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Discussion Starter #1
I am tempted to give my 12k upside down car loan back . Car has 48k in 1.2 years and only goes down even more dues to depreciation and milage. I owe 23k and car is worth 10k trade in or 13k private. The car keeps my insurance/gas/payment high. 150 insurance, 385 gas( I drive a lot in SoCal) and 498 payment.

I recently got a Versa for the advert price of 9988 and only pay 187/month and insurance is 95 bucks and MPG is fantastic around 36 vs 24mpg.

I feel I should let it go to repo and pay the difference when they ask for the difference. They might settle for a bit less since the interest is 9.74% . I also have 3 other repos, one due to my mom passing away, one for job loss and one for a moto that was crashed. My Credit is fine since I paid them back at 683
 

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I feel I should let it go to repo and pay the difference when they ask for the difference. They might settle for a bit less since the interest is 9.74%
The interest rate doesn't matter much to the lender.
Settle for a bit less? If you owed me $23,000, and you did a voluntary repo, I would accept the car, wholesale it, subtract that from the $23,000. And also bill you for my administrative costs of handling the sale (moving the car to auction, registration fees, etc) and write a loan for you for the remainder. There would be no reason for me to take a loss on my costs.
 

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The interest rate doesn't matter much to the lender.
Settle for a bit less? If you owed me $23,000, and you did a voluntary repo, I would accept the car, wholesale it, subtract that from the $23,000. And also bill you for my administrative costs of handling the sale (moving the car to auction, registration fees, etc) and write a loan for you for the remainder. There would be no reason for me to take a loss on my costs.
Did you work for a bank in the past? I asked for an opinion to lessen my payout and put more into savings. Banks always restructure and cut their looses. I am doing the same. They will take a full loss if I declare bankruptcy! Never done that but with the greed in US from corporations I will be back to good credit in no time!
 

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You need to sell both of those cars, buy a $1500 beater, get a second job, pay aggressively on the stupid debt, and vow to never try to borrow your way to freedom again. IMHO
 

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Did you work for a bank in the past? I asked for an opinion to lessen my payout and put more into savings. Banks always restructure and cut their looses. I am doing the same. They will take a full loss if I declare bankruptcy! Never done that but with the greed in US from corporations I will be back to good credit in no time!
No, I've never worked in a bank. You seem to be thinking of banks as your enemy? Banks don't take a loss when you bk. They don't actually have money of their own (except for small funds to pay the electric bill and pay their workers). The money stored in banks are the accounts that belong to your neighbors. When you bk, each customer's costs go up slightly to pay your bill. (You aren't 'punishing' your bank, they lose nothing when you bk)
 

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Car has 48k in 1.2 years and only goes down even more dues to depreciation and milage. I owe 23k and car is worth 10k trade in or 13k private. The car keeps my insurance/gas/payment high. 150 insurance, 385 gas( I drive a lot in SoCal) and 498 payment.
I recently got a Versa for the advert price of 9988 and only pay 187/month and insurance is 95 bucks and MPG is fantastic
Those two late-model cars are depreciating at about $5000/yr. But you are focusing on gas & insurance? And the newest one (the Versa) is probably costing more in depreciation than the Lancer. I don't see how you can think of this as "saving money"?
 

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To be honest I see a history of a LOT of poor decisions and more importantly, few lessons learned from them. The responses on this thread may be a little harsh, but they are truthful and valuable to take to heart.
 
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Discussion Starter #8
a 1500 beater will not survive 2 weeks in SOCAL hot weather and 110 miles a day to work and back or other errands. I want realistic opinions, not Ramsey's out of touch reality.
 

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Those two late-model cars are depreciating at about $5000/yr. But you are focusing on gas & insurance? And the newest one (the Versa) is probably costing more in depreciation than the Lancer. I don't see how you can think of this as "saving money"?
Gas in SoCal is way more and we need to drive more to get to a place and work. I can afford both but do not want to any longer. I had an Epiphany and realized I rather spend 10 percent of my net income vs 20 percent before. I do not need to save for retirement since its assured already and do not have other bills.
 

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I am happy to announce that I will be paying off the Lancer since I am getting a substantial tax amount back. I also got rid of the versa and got a Yaris iA. A tad better car with 12 percent better fuel economy.
 

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I will be paying off the Lancer since I am getting a substantial tax amount back.
You overpaid your tax withholding so that you could get your own money back? Enough to pay off a car? lol

Why did you sell the Versa and buy a Yaris? Aren't they essentially the same - ie, a small Asian car that gets great gas mileage and is very useful and reliable. So why switch?
 

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You overpaid your tax withholding so that you could get your own money back? Enough to pay off a car? lol

Why did you sell the Versa and buy a Yaris? Aren't they essentially the same - ie, a small Asian car that gets great gas mileage and is very useful and reliable. So why switch?
I did not, I was able to claim my wife and and step daughter. I sold the Versa for the Yaris for the fact the Versa had not cruise and power locks. The Yaris iA is getting me 40.5 mpg vs 35.5 Average. Just a better car for my 110 mile/day commute.
 

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The Yaris iA is getting me 40.5 mpg vs 35.5 Average. Just a better car for my 110 mile/day commute.
That means that the annual gas bill for the Yaris is $1426 and $1627 for the Versa. I probably wouldn't buy a new car just to save $200 a year?
 

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Discussion Starter #14
That means that the annual gas bill for the Yaris is $1426 and $1627 for the Versa. I probably wouldn't buy a new car just to save $200 a year?

It was not just about the savings. It was about the comfort over 51 mile one way travel. I also take road trips across the country. The Versa had no power locks and cruise. Considering I may keep the car for 4 years and put around 130000 miles that would better for my health.
 
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