[thinkofone28]

Hello everyone, i just wanted some advice from the older crowd on this forum on my current situation...

I recently bought a 2011 bmw 335i last november, which is when i still had my business and making money. Come feb i had to close down for personal reasons and now i simply cannot afford it until i start my new job.

Payments are about 500/month! I can barely make my payments, what are my options?? Once i start working within the next few weeks, i should be fine, but my cars out of warranty as well and its scaring me alrdy. The car is perfectly fine by anymeans as of now, but afraid something may go wrong and it will cost alot of $$$$.

Would i be able to trade it in even if i still owe about 25k on it? Trade it in for a used car or new car? (Somehwere in the 15k-23k range)

Any advice is greatly appreciated!

Thanks,
Brendon

[Underground6t9]

Depends on what the trade in value will be versus the loan on the car. You might go upside down a few thousand and roll it over into the new loan. You can always trade it in if you can get another car loan. It will be tuff to get a new loan without proof of employment. Good luck

[Bluesnake01]

^What he said. Also, some dealers will ask for some downpayment. Best choice is to refinance to a lower rate. You start back to 0 but your payments will be lower.

[07lilredwagon]

perspective is a funny thing. 500.00 per month does not seem too steep for what you are getting when the money is abundant. But, when money is tight, that same 500 bucks is a whole different animal.

its humbling, which is good. like I said, perspective. You could get into a much more utilitarian mode of transport for under 300 or even 200/mo with a sensible lease...

Or

knock on wood that nothing major happens with the car until your new job starts. Worrying about something that has not happened yet or may not happen for a long while is illogical...but we all understand the potential for something to go wrong with mechanical things....

The only advice I can give, and I dont follow my own advice very well, is to make sure you are doing what you need to to even if its just a temporary thing...If the car has to go, then the car has to go and you will be much happier and less stressed out about the possibility of an expensive repair that you cannot afford right now...

I like the advice about refinancing your auto loan based on the balance which is at least 6000 less than when you started, right?. See if a credit union can give you a rate less than 3 per cent....would that bring the monthly down to take the sting out of it?

good luck with it.

JP

PS...sometimes a loan from a parent, interest free, until you get back on your feet is feasible too....

[AzureHaze]

Refinance. Good luck with your new job.

[NGEE]

From the timeline you describe, you're only talking about one (two at the most) months of payments without income, and then you're fine as far as the payments go. So the question really is one of reliability. Hm..

RUN!

No seriously, are you a decent DIY'er? If not, I'd look to sell or flip into something else, since even simple repairs like a water pump or oil filter housing gasket can exceed $1k. But if you *really* like the car and you can DIY some of the more common repairs, you might consider keeping it for the long haul.

In terms of *the big repair*, all of us are ultimately in the same boat for risk. Even if we have the money for it, at some point it becomes a question of how much do you want to spend on a car?

Maybe if you refi you could purchase a third-party warranty as an insurance policy against the big-ticket items.

[Kolyan2k]

Originally Posted by Underground6t9

Depends on what the trade in value will be versus the loan on the car. You might go upside down a few thousand and roll it over into the new loan. You can always trade it in if you can get another car loan. It will be tuff to get a new loan without proof of employment. Good luck

never in my life i needed a proof of employment, especially for a car loan

I would go to dealership and see what they can do for you. I dont know why you looking at $23k for a car when you cant afford $25k. Get a reliable $10-15k max car and call it a day. There are plenty of nice cars for that price.

[fravel]

Originally Posted by Kolyan2k

never in my life i needed a proof of employment, especially for a car loan

Shiiiit. I took a paystub in with me when I applied for my loan and the underwriters still required me to submit a signed letter from our HR department on company letterhead as proof of my employment status.

[Hidden]

Originally Posted by Kolyan2k

never in my life i needed a proof of employment, especially for a car loan

.

Then you are taking a loan out against your deposits and investments. Other wise you ARE required to provide proof of how you intend to meet the obligation.

[markus037]

like others have mentioned. see if you can possibly refi the loan. that would be your best option. Unless you are ahead on the loan you will lose money since dealers wont give you crap for the car.

[Kolyan2k]

Originally Posted by fravel

Shiiiit. I took a paystub in with me when I applied for my loan and the underwriters still required me to submit a signed letter from our HR department on company letterhead as proof of my employment status.

Originally Posted by BPWFlorida

Then you are taking a loan out against your deposits and investments. Other wise you ARE required to provide proof of how you intend to meet the obligation.

deposits yes, but i never provided my banks with employer for 3 cars and 2 condos

[GMe90]

See if you can sell your 335i without coming out of pocket to pay off the remainder of your loan. Then, consider leasing a Corolla or another entry level Asian vehicle. I leased a New Corolla for less than $200 a month three years ago with no money down and 15k mile per year coverage. The three year lease on the Corolla will buy you enough time to get back on your feet.

[bbbuzzy]

?????? Why would you get rid of a car you like, that has no mechanical problems, and that you state you can afford in a few weeks, just to remove the off-chance you will need to pay for a repair. It might take weeks to get rid of it. I think I missed something. Good luck with your work situation.

[jaymesbry]

Did you say weeks? if you're scared then just drive less for a little bit. Ride a bike, get more rides from friends, ride the bus..

Sometimes simple answers are better

[Kolyan2k]

In few weeks he will be able to make his $500 payments. That just sounds very wrong.....and pretty much means he can't afford the car. I would get rid of it asap. Its sad and funny every time I look at some of my buddies dashboards with Christmas lights because they have no money to fix the car. You obviously buy a car that u can maintain and afford to fix.