Category: Car payment

I have read your situation and here’s my 2 cents

You already have the equity loan so the 10,000 is in your pocket now.

Call your lien holder and get your payoff on the SUV. It is going to be less than the 10,000 you owe on it. It might be 1000 or 1500 less because of the interest. Pay it off with the 10,000 and then sell it outright to a dealer or private party and get a new car. I would suggest you look into a small SUV 4 door just for the protection and comfort or your wife and child. You can get one of those for 18-20 thousand, and for the 8 or 9 thousand you have in your pocket (after selling your old SUV) you would only be making payments on 10 or 11 thousand of it.

You would have a new car, smaller, less expensive and better gas mileage. Lets face it in today’s world house payments and car payments are just a fact of life, minimize them as much as you can, but unfortunately they will always be with us, well for most of us anyway.

Good luck!

I assume you are in the States

I assume you are in the States (I’m in Canada) but a scenario would be this.

  • SUV is ~$400 per month to purchase. Two years left on the loan.
  • Used Grand Prix ~$8000.
  • Trade in value on the SUV ~$8000.
  • Refinance the Grand Prix over 4 years ~$200 per month.

Is that some sort of a worthwhile idea? It cuts your vehicle payment in half, doesn’t take the equity from your home, gets rid of the gas guzzler, and leaves you with a decent sized car for your family.

I’m just guessing at numbers, you will have to see what you can get for your SUV and what a worthwhile replacement car is worth. This was just what I was considering.

Oh, and the discount on your insurance may be noticable as well. SUV’s are rated higher, especially the 2 door models.