Need advice re: car payment with high interest rate**UPDATE on page 3** - Page 3 - TigerDroppings.com

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Overbrook
Tulane Fan
Member since May 2013
1718 posts

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


Don't do it. I made that mistake once. If she has fiancee status, buy the car from her and lease it back to her.





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Rudy40
LSU Fan
Baton Rouge,La
Member since Jan 2007
2243 posts

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


Work in auto finance for a major bank not Santander! Can you refinance with some cash down? For example if you are refinancing about 10K and can put 2500 down will knock rate down significantly with you co signing.

Also no offense but Santander finances the very low end credit and charges high fees dealers dont like so if she can get approved at a different bank should be better rate as well






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King of New Orleans
LSU Fan
In front of The Hungry Tiger
Member since Jul 2011
5075 posts
 Online 

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


I applied this morning as a co-signer at neighbors.

hoping it fixes things!






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Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
39636 posts

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


Actually the car is probably on 13% and there was a 3-4% kickback to the dealer. Thats typically how it works. The bank paid the dealer 4% off the bat to get her in at 17%. The bank is more than happy to take 13%. But they charge that because she is a very high risk. Otherise nobody would make a loan to her. Much better to get your own loan on the car and buy it from her than to cosign with her on a refi. (what if you dont get married? she could purposly default and take your credit with the break up) If you buy it then worse case is that you own the car. Also you can insure it far cheaper than under her credit likely. Depending on ins co.


This post was edited on 7/15 at 12:18 pm


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King of New Orleans
LSU Fan
In front of The Hungry Tiger
Member since Jul 2011
5075 posts
 Online 

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


quote:

what if you dont get married? she could purposly default and take your credit with the break up








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King of New Orleans
LSU Fan
In front of The Hungry Tiger
Member since Jul 2011
5075 posts
 Online 

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


Update:

First off, I want to thank everyone for their input. It helped me very much. That being said, I'm pretty much stuck. I spoke with Neighbors and PenFed. The car's payoff is 18k roughly but the NADA and KBB value is 14k so the only way to have it refinanced is putting down the 4k difference. sucks bad but im using it as a valuable teaching lesson for the fiancé

Right now, im planning on just having her continue to make her monthly payments as shes been doing and pay it off. Are there ANY OTHER OPTIONS at this point assuming I don't put 4k to meet the difference?


Again, thanks everyone for their input. While it didn't necessarily help the situation, I got to learn some stuff and gain knowledge in dealing with loans and such. So not all is lost!






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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6325 posts

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


If you dont have 4k cash, put 4k on credit card and finance the other 14k at ridiculously lower rate.







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ell_13
USA Fan
Alex Box
Member since Apr 2013
22965 posts

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


quote:

put 4k on credit card


With 20% interest?

Home equity line of credit might be a better option if available.






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txtiger21
LSU Fan
Dallas, TX
Member since Jul 2010
250 posts

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


quote:

With 20% interest?


Yes, or a promotional 0% for 12-18 months. Still well worth it to get 80% of the amount at a drastically lower rate.






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bubbz
Baylor Fan
Team Boxtard
Member since Mar 2006
17990 posts

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


King what is your email? I'm pretty sure I can help you out.


This post was edited on 7/17 at 6:05 pm


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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


quote:

promotional 0% for 12-18 months. Still well worth it to get 80% of the amount at a drastically lower rate.







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King of New Orleans
LSU Fan
In front of The Hungry Tiger
Member since Jul 2011
5075 posts
 Online 

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


Use ineedlsutickets@gmail.com for now. I'll give you my everyday one after.

I'd appreciate any help!






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bubbz
Baylor Fan
Team Boxtard
Member since Mar 2006
17990 posts

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


I'll email you in the morning and we will talk.





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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6325 posts

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


quote:

Home equity line of credit might be a better option if available.


For 4k? When 0% are on every corner? Hell he can probably get 18k on a 0% for 18 months if he can get a HELOC.







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Will Cover
Washington Fan
Whiskey Dick Mountain, WA
Member since Mar 2007
24902 posts

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


Why would anyone advise putting his house on the line over a stupid car he doesn't even legally own?





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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6325 posts

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


quote:

Why would anyone advise putting his house on the line over a stupid car he doesn't even legally own?


I think O-T posters are growing up a bit and starting to make their way here, applying O-T level advice to MT situations.







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King of New Orleans
LSU Fan
In front of The Hungry Tiger
Member since Jul 2011
5075 posts
 Online 

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


Bubbz, YGM





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MTG325
LSU Fan
Shreveport, LA.
Member since Oct 2011
134 posts

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


I think if it is a simple interest loan, after you pay a full note, two weeks later pay half the note, the interest will apply to that payment. Two weeks later pay the other half or more and that one applies to the principal. I hear this cuts the interest in half and you pay it off quicker. I have not tried this, only heard about it, anyone know if this is true.





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Ace Midnight
LSU Fan
Ball, LA - Home, Sweet Home
Member since Dec 2006
30017 posts

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


quote:

sucks bad but im using it as a valuable teaching lesson for the fiancé


I'm not going to beat you up for selecting the absolute worse option from among the menu, because I completely appreciate and understand your situation - I've probably made decisions that were comparably bad, in my youth, perhaps worse (and I made a bunch of bad ones).

Having said that, I hope this doesn't turn into a very expensive teaching lesson for yourself. Good luck and G-d bless.



This post was edited on 7/19 at 7:24 am


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CubsFanBudMan
Member since Jul 2008
639 posts

re: Need advice re: car payment with high interest rate**UPDATE on page 3**


quote:

I think if it is a simple interest loan, after you pay a full note, two weeks later pay half the note, the interest will apply to that payment. Two weeks later pay the other half or more and that one applies to the principal. I hear this cuts the interest in half and you pay it off quicker. I have not tried this, only heard about it, anyone know if this is true.


The main reason the 2 week payment schedule pays the loan off faster is that you're making 26 half payments a year (13 full payments) instead of 12 full payments. The interest that you save by making half of a payment a couple of weeks early isn't a lot.






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