Currently owns a near 3yr old Mitsubishi Lancer . Took a 95% loan but had refinace it a year ago . Would it even be apt to downgrade to smaller car now as i still have outstandin loan ?
2006-07-08 03:57:50 · 5 answers · asked by Lance 1 in Cars & Transportation ➔ Buying & Selling
You should never refinance a DEPRECIATING object. You are so stuck in that car. Take it home, wax the crap out of it, shampoo the carpet, and fall in love all over again, cuz you are BURIED. Your car is probably worth about $3 - 5k at most. How much do you owe?
2006-07-08 04:01:46 · answer #1 · answered by Manny 6 · 0⤊ 0⤋
Absolutely, if you are having trouble keeping up payments on a family size car like that, you need to reduce outgoings as much as possible - do everything you can to make it attractive and increase it's apparent value, then sell on (or end the agreement and see if you can arrange terms to pay off the outstanding balance over time)....... and go for the cheapest possible transport you can. Become totally car free if it's practical; if not, realise a fundamental truth that pride can be a killer and just get something that will get you from A to B without massive fuel, insurance or maintenance costs; regardless of size, age, prestige or specification.
Also, what the other guy says is true... remortage your house, sure, as it'll have solid value even in 20 years. Effectively remortgage a car? No, no, no. Another three years and that will be worth half it's current value and probably a quarter the original sale price.
2006-07-08 11:08:52 · answer #2 · answered by markp 4 · 0⤊ 0⤋
Due to the increase of petrol in singapore , i have downgrade my 1.6 car to a 15 years COE car . I paid 360 per month instead of 700 plus. i am a happy man now .i need only 1 year to recover the loss and by the way if the petrol gonna increase to US$100 per barrel , i will not be affected at all. A car is jus a car. Use only 20-25% of ur monthly salary for it. Be wise!
2006-07-09 06:28:45 · answer #3 · answered by Ruhua 2 · 0⤊ 0⤋
Compare your total cost of ownership and operation with your current vehicle to the projected costs of the new vehicle. Figure your monthly cash flow -- payments, insurance, fuel, etc. on both and you'll quickly be able to tell if the cost of a smaller vehicle will actually be worth the investment.
It's often cheaper to keep a paid for or nearly paid for gas guzzler once you figure in the cash needed for payments for the newer more fuel efficient vehicle.
2006-07-08 11:11:31 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
If you can trade in for the value of the loan, and afford the payments on the newer smaller car (don't forget to calculate fuel savings), I say go for it.
2006-07-08 11:03:43 · answer #5 · answered by John J 6 · 0⤊ 0⤋