Auto Loan and Tax Refund ( quick and easy for you guys, just want an opinion)

[bb123]

OK, just curious as to what you guys might say.

 

I have a question and i'll make this as short an sweet as possible.

 

I am getting my tax refund and getting a $1000 or so back. Here's where the dilemma comes into place.

 

I have a truck that i have been paying of for 3 yrs or so now. I owe $1000 on it. The interest is low as I had 700+ credit score then when i financed.

 

I have since ran up a credit card whose interest is 24% or so. I owe $7000....

 

Here is the prob. I am thinking about parking the truck as I have spent $1000s on a new motor, and maintenance that i would never get it back. The prob is, here in Southern California, I filled up last night and is running me about $105 to fill up. That is crazy.

 

so I thought about these options.

 

 

1) Pay the truck off, contact the bank, get a personal loan, and buy a motorcycle. Gas is cheap, the note will be about the same or lower than the truck. So I still save. Take the saved difference and make payments to the credit card as it will be a while before paid off.

 

2) Pay on the truck like normal, let the gas eat you alive, as it has been and apply the refund money to the credit card. Nothing will change except the card balance.

 

3) Take the refund, pay off the truck. Sell the truck, since gas is high you know you'll get hardly squat for it. Take that money and pay the credti card down or frankly off. No card ( or low debt) and no truck payment, but now no vehicle. It will be hard to view a new bike or car without any sort of transportation and to get to a job and/or class.

 

4) anything else you can think of.

 

 

 

 

 

 

Thanks everyone in advance....

[54regcab]

Option 2 is what I would go with.

With a 700 score I'd try to get better than 24% on a CC.

[hegemony]

pay off highest APR first. and ditto on the need to a bT to a lower APR card.

[JohnP]

How old is the truck? What is it worth at this point?

 

What kind of loan can you get? Is your score still 700+?

 

What is the limit on the card? Have you tried getting the APR reduced on the card?

[bb123]

How old is the truck? What is it worth at this point?

 

What kind of loan can you get? Is your score still 700+?

 

What is the limit on the card? Have you tried getting the APR reduced on the card?

 

 

1. 99 expedition

2. worth appx $6000, spent $6000 1yr ago on a new motor

3. No credit scroe went down due to the balance of the credit card, score is appx 640

4. limit on the card is 7000, I have $200 available

5. I do but they keep putting it back saying its a promotion when it wasn't.

 

6. I could sell the truck and pay off the credit card. But I would be out of a vehicle for a bit. Not sure how I'd commute. I would have to finance a new bike or some sort of car as my credit score will be back in the 700+ range. But things like my dirt bike. How would I transport it on the weekends? Little things come in handy. Maybe just buy a smaller truck but I am 6'3 275lbs. Cars aren't very comfy.... But I'd like my wallet to be a little juicier as well...

 

Its a give or take situation I guess...

Edited April 9, 2008 by bb123

[radi8]

Pay off the truck with the $$. Then find a friendly local CU who will write you a loan using it as security. I bet you get one in the 12% or lower range.

Use that to pay off the 24% card, and apply as much as you can to the loan to get it wiped out early.

 

that's about the best I can come up with.

[bb123]

Pay off the truck with the $$. Then find a friendly local CU who will write you a loan using it as security. I bet you get one in the 12% or lower range.

Use that to pay off the 24% card, and apply as much as you can to the loan to get it wiped out early.

 

that's about the best I can come up with.

 

 

 

not a bad idea. I would still owe it but would still have a much lower interest rate. Good idea. But the prob is its going to be hard. This is my exact credit score according to www.truecredit.com where you can see your report continuously for only 15 bucks a month. Anyhow, with the value of the truck it'd be hard. I have a good history with the credit union I am currently with and is in a small town. I left the state but can call up and I am sure they'd work with me. So far the bike, is a good idea. Maybe get my bank to finance me on a bike after paying the truck off. Then sell the truck, use that money to pay off the card or dam nnear all of it.

 

Then what sucks is I am out of a car. When it rains, its gonna be a drag. I've ridden during winters in the midwest but don't really want to go through that again...

 

Not sure about this one...

 

anyhow, according to it, my score is:

 

TransUnion Experian Equifax

605 667 651

[JohnP]

I don't personally think the bike is the route to go. While it is less than a truck in gas - it is bad in rain and winter.

 

I think radi8's solution is best. If you really want to get something better on gas get a car - but I wouldn't advise a bike as your sole transportation personally. ESPECIALLY if you're in the midwest.

Edited April 9, 2008 by JohnP

[bb123]

I don't personally think the bike is the route to go. While it is less than a truck in gas - it is bad in rain and winter.

 

I think radi8's solution is best. If you really want to get something better on gas get a car - but I wouldn't advise a bike as your sole transportation personally. ESPECIALLY if you're in the midwest.

 

 

no lived in the midwest and sipped around when it snowed. Cold but doable.

 

But I am in San Diego now where it doesn't get "cold" so does that make a difference any?

 

 

Hmm, I have to think some more. I would think getting the truck out the way would free up the money in the truck. Then that money would display some leverage.

 

For example. Buy a smaller car at a dealer at their stupid price. This give me something to drive. Advertise the truck, sell it, use that to pay the card down or off, and then refinance the car through my bank in Oklahoma at a lower interest rate as my score will will be higher. I'd have to do it all over the phone though as I am in San Diego.

 

How does that sound..

[Call Me Laura]

Now's not the best time to buy a bike, plus there are some serious downsides to that being your only vehicle. Grocery shopping? Rates will be higher on bikes, too, even if they're your primary mode of transportation, because they're considered 'recreational' vehicles.

 

Definitely put all available money toward the CC, though. And adjust your withholding so that you get less back next year.

[bb123]

Now's not the best time to buy a bike, plus there are some serious downsides to that being your only vehicle. Grocery shopping? Rates will be higher on bikes, too, even if they're your primary mode of transportation, because they're considered 'recreational' vehicles.

 

Definitely put all available money toward the CC, though. And adjust your withholding so that you get less back next year.

 

 

I hear you. But what I did was go into the car dealer today. They stated that no one wants a large vehicle and the trade in value was appx $3000...

 

So selling it would be stupid. But driving it daily and spending $450+/mo is equally the same if you ask me. Just the cost of gas alone will be less than the payment, insurance, and gas in it. Plus I will not have a truck payment, you know?

 

 

I also went into the bike shop to view whats there.

 

 

I gave acall to my bank and the guy (the VP of the bank) who initially gave me the loan after a long speech about priorities, was gone to another bank for promotional possibilities.

 

Well, the other employee was the only one left. Well, when I called, he quit a month ago and left to texas. But it turns out, the same vp who gave me the loan is now the bank CEO. haha, how do you like that. Talk about ironic.

 

So I am sure he'll work something out with me. If he allows me to go collateral free then I'll sell the truck, use that to pay off the card. Then after its paid off, perhaps go after a small truck.

 

 

He's helped me in the past, so maybe something may work out.

 

 

with he newly acquired info. How do you feel about it now? And I dont know how applying to get less back from the taxes next year would help me any. Its always nice to get a considerable chunk back to throw on a serious bill or two... You know?.....

[radi8]

Ignore the "trade in" value. that can be anywhere from $0 to $<insert ridiculously high figure here>! depending on the other numbers in the transaction. Check KBB private party value, I bet it's in the 6-7K range. Or check local ads and dealers for prices similar vehicles are selling for.

 

You really want that bike, huh. I'm sorta wanting to post about what you want Vs. what you need, lol- but I'll save it for another day. You already know. You were previously wondering how you were going to haul your dirt bike around, lol. A bike as your only transport- even in sunny so cal- isn't practical.

Ok, ok...I'm done now, lol.

 

Get the stuff paid off and put some money away first. The bike will ride better when the driver isn't dragging around all that debt.

 

Go pick up a small truck that'll haul your dirt bike, keep you out of the rain, and get better mileage than your current one.

[bb123]

Ignore the "trade in" value. that can be anywhere from $0 to $<insert ridiculously high figure here>! depending on the other numbers in the transaction. Check KBB private party value, I bet it's in the 6-7K range. Or check local ads and dealers for prices similar vehicles are selling for.

 

You really want that bike, huh. I'm sorta wanting to post about what you want Vs. what you need, lol- but I'll save it for another day. You already know. You were previously wondering how you were going to haul your dirt bike around, lol. A bike as your only transport- even in sunny so cal- isn't practical.

Ok, ok...I'm done now, lol.

 

Get the stuff paid off and put some money away first. The bike will ride better when the driver isn't dragging around all that debt.

 

Go pick up a small truck that'll haul your dirt bike, keep you out of the rain, and get better mileage than your current one.

 

 

 

Its sucks man. I have been riding 20yrs and know how to ride in really jacked up weather. Rain? What rain... haha. I rode in winter frost in icy snowed in conditions. I can do it, but its painful. Here in Deigo, no freakin way. I did it throughout high school when a bike was the only vehicle back more than a decade ago.

 

But I know I will save as a biek only will cost $20/wk if i go point "a" to "b".....

 

 

The thing I am thinking is since I have dumped so much in the truck, keep it and use it when it gets bad with weather or going on a date. But the bike is the main transport. The insuirance on both, payment on the bike, and its gas will be less than the trucks gas and note. You know?

 

 

Its only reasonable. Then paychecks after the payment and the insurances plus bike gas, will go all on the card.

 

what do you think?

 

 

 

At this pt rent, utilities, etc is free..... So there is nothing to worry about in that dept. Just the vehicles, the gym, phone, and thats it. I am only here temporary but will leave in a considerable amount of time.

 

 

the truck is worth appx $6-9K according to www.kbb.com

Edited April 10, 2008 by bb123

[bb123]

wow,what jerks.

 

I HATE it when the regular operators ask sooo many questions about "if I can help you" instead of just getting the supervisor.

 

I didn't tell Jean Anne anything and wanted the supervisor.

 

I got her. well, the supervisor Melissa got on and I explained that I have ben with them for 11yrs. I have never been late, and when i had the card balance increased, my score was 740 or so.

 

Well, I give her specific names and interest rates of cards that will accept my balance transfer.

 

This lady says, "Sorry, we don't offer fixed promotional rates at wells fargo. The best we can do is lower your interest to 19.35%. That is the best we can do."

 

I say thank you and I will be closing the account in a few days.

 

 

Then we hang up.

 

So basically, what they are going to do is pay off my wells fargo card. Then start paying on the new card at a much lower interest rate.

 

But that leaves my wells fargo card paid. so I can pay cash for a bike from the paid off card. hahaha. Prob won't though. Still have to think and pay stuff off.....

[Jen23514]

instead of a bike, what about an old honda accord or something?

 

my brother bought one for $1200, about 10 years old, in great shape but was a manual so they guy was having trouble getting rid of it. He garaged his TT and drove the accord to/from work and got about 30mpg on there.

[bb123]

instead of a bike, what about an old honda accord or something?

 

my brother bought one for $1200, about 10 years old, in great shape but was a manual so they guy was having trouble getting rid of it. He garaged his TT and drove the accord to/from work and got about 30mpg on there.

 

 

 

I hear you. I am a biker dude though. I can at least enjoy driving to and from work, you know?

 

I have a plan. what do you think about this....

 

 

The valuie I got last night for this area is $6165. I could sell it for up to $8 but to get rid of it that is what I'd have to do. So get rid of it, pay off the card, the truck will be paid off and I will be debt free. I could posibly get the bike in the mean time, get the truck sold shortly after, and pay off the card. So I will have the bike, but no vehicle after that for a little bit. But this is San Diego. Like you don't need a dam car. I rode my chocolate in the snow in oklahoma. This isn't much to me at all.

 

 

I thnk that's what I'm going to do. Work my as off in the summer, pay the bike off and get on top of my self.

 

 

I think this may be a good idea. Pay off the truck first though and get rid of big bertha.

 

 

I can ride the bike as its spring now here in San Diego and its supposed to get to 86F on fir, sat, and sun. Its official bike season. There isn't weather bad enough out here to prvent riding. I can save as much as possible and get an old beater or a used mid sized truck if it rains too heavily.

 

A month or 2 on the bike won't be that bad without a car as i rode a couple yrs in high school without one. Rain or shine.

Edited April 10, 2008 by bb123

[taco_truck]

is public transportation or carpool available?

 

Could you buy a beater car for bad weather and a bike for the rest?

 

 

I hear ya on the gas, there is 4.25 gal for diesel here and it cost us 140 to fill the tank, and it lasts only a week.

 

Here's an idea, how about a toyota truck?

[Call Me Laura]

And I dont know how applying to get less back from the taxes next year would help me any. Its always nice to get a considerable chunk back to throw on a serious bill or two... You know?.....

 

Because you're giving the government an interest free loan for a year while you pay over 20% interest on credit cards. Have them take less out each month, apply that to your credit cards, and you'll come out ahead next year when it's refund time.

 

I understand the bike thing. I get 60MPG on mine. It may make sense to get one, but "I really want it" isn't the best reason to proceed...

[hegemony]

And I dont know how applying to get less back from the taxes next year would help me any. Its always nice to get a considerable chunk back to throw on a serious bill or two... You know?.....

 

Because you're giving the government an interest free loan for a year while you pay over 20% interest on credit cards. Have them take less out each month, apply that to your credit cards, and you'll come out ahead next year when it's refund time.

 

yup. a tax refund is almost always a bad idea IMHO.

[bb123]

is public transportation or carpool available?

 

Could you buy a beater car for bad weather and a bike for the rest?

 

 

I hear ya on the gas, there is 4.25 gal for diesel here and it cost us 140 to fill the tank, and it lasts only a week.

 

Here's an idea, how about a toyota truck?

 

 

you feel my pain. haha. What I plan to do is sell the truck, pay the card off, well, the new one that takes over this old loan.

 

 

 

PLease, tell me this. I am disciplined enough to take it on based on what you say.

 

If I transfer my credit card balnce to an interest free promotional or a fixed 10% or something, they'd pay off my old wells fargo card. Meaning, it'd be paid off. But this means I don't have to close it. This in turn would HELP my credit as I have more revolving credit. I have a paid off wells fargo card and a new open card.

 

PLus a paid off truck.

 

 

After I get rolling on the bike, the same day advertise the truck ( I have sold prob 35 vehicles/bikes in the past 10yrs so its nothing new), dump it, and have a bike payment, bike payment and cheapie $11 fill up gas, and then after a month can get enough to buy a honda or something. Cars don't bother me much. I might buy a litle toyota truck or something. Not sure yet.

 

I am sort of set on a bike but I do like a few cars and cars are easier to finance. I like the charger, the 350Z, and that would sum up my list. New accords are nice but too expensive as gas is HIGH. So cars selling anywhere here are selling for CRAZY prices. A 10 yrs old honda can go for fairly high. Check out this link. A 1998, a 10yr old car going to $6000 with at LEAST 100,000 miles. Its amazingly high. They're going to hold their value.

 

http://sandiego.craigslist.org/csd/car/618428518.html

 

 

 

But narrowing it down to the wire.

 

 

Bottom line is get rid of the truck, pay off the card, but in the mean time, transfer balance, get a higher revolving credit line if the paid card is cut up, and get a bike or a decent car. Then get rid of that higher dealer "auto/bike dealer" balance if I get my bank to cut me a personal loan at a fixed lower interest.

 

 

 

 

 

 

we know I need to dump the truck, we know I need transportation, we know I have to pay the truck off. Seems like the best way to go right?

 

 

Sound like a plan?

 

 

 

 

What do you think?

[Jen23514]

Because you're giving the government an interest free loan for a year while you pay over 20% interest on credit cards. Have them take less out each month, apply that to your credit cards, and you'll come out ahead next year when it's refund time.

 

not everyone has the discipline

[bb123]

Because you're giving the government an interest free loan for a year while you pay over 20% interest on credit cards. Have them take less out each month, apply that to your credit cards, and you'll come out ahead next year when it's refund time.

 

not everyone has the discipline

 

 

I tend to think I do as i hate debt. I might close the account or whatnot. But I don't think I'll use it in all honesty. Not at those rates anyhow.

 

 

How do I do the transfer? I mean, if I find several card willing to do the balane they need to check my credit report. But if they all start checking won't this bring down my credit score? Too many inquiries on my credit. You know?

[angeleyeskkhr]

How old is the truck? What is it worth at this point?

 

What kind of loan can you get? Is your score still 700+?

 

What is the limit on the card? Have you tried getting the APR reduced on the card?

 

 

1. 99 expedition

2. worth appx $6000, spent $6000 1yr ago on a new motor

3. No credit scroe went down due to the balance of the credit card, score is appx 640

4. limit on the card is 7000, I have $200 available

5. I do but they keep putting it back saying its a promotion when it wasn't.

 

6. I could sell the truck and pay off the credit card. But I would be out of a vehicle for a bit. Not sure how I'd commute. I would have to finance a new bike or some sort of car as my credit score will be back in the 700+ range. But things like my dirt bike. How would I transport it on the weekends? Little things come in handy. Maybe just buy a smaller truck but I am 6'3 275lbs. Cars aren't very comfy.... But I'd like my wallet to be a little juicier as well...

 

Its a give or take situation I guess...

 

 

Why not sell THAT for money to pay down CCs instead of selling the truck ya need to get to/from work?

[bb123]

Why not sell THAT for money to pay down CCs instead of selling the truck ya need to get to/from work?

 

 

 

I thought about it and you have a VERY good point.

 

I was speaking to another guy and he was stating that its hard these days. Just to get to the desert will cost you $200 per way. Once there the bikes will use a considerable amount of gas. Not to mention food, beer ( haha), and other things you need for a weekend us riding the dunes. Most people aren't doing any riding off road much anymore.

 

I could always buy another one. But right now, I don't think I'd get half of what its worth. Hold on. Let me check the value.

 

 

Its only a pit bike. Meaning, its a bike made for kids but us "big kids" take them and put on stiffer suspension, wide handle bars, stunt pegs, etc. I can rock wheelies on this thing for miles. I just ride it up and down the stret where I live and put it up. Or when bike shows come around everybody has their litle pit bike to race or cruise around getting food, etc.

 

To fill it up costs about $1.50. That lasts for about a month or so. Literally. I'd say it averages about 90-100miles per gallon. The motor, piston, etc is soooo small it makes no difference.

 

Its paid off and if I sold it now I'd get prob $500-600. I love it so much, they never break, parts are cheap, etc. A new motor in it costs me about $250-$300. So its nothing. I have seen these motors abused and go for 10yrs.

 

 

Not worth it to sell it. Without a truck, i'd only bring it out when freinds pick me up in their trucks. Other than that, Its a neighborhood assault bike, tearing up streets at a top speed of 30mph. haha. Not worth getting rid of it for cheap and lose so much.

 

 

 

 

 

[angeleyeskkhr]

My thing is, though, you're over hear complaining about how much it costs to fill up and drive around in your truck. Take out the idea of taking the dirt bike out, and all the gas it costs to get out there and back AND to ride around in the bike and what all else goes into it. And it's likely to be less. (And I assume that even if you were to have your friends take you out with them, you'd be included at least SOME gas/fun money you'd have to help them with).

 

As for selling it and it not being very popular due to gas prices--well those will only go up, so it'll get "harder and harder" on that account. You say you'd get 500-600 for the bike alone, that would lower your CC's by 500-600 in one shot. Take the other $1000 to buy the smaller car/motorcycle like ya want that supposedly saves ya hundreds of dollars a month (that can then also be applied to the CCs) and you'd have the CCs paid off that much quicker.

 

It sounds, though, like you're not really thinking the motorcycle completely through. I mean, you only talk about taking it to/from work. What about grocery shopping? What places do you go NOW in the truck and how would a motorcycle work with that? I ask because you sound like in the motorcycle you won't be going anywhere, but that's just not true.

 

Maybe I'm reading you wrong though.