I have a question

[Pixiegirl8505]

Ok, DH and I both have fairly new vehicles. He has an 2006 Hyundai Sonata and I have a 2007 Chevy Trailblazer. We have them financed through different companies and our cars our in our indiviual names instead of both of us on the loan.

Dh's company called me a few days ago to see if I was interested in getting a lower % for his vehicle (WELL OF COURSE I AM) He's current % is over 15% right now. Well, they want me to be on the loan now because I have better credit than DH does. I told him to do the #'s and all me back for me to see if its in our best interest. (I have a POA for the vehicle because DH is currently in Korea and I handle all the finances). Well the guy calls me back and says taht we are over 1000 in the hole for DH's car (WHICH I ALREADY KNEW) but he says that I have a lot of $ I could take out of my vehicle if they financed both of the cars with them. He wouldn't give me any $'s over the phone but he said that he would need me to come in and look at the figures to find out if its something that DH and I would want to do. I think its wasting my time because I dont see how this would help me out. I don't want more $ on my car that I have to pay on.

Why on earth would anyone take out more $ on 1 vehicle to put into another vehicle? I'm sure there are some reasons but I just don't understand how that would really help us out.

Does anyone think its worth my time to go and look at the numbers? I told him after the 1st I could come up with $1000 to put down on the car if they are going to get my a lower APR for the car. He keeps insisting on me putting that towards bills (credit card bills) and taking this $ out on my car which I refuse to do....

[me2boys1man]

hmmm I wonder it could be worth it I would go in and at least listen to them. A lot of companies will not discuss numbers over the phone but just test the waters go in a listen =) The worst that could happen is you say no. Right?!?

[Pixiegirl8505]

Originally Posted by me2boys1man hmmm I wonder it could be worth it I would go in and at least listen to them. A lot of companies will not discuss numbers over the phone but just test the waters go in a listen =) The worst that could happen is you say no. Right?!?

This is true. I think I'm scared that I will cave and actually do something stupid that "sound" like a good idea at the time. Those people always have a way of making this sound like a good idea and then next thing I know I'm really getting screwed.

[Rich Lunsford]

Wow! I think your instincts are already pointing you in the right direction. I would be leery of taking out additional debt on a vehicle loan in good standing to right a less desirable loan. If you have the ability to come up with the $1,000 you mentioned in your email, do a debt review. Determine where that $1,000 can best help you in your debt reduction strategy. More than likely, once you get the car loan below the value of the car you’ll be able to refinance without involving your good standing vehicle loan. Or perhaps paying off a credit card is the right thing to do. Look at the interest rates. If the credit cards are greater than 15% APR, consider paying off the credit card first.

Rich Lunsford is a CERTIFIED FINANCIAL PLANNERTM practitioner with USAA Financial Planning Services, one of the USAA family of companies. Rich holds the Series 7 and 66 securities licenses. Rich also holds the designations of Chartered Financial Consultant (ChFC®), Chartered Life Underwriter (CLU®), and CHARTERED RETIREMENT PLANNING COUNSELOR (CRPC®).

Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER™ in the United States, which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.