Re: Your Thoughts on Our Situation
Many of the posts below (or above, depending on how you read your threads) tell the OP (kobe008) that $500 is too high for a car payment. I don't see that as helpful advice.
If the OP was considering buying a car with a $500 monthly payment, we could advise against it. But the OP has already signed the car note and may be stuck with it. If his credit is bad, he won't be able to refinance it at a better rate.
If he could renegotiate it, the best he would be able to do is get a lower monthly payment, but that could result in a longer term and higher total payments.
If he's upside down on the loan (owes more than the car is worth), then he can't sell the car to pay off the loan and buy a less expensive car, especially if there is a prepayment penalty.
So please let's stop beating him up about the car payment.
Many of the posts below (or above, depending on how you read your threads) tell the OP (kobe008) that $500 is too high for a car payment. I don't see that as helpful advice.
If the OP was considering buying a car with a $500 monthly payment, we could advise against it. But the OP has already signed the car note and may be stuck with it. If his credit is bad, he won't be able to refinance it at a better rate.
If he could renegotiate it, the best he would be able to do is get a lower monthly payment, but that could result in a longer term and higher total payments.
If he's upside down on the loan (owes more than the car is worth), then he can't sell the car to pay off the loan and buy a less expensive car, especially if there is a prepayment penalty.
So please let's stop beating him up about the car payment.

Comment