How often do auto loan interest rates change?Rolling 6G negative equity into new loan/ Best trade in value.?
When I got my auto, I had good credit, interest rates were low-6.9% Now my credit isnt good, I relied on credit cards to help me out & I am going to get approved for auto loan, but the int. rate is 17.9%. How long after improving my credit will it take to get a good score again? Could I refinance my auto loan in 3 months if I pay down on cards (I’m owed quite a bit of money for being a subcontractor–just not sure "when" it’s going to be paid). If everyone paid what they owe me today, I’d be ,000.00 better off, and I’d have my credit cards at zero balance. However, I do need a reliable vehicle to get to and from work, and this new one would ensure no worries (w/ optional extended warranty) If I keep driving the vehicle I have now & any unexpected repairs are needed, I may be putting money into it along with monthly payments. I plan on paying off new one in 14 months. But the interest on that would be ,000. Pay off ,000 loan in 1 year, or go w/ new loan/safety of auto??
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Just today I bought a 2001 Mazda MPV van with 88000 miles for 4000. Lot and list is around 7000. I did this by not having a car payment. I drew a line in the sand that I would not owe on my vehicles.
I hated the idea that if I couldn’t work that someone could come to my house and take my car from me. I originally had a car payment. I sold that car and with a little savings bought a little better car for cash. So instead of paying a car payment I saved that payment. That allowed me to have cash on hand to pay for the small repairs and even major ones without it being a crisis.
So here I am sitting on that car payment savings looking for a deal. So I pick up the 2001 for 4000 sell my car for 2000 and that gives me a 2001 vehicle for net of only 2000 dollars on the purchase price.
Since you are a contracter take a second and look at the depreciation that you are taking on your vehicles. That depreciation is cutting into your take home pay. You have already lost 6000 on the first vehicle. The next vehicle you will probably lose at least 5000 in interest plus 5000 in depreciation in one year. That is ten-thousand dollar loss in your balance sheet. With 10,000 dollars cash you could by a nice car. Put back in savings that 400 a month to pay for repairs and savings for your next car. A 10,000 car shouldn’t have many problems so in a year you would have 4800 in cash sell yours for 9000 and buy a 13000 car. All in cash, no payments, no rollovers next year. No worrys about credit ratings and trade ins. As for as new vehicles not needing repairs take a look in the dealers shop next time your in there and see how many late models are in there. Good luck.