So...We have two vehicles and can't decide which one to ditch with the BK. We would like to reafirm at least one of them for the credit rebuilding and for the reliable transportation. Some reading this might feel it's a no brainer but there are pro's and cons to both. So here is my situation and if anyone has any advice, I would greatly appreciate it.
2003 GMC Yukon XL. Owe Capital One Auto Finance about $15,000, monthly payment $440, insurance $65 and gas-well it's a gas guzzler! It is probably worth about $19,000. It's really my dream vehicle-It's loaded! Power everything, leather, bucket seats, sunroof, Bose stereo which makes me feel pretty cool when I slip in my Disturbed CD and am cruzin down the highway. Only problem is-It's like almost $700 a month for the beast.
2002 Ford Taurus(woohoo). It is paid for but Citifinancial has a lien on it for about $7,000. It is worth about $3,000 so we are upside down on it. Monthly payment is $203 and insurance is about $35 a month. We did not use Citi to finance the car. I think it's called "nonpossessory, nonpurchase-money security interest" I am not done reading this chapter in the Nolo book and when it gets too wordy and legal, I have to read it about 40 times before I fully understand what they mean.
So, my question is: Do we keep the truck which has the higher payment but some equity in it or, do we keep the car which is upside down on the loan but it's way cheaper every month. We don't have the $3,000 to offer Citi to buy it outwright.
Any ideas? Thanks
2003 GMC Yukon XL. Owe Capital One Auto Finance about $15,000, monthly payment $440, insurance $65 and gas-well it's a gas guzzler! It is probably worth about $19,000. It's really my dream vehicle-It's loaded! Power everything, leather, bucket seats, sunroof, Bose stereo which makes me feel pretty cool when I slip in my Disturbed CD and am cruzin down the highway. Only problem is-It's like almost $700 a month for the beast.
2002 Ford Taurus(woohoo). It is paid for but Citifinancial has a lien on it for about $7,000. It is worth about $3,000 so we are upside down on it. Monthly payment is $203 and insurance is about $35 a month. We did not use Citi to finance the car. I think it's called "nonpossessory, nonpurchase-money security interest" I am not done reading this chapter in the Nolo book and when it gets too wordy and legal, I have to read it about 40 times before I fully understand what they mean.
So, my question is: Do we keep the truck which has the higher payment but some equity in it or, do we keep the car which is upside down on the loan but it's way cheaper every month. We don't have the $3,000 to offer Citi to buy it outwright.
Any ideas? Thanks
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