We are about 2 weeks away from Ch 7 discharge, and we chose not reaffirm my vehicle (but stated on our schedules that we are keeping it). We just bought the vehicle back in March (2008 Nissan Versa), and according to Kelly Blue Book, we have no equity (we are about even). At the time our credit was not good and the best we could do was a 6-year loan at 10.9%.
Obviously the terms of the loan are horrendous, and I am trying to think of a strategy that would allow me to dump the car and pick up a reliable used vehicle. I commute about 25k miles a year to get to work, so I need something that can handle the high mileage and also gives me good gas mileage.
So far my thoughts are:
1) Work with my parents to co-sign on a car loan for a used vehicle, at better terms then what I have now, and dump the existing car.
2) Save up enough cash to buy a decent used vehicle and dump the newer car.
3) keep the car, and look to trade it in a couple of years from now, once our credit is in a little bit better shape
Option 2 would obviously be ideal, but it will be a while before we can save up enough cash to buy decent used vehicle that can handle the huge amount of mileage I put on the car annually.
Thoughts?
Thanks!
Obviously the terms of the loan are horrendous, and I am trying to think of a strategy that would allow me to dump the car and pick up a reliable used vehicle. I commute about 25k miles a year to get to work, so I need something that can handle the high mileage and also gives me good gas mileage.
So far my thoughts are:
1) Work with my parents to co-sign on a car loan for a used vehicle, at better terms then what I have now, and dump the existing car.
2) Save up enough cash to buy a decent used vehicle and dump the newer car.
3) keep the car, and look to trade it in a couple of years from now, once our credit is in a little bit better shape
Option 2 would obviously be ideal, but it will be a while before we can save up enough cash to buy decent used vehicle that can handle the huge amount of mileage I put on the car annually.
Thoughts?
Thanks!
