Question:
I just bought my dodge minivan and i havent bought a car in years, the sale price was 9500. but with extended warrenty and taxes it is now 11000. my payments are 285. i am so upset, because i feel it is so much money, they told me to refinace in 6 months, my question is how can i get my payments lower and what happens if i trade it in or give it back?
Answers:
In another question you mentioned you just had a bankruptcy discharged, That accounts for a lot of the payment, seeing as it is very likely you are considered a high risk (sum-prime) loan. If you trade it in, you are going to end up losing a lot of money, and will end up with even higher payments.
If you "give it back" it will be considered a repossession. The bank or finance company will sell the car at auction, and sue you for the difference between what you owed and what the van sold for (minus any and all expenses they have in selling it).
The best thing to do is to pay for the van, and try to double up your payments to pay it off early. With a high interest rate, you will save a lot by paying the loan off faster!
Other Answers:
I think you should sell it for like $13,789 - $99,999 then you can buy anthor car with that kind of money. If you dont just give it back.These sites might help you.
Source(s):
http://www.dodge.com/index.html?bid=1758118&adid=25566340&pid=12206058
http://research.cars.com/go/crp/research.jsp;jsessionid=Y1JFOZXRWSXL5LAZGJKJXLA;jsessionid=Y1JFOZXRWSXL5LAZGJKJXLA?makeid=12&bg=t&year=2002&modelid=2999§ion=summary&mode=&aff=national
http://edmunds.com
Didn't the finance company let you know in advance what your payments would be? $11,000 is a lot of money and since your payments are only $285 I would say you probably got your loan for at least 3 or 4 years. If you refinance you can get your payments lower but it will take you longer to get your car paid off. I'm sure the dealership will try to work with you on a trade in, but you will be the one losing money and the dealership will be smiling all the way to the bank. Did you check around to see what this van sells for? Maybe you can run an ad in the paper and try to sell it to someone else, the warranty can be transferred.
Good luck.
I am a Sales Manager at a Car Dealership and have been in the business 8 years so I know what I am talking about.
You are probably what we call in the business "buried". Whenever you buy a car from a dealer. You are paying for the costs to bring the vehicle back up to specs and warranty it. If you financed 11 then the vehicle is probably worth 7-8 on a trade. Unfortunately, Dodge Caravans have by far the worste reliability record of any minivan on the planet. Engines are usually ok, but you'll go through new trannies every 30-60K miles. Plus, it is the best selling minivan on the market - meaning that the market is saturated with this model. You probably would have been better off buying a different model but that is too late.
In the end. If you trade in the vehicle, you will have to either pay for the difference in what you owe and its wholesale value or roll it into your payment. Probably 4K. This alone will raise your payments $80-$90 on a 5 year loan. Higher on a shorter term. If you try to find something older - you will not be able to finance as long. Either way, 285 is not a bad deal - especially if you are only financing for 4 years which would make sense of the payment unless you have poor credit and a high interest rate.
Too give you a comparison - a 2002 Honda Odyssey with low miles would probably run you about 450/month on the same term - of course it would hold its value better and be more reliable. So consider the low payment you have now. With the cost of cars nowadays - I rarely see a person paying less than 300/month - and then usually only on a stripped down economy car lease.
Source(s):
8 years experience in car business
dont buy its junk
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Answers:
In another question you mentioned you just had a bankruptcy discharged, That accounts for a lot of the payment, seeing as it is very likely you are considered a high risk (sum-prime) loan. If you trade it in, you are going to end up losing a lot of money, and will end up with even higher payments.
If you "give it back" it will be considered a repossession. The bank or finance company will sell the car at auction, and sue you for the difference between what you owed and what the van sold for (minus any and all expenses they have in selling it).
The best thing to do is to pay for the van, and try to double up your payments to pay it off early. With a high interest rate, you will save a lot by paying the loan off faster!
Other Answers:
I think you should sell it for like $13,789 - $99,999 then you can buy anthor car with that kind of money. If you dont just give it back.These sites might help you.
Source(s):
http://www.dodge.com/index.html?bid=1758118&adid=25566340&pid=12206058
http://research.cars.com/go/crp/research.jsp;jsessionid=Y1JFOZXRWSXL5LAZGJKJXLA;jsessionid=Y1JFOZXRWSXL5LAZGJKJXLA?makeid=12&bg=t&year=2002&modelid=2999§ion=summary&mode=&aff=national
http://edmunds.com
Didn't the finance company let you know in advance what your payments would be? $11,000 is a lot of money and since your payments are only $285 I would say you probably got your loan for at least 3 or 4 years. If you refinance you can get your payments lower but it will take you longer to get your car paid off. I'm sure the dealership will try to work with you on a trade in, but you will be the one losing money and the dealership will be smiling all the way to the bank. Did you check around to see what this van sells for? Maybe you can run an ad in the paper and try to sell it to someone else, the warranty can be transferred.
Good luck.
I am a Sales Manager at a Car Dealership and have been in the business 8 years so I know what I am talking about.
You are probably what we call in the business "buried". Whenever you buy a car from a dealer. You are paying for the costs to bring the vehicle back up to specs and warranty it. If you financed 11 then the vehicle is probably worth 7-8 on a trade. Unfortunately, Dodge Caravans have by far the worste reliability record of any minivan on the planet. Engines are usually ok, but you'll go through new trannies every 30-60K miles. Plus, it is the best selling minivan on the market - meaning that the market is saturated with this model. You probably would have been better off buying a different model but that is too late.
In the end. If you trade in the vehicle, you will have to either pay for the difference in what you owe and its wholesale value or roll it into your payment. Probably 4K. This alone will raise your payments $80-$90 on a 5 year loan. Higher on a shorter term. If you try to find something older - you will not be able to finance as long. Either way, 285 is not a bad deal - especially if you are only financing for 4 years which would make sense of the payment unless you have poor credit and a high interest rate.
Too give you a comparison - a 2002 Honda Odyssey with low miles would probably run you about 450/month on the same term - of course it would hold its value better and be more reliable. So consider the low payment you have now. With the cost of cars nowadays - I rarely see a person paying less than 300/month - and then usually only on a stripped down economy car lease.
Source(s):
8 years experience in car business
dont buy its junk