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Making Car Payments in Hard Times

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Comments

  • dtownfbdtownfb Posts: 2,915
    I feel like we all went through therapy on this one...

    jocuto: Agree with your points. I think your last post expressed the frustration a lot of Americans are feeling now. Unfortunately, we (individuals) have to tighten our belts and work through this the old fashion way like you are. if it makes you feel better, even with the bailout, I don't think Chrysler will survive.

    these guys/gals are good people on these forums. Most are just looking to help. Some get opinionated but mean well.

    Hopefully you keep coming back, we need fresh faces.
  • fezofezo Posts: 9,355
    You have to be built a particular way for life on commission. I had an uncle who sold real estate. When things were good he lived great but when the market slumped he'd be in pickle. He eventually got a job with the state that made great use of his skills in appraising and negotiating and turned that into a steady income. Not necessarily easy.

    I don't think Chrysler Financial is doing things any differently than other lenders. They set a rate at loan origination and the only way they'll change it is renegotiating the loan. Unfortunately they won't do that for you because of the value of the car isn't more than the loan balance. There are a lot of folks in your boat.

    Best of luck.
  • dtownfbdtownfb Posts: 2,915
    I don't have a positive opinion of chrysler financial, but that is another story. You're right that many lenders will not re-finance car loans. I've only seen it happen on less than one year old cars.
  • fezofezo Posts: 9,355
    Oh, I'll leave where Chrysler Financial is in all of this for others. I've never dealt with them myself.

    I think the only lender attached to a car manufacturer I've dealt with is American Honda Finance. They've been OK. I've dealt with them three times.
  • verdugoverdugo Posts: 2,012
    I've dealt with VW Financial twice. Positive experience all around. Interest rates were subsidized and no hassle/complications from paying off the loan early.
  • lokkilokki Posts: 1,200
    iocuto -

    Laying aside the question of who is at fault for your current situation, let's talk about what actions you can take....

    What's the difference each month between your old payment and your new payment?

    It looks as if you borrowed about $25,000 ( $570 per month for 60 Months @ 13%)

    Using the same calculation ($25,000, 60 months, 9% interest) it looks like your previous payment was roughly $ 520 per month.

    What can you do to cut expenses $50 per month? Do you have a second job, or is one possible for you?

    Do you have a tax refund coming?

    You're going to need to make these higher payments, at least for a while. If you don't you'll probably end up losing your car and making your credit even worse in the process. Those will make it even harder to get a new car loan, particularly in the current climate. You're going to have to find a way.

    While you're doing that, you need to start writing letters to Chrysler Financial. There are two reasons for writing rather than calling.
    1. It's very unlikely that you are going to get to talk to anyone on the phone who has the authority to adjust your loan rate.
    2. You're very angry right now, and frankly, that's not going to help you negotiate.
    You're not going to be able to force Chrysler Financial into doing anything for you.

    You need to write so that you can tone some of your bitterness out of the equation.
    Your letter needs to state the facts - that you have been making payments, and that you're willing to continue, but are currently unemployed. The increase in payments is a hardship which makes it unlikely that you'll be able to continue making them. Ask if you can arrange to make either partial payments, or adjust the terms of the loan in some fashion at least on a temporary basis. Ask for an appointment with someone to discuss the matter in person.

    If you get that meeting be sure to have all your bills, and bank statements with you and be able to show that you're taking steps to meet the higher payment. Show them that you're sincere in wanting to pay off the car.

    This might work, as Chrysler Financial doesn't really want to repossess your car - they've got more than they know what to do with already. But remember, they don't HAVE to do anything, and if they take your car and sell it at auction, you're still going to owe the balance. Yup - you got an amount of MONEY, not a car from them. No matter what happens with the car now, they gave you a certain dollar amount and they will want to recoup that. So, be polite with them, and be reasonable.

    Good luck.
  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,332
    The best advice post yet to this lady. Thank you. Euphonium
  • tidestertidester Posts: 10,110
    That was very constructive. Thank you! :)

    tidester, host
    SUVs and Smart Shopper
  • ronvprronvpr Posts: 24
    If you feel so positive about subaru, my neighbor has a three year old forester that needs a complete head gasket and steering rack replacement. He will sell it to you cheap. Of course his warranty ran out right before all of this happend. Subaru? Quality? JOKE!
  • qbrozenqbrozen Posts: 17,405
    So, you happen to live next to the 1 in hundreds of thousands with this problem. That's unfortunate. And your brother is a subaru mechanic, too, huh? And he says they are garbage? And, with a less than 1% failure rate, you managed to get 2 bad transmissions in your Honda? Remind me not to stand next to you in a lightning storm.

    And you feel giving loans to foreign makes making cars here in the States and employing thousands of US citizens is a bad thing?

    For someone so anti-"Japanese," I have to wonder why in the world you purchased an Odyssey.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '14 Town&Country

  • ronvprronvpr Posts: 24
    I used to be pro Japanese until I starting having all of the PROBLEMS with the HONDA. Unfortunatley, I relied on Consumer Reports for a recommendation. And I got burned. (cancelled subscription now) As for Subaru; "1 in hundreds of thousands?" Your joking, Right? From what I heard, it's QUITE a bit more than that concerning Subaru.
    From what I get, you must sell Subaru's, never owned a domestic badged vehicle in the last 20 years, and would walk over your injured mother to grab here purse to clean it out. Why would I want to give my tax money some foreign company that profits are gong OUT of this country ? I was stupid enough to buy a PROBLEMATIC HONDA (never again I tell you). Someone recently really opened up my eyes to the whole buying import car only idea. And I will probably never buy another import brand again knowing what I know now about trade, currency manipulation, and tax breaks we are giving to import car companies in our own country. All the while when Japanese and Koeran countries do everything possible to keep our vehicles out of theirs. Why would I want to be a part of weakening our countries economic future anymore than it already is? I'm done supporting Japan. I live here. I work here. I wan't all of my money to stay here with vehicles designed, engineered, tested, sourced, and manufactured here. I don't want my children to have to grow up and have the only choice of vehicles be foriegn nameplates.
  • qbrozenqbrozen Posts: 17,405
    completely wrong topic for all this. my apologies. and your first sentence in your 2nd paragraph makes me immeditately realize you aren't willing to reasonably discuss anyway. Good luck with whatever car you find that is designed, engineered, tested, sourced, and manufactured here. I don't know of any.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '14 Town&Country

  • fezofezo Posts: 9,355
    Troll alert! this guy is posting the same thing in any topic he can find.
  • tidestertidester Posts: 10,110
    The issue is making car payments in hard times which means one has already committed to a particular make and model. We're not going to resolve the foreign vs. domestic or this brand vs. that brand issues here.

    tidester, host
    SUVs and Smart Shopper
  • jhinscjhinsc Posts: 399
    ......When your agents tell me over the phone, that I signed the contract and it is my responsibility I have to wonder where yours is? Will you continue to unethically lend money?.........

    What about borrowers who continue to borrow unethically? Is there no responsibility on the borrower? There are 2 parties involved in every transaction. Neither party is wholly 100% responsible - both are equally liable to the agreement signed. Yet both are victims of this economy - a totally separate issue. Please note this is a general obsevation, not meant to be critical of the original poster. I'm seeing too many "sad stories" in the media these days about "whoa is me - where's my bailout". Unfortunately, no one is going to get off without any pain with our economic mess. Someone has to foot the bill and it looks like we'll all be paying for it. :sick:
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