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Need Advice on my Car

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Posted

I have an '09 Corolla my mom got for me a few years ago (2010) and I'm about to take over payments. There's still around $9k owed on my car and when I take over payments, I will have about 3 1/2 years of payments left (6 year financing).

My concern: lately, I've been putting up TONS of miles on my car going to work and back (well over 100 miles a day). I think i've put nearly 7,000 miles on it in just over 2 months, going from around 49k to near 56k. I'm worried that the value of the car will plummet and I'll be stuck paying for a car that may not be worth half of what I'm paying for it and I feel I'm hitting that mark very soon.

I looked at the interest rate and it's over 10%. I'm willing to bet I can refinance it with my credit and get that rate cut in half, if not more.

I don't want to pay for the car 2 and 3 years down the road and not be able to sell it or trade it in due to all the miles and wear and tear (even though I keep up with regular maintenance). Then again, I won't be able to do anything about it until a few months down the road.

What should I do in this situation? I know cars depreciate rapidly, but there's something about paying $250 a month on a vehicle that I think isn't worth it in the first place that's bothering me. Is it something I should worry about at all?

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Posted

Is your mom hot?

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Posted

You're going to pile up miles on whatever you drive, so unless you're going to swap the Corolla for a beater (which you could do anyway to lose the payment), you may as well keep driving the car and not worry about it.

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Posted

just my humble opinion...but a car is a necessity and not an investment. Drive it drive it and then drive it!

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Posted

just my humble opinion...but a car is a necessity and not an investment. Drive it drive it and then drive it!

This.

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Posted

It's a Toyota, they're dependable for a loooong time and hold their value well. As long as you're not on a lease the mileage shouldn't be that big of a deal. As for a refi, talk to them and compare what you would pay on a new rate and how it compares to what you'll pay for the rest of your original loan. If they refi for a lower rate but extend the term it could end up costing you more.

Are you upside down in the car now?

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Posted

That was no favor in getting a 10% interest rate. Check with a credit union.

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Posted

Cars are not "investments" no matter what anyone tells you...unless it's a classic that you're redoing. The minute you drove that sucker off the lot it became a "car that may not be worth half of what I'm paying for it".

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Posted

I have an '09 Corolla my mom got for me a few years ago (2010) and I'm about to take over payments. There's still around $9k owed on my car and when I take over payments, I will have about 3 1/2 years of payments left (6 year financing).

My concern: lately, I've been putting up TONS of miles on my car going to work and back (well over 100 miles a day). I think i've put nearly 7,000 miles on it in just over 2 months, going from around 49k to near 56k. I'm worried that the value of the car will plummet and I'll be stuck paying for a car that may not be worth half of what I'm paying for it and I feel I'm hitting that mark very soon.

I looked at the interest rate and it's over 10%. I'm willing to bet I can refinance it with my credit and get that rate cut in half, if not more.

I don't want to pay for the car 2 and 3 years down the road and not be able to sell it or trade it in due to all the miles and wear and tear (even though I keep up with regular maintenance). Then again, I won't be able to do anything about it until a few months down the road.

What should I do in this situation? I know cars depreciate rapidly, but there's something about paying $250 a month on a vehicle that I think isn't worth it in the first place that's bothering me. Is it something I should worry about at all?

If you were to refinance that 9,000.00 at 5% is around 160 a month for 60 months, 255 for 36 months, 196 for 48 months.

Secondly 56k isn't high miles the car if properly maintained is good for 200k or so if you keep maintenance up and change oil regularly.

It is a Corolla so it isn't going to rise in value and will keep depreciating. Based on your commute and the price of gas I would keep it and drive it until the wheels fall off. If you spring for another used car do you know its service history? With this car you know if it has been taken care of or NOT. In four years the car will value will probably be around 3k (guesstimate)

The real question is..........Do you like the car enough to keep and drive?

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Posted

I think I am upside down on it now.

I'm fully aware that the car isn't an investment. I'm more concerned about interest killing me in the long run and still having more than 3 years of payments left on it.

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Posted

Good Lord...what do you do that makes you drive over 100 miles a day??

I'm actually in the process of refi'ing my car. Opened up an acct with the credit Union. Going from 8.79% to %4.75...I'll finalize everything on the 19th and I'll be able to skip December's payment...woo hoo

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Posted

I love not having a car payment.

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