I need to lose my car payment.

[Tcoat]

Originally Posted by Jyn

Something I heard poor people have.

Some of us not so poor people have them as well but that is through choice not because we need too!

[Timmy_Jones]

Originally Posted by BlackMonarch

Refinance with some money down. If you only owe 10k, walk in to a bank with 1.5k in hand, or less, and be like "Hey, payment's insane, tired of paying on 28k when I only owe 10, let's refi this bitch" and walk out with a 180$ car payment.

To add to this a bit, you hav a 2013\14 MY vehicle. Banks will not look favorably on trading it off for an 04-10 vehicle. Your interest rate will be exorbitant, and your payments won't move all that much. Banks look at risk vs payout on auto loans. They sit and ask "What can we take them for besides the cost of the car, but also safely lend them so they won't default?" - Now obviously new cars are much lower risk. Won't break, less likely to be totaled out, warranties, etc.

Getting in to trading a new car for an old car, the banks get kinda suspicious. They wonder why - And then they realize it's because you don't like your car payment. What's going to stop this guy from doing this AGAIN? they ask. And it becomes an uphill battle for the finance department to get anything done for you at that point because the banks are playing hot potato and throwing it from subprime branch to subprime branch.

Your honest to (deity of choice) bet, is to go to your bank\lender\money-establishment and attempt a refinance.

have you ever worked for a leanding company or bank/credit union? The 'suspicion' you are talking about would only come into play if he had poor credit. If your credit history and score are solid, a refi is very common to reduce a monthly payment.

Also, when you do a trade-in, the bank has NO IDEA what you are trading in, unless your current loan is through them. Even so, why would the bank punish someone for moving to a cheaper car?

This is all very poor advice and not very well thought out.

To the OP; if you have a solid credit score, a refi is a great idea, as long as you realize the drawbacks of doing so.

[EAGLE5]

Dealers will typically charge 10k for an old xB. You're better off with a new Fit, Yaris, or xD.

[strat61caster]

IMO, the most financially beneficial solution looks to be as follows, note that there is a bit of risk here that may make some people nervous:

Find car you want, get loan for car, buy it. Many loans, especially dealership incentives don't have you making your first payment for a month or two so you won't have to pay two payments if you get the timing right.

Sell FR-S privately, putting it up on the market for a week or two will net you a higher price than dealership trade-in.

When selling a car you have a loan on you can contact the loan company and they typically will help you transfer the title and pay off the loan with the money you get, they usually want to help you so they can get their money back.

With the auto loan on the 'xB' you can stretch out the payments a bit, will look better on your credit history than getting a loan and paying it all off on the first payment I believe but I'm no finance guy so I may be wrong on that, you can do some research.

Why xB? Might be worth doing a bit of research, from what I can tell the only benefit to the xB is cargo space, mediocre at best driving experience, and initial purchase price.

[BlackMonarch]

Originally Posted by Timmy_Jones

have you ever worked for a leanding company or bank/credit union? The 'suspicion' you are talking about would only come into play if he had poor credit. If your credit history and score are solid, a refi is very common to reduce a monthly payment.

Also, when you do a trade-in, the bank has NO IDEA what you are trading in, unless your current loan is through them. Even so, why would the bank punish someone for moving to a cheaper car?

This is all very poor advice and not very well thought out.

To the OP; if you have a solid credit score, a refi is a great idea, as long as you realize the drawbacks of doing so.

The suspicion I'm talking about comes in to play regardless. Dealers want to make money, but they don't want to get fucked on the trade either. Yes, I have worked in lending, I worked in finance for a Honda dealership for quite some time.

The banks do know what you're trading in, in cases where there is negative equity involved, i.e. rolling some money on to the new loan, it's a required disclosure. And yes, I'm aware it's mostly in the case of poor credit where these things comes in to play, however I would assume if the OP had substantial cash flow this wouldn't be coming up in the first place.

I like how, at the end of your post, you admit my suggestion is a good one, despite disagreeing with everything I said.

[Tcoat]

Originally Posted by BlackMonarch

The suspicion I'm talking about comes in to play regardless. Dealers want to make money, but they don't want to get fucked on the trade either. Yes, I have worked in lending, I worked in finance for a Honda dealership for quite some time.

The banks do know what you're trading in, in cases where there is negative equity involved, i.e. rolling some money on to the new loan, it's a required disclosure. And yes, I'm aware it's mostly in the case of poor credit where these things comes in to play, however I would assume if the OP had substantial cash flow this wouldn't be coming up in the first place.

I like how, at the end of your post, you admit my suggestion is a good one, despite disagreeing with everything I said.

I can not speak to the U.S. financing but what Black says here is exactly what I came up against when buying my FRS.
Even though I have a stellar credit rating I was very upside down on the loan because I had only had my prior car for 2 years. The bank questioned very closely as to why I was trading a 2 year old car for a new one and were very reluctant to do any loan. The bank rep even asked me "how do we know you won't just turn around and do it again in two more years?" I was having quite a time until I showed them my wife and I's proof of income and then they suddenly were more then happy to help.

[Koa]

Originally Posted by BlackMonarch

The suspicion I'm talking about comes in to play regardless. Dealers want to make money, but they don't want to get fucked on the trade either. Yes, I have worked in lending, I worked in finance for a Honda dealership for quite some time.

The banks do know what you're trading in, in cases where there is negative equity involved, i.e. rolling some money on to the new loan, it's a required disclosure. And yes, I'm aware it's mostly in the case of poor credit where these things comes in to play, however I would assume if the OP had substantial cash flow this wouldn't be coming up in the first place.

I like how, at the end of your post, you admit my suggestion is a good one, despite disagreeing with everything I said.

Correct me if I'm wrong, but negative equity as per book definition is a scenario when the asset used for securing the loan (or refi) is less than the outstanding balance.. does that apply here?

[Tt3Sheppard]

Refinance? Considering how much left you have owed on the vehicle it wouldn't be a bad idea. Keep in mind you can pay more than the monthly payment if you have the funds but the monthly payment will be lower. Might be a better option then trading, losing money, and purchasing another vehicle with another loan. Just my opinion but I'm sure you already have everything planned out.

[Timmy_Jones]

Originally Posted by BlackMonarch

The suspicion I'm talking about comes in to play regardless. Dealers want to make money, but they don't want to get fucked on the trade either. Yes, I have worked in lending, I worked in finance for a Honda dealership for quite some time.

The banks do know what you're trading in, in cases where there is negative equity involved, i.e. rolling some money on to the new loan, it's a required disclosure. And yes, I'm aware it's mostly in the case of poor credit where these things comes in to play, however I would assume if the OP had substantial cash flow this wouldn't be coming up in the first place.

I like how, at the end of your post, you admit my suggestion is a good one, despite disagreeing with everything I said.

So you worked on the dealer side, makes sense now.

I disagreed with your perspective and the evidence you had, however doesn't mean I will disagree with you that its a good idea to refi.

[Timmy_Jones]

Originally Posted by Tcoat

I can not speak to the U.S. financing but what Black says here is exactly what I came up against when buying my FRS.
Even though I have a stellar credit rating I was very upside down on the loan because I had only had my prior car for 2 years. The bank questioned very closely as to why I was trading a 2 year old car for a new one and were very reluctant to do any loan. The bank rep even asked me "how do we know you won't just turn around and do it again in two more years?" I was having quite a time until I showed them my wife and I's proof of income and then they suddenly were more then happy to help.

They would inevitably ask for your income anyways...sounds like the Lending Officer did a poor job of handling the situation. They shouldn't have questioned you until they had all the pieces.

[Tcoat]

Originally Posted by Timmy_Jones

They would inevitably ask for your income anyways...sounds like the Lending Officer did a poor job of handling the situation. They shouldn't have questioned you until they had all the pieces.

They knew the rough amounts but just had not seen the documentation yet. It was an amazing change once they did though.

[BRZZZZZZZZZZ]

Originally Posted by Gearbanger

Whats a car payment?

Its that thing you pay because you buy your mods with cash instead?

[BlackMonarch]

Originally Posted by BRZZZZZZZZZZ

Its that thing you pay because you buy your mods with cash instead?

Aint that the truth. Hahaha.

[LucidMomentum]

Originally Posted by BlackMonarch

Aint that the truth. Hahaha.

I just came to the very gave realization that I spend more in a month on mods for the car than on the actual car payment itself...