87silverbullet

iTrader: (11)

Ok here's the deal. Money is starting to run tight and I have a house note truck note and vette note and a host of other bills.

Here is option 1 I could sell my vette and get the money out of it and pay off my truck and that would just leave me with a house note and I can buy another vette later the problem is I love my vette too much to get rid of it.

Here is option 2 I can refinance my vette so I dont have to be obligated to pay so much per month and turn off my cell phone since I have a company cell and there are a few other things I could do.

The first option would put just a lil over a grand in my pocket every month

The second one would put just a lil less than half that back in my pocket.

Decisions....Decisions. I know selling it would make a huge difference but I really want to keep the car.

If you were in my shoes what would you do? Also If I do option 1, the next time around might mean c6 zo6

ls1290

iTrader: (20)

I would definitely do #2 before #1. Better to get your finances setup and/or cleared up now then stretching yourself even thinner.

Keith

Zturd

iTrader: (12)

Sell the car, get the bills straightened out. Save, and once ready and comfortable buy a bigger better vette. Just my opinion. They are a luxury to have and you have to prioritize. IF the truck isnt a necessity, sell it and buy a nice beater. Theres a bill gone, take away the cell phone for a bit. Dont ever run yourself thin just to have the fun car. It WILL bite you! THe furnace goes, the sump pump goes, etc etc.Good luck and we'll be here

Super Speed

iTrader: (8)

Option 3: Drugs....

CySevans

Sell the car. Option 2 would just set you further back and cause you to throw more money away on interest. Vette's are getting real cheap in this economy and are depreciating fast. If you refinance where you aren't eating away enough at the principal, and you get into a financial bind, you will owe much more on it than you can sell it for. Then you're really screwed. You'll probably lose both vehicles because you'll need to dump the truck to offset the negative equity of the Vette. And then instead of "looking fly and rolling phat, you'll be sticking to the vinyl while your posse's getting laughed at".

87silverbullet

iTrader: (11)

My vette is an 06 z51 m6 and I only owe 18000 on it I have looked it up on nada and it still goes for 38500. If I refinance it I don't think i will be upside down with that amount I owe.

The only reason i'm posting this on here is that I work for AT&T and they cut out the overtime and probably won't get any until a hurricane or storm hits the southeast.

MaeganC4

I agree, its hard to let go... i know, but you gotta have your priorities straight, a 2nd car is a definate luxury

~JOSHUA

iTrader: (92)

I say refi- the Corvette...

Hell I just did the same, and I actually got a rate of 6.05... that's two points lower than it was and over the 48 month note I'd save an extra $1200 total, plus I got a lower monthly payment...

Stop the booze, (I'm trying, I spend close to 250 per month on alcohol-I have a problem) and a few other things to cut corners.... and pray for a hurricane.

cruzc5frc

iTrader: (1)

, i use microsoft $ and jaw drops everytime i run a report on booze and night live expenses.. have to build my own bar here soon

06 vette and only owe 18k i'd refi it (IF) you have decent credit and can get a rate around 8% or lower.. no sense in refi at 23% like some of the crazy crackas I hear doing that

87silverbullet

iTrader: (11)

The rate i have is 7.9 I can posibbly get 5.2 with payroll deduction from my credit union.

PA Z06

Option 1, i wouldent want a toy that im stressing over

LS1C5Vette

iTrader: (11)

I would do option 2 before 1 but thats just me cause I want to have fun while I am young

allngn_c5

iTrader: (3)

JMO, here goes.

Sell the Corvette, like you said next time around would mean c6zo6. Take your money drop a good chunk on the truck (moving it closer to payoff), drop some more on your bills (getting them caught up), and if you got enough for a 4 cyl beater buy one. That truck must be killing you on gas. If I were you and I didn't need a truck I would sell it and get something more economical.

I own the car in my sig, and I also own a 93 gran prix 3.1 v6 with 224 K miles that now gets 26-28 mpg since the $4 + / gal price for gas has taught me to slow down. That gran prix is my beater, and my money maker. I've put 200500 of the 224K miles on her, meticulous maintainence records. I hope to get at least another 100k from her or more. Runs perfect, no leaks, nothing. Everything on the car is broke except the most important stuff engine, trans, and brakes.

The only way to accumulate wealth, cashflow, however you want to say it, is to eliminate debt. You drop your two biggest money suckers (corvette and truck payments) get a beater (4 or 6 cyl) for a few years, and pay as much as possible towards the principal on your mortgage and before you know it you will be debt free. Paying additional principal each month really helps reduce the amount of interest you pay in total on your mortgage.

Suffer for the short term and prosper in the long term. Working a **** job I paid off the G.P in 18 months. Working a kick *** job (MONEY) I paid off the Corvette ($47k new) in 11 months. The banks didn't make **** off me. I prefer to keep my money VS paying interest. The only debt I have is my mortgage, and it will be done after about 5 yrs of suffering. Can you say financial freedom at 38 ??

Hope some of these comments help.

CySevans

That's good that you have that much equity, but remember that all of the interest you pay on a loan is at the front of it so if you refinance you will reset the loan and pay the interest all over again. How much do you owe on the truck and what's it worth?

Yes, I know how hard it is to let go. I faced that same dilemma yesterday. Believe it or not, I actually took my Vette out of the garage yesterday, planning to drive to Carmax to see what they would offer for it. I, too, am considering dropping it for a year or so to take care of other things. Mine is definitely a luxury because it's a fourth vehicle in our household (wife has her daily driver, I have my Honda daily driver, a 2002 Silverado truck, and the 2006 C6). I very much want a C6 Z06 and dumping the C6 now may be the only way I can get it within the next couple of years. My truck is paid for and the Honda is a lease, so the only real liability is the Vette. After driving it around yesterday morning, I just couldn't find it in my heart to take it over there. It's tucked back in the garage now.

But if I got into a financial bind, the Vette would be gone, no questions, no regrets.

CySevans

Nope. And I'm turning 40 next month. Your way is definitely the way to go. We're just over two years into the new house and 95% of its contents are paid for. The other 5% will be done within two years (most on no interest loans). But the wife wants a pool, so there goes the equity in the house. That's my biggest concern, and I tell my wife this every day - no sense in owing more on the house than you can possibly get out of it in a bind. And this is my dilemma (you saw this from me on DC). In this economy, it may be best to keep this C6, pay it off and build the car I want over time with cash as opposed to dumping it and getting into a Z06. It was my desire for the Z06 that prompted me to take the car to Carmax. I suppose I could just put it up for sale, but I doubt I would get what I want out of it. I can't see selling this car for less than $40K when it has under 10K miles and it stickered at ~$57,800.00. Granted, I only paid $53K for it, but still.

This type of dilemma is why big down payments and short-term, low interest loans are the best way to go. If you can't afford at least 10-20% down and have good enough credit to get below 9% interest, then you can't afford a luxury vehicle (i.e. a vehicle that is nothing more than a luxury). It took me until I was 37 to be able to walk into a dealer, point my finger at a row of brand new Vettes and say "that one". It's a good feeling. I can't quite do that yet on a C6 Z06 even though I had a pre-approved financining for one a few months ago and the dealer was going to let it go at invoice. I just couldn't pull the trigger (wife factor). Now I have a deal with the wife that all other bills (besides the mortgage) get paid off before I trade this Vette. And if I dump it now, those bills are gone within a year instead of two.

And I dealt with 2 vehicle payments for over 9 years (1998 Silverado + Trans Am, and the 2002 Silverado + 2 different Vettes). For the last year, I had 3 payments (with the inclusion of the Honda lease, but this is subsidized by my company, so it's a wash). I paid the truck off in March, so technically I am down to one car note. Wife takes care of hers (we're DINKS - Dual Income, No Kids).

My truck is like your Gran Prix. I'll have it until the thing falls to pieces.

Ragtop 99

iTrader: (7)

You have to decide what problem you are in. If it is short term, tighten your belt and hold onto the car. If it is long-term and you are over extended, sell the vette.
I do this on top of having a 15 yr note. However, if the OP is tight on liquid savings, this won't help him through a crunch.

87silverbullet

iTrader: (11)

I owe 18500 on my truck. My truck really doesn,t kill me on fuel because I go 2.8 miles to work in the morning but it is a diesel. My problem is just a short term financial problem and maybe I'm just in a panic mode since I have never had to tighten my belt on anything. I'm single with no kids but if I did have kids and got into in a bind it would go in a minute.

If I refinance the car it would just mean i would be obligated to payless per month. Trust me if I have money laying around I will pay up more than the minimum amount but when I don't I will pay the minimum. I know how to beat the banks and their interest games. Now I just have to win the lottery

Next Phase

Get rid of either the truck OR the vette. If you love the vette, keep it and drive that daily or get a cheap beater.

Having two high dollar car notes is crazy. I'm sure you are paying over $1,000 a month for your vehicles and they are depreciating daily.

I don't know what kind of house you have, but it would make better financial sense to buy a bigger house and put the extra money into a larger mortgage. Worst case is to put the extra money that you would have been using for the vehicles to pay off the principal on your current home.

Just my 2 cents.....

allngn_c5

iTrader: (3)

you said "obligated to make smaller monthly payments by doing a refi" (not exact quote, but get the point. Here's the problem brother, smaller payments with interest over more months. Its still bad. You will make the cost of the vehicle go up due to compounding interest.

Let me say this, I know a little about a lot of things. I know everything about saving, and making your money work for you. I turn 33 this month, I am hoping before my 39th bday that I am totally liquid (no debt of any kind) I also have to say that I came from a single parent home, welfare, free lunch and all the other disadvantages you could get. However what doesn't kill you only makes you stronger. I got an education, applied it, employed in Law Enforcement for over 10 yrs, and am on pace to make 100,000 or more for the 3rd year in a row. I max out my retirement, I do deferred comp, and I have an overspending fiance. She blows her money and tries to spend mine. Your wife is going to have to step up to the plate and help you more. Pay extra on everything. Stop smoking/drinking if you do. Cut out the fancy dining and eat your steak at home. If I could sit with you personally I would do for you free of charge (something I've done for many of my partners that live there lives based on overtime) a complete analysis of your situation. I would break it down and give you a way out that most likely would let you keep your Vette, but you would have to eliminate other things. Or vice versa, eliminate the vette and keep the other things. As far as pool, absolutely not. It only compounds the problem. It will be a new bill, it will raise your home owners insurance significantly. A pool is just another luxury. If I had details of take home pay, and monthly bills, and misc items we could break it down and give you a plan brother. Feel free to PM me if you have any questions. Good luck

RE AND CHERYL

iTrader: (31)

As much as I love my toys (I have quite a few), they are not as important as your financial health. Getting you bills straight and preparing your self for the reduced income you are having to deal with is more important than the love for your Vette. You can always buy another. Reducing the bills will also help you to save for getting another in the near future.

But if your going to sell it, do it quick. High gas prices and a crapy economy are killing the prices of these cars. I was actually going to buy one a few months ago, but have chosen to wait and see what prices do.

Re'