Should I keep this car? please help!?

(2012-02-02 15:30:21)

1. Caught in a mosh Says: I purchased a 2008 Nissan Altima with 46k miles. Its my first car purchased on credit and got a loan for it with 16% interest. My payments were $345 and had to pay 21k over 5 years. Two Weeks later, the salesman said the bank denied my loan (although I was already approved before) but a new bank accepted it. My payments went from $345 to $385 and the interest went from 16% to 24% and have to pay 27k in 6 years. I have less than a day to think about it and am not sure its worth keeping. I really like the car but the debt worried me. I need a reliable car as I commute far away. I've searched for used cars under 5k so I can pay cash but no luck finding anything decent. What should I do???

2. Bill Says: If you can get out of it DO IT !!!!!! You will not be able to sell it for at least 4 years as you will be upside down on the loan. Buy a cheaper car on credit(3 yr max loan) and you should build your credit and be able to buy a new car in a couple of years at one of the leader interest rates such as 2.9%. Good Luck

3. ? Says: I'd feel like an all day sucker paying 27,000 for an Altima with nearly 50,000 miles on it.
I'd sooner take my chances buying the cheap wheels you were looking for and dropping them in favor of another cheap car if theres some sort of expensive mechanical failure. You'll be saving alot on insurance too.

4. Uncle Bo Says: Should you keep it? I don't know.... do you need it?

What other alternatives do you have? Do you really need a $15000 car? There are no decent $5000 cars. They are all hoopties. What about something for $10k?

The loan is what it is. Clearly your credit has serious challenges. Not much you can do about that now.

What I recommend to folks in your situation is to pay on the loan for one year, then look to refinance at a lower interest rate. You should not plan to pay $27,000 for a $15,000 car. Save some money, pay extra every month, then refi in 12-18 months. You might be able to cut that interest rate in half.