Want to save on car - help?

iVillage Member
Registered: 04-16-2003
Want to save on car - help?
4
Wed, 04-30-2003 - 10:26am
I currently drive a '02 Corolla, which is in my stepdad's name. I make the monthly payments of $297.03 + my HORRIFYINGLY LARGE insurance payment of nearly $350/month. Add those up, and I'm paying more to drive my car than I pay in rent ($460/month).

Now, my BF found me a nice '98 Olds Eighty-eight...in great shape (owned by elderly people, so it's immaculate!). For only $7225, which is 1/2 of what my Corolla cost me.

How do I get rid of the car I have now - it's on a 5 yr loan through Toyota Motor Credit (in my stepdad's name) and re-finance this Oldsmobile?

I have never done this, so any advice would be great!

iVillage Member
Registered: 04-30-2003
Wed, 04-30-2003 - 10:58am
Hi learningtolove, I am currently going through this same thing. I bought a car 2 years ago and between my car note and my insurance I pay $600. I am now in the process of getting this car repossessed cause I can not afford it any longer. Ive tried to refiance through my car loan people but they denied me and Ive tried trading it in to other dealers (there is a lot of damage to the car, inside and out and cannot afford to have it fixed) and they would not take it either. You could try both of these steps and hopefully you will have better luck!
iVillage Member
Registered: 03-26-2003
Wed, 04-30-2003 - 1:38pm
Have you tried changing insurance companies? That is very high! Maybe you already tried that, but where I live, you'd pay half that or possibly even less if you have a good driving record. There's no need to feel any loyalty toward an insurance company if you can get it cheaper somewhere else.

Otherwise, I have no advice on trading down. We've never bought a new car because of how fast you get upside down in the loan. I don't ever want to get stuck with a vehicle because it's worth less than we owe. My guess would be to try to sell the Corola outright as you'll get more than if you traded it. Do you know if you'll make any profit? That would make a nice down payment on the Olds. This could take some time, but there is always something out there. You don't HAVE to buy the Olds. Also, if you can buy the Olds on a personal installment loan instead of a car loan, I know in PA you won't need full insurance coverage. Just liability. You can save hundreds that way. But then you won't be covered in a collision. It's a risk, but that's usually what we do because our cars are old anyway and not hard to replace.

Sharon


Edited 4/30/2003 1:43:53 PM ET by sharonb2002

 

Avatar for zaboz
iVillage Member
Registered: 03-26-2003
Wed, 04-30-2003 - 2:37pm
You can check www.kbb.com for the car's value. That should give you a good feel for

whether selling it is realistic. If you're upside down on the loan you could try

to make extra payments to catch up.

Then just list it in the paper or on autotrader.com. I don't know how

it works because you would have to have the title to transfer it but people do it

all the time. So you might call your financing company and ask how you go about transferring the title.

You might have to have the buyer write the check to the

financing company so that the title is released to them. Good luck! I think it's a great idea. I've never heard of an insurance payment that high!

iVillage Member
Registered: 02-14-2003
Wed, 04-30-2003 - 4:20pm
Have you posted on Car Smarts? That's a great board with lots of info on how to deal with cars. :o)

http://messageboards.ivillage.com/iv-mlcars

CM Ms Joe Cool

Senior Community Moderator

moneylifecm@mail.ivillage.com

Ms Joe
CM Ms Joe Cool
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