Another good thing is, if I decide to sell the car and get something more in my budget, it will now be easier, (as the loan officer and I was discussing, while discussing Dave Ramsey) to do so, as now the title is held locally rather then some loan company in Tennessee (while I live in Kansas). Ever try to sell a vehicle, but have to tell the buyer, that they will have to wait 2-3 weeks, while you wait on the lein release? Not an easy thing to do. Now, should a sell happen, the two of us can go to the Credit Union, and make the transaction, my loan is paid off and the buyer knows that they will be getting the title as the lien is released while we are both with the loan officer.
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Thursday, June 22, 2006
Two Steps Forward, One Step Back
Well I took a step backwards today yesterday. In so doing, I found out how upside down I was on my car. I knew I was paying a certain percentage point, and i was begining to suspect (big time really) that the model of the car was not the actual model. I was told it was a malibu, but after purchasing it and having it a few days I noticed the back said Classic rather then Malibu. Infact, I do own a Chevy Classic rather then a Chevy Malibu...the differnce makes a difference on the value. No matter which kind of car it was I found, while talking with my credit union that I owe more then the car is worth. However, they agreed to refinance my car for 3% less then what I had been paying since January. The downside, my monthly payments went up, because it is now a 4-year loan rather then 6-years. I will have to payless on my other 2 debts, but I have been paying more then the minimum anyway, and can make it work. According to my figures, I still should have them paid off late this year or early next year. After which, I should have the car paid off in less then 2-years by applying the debt snowball method to it. So where I had made a payment on the car this week, bringing the loan below $15,000, by refinancing it went back up to $15,100. Basicly, as if I did not make this months loan. However, it will be cheaper over the full life of the loan as I will be paying less interest.
Another good thing is, if I decide to sell the car and get something more in my budget, it will now be easier, (as the loan officer and I was discussing, while discussing Dave Ramsey) to do so, as now the title is held locally rather then some loan company in Tennessee (while I live in Kansas). Ever try to sell a vehicle, but have to tell the buyer, that they will have to wait 2-3 weeks, while you wait on the lein release? Not an easy thing to do. Now, should a sell happen, the two of us can go to the Credit Union, and make the transaction, my loan is paid off and the buyer knows that they will be getting the title as the lien is released while we are both with the loan officer.
Another good thing is, if I decide to sell the car and get something more in my budget, it will now be easier, (as the loan officer and I was discussing, while discussing Dave Ramsey) to do so, as now the title is held locally rather then some loan company in Tennessee (while I live in Kansas). Ever try to sell a vehicle, but have to tell the buyer, that they will have to wait 2-3 weeks, while you wait on the lein release? Not an easy thing to do. Now, should a sell happen, the two of us can go to the Credit Union, and make the transaction, my loan is paid off and the buyer knows that they will be getting the title as the lien is released while we are both with the loan officer.
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3% rate reduction is pretty great. buying a beater and selling the hot rod would be greater. but still, 3% rate reduction!
ReplyDeleteyou could solve your out-of-state lein problem by paying off the auto loan using credit cards (0%, anyone?), then selling to any buyer. making the transaction easy for buyers is a worthwhile objective.