My Car

[Teddy]

I have a 2002 Honda CRV - mint condition 63k miles. I'm the 2nd owner and it only had 28k miles when I got it so I pretty much know it's been well taken care of.

I love that type of vehicle - problem is that I'm 6k upside down and still owe 16k for 4 more years - interest 8.25%.

I don't want to let it go b/c I am afraid that I will not find anything as nice for the price - my payment is 370.

I thought of trading now but anything I'd get would put me further in the hole.

What would your advice be? It's financed thru a credit union if that makes any difference.

[DVDFreaker]

I have a 2002 Honda CRV - mint condition 63k miles. I'm the 2nd owner and it only had 28k miles when I got it so I pretty much know it's been well taken care of.

I love that type of vehicle - problem is that I'm 6k upside down and still owe 16k for 4 more years - interest 8.25%.

I don't want to let it go b/c I am afraid that I will not find anything as nice for the price - my payment is 370.

I thought of trading now but anything I'd get would put me further in the hole.

What would your advice be? It's financed thru a credit union if that makes any difference.

My advice is to deal with it and get over it

[MidwestGuy]

Keep it, you don't need more negative equity which I'm sure you will get if you trade it.
I made mistake of purchasing 3 cars, each trading about year apart. When I got to the 3rd and final car I carried about $10,000 of negative equity in the most expensive car I could have bought. Bad idea.
6k upside down is a lot, whatever you get next you can count on that payment being close to 500 if not more a month. Stick with it, try sending bigger payments. If nothing else, include it in BK. Thats what I did with mine.

[HHM]

If you don't want to get rid of it, then don't.

[HRx]

Just keep the car if you don't have to get rid of it. There's no way of getting out from being upside-down on a car. You will/are going to pay for it one way or another.

What were your original finance terms and purchase price of the vehicle?

[Teddy]

I got it on a 72 month loan, 8.25% interest. Then (stupid me) got an extended warranty for another 1k which was added on to the loan. I think it was 18,500 or so, but I was probably upside down in my trade then too. I am always upside down in my vehicles.

I like the car, but if I let it go then I'd get out from under the 6k but I doubt I'd find another car that I like as well after I filed. Plus I probably need that payment on my list of my expenses.

[sharksfan]

My advice is to deal with it and get over it

We are all here to help each other. I will however remember this line next time you ask a question.

[HHM]

I got it on a 72 month loan, 8.25% interest. Then (stupid me) got an extended warranty for another 1k which was added on to the loan. I think it was 18,500 or so, but I was probably upside down in my trade then too. I am always upside down in my vehicles.

I like the car, but if I let it go then I'd get out from under the 6k but I doubt I'd find another car that I like as well after I filed. Plus I probably need that payment on my list of my expenses.

Short of not being able to afford the payment, I don't really see any reason why you would get rid of the car.

[HRx]

I got it on a 72 month loan, 8.25% interest. Then (stupid me) got an extended warranty for another 1k which was added on to the loan. I think it was 18,500 or so, but I was probably upside down in my trade then too. I am always upside down in my vehicles.

I like the car, but if I let it go then I'd get out from under the 6k but I doubt I'd find another car that I like as well after I filed. Plus I probably need that payment on my list of my expenses.

You live and learn...the next time you buy remember to negotiate the sale price of the car, and trade in cost as much as possible and put down at least 20%. Doing so will help prevent you from being upside-down on the loan. The majority of cars on the ride now are upside down.

[Teddy]

Ok, thanks - I think I should probably keep it. I was just thinking that it would be an opportunity to finally get out of my upside-down situation. But on the other hand, I think it could create more of a mess for me.

I can afford the payments and I know it's a good car. If I got anything newer, my insurance would go up, payment would go up, etc., so I guess for now it's best to keep it the way I have it.

Yeah, I'm not sure what I was supposed to "deal with" - either being in negative equity or deal with just letting the car go. I deal fine with negative equity b/c that's where I always seem to be. Honda sucks b/c they will not negotiate, they seem to think they have the superior car, blah blah blah and I never have good luck with them. I do love their cars though. Maybe if I keep this one long enough, I can finally get out of my negative situation - that would be nice!

[chpxiii]

Teddy, Hondas are good cars. Take care of them, they will take care of you. I have a 2001 Mazda Miata. I did a cram down on it in my bankruptcy and paid it off that way. I have taken excellent care of it and it still runs great.

Mazda would not negotiate with me. Hell, they wouldn't even let me refinance and I was on time. So. Got the cram down instead.

I'll jump in the "keep it" crowd.

[Teddy]

What is a cram down?

[lrprn]

What is a cram down?

Under the current bk law, if you bought your car more than 910 days before you file, you are allowed to bring the car loan value down to the car's actual worth.

However, if you bought the car less than 910 days before you file, you have to keep the entire loan amount - no 'cram down' to actual value allowed.

[Teddy]

that would mean I would have to wait 4 more months to file.

I wonder if that would be beneficial? I have a feeling it wouldn't. I wonder if they go by trade in value or retail or what?

I'm filing next month and no payments will really be late - I just want to get this started & finished but that could save me a good chunk of money if I waited.

That's an interesting law, I didn't know about it.

[CindyLou]

hmmmm...if you can wait the 4 months I would certainly do so!!!! Cram it down and you won't be upside down!!! Win-win!