How do I get out of an auto loan on a car that cost more than it s worth to fix major problems?
I own a 10 year old Audi that I still owe $7,460 to the bank and it needs around $4,600 of MAJOR mechanical work done to it. if I don t get the car fixed it will die very soon. The car still runs but I ve taken it to 5 different mechanics the Audi Dealer being one of them, and they all came up with the same report and money to fix it. The car itself is only worth $6,000. So the question I have, is there a way to get out of my loan free and clear because of the numbers and situation? I don t want to do a voluntary repo and I own way to much on it to trade it in. So is there a special process banks can do for these kind of situations, or am I just stuck. It just cost WAY TO MUCH to fix it for what it s worth, the age and what I owe on it.
Used car loan with high interest rate (21%)?
I was shopping for a used bmw 530. I came across one that is 2004 with 70k miles on it. I have bad credit so one 1 bank has approved my loan application. total cost of the car + fees is about $19k. I will be putting down $7k and the bank will lend me $12k at 21% for 60 months term. payment will be about $345/month. (too much interest paid over 60 months) The question is: is it wise to take this loan at this rate? My plan was to rebuild my credit by paying the $345 a month for about 1 year then pay it off thn. Will that improve my score of 560 if i pay on time every months for 12 months thn pay off. Will the lender (wells fargo auto) charge me interest for paying off the loan earlier (12months) ? Or should I just forget about the loan and save money to buy cash? I really want to rebuild my credit. so please let me know if this will be a wise decision or it will be a big mistake I will be making.
Need 1,000 Loan to fix my car?
f you need money to repair your car, you should apply for an Unsecured Personal Loan. If you are making payments on a nice car and need money for repairs, you may be wondering how you will be able to afford them. If your car is newer and the cost of repairs does not exceed the value of the car, you can get a car repair loan to cover the costs of fixing it. Car repair loans can be used to pay for expensive car repairs or to cover insurance deductibles and can range from a few hundred dollars to a few thousand. Everyone who owns a car faces a break down at one time or another and being able to fix your car so you can commute to work and take care of other responsibilities is important. A car repair loan is different from a personal loan because the money is being invested in a vehicle. Usually care repair loans must be to cover repairs that keep the car in running condition but in some circumstances car repair loans can be obtained for other types of repairs especially if a person has good credit. Even if you have car insurance that will cover the repairs, most policies require you to pay a deductible before they pay for the rest of the repairs. A car repair loan can be used to cover the deductible if you do not have enough cash to pay for it. Car repair loans for the deductible are usually small and can be repaid relatively quickly. Lenders usually set the terms of a car repair loan based on the current prime interest rate. A borrower with good credit can get this low rate where as a borrower with less than perfect credit will be charged a higher rate. No matter what your credit is it is important to compare the terms from different lenders to make sure you are getting the lowest interest rate possible. Because loans for car repairs are usually less than a few thousand dollars, they can be paid off within a year or two. It is important to pay off car repair loans as soon as possible to avoid paying more in interest. If the cost of your car payment plus the cost of paying the car repair loan is going to be more than the cost of a new car, you can also look into selling your car and buying a new one. If the cost of paying for repairs does not make you spend more than you would on a new car, then a car repair loan is the best way to ensure that you can get where you need to go.
Suppose C(r) is the total cost of paying off a car loan borrowed at an annual interest rate of r%...?
(a) What is the practical meaning of C '(r)? 1. Approximately, C '(r) means the additional amount by which the interest rate is raised if the amount of the loan is increased by 1 dollar. 2. Approximately, C '(r) means the additional amount of money needed to pay off the loan when the interest rate is increased by 1%. 3. Approximately, C '(r) means the additional amount of money needed to pay off the loan when the interest rate is decreased by 1%. 4. Approximately, C '(r) means the additional amount by which the interest rate is raised if the amount of the loan is decreased by 1 dollar. (b) What is the sign of C '(r)? 1. The sign of C '(r) is negative, because increasing the interest rate will decrease the amount it costs to pay off a loan. 2. The sign of C '(r) is positive, because increasing the interest rate will increase the amount it costs to pay off a loan.