Upside Down Loan

[nwx]

Hello,

 

I have a car I recently purchased in January of this year, I had no other option but to go to the notorious crooks at Drivetime ... long story short I payed 13,000 for a $6,000 car. I literally went everywhere in my area in about a 150 miles radius and could not get a car or else I wouldnt have went to this ****s.

 

My credit score is about 550 right now (up from 480) and my wifes is about 620 (no credit history) we are both on the loan, and I make about $50,000 a year.

 

Now I'm paying $178 every 2 weeks for this car and I am tired of it,

when I had orginally drive off the lot my final purcahse price was $10,670. I have made $2,307 in payments in the last 7 months and my balance is now $9,963. Sound odd?

 

My interest rate is a crazy 26 percent.

 

I cannot pay the balance or I would and I do not want to keep throwing my money away.

 

I would pay more towards the balance whenever I have the money to do so, but at this point it seems worthless

 

The car is valued now at 3500 for private sell and 3,000 for trade in

 

What would my options be for this?

[MarvBear]

unfortunately for people just like myself who are upside down, the only real advice is "drive slow, pay fast".

 

If you try and trade the vehicle in on another, you will probably need a large cash investment to cover your negative equity.

[BigManinTX]

"""My interest rate is a crazy 26 percent."""

 

Oh my god! So sorry.

[nwx]

"""My interest rate is a crazy 26 percent."""

 

Oh my god! So sorry.

 

Yes it truly is horrible...

 

As far as what I'm going to do about this, I have decided that I am going to pay $1,000 a month until the balance is paid which comes out to be broken down like this

 

Total Payments : 22

Final Payment Amount : $269

Loan Length : 0 Year(s) 10 Month(s) 20 Day(s)

Interest Paid : $1,199

Total Cost of Loan : $10,769

13.00% of the loan cost went to interest

On Average You will be paying : $51 towards interest each payment or 19% of each payment is interest

 

Its a small price to pay for the positive impact I will receive towards my credit.