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Old 05-07-2005, 12:26 AM   #8
nate.the.great
Scooby Specialist
 
Member#: 72031
Join Date: Oct 2004
Chapter/Region: NWIC
Location: poor grammar fuels my anger
Vehicle:
2017 SS 1LE

Default

Ok, let's get crackin'

1. Your first problem is your credit cards. Those will mess you up. You have to make sure you pay them EVERY month. The fact that you have them almost maxed out is a problem and will negatively affect your credit score.
2. I was trying to get your monthly bills so I could calculate how much car you can afford. However, that is not working because I don't know enough, but you can currently afford at least $386, so let's go with that.
3. A good refinance rate is 6% right now. It's hard to find one lower, but you can look around at your local credit unions. I just did mine and it is 5%. On to the numbers...

A $19,750 loan for 5 years at 6% has monthly payments of 381.82. This means you can afford this loan. So, now you know the maximum amount of loan you can afford. Whether or not a bank will actually give you a loan for $19.75K remains to be seen. The problem is that your car is not worth $19.75K, so I'm pretty sure a bank won't give you a loan for that amount. They will loan you less money than the vehicle is worth unless your credit is SUPER STELLAR. I doubt it is that good due to your maxed out credit cards.

Your plan of action:
1. Assuming you want to keep the car...
You need to contact your lease company ASAP and ask them how much to buy out your car NOW. That number may be slightly negotiable. The longer you wait, the more interest rates will rise. They just went up this week, so HURRY. You know that the max you can afford is $19.75K, so if the buyout is higher than that, this is not an option. If it is lower than that, it is time to go from bank to bank looking for a loan for the buyout amount. If you can find one, you'll own the car in five years, if you can't find one, on to option 2.
2. You want to keep your car, but can't afford to buy it out now. When your lease is up in 1.5 to 2 years, your car will not be worth $17.5K. It will be worth around $15K? if that. A bank will be willing to loan you around $10-$12K at that time for the car. So, you need around $5k saved up so you can cover the difference between the bank loan and the buyout price.
3. You can't afford to keep your car now or at the end of your lease. You should part everything out NOW. The longer you wait, the less your parts are worth. Drive a stock WRX until the end of your lease, trade it in, and try to lease a new car.

My suggestion:
You are 19 and don't make very much money. You either need to find a new job as some sort of skilled labor (plumber, electrician, etc...) or you need to go to school. Being some sort of skilled labor is an option, and you need see if you have any opportunities in that area. You can't go to school becaues that requires even more money. So, unless there is some sort of abuse in your household, I suggest you move back in. The fact is, you do not have the capability to support yourself and your car properly right now. I think that your relationship with your stepdad can be mended. Honestly, I am guessing a lot of the problem is your stepdad wants you to play by his rules and you don't want to. Well, as long as he pays the bills, he makes the rules, and you have to respect that.

My course of action:
Move home, and mend the relationship. Suck it up. Deal with and respect him for providing for you until you can properly get on your feet. While under his roof, explore career options and school. When you can comfortably support yourself, move out. This may take around 4 years, but you will have your car, and a comfortable life. Where will you be in 4 years if you continue where you are going now?
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