To sell or not to sell?
April 28, 2016 at 7:57 pm #168544masotomaParticipant
Due to a series of questionable decisions, I am currently financing two vehicles. Here are the details:
2006 Corolla, 126K, balance owed is $7326.10 at 3.80%, monthly payment is $236.54
2012 Camry, 66K, balance owed is $17,000.00 at 7.99%, monthly payment is $328.04
The Corolla was purchased nearly new and I did a horrible refinance years ago and got cash back, which is why I still owe so much. The Camry was purchased last year for my ex to drive (he was another questionable decision). I refused to co-sign a vehicle so I’m taking over the payments on that car after kicking him to the curb.
It’s a tight squeeze but I can manage the payments on both vehicles. Due to high balances on my other accounts, I can’t currently refinance the Camry at a lower interest rate. I’m upside down on the Camry by $3K or so…I’m wondering if I am better off just selling it at this point and paying off the difference. My Corolla is in decent shape and should hold up for at least another year or two. That would give me time to pay off the excess balance on the Camry loan as well as lower my monthly insurance rate by $76. I can’t imagine the Corolla has more than a $2K resale value so I’m just resigned to paying off that blunder. Anyone have any sound advice about which way to go?May 5, 2016 at 11:58 am #169198SherrieLParticipant
Depends on the other accounts, their balances, and the interest being charged. What is the highest interest rate ones? Can you get those paid off with extra effort first, and apply the payments toward the car you decide to keep? I agree you need to sell one of the cars, and the Camry would give you the better “bang for your buck”. Can you check with a savings and loan to see if you can do a personal loan for the remainder on the Camry? If it is only a couple of thousand dollars, your lowered insurance payment plus the $328 you won’t be paying on the car would kick that out in a year. Then, keep paying that amount MORE on your remaining car or remaining debts (again, what has the highest interest?) and you could be out of a substantial part of your debt quickly.
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