Should I stop paying my car loan and use my old car to save money?

[Anonymous]

Please don’t say get better job. School starts in the fall. I plan study to be a radiologist x ray tech.
meantime I made mistake get a new car last year. It’s a used car and 115,000 miles on it but rides are smooth so far. I had however replace all the tires and new battery $700 total in repairs since getting it June.

im miserable driving 2 hours a day to work back to moms tiny senior apt I hate. I hate that city, I have no privacy, no room, no life. I want live 10 min away from work in a studio.

i do have an older car with 200,000 miles. I paid it In cash 6 years ago. I cud drive that to work 10 min from my studio and stop paying new car bill. And have bad credit. I’ve still been lucky rent studios with bad credit. I won’t be able buy a house as no guy will be my husband. End of year I cud buy a newer used car in cash $4k.

I pay $380 plus $260 insurance.
driving daily to moms city is $150 ish a wk , $600 a month in gas.
I get so tired drive home I fall asleep in random cities or in the heat.

I can’t afford pay rent $1k and car bill $600 as I’ll be left with nothing per check , maybe just $300 leftover or $0.

if I stop paying the car I’ll have one check for rent and more than half second check free to save all year cud get $6k saved or more. rather than good credit and broke $0 or bad credit and good savings?

my credit was 640 but last bill got paid late so it went down 590 , also getting hard save to move out unless I stop these payments and use my old car. My old car just needs $250 for registration. I’m torn if I pay that this wk or car bill? I only make $500 a wk plus $200 on gas to moms city plus food? Plus phone bill coming up this wk?

[Static_In_The_Attic]

Some say there is a light at the end of the tunnel & as I look into my invisible crystal ball I’m see that the light at the end of this tunnel is a freight train that could be avoided.

As for a headache you have one & just reading your question & the information in the description is giving me a headache as well.

As for your car loan stopping the payments is the worse thing you can do.

Stopping car loan payments leads to late fees, severe damage to your credit score, and eventual repossession of your vehicle, often without warning. In addition you will likely still owe a "deficiency balance" and that is the difference between the sale price of the repossessed car and your total loan balance plus costs.

The number one question is why do you have two vehicles & did you ever think about trading in both vehicles & getting a small compact car with low mileage that is reliable?

Think about doing that & don’t stop making payments on your current vehicle loan.

If you trade both vehicles in & get something smaller with lower mileage during the loan process tell the loan officer you can only afford $400 to $500 a month & see if they will work with you.

My second question is why are you driving so far for work? That’s crazy!

I wish you the best of luck because if you stop making payments on your car loan it’s going to kill your credit & down the road you are going to need that credit.

[WindAtMyBack]

It depends on the condition of your old car. They are both old enough that condition is what really matters. A car with 200K miles may require less work than one with 115K.

I'm a little confused about some of the numbers you posted. But if I understand it right, you'd save quite a bit on car payments. It's always a gamble, but most likely the money you save on payments will be more than enough to do repairs - keeping in mind that both cars are old enough that repairs are likely.

I don't suppose that you are able to do any of your own repairs and maintenance? If so, an older car is almost always a better deal from strictly the financial point of view. There will come a time when it's no longer worth it, but that isn't until it's practically falling apart.

[Mariogirl09]

Keep your old car. Live on campus. If you have an aito loan for the newer car you'll still have an auto loan until you pay it off or sell it

[Asker]

I can’t pay it off. I have a lot of ficking bills. I’m not rich.

[Asker]

I would have to stop paying the new car and that’s it get it towed away

[Mariogirl09]

Why can't you sell the car?

[Asker]

How I can sell it? I can’t sell it I owe 12k on the car.

[HollyK21]

Why didn’t you use your old car in the first place?

[Asker]

My car broke down. I was getting rides to work from my dad few days and right when I got my taxes $1000 I had use it for the down payment on the new car. I was depressed as it’s so hard for me to save and my car decided break down once my taxes arrived. 🙄

So as my dad threatened to no longer take me to work I got pressure and accepted the new car. I feel miserable driving so far to mom’s tiny senior apt. I have no room, can’t go out, nothing to do here.

Now I realized there’s new thing where u can fix your car and pay monthly payments. However my old car wudnt handle driving so many months 2-3 hours a day to my moms far city. However it feels I’m just working for gas to her city.
But time has come for me to finally move out close to job but I need stop paying this car next month so I can finally save my check to move out.

Instead of paying April $600 for the car it can be used for my deposit to move finally

[Asker]

My credit did go up and I’m sad my credit will be ruined. But I’ll be broke all year. So what’s better? $6k or more by end year and. Bad credit in my own studio by job? Or good credit and broke now to end year $0 savings?

[Asker]

Don’t even like the car and has 120,000 miles and will be higher more and more days I drive to moms city.

[HollyK21]

Gotcha. In that case, do what sounds the most cost efficient. Break down the costs, compare, then go with the best option.

[Asker]

It’ll be cheaper stop paying the new car. Like I said what would u do? Get bad credit but u will be able save $6k or more by end of year? And have your own studio by job next month? Or broke $0 all year no money leftover each checks and continue paying new car and have studio close to job but good credit?

[Sunnyrjs]

If you have already taken loan then you would have to pay otherwise in Vehicle loans most of the time the car is on hypothecation which means they will take your car and recover the loan amount, that still doesn't mean your loan will be closed it after selling your car they are still not able to recover the complete loan amount you will still be liable for the remaining funds and your credit rating will also keep plummeting.
And once your loan becomes a NPA then you won't be able to apply for a new loan without clearing your earlier eyes.
at least that's what I know.
So you are in a tricky situation.

[Asker]

I’ll just let me credit plummet. I can buy a newer used car less miles on cash $5k won’t need good credit for that.

[Asker]

It’s better have poor credit and $6k saving end this year than good credit and $0 savings rest of year and no money leftover from each check or if anything only $200 leftover each month. No shopping no trips never go out just work forever for a car almost reaching 200,000 miles

[Sunnyrjs]

That's fair I guess but once they take your car and sell it to recover the loan amount, if it not enough, you would still have to pay the remaining amount to them

[Asker]

I won’t be able to. I don’t make enough. I have a lot of fucking bills

[Sunnyrjs]

I am sorry then I can only tell you to be cut cost wherever you can

[Sunnyrjs]

*to cut cost

[Sunnyrjs]

Or talk to your bank and see if they can help out somehow, cause banks don't want their loans to go NPA too

[Asker]

Say what to my bank? I’ve never gotten a new car before I don't know anything about this

[Sunnyrjs]

Just tell them about your plight and ask them if they can renegotiate the terms to increase the period of the loan and reduce the monthly deductions or EMIs if possible.

[Asker]

Plight?

[Asker]

What number I call? Customer service?

[coachTanthony]

I would keep the new car because it will be more dependable. Get housing closer to work immediately and sell the old car. You might want to go for a room for rent in someones house... much better then a 1000 apt for now. Don't let your credit get worse you will need it for future car loans and places to live.

[Asker]

I don’t plan get future car loan. I plan with 4k buy a used car with less miles in cash. U won’t need good credit for that.

[Asker]

I won’t get a room in someone’s house , they r so expensive almost 1k, and yes I can afford 1k studio.

[Asker]

I will not keep the new car.

[coachTanthony]

Well sounds like you have it all figured out

[Telekinetic-Potato]

I would get rid of that car as soon as possible. But you have to be diligent with your money. A car with 200k miles can blow at any moment and you might now be able to see it coming. Especially if you don't know a good mechanic.

$160 can easily turn into food for the week. And really that money would have to go into a "rainy day" fund. So it really comes down to how diligent can you be with your money? Do you trust yourself?

[Asker]

For the old car I got the catalyst converter fixed and engine oil leak whole gasket was replaced.

[Asker]

And new battery now

[Asker]

Get rid of which car r u talking about?

[Telekinetic-Potato]

Personally I'd get rid of the payment as fast as possible. How much is left on it? What kind of car is it. The new car and the old?

[Asker]

Old jeep patriot , new car Kia sorento. I hate my new car it’s too big and ugly. Peeling off too. Like 12k

[Telekinetic-Potato]

Oofff that's a tough one. The patriot is gonna have problems eventually. You might be able to sell it though. People buy them for some reason.

But a kia is really only good till 150k miles most of the time.

Even if you put 400 a month in, that's still over two years you have left.

I think your best bet is to survive with your family for another 2 years, find little side hustles. You could pick up phones at a pizza place, babysit maybe do customer service working from home. But get yourself a few grand saved up and try to put the lowest amount of miles on the kia as possible.

Save it for times when paying for gas is a big deal like right now with everywhere being $4 a gallon. Or when you're short on cash. Use the jeep as much as you reasonably can because the lower the miles on the kia, the more it's worth when it is paid off.

If both cars are on your insurance, you might even be able to get away with not insuring the kia if you don't drive it in the winter for example.

[ohsheeT]

No way who charged you 700 dollars for a battery. It better be a Tesla and you still didn't need a new battery there's ways to fix those you know and I bet you there was nothing wrong with it what kind of car is it and how much did you pay for it

Because if you're going to sell it you really need to start thinking fast because you want it out of your life before anything starts happening in this world to where you're still liable for it what is your old car and what's wrong with it

[ohsheeT]

Okay first of all your pain way too much for insurance way too much you should be paying 60 bucks a month for insurance full coverage that is totally ridiculous yeah but what kind of car used car do you have are actually what is your old car I bet you can throw a couple hundred dollars into it and just make it look shiny new and it will get you to where you're going and back and you can start putting away your money that's what you need to start doing right now is put it away all of it as much as you can go without for a while on some things and then like you said get a house but I really want to know where you got that $700 battery cuz you got ripped off completely that battery should have been $200 $250 at the most I mean and that's highway robbery

[exitseven]

if you default on your car loan it will ruin your credit. If you can find somebody to buy a car with over 100K miles on it you can sell or maybe burn it for the insurance money.

[Asker]

Yes oh well I’ll have bad credit. Nothing I can do. I won’t keep that car. I’d rather have a place to live then keep that stupid car and miserable driving daily to moms Tiny senior apt with no life spending money on gas $600 a month.

[Staximus]

You better get the apartment before you stop paying the car payment

[Asker]

Yes I plan do that.