i traded my car in and i owed 5,000. this amount was added on to my loan for my new truck back in 2004. i would think the credit union would still be able to refinance my suv. this was all done over the phone i never actually talked to the loan officer. one lady said i would have to pay the 6000 before i could get it refinanced.
2006-09-27 04:47:08 · 6 answers · asked by ccn 1 in Business & Finance ➔ Personal Finance
What the dealer did was dishonest, and the credit union is not going to finance a vehicle for a sum greater than its worth. (The reason is simple, the loan is a secured loan, meaning the rate is lower than an unsecured loan, because should you default, they can recoup the loan by repossessing the vehicle and selling it. If you defaulted, or totalled your car now, the CU would be out $6k)
Your only options are: Keep your current loan, or get a $6k unsecured loan, and refinance the difference with the credit union.
2006-09-27 04:53:10 · answer #1 · answered by Anonymous · 0⤊ 0⤋
That's the problem with having a dealer "pay off the loan". If you have $6000 in savings, you might be able to use it as collateral against that amount. You still get interest on the savings. The secured amount you must keep in savings will decrease as the loan goes down until the value of the car meets the loan value and you can have access to it all. Other than that, you can make higher payments to pay off the upside down and then refinance. I am assuming this is to get a better rate.
2006-09-27 05:04:26 · answer #2 · answered by sloop_sailor 5 · 0⤊ 0⤋
You need to pay off all your loans and start over !! How you can even think of another vehicle is beyone me! *smack*
Buying new vehicles are the biggest mistakes you can make if you really want to be wealthy ! YOU need to settle for an older vehicle, drive it till it dies and then by that time you should have enough saved up to pay cash for the next !
You say that isn't possible ? Then you are someone who will not make the changes needed to get out of the debt you are in... People here can only offer examples and potential remedies...It is UP TO YOU to carry them out and get your finances back on track.
I was helping one woman, one on one, with getting rid of a credit card debt she saw no end to. In three months she had it paid off!! I was sooooooooo happy for her. She then turned around and bought herself a new car for doing so well, a treat for herself. Well she threw all that hard work out the window. A new car was not what she deserved... She deserved to be debt free and sleep well at night! But she thought differently... MY POINT : some people can not be helped for they just don't want to change!
Only YOU can do what is right. GOOD LUCK !
2006-09-27 05:05:48 · answer #3 · answered by Kitty 6 · 0⤊ 0⤋
They will only refinance for what the vehicle is worth..Sorry
2006-09-27 04:49:54 · answer #4 · answered by dwh12345 5 · 0⤊ 0⤋
Keep it or trade it in and take a bath.
2006-09-27 06:03:06 · answer #5 · answered by hydroco 3 · 0⤊ 0⤋
burn it and collect the insurance
2006-09-27 04:55:05 · answer #6 · answered by Anonymous · 0⤊ 0⤋