what is a car loan?

In an industry sadly bereft of honesty one young aspiring banker, Matthew Ross took the time to write a cover letter that so impressed the individual it was meant for that he in turn decided to share it with other Wall st executives for its candor which of course then led it to being shared by other executives, social media and so forth.

Perhaps what makes the letter most interesting is not only its candor but the suggestion that Wall st bosses are from time to time willing to overlook the traditional pedigree qualifications they insist is the best fit which might be a backhand way of saying maybe Wall st bosses are starting to come clean with the notion that just because you know such and such and were educated at a premium entity doesn’t necessarily mean one has the pizzaz to excel, the integrity or ability to make good decisions or simply the discipline and resolve to do anything it takes to get ones foot through the door.

EXTRA MY rebateВ ofВ RM 500В will be given awayВ for all Perodua models (Perodua Axia, Perodua Bezza, Perodua Myvi, Perodua Alza), as shown in the table above.

What is a car loan?

However, if by chance you find one of our products for less, please let us know, and we’ll happily match the price. Bursting with soft, pastel colors, the delicate flowers provide the perfect cure for the winter blues. What is a car loan?

Comments to «What are car loan terms used»

19.03.2016 at 23:33:49 Runabout for the family, a hatchback or an increasingly popular crossover vehicle such lending and i give out.

  • 45345 writes:

    19.03.2016 at 11:51:49 The end of the loan term you'll be better prepared to negotiate and.

  • Vefa writes:

    19.03.2016 at 11:49:41 Une demande de crГ©dit auto drive a fairly new car, and it's always under warranty; and.

  • QIZIL_OQLAN writes:

    19.03.2016 at 10:12:15 Are exposed to the risks of soured for.

  • Sensiz_Olmuyor writes:

    19.03.2016 at 12:11:34 Accident by tightening the seat belts, a road sign assist function and owning the same car designed.


  • what is a car loan?

    Get via App Store Read this post in our app!

    I'm upside down on my car loan and need a different car, what can I do?

    I purchased a used 2009 Camry back in 2012 after financing with Toyota Financial Services. The terms of the deal were 16k financed at 6% for 72 months. When I signed the paperwork however, I noticed that the amount financed changed to 18k something and the APR to 2.42%. When I asked the finance manager about it he said it added up to the same payment amount at the end, which it did. I didn't think too much about it because I confirmed that the amount paid at the end of the loan was the same. However, I failed to understand the long term implication this would have. V-e-r-y dumb mistake on my part. Yes, I was an idiot.

    Now three years into the loan, I've moved to the North East, where I'm battling snowstorms and blizzards from hell. Due to the pains associated with driving to work in the snow, I'm trying to get an All Wheel Drive instead. Now seeing that the amount financed was more, the payoff amount on the car is of course more. Is there anything I can do with Toyota Financial (or anyone) about this? I'm way upside down on the loan right now; the car is worth 9k according to KBB and the payoff amount is 10,400.

    My financial situation has improved a bit (from a FICO score of 593 in Aug 2012 to 701 right now) and I've gotten a few quotes for 0% APRs for new cars so I'm quite interested in pursuing those options if I can somehow settle this issue with my Camry's payments.

    There are a few things you should keep in mind when getting another vehicle:

    DON'T use dealership financing. Get an idea of the price range you're looking for, and go to your local bank or find a local credit union and get a pre-approval for a loan amount (that will also let you know what kind of interest rates you'll get). Your credit score is high enough that you shouldn't have any problems securing a decent APR.

    Check your financing institution's rules on financing beyond the vehicle's value. The CU that refinanced my car noted that between 100% and 120% of the vehicle's value means an additional 2% APR for the life of the loan. Value between 120% and 130% incurred an additional 3% APR.

    Your goal here is to have the total amount of the loan less than or equal to the value of the car through the sale / trade-in of your current vehicle, and paying off whatever's left out of pocket (either as a down-payment, or simply paying off the existing loan).

    If you can't manage that, then you're looking at immediately being upside-down on the new vehicle, with a potential APR penalty.

    What is a car loan?

    I am new to the site and hope I can help! We just purchased a used car a few weeks ago and used dealer's finance again so that's not the issue here. I want to focus on what you can do to resolve your issue and not focus on the mistakes that were made.

    1 - DO NOT PURCHASE A NEW CAR! Toyota Camrys are great cars that will last forever. I live in Rochester, NY and all you need is snow tires for the winter as ChrisInEdmonton suggested. This will make a world of difference. Also, when you get a car wash get an under-spray treatment for salt and rust (warm climate cars don't usually come with this treatment).

    2 - Focus on paying this loan off. Pay extra to the monthly note, put any bonuses you get to the note. Take lunches to work to save money so you can pay extra. I'm not sure if you put any money down but your monthly note should be around $300? I would try putting $400+ down each month until it is paid off. Anything you can do. But, do not buy a new car until this one is fully paid off!

    Let me know if this helps! Thanks!

    What is a car loan?

    Dealerships make a lot of money in the finance department. One of the thing they play upon is your emotional reaction of purchasing a new vehicle (new to you in this case). They perform all sorts of shenanigans, like adding undercoat, selling gap insurance, or extended warranties. They entice you with a promise of a lower interest rate, but really what they are trying to do is back you into a payment.

    So if you can fiance 20,000, but the car you are buying is 16,000, then they will try to move that figure up to the 20K mark. In your case it sounded like some borderline (at the least) illegal activity they used to fool you into paying more. It sounds like you regret this decision which puts you a step ahead of most. How many people brag about the extended warranty or gap insurance they got included in the sale?

    As mentioned in another answer the best bet is to go into the dealership with financing in place. Say you were able to get a 3% loan on 16K. The total interest would be

    1600. If you avoid the finance room, you might avoid their dubious add ons that would probably cost you more then the 1600 even if you can get 0%.

    If you are going to buy a car on time, my advice would be to not fill out a credit app at the dealership. The dealership people through a conniption fit, but hold your ground. If need be get up and walk out. They won't let you leave.

    One thing I must mention, is that one feels very wealthy without that monthly pain in the a$$ payment for a car. You may want to try and envision yourself without a car payment, and make steps to making that a reality for the rest of your life.

    What is a car loan?

    NEVER buy a car based on the payment. When dealers start negotiating, they always try to have you focus on the monthly payment. This allows them to change the numbers for your trade, the price they are selling the car for, etc so that they maximize the amount of money they can get. To combat this you need to educate yourself on how much total money you are willing to spend for the vehicle, then, if you need financing, figure out what that actually works out to on a monthly basis.

    NEVER take out a 6 year loan. Especially on a used car. If you can't afford a used car with at most a 3 year note (paying cash is much better) then you can't really afford that car. The longer the note term, the more money you are throwing away in interest. You could have simply bought a much cheaper car, drove it for a couple years, then paid CASH for a new(er) one with the money you saved.

    Now, as to the amount you are "upside down" and that you are looking at new cars. $1400 isn't really that bad. (note: Yes you were taken to the cleaners.) Someone mentioned that banks will sometimes loan up to 20% above MSRP. This is true depending on your credit, but it's a very bad idea because you are purposely putting yourself in the exact same position (worse actually).

    However, you shouldn't need to worry about that. It is trivial to negotiate such that you pay less than sticker for a new car while trading yours in, even with that deficit. Markup on vehicles is pretty insane. When I sold, it was usually around 20% for foreign and up to 30% for domestic: that leaves a lot of wiggle room.

    When buying a used car, most dealers ask for at least $3k more than what they bought them for. Sometimes much more than that depending on blue book (loan) value or what they managed to talk the previous owner out of.

    Either way, a purchase can swallow that $1400 without making it worse. Buy accordingly.


    What it is: a car loan or a consumer loan?

    Under a car loans, one often thinks of issuance of Bank money to the seller of the vehicle without the mediation of the buyer. At certain times it is the Bank that issued the credit, becomes the owner of the vehicle while the driver is granted rights of use. In most cases the financial institution takes on all the hassle of paperwork — the buyer only has to put the documents in the papers.

    If you want to know which loan is more advantageous from a monetary point of view, alternatively, a loan will not. It allows you to get the required amount of percentage, in 2-2,5 times smaller than proposed in issuing desired amounts of cash. The percentage is especially low when a high amount of down payment and small term of loan — some banks do set a symbolic value of an indicator in this case. In addition, don’t have to deal with the fees for settlement and cash services, cash disbursement and processing of documents for collection. Since the buyer does not receive money for hands, disappear also troubles associated with carrying large amounts of cash or using a Bank card with a large limit available funds.

    No questions on the amount of the loan — as security for the loan is the car itself, the Bank will gladly provide you with money, even if their payment would put you in a difficult financial situation. There is no need and in the contracts of guarantee with collateral the slow loss of value and high liquidity, the Bank’s employees are relaxed about obtaining their income. Some financial institutions have special programs of car loans, and using which, the buyer can convert the car to a new one by paying a small amount. Also banks are more willing to forgive some of the arrears and other violations on car loans than with cash.

    What is a car loan?Usually the Bank is engaged in registration of all necessary documents

    If you understand the difference between car loans and consumer need to take into account that the machine will be in a temporary property of the Bank, who are free to manage the property on his own. In most cases, the “chronic” defaulters cars being seized before trial, and the authorities will only confirm the right of financial institutions to carry out the confiscation. Furthermore, sell your car taken to car loan, to entrust its management to another person or take other serious action without the permission of the Bank just will not succeed. In addition, to buy a car that you like, not always obtained, as a rule, available loan programs are tied to a fairly narrow list of models.

    Be seduced by a low interest rate also is not necessary — you will have to purchase the CASCO insurance policy on the terms offered by the Bank. This means that the stated amount of the payments will have to add another 10-15% of car cost. Buy insurance every year, as the Bank jealously guards your profits and will not tolerate that his property was exposed to risk of damage or complete loss. If we refuse to renew the insurance contract, the financial institution may take away the car, or to raise the interest rate to compensate for their risks.

    Loans disbursed to the General needs of man, are very rarely the target destination. The required sum is usually issued in cash or just transfer to a Bank account, offering to use the card for the convenience of getting money. The borrower in most cases has complete freedom of disposition passed to it.

    It is freedom that entices many people who take consumer loans — taking out a little more money, they can buy “on delivery” household appliances, useful accessories and tuning or even to close the resulting in the family budget hole. In addition, the consumer has the opportunity to buy any car, is entirely consistent with his preferences — the Bank who issued the loan, indifferent, future actions of man. About the benefits of consumer credit from the cash point of view can be argued, but to buy insurance CASCO on obviously disadvantageous conditions you just do not make no one. And you will not have to pay a huge amount when the position on the financial market interest rates on consumer loans reconsider very rare.

    What is a car loan?The borrower is much more freedom with consumer credit

    Do not need to provide collateral and are constantly afraid of losing the vehicle due to breach of contract. If the Bank requires collateral, in most cases, it provides more favorable loan with a reduced interest rate, extended term, an increased amount of funds granted. Also don’t have to look for a dealership who is willing to work with your chosen Bank.

    Unambiguously tell that is better will not work — although in consumer lending there is no need to buy hull insurance policy, its interest rate will be higher by almost two times. There are also Commission charges for settlement and cash services, cash or a Bank card. If payment of the money to be made in cash, will have to take serious precautions to avoid becoming a victim of a robbery.

    Also count on a large amount of not — practice shows that banks pay on consumer loans up to 1 million rubles. It is necessary in advance to find guarantors who will be able to meet your obligations in case of impossibility of return of money under the contract. If the amount is more than 300 thousand rubles, should be assigned to a legal entity with a positive financial results over the last year. You also need to gather many documents and carefully monitor your credit history — if it is found “dark spots”, failure will be almost inevitable. To get a consumer loan to the person under the age of 25 or over 55 years of age and does not have an official income, it will be very problematic.

    It is obvious that the car loan has many advantages, however, the car buyer needs to be sure that he will be able to pay back the money according to the established schedule, because the Bank has the right to take the collateral under its temporary ownership. The loan will be beneficial to those who originally planned to purchase insurance CASCO and has nothing against additional monetary burden on your budget. But consumer lending is used in the following cases:

    • When you need to purchase not only cars but also other expensive items;
    • When there is not enough only part of the money to buy a car;
    • When a person has a good credit history, he can take a loan on very favorable terms.

    Share the post "What it is: a car loan or a consumer loan?"


    What is a Car Loan and How Does It Work?

    Welcome to the world of car loans. It can be overwhelming when you are first starting out. It is greatest to start with a good understanding of the basics. Understanding how a car loan workings is the first step in getting a good deal on one.Refinance auto loan bad credit

    What is a car loan?A car loan is pretty much what you think it is. It is a personal loan, the proceeds of which are used to purchase an automobile. More specifically, a lender loans the borrower (you) the cash it takes to buy a vehicle. In return the borrower agrees to pay back the lender the amount of the loan plus interest, generally in monthly payments, until the amount owed is fully paid off.

    Here are the essential building blocks of a typical auto loan:

    • Loan Cost: There are two basic parts to the price of a car loan: the principal and the interest. The principal is the negotiated cost of the vehicle itself. The interest refers to the whole amount of the costs accrued over the life of the loan based on the principal amount and the stated interest price.
    • Interest Charge: An interest rate is the basic rate charged to the borrower for the money loaned. The interest rate is usually expressed as a percentage for a one-year period and known as the annual percentage rate (APR).What is a car loan?
    • Down Payment: The down payment is an open amount of cash paid by the borrower at the time of the purchase of the vehicle. It is typically expressed in terms of a percentage of the total price
    • Terms and Conditions: This refers to all of the other objects that make up a car loan, including: the term of the loan, normally stated in a number of months or years; insurance and registration necessities; loan pay-off and resale terms; maintenance requirements; conditions regarding theft or accident; and situation of loan default and repossession. There are many, many others and a borrower is fine advised to read them over carefully and have a clear understanding of what they mean before signing on.
    • The Car Loan Process

    Here are lists of the steps you will likely follow in the process of securing finance for your new vehicle:What is a car loan?

    • Determine What You Can Afford: Get out a part of paper and work out a realistic budget that tells you what you can pay for in terms of a monthly payment.
    • Check Your Credit Score: It’s important to know exactly where you position in regard to your credit score before discussion to lenders. Lenders rely on credit reports and scores when determining loan interest charge and terms.
    • Shop Around For The Best Loan Deal: This is important since rates and conditions will vary, sometimes considerably, between lenders. It’s also significant to look for the best loan deal before heading out to shop for a car.
    • Shop for your car: Now it’s time to visit your local auto dealers.


    What is a good credit score for a car loan?

    CarsDirect notes that an average, or good, credit score for a car loan is 680-739. An excellent credit score for a car loan is 740-850. A consumer whose credit score lands in the excellent range is eligible for the best interest rates available on a car loan.

    What are some tips for getting a car loan with bad credit?

    What is a good credit score range to get a car loan?

    What is a car loan?

    According to CarsDirect, as of November 2013, consumers with excellent credit scores can receive an interest rate on a car loan at an average of 3.2 percent. Consumers with average credit scores can average an interest rate at about 4.5 percent. Consumers who have a sub-prime, or poor, credit score may only qualify for high-interest rate car loans, up to an average of 12.9 percent. A poor credit score is considered to be 680 and below.


    What it is: a car loan or a consumer loan?

    Under a car loans, one often thinks of issuance of Bank money to the seller of the vehicle without the mediation of the buyer. At certain times it is the Bank that issued the credit, becomes the owner of the vehicle while the driver is granted rights of use. In most cases the financial institution takes on all the hassle of paperwork — the buyer only has to put the documents in the papers.

    If you want to know which loan is more advantageous from a monetary point of view, alternatively, a loan will not. It allows you to get the required amount of percentage, in 2-2,5 times smaller than proposed in issuing desired amounts of cash. The percentage is especially low when a high amount of down payment and small term of loan — some banks do set a symbolic value of an indicator in this case. In addition, don’t have to deal with the fees for settlement and cash services, cash disbursement and processing of documents for collection. Since the buyer does not receive money for hands, disappear also troubles associated with carrying large amounts of cash or using a Bank card with a large limit available funds.

    No questions on the amount of the loan — as security for the loan is the car itself, the Bank will gladly provide you with money, even if their payment would put you in a difficult financial situation. There is no need and in the contracts of guarantee with collateral the slow loss of value and high liquidity, the Bank’s employees are relaxed about obtaining their income. Some financial institutions have special programs of car loans, and using which, the buyer can convert the car to a new one by paying a small amount. Also banks are more willing to forgive some of the arrears and other violations on car loans than with cash.

    What is a car loanUsually the Bank is engaged in registration of all necessary documents

    If you understand the difference between car loans and consumer need to take into account that the machine will be in a temporary property of the Bank, who are free to manage the property on his own. In most cases, the “chronic” defaulters cars being seized before trial, and the authorities will only confirm the right of financial institutions to carry out the confiscation. Furthermore, sell your car taken to car loan, to entrust its management to another person or take other serious action without the permission of the Bank just will not succeed. In addition, to buy a car that you like, not always obtained, as a rule, available loan programs are tied to a fairly narrow list of models.

    Be seduced by a low interest rate also is not necessary — you will have to purchase the CASCO insurance policy on the terms offered by the Bank. This means that the stated amount of the payments will have to add another 10-15% of car cost. Buy insurance every year, as the Bank jealously guards your profits and will not tolerate that his property was exposed to risk of damage or complete loss. If we refuse to renew the insurance contract, the financial institution may take away the car, or to raise the interest rate to compensate for their risks.

    Loans disbursed to the General needs of man, are very rarely the target destination. The required sum is usually issued in cash or just transfer to a Bank account, offering to use the card for the convenience of getting money. The borrower in most cases has complete freedom of disposition passed to it.

    It is freedom that entices many people who take consumer loans — taking out a little more money, they can buy “on delivery” household appliances, useful accessories and tuning or even to close the resulting in the family budget hole. In addition, the consumer has the opportunity to buy any car, is entirely consistent with his preferences — the Bank who issued the loan, indifferent, future actions of man. About the benefits of consumer credit from the cash point of view can be argued, but to buy insurance CASCO on obviously disadvantageous conditions you just do not make no one. And you will not have to pay a huge amount when the position on the financial market interest rates on consumer loans reconsider very rare.

    What is a car loanThe borrower is much more freedom with consumer credit

    Do not need to provide collateral and are constantly afraid of losing the vehicle due to breach of contract. If the Bank requires collateral, in most cases, it provides more favorable loan with a reduced interest rate, extended term, an increased amount of funds granted. Also don’t have to look for a dealership who is willing to work with your chosen Bank.

    Unambiguously tell that is better will not work — although in consumer lending there is no need to buy hull insurance policy, its interest rate will be higher by almost two times. There are also Commission charges for settlement and cash services, cash or a Bank card. If payment of the money to be made in cash, will have to take serious precautions to avoid becoming a victim of a robbery.

    Also count on a large amount of not — practice shows that banks pay on consumer loans up to 1 million rubles. It is necessary in advance to find guarantors who will be able to meet your obligations in case of impossibility of return of money under the contract. If the amount is more than 300 thousand rubles, should be assigned to a legal entity with a positive financial results over the last year. You also need to gather many documents and carefully monitor your credit history — if it is found “dark spots”, failure will be almost inevitable. To get a consumer loan to the person under the age of 25 or over 55 years of age and does not have an official income, it will be very problematic.

    It is obvious that the car loan has many advantages, however, the car buyer needs to be sure that he will be able to pay back the money according to the established schedule, because the Bank has the right to take the collateral under its temporary ownership. The loan will be beneficial to those who originally planned to purchase insurance CASCO and has nothing against additional monetary burden on your budget. But consumer lending is used in the following cases:

    • When you need to purchase not only cars but also other expensive items;
    • When there is not enough only part of the money to buy a car;
    • When a person has a good credit history, he can take a loan on very favorable terms.

    Share the post "What it is: a car loan or a consumer loan?"


    what is a car loan

    In an industry sadly bereft of honesty one young aspiring banker, Matthew Ross took the time to write a cover letter that so impressed the individual it was meant for that he in turn decided to share it with other Wall st executives for its candor which of course then led it to being shared by other executives, social media and so forth.

    Perhaps what makes the letter most interesting is not only its candor but the suggestion that Wall st bosses are from time to time willing to overlook the traditional pedigree qualifications they insist is the best fit which might be a backhand way of saying maybe Wall st bosses are starting to come clean with the notion that just because you know such and such and were educated at a premium entity doesn’t necessarily mean one has the pizzaz to excel, the integrity or ability to make good decisions or simply the discipline and resolve to do anything it takes to get ones foot through the door.

    EXTRA MY rebateВ ofВ RM 500В will be given awayВ for all Perodua models (Perodua Axia, Perodua Bezza, Perodua Myvi, Perodua Alza), as shown in the table above.

    What is a car loan

    However, if by chance you find one of our products for less, please let us know, and we’ll happily match the price. Bursting with soft, pastel colors, the delicate flowers provide the perfect cure for the winter blues. What is a car loan

    Comments to «What are car loan terms used»

    19.03.2016 at 23:33:49 Runabout for the family, a hatchback or an increasingly popular crossover vehicle such lending and i give out.

  • 45345 writes:

    19.03.2016 at 11:51:49 The end of the loan term you'll be better prepared to negotiate and.

  • Vefa writes:

    19.03.2016 at 11:49:41 Une demande de crГ©dit auto drive a fairly new car, and it's always under warranty; and.

  • QIZIL_OQLAN writes:

    19.03.2016 at 10:12:15 Are exposed to the risks of soured for.

  • Sensiz_Olmuyor writes:

    19.03.2016 at 12:11:34 Accident by tightening the seat belts, a road sign assist function and owning the same car designed.


  • What is a good credit score for a car loan?

    CarsDirect notes that an average, or good, credit score for a car loan is 680-739. An excellent credit score for a car loan is 740-850. A consumer whose credit score lands in the excellent range is eligible for the best interest rates available on a car loan.

    What are some tips for getting a car loan with bad credit?

    What is a good credit score range to get a car loan?

    What is a car loan

    According to CarsDirect, as of November 2013, consumers with excellent credit scores can receive an interest rate on a car loan at an average of 3.2 percent. Consumers with average credit scores can average an interest rate at about 4.5 percent. Consumers who have a sub-prime, or poor, credit score may only qualify for high-interest rate car loans, up to an average of 12.9 percent. A poor credit score is considered to be 680 and below.


    what is a car loan

    Get via App Store Read this post in our app!

    I'm upside down on my car loan and need a different car, what can I do?

    I purchased a used 2009 Camry back in 2012 after financing with Toyota Financial Services. The terms of the deal were 16k financed at 6% for 72 months. When I signed the paperwork however, I noticed that the amount financed changed to 18k something and the APR to 2.42%. When I asked the finance manager about it he said it added up to the same payment amount at the end, which it did. I didn't think too much about it because I confirmed that the amount paid at the end of the loan was the same. However, I failed to understand the long term implication this would have. V-e-r-y dumb mistake on my part. Yes, I was an idiot.

    Now three years into the loan, I've moved to the North East, where I'm battling snowstorms and blizzards from hell. Due to the pains associated with driving to work in the snow, I'm trying to get an All Wheel Drive instead. Now seeing that the amount financed was more, the payoff amount on the car is of course more. Is there anything I can do with Toyota Financial (or anyone) about this? I'm way upside down on the loan right now; the car is worth 9k according to KBB and the payoff amount is 10,400.

    My financial situation has improved a bit (from a FICO score of 593 in Aug 2012 to 701 right now) and I've gotten a few quotes for 0% APRs for new cars so I'm quite interested in pursuing those options if I can somehow settle this issue with my Camry's payments.

    There are a few things you should keep in mind when getting another vehicle:

    DON'T use dealership financing. Get an idea of the price range you're looking for, and go to your local bank or find a local credit union and get a pre-approval for a loan amount (that will also let you know what kind of interest rates you'll get). Your credit score is high enough that you shouldn't have any problems securing a decent APR.

    Check your financing institution's rules on financing beyond the vehicle's value. The CU that refinanced my car noted that between 100% and 120% of the vehicle's value means an additional 2% APR for the life of the loan. Value between 120% and 130% incurred an additional 3% APR.

    Your goal here is to have the total amount of the loan less than or equal to the value of the car through the sale / trade-in of your current vehicle, and paying off whatever's left out of pocket (either as a down-payment, or simply paying off the existing loan).

    If you can't manage that, then you're looking at immediately being upside-down on the new vehicle, with a potential APR penalty.

    What is a car loan

    I am new to the site and hope I can help! We just purchased a used car a few weeks ago and used dealer's finance again so that's not the issue here. I want to focus on what you can do to resolve your issue and not focus on the mistakes that were made.

    1 - DO NOT PURCHASE A NEW CAR! Toyota Camrys are great cars that will last forever. I live in Rochester, NY and all you need is snow tires for the winter as ChrisInEdmonton suggested. This will make a world of difference. Also, when you get a car wash get an under-spray treatment for salt and rust (warm climate cars don't usually come with this treatment).

    2 - Focus on paying this loan off. Pay extra to the monthly note, put any bonuses you get to the note. Take lunches to work to save money so you can pay extra. I'm not sure if you put any money down but your monthly note should be around $300? I would try putting $400+ down each month until it is paid off. Anything you can do. But, do not buy a new car until this one is fully paid off!

    Let me know if this helps! Thanks!

    What is a car loan

    Dealerships make a lot of money in the finance department. One of the thing they play upon is your emotional reaction of purchasing a new vehicle (new to you in this case). They perform all sorts of shenanigans, like adding undercoat, selling gap insurance, or extended warranties. They entice you with a promise of a lower interest rate, but really what they are trying to do is back you into a payment.

    So if you can fiance 20,000, but the car you are buying is 16,000, then they will try to move that figure up to the 20K mark. In your case it sounded like some borderline (at the least) illegal activity they used to fool you into paying more. It sounds like you regret this decision which puts you a step ahead of most. How many people brag about the extended warranty or gap insurance they got included in the sale?

    As mentioned in another answer the best bet is to go into the dealership with financing in place. Say you were able to get a 3% loan on 16K. The total interest would be

    1600. If you avoid the finance room, you might avoid their dubious add ons that would probably cost you more then the 1600 even if you can get 0%.

    If you are going to buy a car on time, my advice would be to not fill out a credit app at the dealership. The dealership people through a conniption fit, but hold your ground. If need be get up and walk out. They won't let you leave.

    One thing I must mention, is that one feels very wealthy without that monthly pain in the a$$ payment for a car. You may want to try and envision yourself without a car payment, and make steps to making that a reality for the rest of your life.

    What is a car loan

    NEVER buy a car based on the payment. When dealers start negotiating, they always try to have you focus on the monthly payment. This allows them to change the numbers for your trade, the price they are selling the car for, etc so that they maximize the amount of money they can get. To combat this you need to educate yourself on how much total money you are willing to spend for the vehicle, then, if you need financing, figure out what that actually works out to on a monthly basis.

    NEVER take out a 6 year loan. Especially on a used car. If you can't afford a used car with at most a 3 year note (paying cash is much better) then you can't really afford that car. The longer the note term, the more money you are throwing away in interest. You could have simply bought a much cheaper car, drove it for a couple years, then paid CASH for a new(er) one with the money you saved.

    Now, as to the amount you are "upside down" and that you are looking at new cars. $1400 isn't really that bad. (note: Yes you were taken to the cleaners.) Someone mentioned that banks will sometimes loan up to 20% above MSRP. This is true depending on your credit, but it's a very bad idea because you are purposely putting yourself in the exact same position (worse actually).

    However, you shouldn't need to worry about that. It is trivial to negotiate such that you pay less than sticker for a new car while trading yours in, even with that deficit. Markup on vehicles is pretty insane. When I sold, it was usually around 20% for foreign and up to 30% for domestic: that leaves a lot of wiggle room.

    When buying a used car, most dealers ask for at least $3k more than what they bought them for. Sometimes much more than that depending on blue book (loan) value or what they managed to talk the previous owner out of.

    Either way, a purchase can swallow that $1400 without making it worse. Buy accordingly.