to negotiate with a check book in your hands is also a wonderful tool. Even if you can't do it now plan to pay cash for the next one, no ifs, ands, or buts...if we were in a very high inflationary period I might change my mind and pay back with deflated dollars, but inflation is under control now...
Click to expand...

I think I'm one of the few....to have never had a car payment in my life. Though with my first car I borrowed $300 from dad but had him paid off within a month. That was......28yrs ago?!! Now, I've got 16 mortgage payments but thats another story.
 
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