Moneedshelp Posted January 8, 2008 Report Share Posted January 8, 2008 Need some advice. Lost car in N.O. with hurricane Katrina in '05. With credit issues and unemployment due to storm, couldn't qualify for car loan, Father stepped in and financed (credit union) purchase of 04 explorer for me. I pay note. Was thinking about selling 04 (my mother was going to purchase it) to get larger SUV. I am upside down in car. 15,000 owed on loan. My mother isn't interested any more I think vehicle may be worth 8-13 k on trade-in. I would probably get about 10, I think, maybe less. Was approved with my CU for 25K (yeah, progress being made), but this isn't going to cover everything if I have to get the 04 loan paid off. Was looking at Sequoia or maybe another explorer. I might be able to get more from CU and I have some to put down What should I do????? The 04 has 78000 mi. and I haven't had any major problems with it. I am thinking because I am upside down it may be hard to do much, but if I want to try to dump 04, shouldn't I do it sooner rather than later? What do you think? Should I just keep the 04 or can I do some creative maneuvering to get a different vehicle. Wanted a used 07 to avoid depreciation on new vehicle but still get benefits of warranty and interest rate. Quote Link to comment Share on other sites More sharing options...
Moneedshelp Posted January 8, 2008 Author Report Share Posted January 8, 2008 come on, i need some advice Quote Link to comment Share on other sites More sharing options...
ceowens Posted January 8, 2008 Report Share Posted January 8, 2008 If you're approaching the need for a new car from the angle that you have 78,000 on the other one, then I wouldn't worry. I drive a 2005 Excursion with 132,000 miles on it and it has never needed a repair. My DH drives a 2001 F250 with 212,000 miles on it...have only had to replace brakes from normal wear. We also own a 94 F 250 and a 93 F-150 with too many miles to count. All run beautifully and all are in use every single day. Point I'm trying to make here is.....you have alot of years left on that car if you have kept up with your maintenance. And, with gas prices what they are......do you really NEED a bigger SUV???? Quote Link to comment Share on other sites More sharing options...
Moneedshelp Posted January 8, 2008 Author Report Share Posted January 8, 2008 I am thinking about the gas prices. I am sure by the summer, they will be in obrit. Good point, and I have been considering this angle do I want to pay an increase on a note as well as insurance and increased gas cost. Quote Link to comment Share on other sites More sharing options...
insomniac Posted January 8, 2008 Report Share Posted January 8, 2008 I'd hang onto what you have now, especially if you're upside-down on the loan. You really don't want to roll that negative equity into another loan if you don't have to. (Also, I make a point of driving cars into the ground. Just got rid of a Nissan Sentra with 220K miles...) Quote Link to comment Share on other sites More sharing options...
spoiler Posted January 8, 2008 Report Share Posted January 8, 2008 I think the want for a newer car is driving you to not care about what kind of deal you may be getting. If you are trying to get into something bigger and newer...then you are going to be paying a higher car payment.If you can afford a higher car payment, why not just use that money to pay down the car that you are in now until you can sell it for what it is worth? Quote Link to comment Share on other sites More sharing options...
someonesomewhere Posted January 8, 2008 Report Share Posted January 8, 2008 Was thinking about selling 04 [Explorer] to get larger SUV. I am upside down in car. 15,000 owed on loan....Was looking at Sequoia or maybe another explorer...I am thinking about the gas prices. I am sure by the summer, they will be in orbitWhat kinda mileage are you getting with your '04 Explorer, what kinda mileage are you realistically expecting outta an '07 Sequoia, and about how many miles a year are you expecting to put on any vehicle over the next couple of years?If you were in an area where there's FlexFuel (E85), or were considering a hybrid (which I still don't believe are quite ready for primetime), then I'd be more inclined to tell ya to jump into a new vehicle. Otherwise, not so much. Quote Link to comment Share on other sites More sharing options...
Moneedshelp Posted January 8, 2008 Author Report Share Posted January 8, 2008 I am sure the my mileage with the sequoia will suck. have a friend who has one, and she doesn't like the mileage. Not too horrible with the explorer.I guess my biggest concern was should I try to ditch the car because I am upside down and probably won't every be able to get anything out of it. But then again, if I keep it it won't matter. Had my last car for 9 years and it probably would have lasted longer if it had not been drowned by Katrina. (VW Jetta '97) Quote Link to comment Share on other sites More sharing options...
LVMortgageMom Posted January 9, 2008 Report Share Posted January 9, 2008 Think about it......you'd be upside in either situation. If you bought something new, they would have to bump the purchase price up high enough to cover your original deficit, which would cause you to be upside on the new vehicle. I did it and I think it was one of the worst decisions that I have ever made. I traded in an 02 explorer (which i loved) with 132k miles on it for a brand new 06 explorer. I owed about 4k more than it was worth, but i was getting a good deal because it was 0% interest (my scores were in the 500's then). Well, my payment went up almost $200 and I found out that I was pregnant with my 3rd son a month after I bought it and just 5 months after my 2nd son was born. Needless to say, we are out of room and I am just waiting until I have paid myself out of this whole to upgrade.BTW....my 02 would have been paid off by now had I been making these payments on it. Quote Link to comment Share on other sites More sharing options...
smogtek Posted January 9, 2008 Report Share Posted January 9, 2008 Keep up on the oil/filter changes as well as the transmission fluid and coolant and it should last quite a bit longer.At 78k it's just getting broken in.My "daily driver" is an '86 Accord with 302, 840 on the odometer, just passed its' smog test with flying colors and still gets 32-34 MPG. Reminds me , I need an oil change this weekend.Another thing you can do is make additional payments to the principle and pay it down sooner if you can. That way you'll be in better shape when you actually "need" a newer car.JMHO Quote Link to comment Share on other sites More sharing options...
Amerikaner83 Posted January 9, 2008 Report Share Posted January 9, 2008 my 2 cents? Keep the '04.I'm driving a 97 Grand Am with 160K on it becuase of two reasons:1 ) NO CAR PAYMENT2 ) Low insuranceI'm saving up for my Altima in a year or so (or whenever my GA drops dead) Quote Link to comment Share on other sites More sharing options...
Moneedshelp Posted January 9, 2008 Author Report Share Posted January 9, 2008 thanks all. I think I am going to just stay put with the 04 for now. Will start making the extra payment. I really don't need additional notes right now though I could do it. Will be trying to purchase a house in 09 so the extra savings would help. Also because I didn't finance the first loan (I just pay the note), there would be a big new obligation that would raise my dti ratio when I start trying to get a mortgage. Quote Link to comment Share on other sites More sharing options...
Amerikaner83 Posted January 9, 2008 Report Share Posted January 9, 2008 good thinking Quote Link to comment Share on other sites More sharing options...
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