SavingsTalk.com

YoungSaver · 03-08-2011, 11:39 AM

Hi everyone, this is my plan, I am in kind of a bad situation and need a lot of help. I currently own a 2010 Mazda CX-7 with 8,000 miles with only minor damage to the front fender. My problem is this, I bought this car in June of last year, my father helped me purchase it so his name is on the title. My wife and my father had some personal issues and now he says that as long as his name is on the title that she can't drive the car which is really complicating our lives. So I'm assuming the only thing to do is refinance the Mazda to remove his name correct?

I now owe $16,300 on the Mazda and I am willing to put in $2,000 as down payment which will bring my refinance amount to $14,300.

Now, my main question is this, I am new to all of this, I have never done anything like this before in my life and am very confused. I currently have $5,000 in my checking account and $5,000 in my savings, me putting that $2,000 down payment will drop me to $3,000 in my checking I am afraid that that may be too little, I don't know, you see my wife and I were living with my parents and we just recently moved out on our own for the first time and bills and stuff is kind of scary and I don't want to lose all of our money.

What I had thought about doing and I really would appreciate some advice on this was this... Refinance the Mazda and then immediately trade it in for a cheaper car like say something $10,000 maximum. How would that work? Would I lose a lot of money? Is this a smart thing to do?

Any advice would be really appreciated, I am very confused and very worried.

Thank you.

briansol · 03-11-2011, 05:40 PM

If you're just going to trade it in, don't bother re-financing it. Just got trade it in directly. It's the cheapest route. It may require the co-signer to sign off on it first either way. Technically, if you're paying on the car still, the BANK'S name is on the title, not your fathers or yours. However, his name and yours are on the loan paper work.

With damage to the vehicle, and it being fairly new, you are likely looking at taking a big hit, so you will be upside down a bit. your 10k car might cost you 14k, and then financing said vehicle will be a hard thing to do. Most banks will only loan for the value of the car unless you have outstanding credit.... and since you needed a co-signer, odds are you don't have this.

While I'll never advocate insurance fraud, the best thing you can do is get rear-ended and have the ins company total it with out the accident being your fault. Any other route is going to cost you money to get out of the situation you are in.

My suggestion, work on your family issues. Things and just things. family is forever.

03-08-2011, 11:39 AM	#1
YoungSaver Greenhorn Join Date: Feb 2011 Posts: 4 Rep Power: 0	Need Help trading in a car Hi everyone, this is my plan, I am in kind of a bad situation and need a lot of help. I currently own a 2010 Mazda CX-7 with 8,000 miles with only minor damage to the front fender. My problem is this, I bought this car in June of last year, my father helped me purchase it so his name is on the title. My wife and my father had some personal issues and now he says that as long as his name is on the title that she can't drive the car which is really complicating our lives. So I'm assuming the only thing to do is refinance the Mazda to remove his name correct? I now owe $16,300 on the Mazda and I am willing to put in $2,000 as down payment which will bring my refinance amount to $14,300. Now, my main question is this, I am new to all of this, I have never done anything like this before in my life and am very confused. I currently have $5,000 in my checking account and $5,000 in my savings, me putting that $2,000 down payment will drop me to $3,000 in my checking I am afraid that that may be too little, I don't know, you see my wife and I were living with my parents and we just recently moved out on our own for the first time and bills and stuff is kind of scary and I don't want to lose all of our money. What I had thought about doing and I really would appreciate some advice on this was this... Refinance the Mazda and then immediately trade it in for a cheaper car like say something $10,000 maximum. How would that work? Would I lose a lot of money? Is this a smart thing to do? Any advice would be really appreciated, I am very confused and very worried. Thank you.

03-11-2011, 05:40 PM	#2
briansol Savings Advisor Join Date: Aug 2006 Location: Central CT Age: 32 Posts: 761 Rep Power: 7	If you're just going to trade it in, don't bother re-financing it. Just got trade it in directly. It's the cheapest route. It may require the co-signer to sign off on it first either way. Technically, if you're paying on the car still, the BANK'S name is on the title, not your fathers or yours. However, his name and yours are on the loan paper work. With damage to the vehicle, and it being fairly new, you are likely looking at taking a big hit, so you will be upside down a bit. your 10k car might cost you 14k, and then financing said vehicle will be a hard thing to do. Most banks will only loan for the value of the car unless you have outstanding credit.... and since you needed a co-signer, odds are you don't have this. While I'll never advocate insurance fraud, the best thing you can do is get rear-ended and have the ins company total it with out the accident being your fault. Any other route is going to cost you money to get out of the situation you are in. My suggestion, work on your family issues. Things and just things. family is forever. __________________ Any thoughts or opinions are that of my own. Research your buys and sales on your own. I am not a stock broker.

SavingsTalk.com

Your guide to saving money and making smart investments!