What should i do?

Question

i was just wondering if i should get rid of my 2003 ford taurus! its kind of expensive, with all of the gas it uses, i owe $10,000 on it, and its only worth $6500. my finances are really tight, should i trade it in and get a newer car, and try to get a cheaper payment, like if i wanted to get a nissan versa, which gets really good gas mileage, and is priced really low, would i be able to keep my payment around $250, thats what i pay on the taurus. i really need to cut back, and i dont know if this is a good idea? i wouldnt want a car earlier than a 2004, what should i do! gas is just wayyyyyy to expensive, i do A LOT of driving, please help!!! by the way if it helps on determining the payment, i have very good credit

gramahappy · Accepted Answer

You have to deceide several thing 
what  where and who. a single person or married?
start out on the net  kelly blue book, consummer report
site like that . get you info before you hit the lot.
moneys tight so they will be willing to deal with you  dont be afraid to hagle.

steve k · Answer

Rule of thumb for payments - every $1000 you finance is about $20/month.  So a Nissan Versa, say around $15k, is about 300/month.  After you add on the negative equity of $3500 (and you're likely even more upside down than that, Taurus's are not worth much, sadly, due to all the rental fleet cars out there), and you end up with a loan around 18,500 and payments closer to 400/month.  You can't get a newer car *and* get cheaper payments.  You'll most likely want to look at maybe an older Sentra or something that gets good mpg without costing so much.  You'll need to find a car around maybe $8-9k at most to keep your payments the same...

Scott H · Answer

By your own admission, you owe $10k on a car worth $6.5k. In order to get rid of the car, the loan has to be paid off. So if you can only get 65% of the loan balance by selling or trading it, you are going to have to pay $3.5k out of your own pocket, or in the case of a trade, that amount can be added to your loan, and you're right back where you started. Owing more money on a vehicle than it's worth, but this time, you'll owe $3500 more on it.

Anonymous · Answer

YOUR PAYMENTS WILL BE HIGHER BECAUSE OF THE DIFFERENCE THAT YOU WILL OWE ON THE TAURUS.

YOU OWE $10,000 AND ITS WORTH $6,500 BUT IF YOU TRADE IT IN YOU MIGHT GET AROUND $3000 FOR IT SO THE REMAINING $7000 WILL BE ADDED TO YOUR NEXT VEHICLE.

TRY AND SELL IT OUTRIGHT AND IF UNSUCCESSFUL THEN KEEP IT FOR NOW SO THAT YOU DON'T GET UPSIDE DOWN IN YOUR PAYMENTS.

What should i do?

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