I think I should sell my car.

[Cassandra]

Any pointers?

It's not such an unusual situation. I have a 2 yr old car that I'm a little upside down on (possibly up to $4000) upside down.

I'd like to sell it and negotiate with the finance company to pay the shortage over time.

Does anyone know what I'm talking about. Is that possible? Likely? I have never had to do anything like this before. I'm not in an urgent situation over it or anything. But it's what Dave would do.

Cassandra

 

[FarmerChick]

you owe $4K to the finance company.
the car is worth, what?? like $1800 or 2200 or something like that.

note....before you sell, call to negotiate the new lower balance due --but...if they do it.....it will definitely result in a lower credit score. It is not as bad as bankruptcy or foreclosure, (which could drop you like 300 points) but if your lender does negotiate and lowers your balance due, your credit scrore will definitely be effected.

also be sure you don't need that car. If it is in decent shape and can go a long way still, then it will always be cheaper than if you need to get a new one sometime.

and if you decide you truly don't need it, try to sell it for the full balance due if you are lucky!!!!!

in hard times, I am always leary about selling what you MIGHT need down the line ya know. unless circumstances say sell, sometimes it is best to hang onto what you have in case....there may not be money in the future for another car if you need one....???...I don't know....anything can happen ya know.

 

[Cassandra]

Nah. I owe $16,000 something on it and it'd probably blue book about $12,000 or $13,000. or something like that.

Honestly, I wanted to cry. My boss asked me to figure up how much money I could afford to pay for health insurance in the event that he is able to find health coverage for a small group. He needed a shopping around number.

So, I calculated up my take-home pay. I subtracted daycare, gasoline, the car payment and car insurance, then food and clothing. In other words, all the stuff that I don't need if I don't have a job.

My net result is $41.56.

If I were to throw in all the other crap that I buy that I wouldn't buy if I didn't have a job... well, you get the idea.

Obviously any amount of money that I were to pay for health insurance would actually put me losing money at this job. And the truth is, we'd be a lot better off financially if I just sold the car and stayed at home.

Granted, we will need one at some point. But what am I giving up right now for $41.56 a month and a new car? I knew I wasn't bringing home much money and frankly the job has never been about that to me. But geezus. When I think my son has been in daycare ten hours a day since he was 11 months old so I could have $41 and a car to drive?

It's just stupid.

Cassandra

 

[tfpets]

Im not sure of the technical aspects of the selling of the car, but it certainly sounds like you've considered, in breaking down your other issues and expenses, such as your reasons for working, the wage/expense, etc...that although you are not operating at a loss at this point (until the boss goes for the higher priced insurance package)...your heart is telling you to be at home with your child?

And the car is the clincher, it seems? So, is your credit score, which might be damaged for a couple of years, important enough to keep you from doing what you heart tells you?

Good luck making your decision I would sell the car back to the finance company! Then again, I have had yo-yo credit for years, it goes up all the way, down again, up all the way up, down again . I just decided to take my own sons out of daycare, and have them stay with my oldest son after school. Savings up to $800 - $1100.

Take care,
Tina

 

[Cassandra]

Tina, I am kinda like you with the up again down again insurance. I have lived without credit most of my life (except maybe the last five years) and if I could never get a lone again for anything as long as I live, I would probably be much better off for it.

Plus, if we didn't have this car we'd be debt free except the house.

Honestly, having been practically destitute at one point and not suffering any ill effects either during or after that, even the prospect of that doesn't even bother me. I'm just trying to figure out why I am working myself to death. LOL

(and figure out how to get out from under this car... ) John is out of town still. I'm waiting for him to get back to his hotel and get online so we can chat about it.

Cassandra

 

[FarmerChick]

wow cassandra---you are kinda at one of those crossroads. tough decisions in a way.

do you need this health insurance? cause ONE major reason for working is health insurance. If you don't need that...and the rest is strictly financial...then there is ways to get out from under the financial part. of course it means unloading the car if necessary etc.

hmm...how to unload a car? I would at least price it in the paper for what you owe...kinda like the "take over payments" type ad. You get nothing extra, just the new owner takes over the payments. You get a lawyer to just sign them over etc.

I know what you mean.

I made a good paycheck...but when I had Nicole....I sat down and figured daycare...UGH---my paycheck went down to $3 per hour clear for me. That was not enough for me to work...so I stayed home and worked up the farm into real income for me.

so take your time and just think what is the best way to go. I know that working for "paying for stuff" gets real old fast, especially when we are the SS type and stuff doesn't matter as much to us.

It will all fall into place for you!

 

[miss_thenorth]

I agree with Karen--offer it for sale as "you take over payments" People lik that b/c thy don't have to mak a downpayment. Go to autotrader.com and search out your cars make and model and price compare. That's what we always do.

And honestly, if you are at home--there are many things you can do that will help you save even more money.

 

[FarmerChick]

MTN is so right. When not working you save the money spent to go to work. When home, you can truly take time to cut your bills. Time is really needed to do that and you will have it!

 

[Cassandra]

do you need this health insurance? cause ONE major reason for working is health insurance. If you don't need that...and the rest is strictly financial...then there is ways to get out from under the financial part. of course it means unloading the car if necessary etc.


It will all fall into place for you!

I am seriously going to have to have that talk with them soon. See, here's the thing about the insurance. Mr. C just recently qualified for Medicare, so he's out. His son, Mr. P is young and in good health and has private insurance that Mr. C pays for (Mr. P pays for his own wife and kids.) The reason the insurance came up is because Ms. N (Mr. C's wife) needs insurance. She just retired about a year ago. SHe's been on COBRA for the last year. As of December 31, that COBRA will run out.

Mr. C had put her on our payroll once she retired so that he could create a small group health plan ince her COBRA ran out. (They are high risk and no one will sell her insurance as an individual... not insurance that covers anything, I mean.) We have been struggling, as a company, to figure this out for about two years. We have yet to figure out a way for it to be affordable.

Last year, when we were first inquiring about it, an agent told Mr. C that he could get a group of one person and insurance for just Ms. N. But now, apparently they have changed their minds. They want 2/3 of the people working in the office (which only leave me & Ms. N) to accept the coverage before they will write a group policy.

THAT is what led Mr. C to ask me to figure out how much I could afford to contribute to my own insurance. He said, either I could pay half and keep the coverage or he would pay the whole thing for a couple of months, then he'd be able to cancel my coverage and keep his wife covered.

I don't blame him that he doesn't pay for my insurance. The price is ridiculous. It would be much much cheaper for me to buy insurance in the private market *if I could get it* than it would be for him to do a small group. If I could get insurance in the private market, he would pay for it. (He's offered to do this before.)

Now, the MAIN reason I don't want him to write a small group is because, being high risk, I'm really afraid that once they start inquiring into my health history, his group price is going to go up way higher than what they quoted him to begin with. That's why I don't even want them to start asking.

Now... as far as me needing insurance or not. Well, I really wish I could get it. And I think that's possibly a cause I will be martyred for. (that is dark humor, btw) I think it's wrong that medical care and medical insurance have gotten so prohibitively expensive for working class people. My husband & I both work very hard and we don't live frivolously. I guess I'll just suffer before I'll pay 2 or 3 times as much for coverage because someone has arbitrarily decided I'm not worth it. So, screw 'em. Ya know?

But that's not Mr. C's fault. Only thing is, I heard him talking to Ms. N this morning about what she was going to do about HER insurance. It upsets me to know that I am in the middle of a personal problem for THEM and I don't want them to think I'm just being stubborn about joining their flippin' group.

Cassandra

 

[angie68]

I don't know about everywhere, but a friend of mine could no longer afford her car. She needed it, just couldn't afford the payment any longer. She was 2 months behind on it and called them and told them just to pick it up. They actually told her if she would keep it they would lower the payment by half! This solved her problem.

When you are behind on payments, creditors will work with you. I actually negotiated several credit cards a few years ago and got them paid off for about 40% of what I had on them. I had a Wells Fargo credit card that had 3600.00 on it....they took 1500.00 as pay off.

If getting out of debt regardless of the consequences, this is the route to take. Yes, it shows a pay off was done on your report so if you are worried about your credit score, don't do it!

Honestly, my goal is getting out of debt, I feel like sometimes it would be a blessing not to be able to get any credit, this would force me to pay cash for everything.