i owe $28,000 on a vehicle worth 21,000. i just bought a condo so im strapped should i sell truck @ loss?

Question

my current interest rate is 4.5%/. loan to pay off balance would be9%. and then i have to buy another used car and i commute 100 miles every day im really confusedas to what is the smart choice at this time. any ideas?

Answer 1

What would you gain by selling it just to lose money and end up with a higher interest rate and no vehicle? Keep it and get a second job closer to home, or at least midway to the first one. That way you can deduct on your income taxes the commuting expense from the first job to the second. leastaways, you used to be able to do that... better check; the tax Nazis change these rules all the time.

Answer 2

HA! you don't know anything about finance do ya? refinance the truck at a better rate and then trade it for a lesser vehicle. If you have more than one credit card have the lender with the lowest rate buy out the others and save up to 40-50% of your interest out pay. use the realized savings to pay on the condo your going to improve and sell in five years for a profit.

Answer 3

SELL THE TRUCK TODAY! The truck is going to go down ridiculously fast in value at 100 miles per day. In another year you will owe $24,000 and the truck will be worth $10,000 or less. Sell the truck, buy a used budget car like a cavalier or something like that for $2,000 or less and drive it into the ground.

Answer 4

Sure ~ anything is possible really. Have a 3rd party appraiser come and value the property. If the landlord is willing to let the property go at that value and you are willing to pay that value . . . you're off to the races. Don't make it your challenge that he owes more than the condo is worth now. It's his problem. It would, I'm sure, make life easier for him if he could as least sell it however. Be sure that you use a 3rd party to do the evaluation. (banks have appraisers that they regularly use and could recommend if you don't know of anyone) You might want to check in with your own bank as well to see what they would pre-approve you for in mortgage value as well.

Answer 5

keep your car because 100 miles is a heck of a long way to expect anyone to bring you too and from work or find a commute.... budget well. Why the heck did you get a house 100 miles from your job. Does not seem like a smart move to make. either you can buget well... or you can find a job closer to home.

Answer 6

Lets see if you sell truck you lose money and then you buysome junk car that you will drive 100 miles a day and in a short time junk car is dead and you still trying to pay off other truck loan.Keep the truck and quit whineing about bills and get another job or more pay from the one you have.Let me guess you are a financial planner right.You could cancel your internet access that will save you some money.

Answer 7

I think you need to make your financial decisions more carefully.
You just bought a condo at the top of the market? You bought a very expensive vehicle you can't afford? You're in a hole. Don't spend your whole life in one. Make some changes now! Call a good fee-only CFP and fix your situation. Read some good books on personal finance. Everyone makes mistakes. Not everyone learns and grows from them.

Answer 8

In the end you will loose $ 7,000.00 minimum.

Over the past Two years, the price of Gasoline has depreciated the Value of Trucks and SUVs.......

Take the Loss and move into a fuel efficient Vehicle as soon as possible. The Price of Gasoline will not go down.

My daughter and son-in law were faced with the same problem.

They sold both of their Large SUVs at a loss....and saved $ 125.00 per week in gasoline alone.

Good Luck

Answer 9

Budget.

Answer 10

Getting a 9% interest rate loan to pay one off that is 4.5% is dumb dumb dumb. Whatever you do, don't do that.