I need to lose my car payment.

[billwot]

Originally Posted by Koa

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?

Yes, that's what negative equity means.

[Tcoat]

Originally Posted by LucidMomentum

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...

[ckkone]

I don't understand why people buy cars they can't afford in the first place? If you can't pay cash for a car then it is to expensive for you.....

[UtahSleeper]

Originally Posted by ckkone

I don't understand why people buy cars they can't afford in the first place? If you can't pay cash for a car then it is to expensive for you.....

Cause most of us dont have the patience to save up over 25k cash lol.

Sounds like the OP got the car in a good situation, but then his situation changed drastically. Just glad he appears to be trying to fix it and plan the process.

[Frishkorn]

Go get a second job and put ALL of that income towards your payment!!! And don't sell the car, you are more than half way there!

[stugray]

Originally Posted by ckkone

I don't understand why people buy cars they can't afford in the first place? If you can't pay cash for a car then it is to expensive for you.....

So I guess you are suggesting that "If you cant pay cash for a house then it is too expensive for you..."

So that means that 99.99% of people that live in a house (that they own) are living beyond thier means? Since nearly ALL people finance their house...

I know people that finance their tools (like pro auto-mechanics).
Are you suggesting that they should not finance things like tools?
So they could have a job?
I consider my car just another tool to get me to work.

However, I get what you are saying.
My 18 year old son wants to finance a $20k car and I tell him that "you can get by with a $1000 beater for now"...

[Tcoat]

Originally Posted by stugray

I consider my car just another tool to get me to work.

This is how I look at it as well.
Why should I use "my" money to buy a car? If I can finance at a rate under what I can get by investing the cash then I come out ahead (not much but still ahead).
I also clock a pile of miles and there is not a hope that I would be able to save the cash to buy a new car every 3 or 4 years to.
Do I anticipate car payments until I retire? Certainly, but it is part of an overall financial plan not just a "I want it now" scenario.

[SkAsphalt]

Originally Posted by Linseal

I need to lose my car payment. How hard would it be to trade in my 2013 FR-S with 44k miles, and drive off the lot with something reliable, maybe a first gen xB? I currently owe $10,989 for the FR-S. Is this something that is possible, or am I looking at still having some kind car payment no matter what?

Sell FRS privately, buy a Corolla.

xB will be harder to sell in the future, increasing your total loss potential here

[Dadhawk]

Originally Posted by Tcoat

...there is not a hope that I would be able to save the cash to buy a new car every 3 or 4 years to....

If you don't have a car payment, that is exactly what you (a person, not you @Tcoat necessarily) can do. You save the money instead of sending it to the auto loan. Then you also have the cash available for other purposes if necessary.

It's the "if necessary" part that gets folks in trouble.

[Tcoat]

Originally Posted by Dadhawk

If you don't have a car payment, that is exactly what you (a person, not you @Tcoat necessarily) can do. You save the money instead of sending it to the auto loan. Then you also have the cash available for other purposes if necessary.

It's the "if necessary" part that gets folks in trouble.

Yes I agree!
It is totally different to have a loan as part of an overall strategy as opposed to "I want it now and can't afford it".
If I stick to my overall plan when I am ready to retire and quit putting +/- 40K miles a year on my cars I will be able to pay off the loan on the last one and be debt free.

[ckkone]

Loans.... LOL

[srt4evah]

Originally Posted by Tcoat

This is how I look at it as well.
Why should I use "my" money to buy a car? If I can finance at a rate under what I can get by investing the cash then I come out ahead (not much but still ahead).
I also clock a pile of miles and there is not a hope that I would be able to save the cash to buy a new car every 3 or 4 years to.
Do I anticipate car payments until I retire? Certainly, but it is part of an overall financial plan not just a "I want it now" scenario.

Exactly. I got 1.65% on my ISF, and if/when I get an FRS I'll be financing that at the same rate. I could pay cash for either, but why would I do that when I could use that cash to return 30-40% annually with a few good investments, and let the bank get 1.65% from me...?

[reni]

Originally Posted by srt4evah

30-40% annually with a few good investments,

LOL

[strat61caster]

Originally Posted by Tcoat

This is how I look at it as well.
Why should I use "my" money to buy a car? If I can finance at a rate under what I can get by investing the cash then I come out ahead (not much but still ahead).

I hear this all the fucking time and even repeated it once or twice: but where the FUCK can you get a >3% return on a <5 year investment guaranteed?

Seriously, people need to back that shit up or I'll place you in my Dr. Oz and Dr. Phil category of advice givers.