Talk me out of it.

[Posi_Joel]

What's going on?

I know I pretty much never post here, but I figured I'd post it here instead of AWDP, because they're all insensitive pricks who all drive Subaru's and I'd get the negative response there.

For the last month or so I've been debating selling the Evo. It's much more difficult than anticipated to keep up with $555.86 a month, plus $140 for insurance, plus the typical payments of monthly gas and what not; we all know Evo's aren't renowned for their glorious gas mileage.

Plus I made the wonderful mistake of instant modding. Within a month of having the car I had Buschur TBE, Intake, Hallman MBC, and a tune. Which certainly didn't help the financial aspect of it all.

I'm just not sure I have another 4 years of $800+ a month in me. Plus on top of that, I still need to get summer tires, which will probably be over $1000. AHH!

Anyway; try and talk me out of it - and maybe I'll re-reconsider.

[BAMBAM]

Well what made you buy it in the first place?
Also If you can not make the payments then you need to do what you need to do.

[Joshsevo]

refinance, I just applied for my loan today to redo my car to lower the payments by almost a 100 bucks.

[Warrtalon]

The worst financial decision you can make is to refinance the car - that's a downright terrible idea. It means you can't afford what you got, and you're going to pay way more in interest than you ever should on something that is not tax deductible and only depreciates - huge waste of money.

If you can't afford it, then sell it. No biggie.

[rdwngs444]

I also just refinanced and saved about 100 bucks a month because i got a lower interest rate, so refinancing is an option as long as your interest is less then it was.

[sdfontanini]

Refinancing is an option. Rates have lowered recently so it might be a good idea nonetheless.

Instead of selling it, why don't you put in more hours a work. Or find a higher paying job. Don't settle, you deserve the car and probably love it. So work for it. You can do it.

good luck.

PS: AWDP sucks ballz

[Joshsevo]

My intrest rate on my car this very second is 9% is will be a 6.35% after the refiance. so it averages out to saving me 2300 over the life of the loan. Do the math.

[Evolvd]

Aboslutely nothing wrong with refinancing to a lower interest rate. However if you extend the term of your loan then you really need to do the math with the lower interest rate because may end up paying more in the long run.

I refi'd my car and dropped 2.5% and added another 8 months to my loan. Total price in the end was the same but it lowered my payments by nearly $100 which at the time was desperately needed.

[rdwngs444]

My rate was 11% and dropped to just under 7%, weigh out your options before you sell, imo.

[Warrtalon]

Well, I guess if you have outrageous rates that no one should ever agree to on a new car then it might be an option. However, all the interest is frontloaded, so you get absolutely screwed when you refinance a car unless it's within the first few months. All of the rates I see listed are way higher than any rate I've had on a car since 2001, and even that one was 5.99%. Plus, he did not mention a ridiculous interest rate in his post, so that would just be a random guess you guys are making. I just bought a 2008 Saturn Vue in November, and the rate was 4.25%. I can't imagine agreeing to all the rates I see above when buying a 30k Evo.

[Warrtalon]

Originally Posted by Joshsevo

My intrest rate on my car this very second is 9% is will be a 6.35% after the refiance. so it averages out to saving me 2300 over the life of the loan. Do the math.

Ok, I will do the math. How long did you have 9%? 3 months?

If you financed 30k for 5 years at 9%, your monthly payment would be $622. After a year you would have paid $2500 in interest and still owe 25k. If you took that 25k and refinanced at 6.35% for 4 years (remember, you've already paid for 1 year, so you have to keep the refi at 4 years to avoid extra interest). If you do that, you save $1000 in interest over the next 4 years compared to the original rate, but your monthly payment goes up to $709 ($87/mo higher). So, I have no idea how you can save $2300 by going from 9% to 6.35% unless you just recently purchased the car, which doesn't apply to Joel (he says he has 4 years left, which means he started with 5), and he by no means wants his monthly payment to go up.

It is a very bad sign when you start refinancing cars, because that means you probably cannot afford it and/or you made a very poor decision when you first bought it (i.e. agreeing to 9-11% APR). FWIW, my Evo is at 3.99%.

[Joshsevo]

I don't beleive you should be telling people that would be a bad idea to Wartulip but to somone else it helps out with the cash up front, or right now money. if you use fictionary numbers say $450 per month @ 9% for 60 months multiply all that up

450*60=27000
27000* 1.09 =29430 this is the total you will spend on the car with a 9%

now lets use 370 which is what they said my new payments will be

370*60=22200
22200*1.07=23754


29430-23754=5676

Now you are right in when you say that on most cars for the first 2 yrs you are paying off the intrest. But you are missing the point here so pay close attention Clayton. Having more money in my pocket now on payday can help me afford things right now. I cannot live in the past on what I already paid, nor can you so stop trying to push this on people. This extra money now can help buy diapers, gas, food, and anything else and extra 80 per month will buy that can help out.

Now will you pay more in the long run, sure but first who are you to step on someone dreams of owning this car or anything else. Second I can always keep making the 450 payment but now have a lower intrest rate. It seems he is affording it right now as am I. Can I use the extra cash to pay for other things...yes. Will I pay more in the long run...yes. But having and extra 80 bucks in your acct to pay for food fo the week goes a long way.

[Evolvd]

Indeed...pretty much the same reason I refi'd. I started out at 6.49% and dropped down to 3.99%.

Not everyone's credit score can get them 3.99% on a 30K car. So the holier-than-thou attitude isn't required.

[Evo4G63TSI]

I'm actually a Personal Banker, and I would say refinance as well. Also, take into consideration of what term and rate you are at now. If the rate difference is 1.5% or less its not really worth it. Also, another reason to keep it is because its an EVO! come on

[Coevopower]

I had my evo for a year and refinced, for same years loan, so it being 5 went to 4. I refinanced for 4 years, with lower intrest rate, started at 7 went to 4% and my payment went down by $100 a month. So I belive as well it is a good idea to refinance, as josh said 80-100 more a month. will help with food and other thigns, and Gas as well. So it is a good idea to get the lower rate. unless u sell the car to me for WAY cheap, then by all means go a head and sell it.
I can use 2 evos in my gargage.