Job seekers everywhere are finding out that the struggling economy has changed the rules of employment in our country. Not too long ago, a college degree practically guaranteed a good paying job, but these days thats no longer the case. That hasn’t stopped many young people from attending college – after all, there are still many other benefits to be gained through higher education, but a report by the Project on Student Debt paints a bleak outlook for this years graduates. Join Thomas Fox as he discusses the financial challenges awaiting graduates and their options for dealing with loan repayment.
I’ve recently saw an ad on tv for a dealership that says they will payoff you’re vehicle loan?
“no matter what you owe”. my car is an 06 and i still owe $17K on it. could this be a God send for me, or just another marketing ploy? how does that type of deal work and and what things should i be cautious about?
my payments right now are $510/month (yeah i know), interest is a joke at 21%. anyway out of this hole? i have student loans out so even re-financing companies won’t touch me. if i trade my car in and the KBB value is 7,500 and the car i’m looking at is 13,500 i end up paying 23,000 for the car since i still owe $17K for my car? am i just stuck paying too much for my current car unless i want to pay WAY too much for another car? there has got to be a way out of this mess, isn’t there?
It is a ploy to get you in the door. Granted they may have a vehicle they “are in good” meaning they got a great deal on it and they may be able to sell it cheaper than they should, but you still owe the money on your current vehicle.
The best way to get out of being so upside down is to find huge rebates. Rebates are basically free money and it can go towards your payoff on your current vehicle.
Look into who has big rebates/incentives, possibly take a look at some leftover new 2007s. But bottom line is you are going to have to come up with money somehow to get you less “upside down”.
If you have a 21% interest rate I’m guessing you have struggled in the past and are a little credit challenged.
Banks can overadvance and try to help accommodate your negative equity upto certain percentages (130-140%) with very good credit. However the worse your credit is the more risky and less likely a bank will be to overadvance you on a loan.
Get info on your credit, try to get help with a cosigner if possible, find a car with a big rebate, and you will have to put some money down to get you back in line.
Dealerships can only do so much, but they can’t sell you a car if they don’t get you in the door first, so be mindful of all of the glamorous adds you hear on the radio and TV.
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