Car Help!!

[hamiltondude]

Sooo i bought/financed a car from a dealership a few years ago, and due to bad credit and what not, the car has a high interest rate (which obviously leads to high monthly payments). I asked them when am i able to renegotiate for a lower interest rate. They told me if your payments are on time and you dont miss any for the next 12 to 18 months, then they will renegotiate the interest rate. So ive been making my payments on time. I called the loan company after 18 months (a bank) and asked them if i can renegotiate my loan. They checked my equifax report and saw that i was defaulted and behind on other payments (credit card, phone bill, what not). They told me i had to get these taken care of before they can help me with my car loan. Im like wtf, that doesnt make sense!! Does anybody have any advice on what to do to lower these payments (without fixing my other credit problems)?? My car payments are wayyyy too high, yet i still havent missed a payment.

Thank you for your help

 

[afterhours]

does anyone know, if I am leasing a car, am I entitled to prepay a certain amount to avoid paying interest on it?

 

[hamiltondude]

You can't do anything. Everyone goes by Equifax and what equifax says goes. Besides I suspect they never planned on lowering car payments and it was just a selling point to get you to take the car. Lowering car payments are unheard of.
Regardless of car payments get your debts taken care of. This will haunt you for the rest of your life if you don't settle it. It will even become a burden to family members you leave behind when you pass on one day.

I will be taking care of the other debt in the next year or two.


Why is it unheard of though? We can negotiate our credit card rates after a while can we not? When i called the bank, they never gave an indication that i was mislead. They said take care of the other debt then call us. Talking care of that other debt isnt feasable right now. Any other suggestions??

 

[TeasePlease]

I suspect the bank meant that they would consider re-financing you (making a new loan to repay the old) under better terms if you cleaned up your act.

 

[gcostanza]

You have a poor history of debt repayment.

The bank has evaluated you as a poor risk at this point, you need to show capabilities of paying outstanding debts.

It's all done by statistics.

People who are 'X' days behind on 'Y' number of bills/loans/credit cards have a significantly higher probability of default than people who make payments on time.

You got yourself into this mess. Get yourself out. Eliminate unnecessary expenses, and pay down your debt as quickly as possible.

Make yourself a more attractive candidate for a new (possibly consolidation) loan (and a better interest rate).

 

[hi up in the sky]

Afterhours,
Leases usually aren't sturctured to allow for additional partial payments, contact the leasing company via email or in wirting and isnist on getting a repsonse in writing that spells out what they are willing to do for you.

 

[Nickelodeon]

I would start by actually reading the lease agreements and determine whatbthe pre-payment opportunities are. This doesn't sound like a standard manufacturer's lease contract.

 

[Moraff]

Why is it unheard of though? We can negotiate our credit card rates after a while can we not? When i called the bank, they never gave an indication that i was mislead. They said take care of the other debt then call us. Talking care of that other debt isnt feasable right now. Any other suggestions??

Credit card and contracted loans are two separate animals.

They won't change the interest rate of the existing contract unless there is a clause in there that pertains to doing so.... anything else will void the contract. What they meant they will do is renegotiate a new loan contract with you. Unfortunately they have rules to follow which basically say "thou shall not make a loan with someone who has a bad credit rating". It doesn't matter at all that you haven't missed any payments on the car loan.

 

[downbound123]

Even though you answered a thread that is 10 years old (bored are we?) the information is still relevant.

 

[Indiana]

Even though you answered a thread that is 10 years old (bored are we?) the information is still relevant.

Wonder if he’s still making payments on that vehicle?

 

[Gentlemoan]

Can we downgrade the car insurance to parking or garage.
OR
How much maximum deductibles can we apply to save money.
Anyways we are not driving.

 

[ActionJ]

How about a debt consolidation? Consolidate, the credit card, car loan and other loans with the bank. If qualified, you should get a better rate.

 

[Smash]

Wonder if he’s still making payments on that vehicle?

Yea, it was a 120 month plan.lol

 

[MindJohn]

Yea, it was a 120 month plan.lol

lol - well said

 

[Nickelodeon]

Shit, I didn't realize this was a 10 year thread until I saw that I had commented on it 10 years ago. Where has the time gone?

 

[Indiana]

Don’t do the crime if you can’t do the time.