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Would I be crazy to trade in my ‘18 GT pp1 for a ‘16 GT Premium pp1?

bnightstar

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Cib24, I agree with you completely on those points. If I’m being honest, I think coming close to death made me say screw it, I’m gonna get this car and enjoy my life even though it’s a bad financial decision. Sometimes we make mistakes in a fleeting moment, then sanity kicks in. Luckily I can afford this mistake, but I’d like to try and clean it up. My credit report will be clean in about a yeah and a half, so maybe I should just get a high mileage Accord or Maxima and wait it out.
You are not 15 are you ? You realise that all times saying screw it lead you to 21% interest on a car that depreciate like crazy ? At 21% interest I honestly don't think you can afford this mistake. Let me put it in perspective for you if you even miss one payment and at your situation I'm sure you will you will never recover from this mistake. Like you will be paying this car even after your death. Just ask yourself is this worth it so much that your kids or whatever dependants you have pay for it after you are dead ? If I was you I would sell it as fast as I can I will call all people that I own money to credit card companies, hospitals, cable operators etc write what I own and at what interest on a pice of paper and start paying this down from the biggest interest to the lowest. After you clear your debt. I will save an emergency fund of at least 3 months of income. Once this is done you can look at taking a loan for a car but definitely not a Mustang GT probably an used EcoBoost if you so much want a Mustang.
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JCFoster

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Something else to consider is what they’ll give you on trade in. They already know you’re in bind and will probably low ball you’re trade in. Putting you in deeper debt that the lower rate wouldn’t help.

I agree with others, shop around for another loan, not necessarily another car unless you truly can’t afford it. Double up on payments to reduce the damage.

And if you haven’t already, go to run the blue ridge pkway, or tail of the dragon this weekend to just enjoy the car for what it is.
 
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tps7c

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JCFoster, yeah. I tried to refinance and couldn't find anything at this time. I can easily afford the payment so I'll just keep the car. In about 18 months my credit will be clean and then I can find a better loan. The car is too much to get rid of!
 

TheSnowmanMafia

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Every credit app you run lowers your score.
No. If you hard pull credit multiple times for the same thing, auto loan, over the course of ~14 days they all count as ONE REQUEST.

The consumer is allowed to shop rates and the only way to do that is multiple inquiries.

The car is too much to get rid of!
Dude... you can't afford the car. The best thing to do would be to get rid of it...
 

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Kong76

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He can afford the car even with the higher interest rate Jesus guys. Read his posts.

I can understand the impulse buy after cheating death. It wasn't like the guy was incredibly irresponsible his whole life ( again for another post that assumed that).

You are doing what you can do until you get your credit up. The 21% should keep you motivated to fix it asap. Most of us would have worked on the score first but you had a life changing experience that changed your perspective. Just drive the car, enjoy the car and be happy for the time being.
 

Jetnoise

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No. If you hard pull credit multiple times for the same thing, auto loan, over the course of ~14 days they all count as ONE REQUEST
Respectfully disagree but you can run with that if you want.
 
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Bull Run

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Guys, my score is around 540
It's going to be difficult to refinance with that score, especially if you have little to no equity in the car. You need at least 640 to be considered prime and that still won't get you the best rates. I recommending cutting your expenses as much as possible and put the savings toward paying down the loan. Check your score periodically (you can get up to three credit reports free per year via https://www.annualcreditreport.com/index, scores extra) and try refinancing once you built up a decent amount of equity and also have a higher score due to regular on-time payments. If you can't cut any other expenses, then you may have to sell the car.

As for cutting expenses, Dave Ramsey's Total Money Makeover has some good ideals. I don't agree with all of his ideas but I was able to loosely follow his baby steps to completion. Some of his methods seemed a bit extreme for me but that may be exactly what you need at this point. See if the local library has it so you can read it for free.

The Motley Fool has a good short article on How to Pay for a Car. Tips in there should also be applicable for refinancing.

I talked to a dealer who has a 2016 gt premium, pp1, 40k miles, for $26k. But, he’s almost positive that with my credit score he can get me a 10% loan with Cap 1.
Dealers aren't your friend, otherwise, you wouldn't be in this situation in the first place.
 

GasPedal

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I bought with dealer financing and then quickly refinanced the next month to a credit union for half the rate. I suggest finding a local credit union willing to work with you - and maybe see if they would do a slightly lower interest rate for a shorter term making the payments about the same? Generally I think you can shop for credit unions outside of your state if there’s one that will give you the rate you’d be happier with
 

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Agreed, refi via a good credit union. If your "finances are great", your credit score should be up assuming bills get paid on time now.
 

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In 2014, I was in a similar situation with my credit. Financed a commuter Honda Accord for $10999 with 22% interest. Was not one of my smartest choices but i needed a reliable commuter car badly. My way of offsetting the interest was paying double or even sometimes triple on the car payment then my credit started going up and after the 1st year, I refinanced it for half of the interest rate.

If i was you, I wouldnt think about trading the car in. They are just going to low ball you and they will roll over the negative equality onto the 2016 and youll be even more screwed. Just keep the 2018, Keep the miles low and double up on the payments for the meantime. The goal should be getting out of that negative balance on the car then youll not be "trapped" into the car loan.
 

bnightstar

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He can afford the car even with the higher interest rate Jesus guys. Read his posts.
You are doing what you can do until you get your credit up. The 21% should keep you motivated to fix it asap.
If you can't afford to buy something in cash you can't really afford it. What will happen if something break on the car or he got into an accident or the car got stolen ?

He can afford the payment but a car is not only a payment in fact when I usually calculate can I afford a car I put a number equals 2 monthly payments that is the real way to calculate if you can afford a car as this includes monthly payments, gas, maintenance etc not only the monthly payment. Also even if he can afford the payment paying 21% on a secured loan is absurd as 1/5 of his monthly payment is going to interest. As I mention earlier he probably could find a CC with less interest than 21% and this is unsecured loan my CC is at 14.5% and my credit is not great as well.

For me holding the car is the second stupid decision he mad first was to agree on 21% loan. I understand the fuck it mentality after near dead experience but we both know that even owning a Mustang GT is asking for troubles and when you are doing it on 21% is almost suicidal because even if the car didn't kill you that interest will.
 

Semp1

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Hey guys, need some advice here. About a month ago I picked up a 2018 GT pp1 in Kona blue, 15k miles, for $29,500. With the tax and fees I think the payoff is around $32k. I’m paying 21% - I know I know I’m an idiot but long story short, I had a heart attack a few years ago, couldn’t work, and my credit tanked. Any way, health and finances are great now, but credit hasn’t bounced back. So, don’t have to make a payment until August 5th so I’ve been pondering the idiocy of a 21% loan.

I talked to a dealer who has a 2016 gt premium, pp1, 40k miles, for $26k. But, he’s almost positive that with my credit score he can get me a 10% loan with Cap 1. That saves a ton of interest and brings the payment down by around 250 a month, but I’d probably have to put a grand or two down. The car has some options that I was really looking for - shaker audio, 8” touch screen with sync 3, heated and cooled leather seats. It’s black with the black pp1 wheels. Looks amazing.

I know the hp is less on the ’16, I’m not really worried about that. I’m hoping the exhaust note on the 16 is as sweet as the 18, however.

Anyway, any thoughts or advice would be much appreciated. Thanks!
1. The exhaust note on a stock 16 does not sound the same as a stock 18. Especially if you have the active exhaust. The 18 has a much deeper tone. Don’t know why just does. Probably has something to do with the tune from ford. Similar to the Bullit. Add a $200 X-pipe and you never have to think about an after market on the 18 in regards to tone, if you’re happy with the exhaust.
2. If you are already starting to regret or question the purchase it might be best to just sell it and buy another one in a year. You can make all your money back now most likely with out taking a loss due to the high interest.
3. If the 16 is what you can afford easier just go get it as long as you aren’t taking a loss on the 18. But it shouldn’t be any money down. The 18 is worth more, way more in profit and the dealer stands to make at least 3-5k more in profit. At the least it should be an even trade and even then you’re technically taking a loss. Remember what ever he’s selling that 16 for he probably bought that for at least $3k less so it doesn’t make sense why you would have to put money down. The 18 should cover it all.
4. Happy you’re ok. Enjoy life. Don’t stress and get something that can add to the fun of life. If the 18 is adding stress get rid of it. Get a 16 for now. Not like you’d be slumming it. You can always get a 19 or a 20 in 2 years.
 
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TheSnowmanMafia

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