QuestionHi! My husband and I recently financed a car and have come to realize our monthly payments are to much! It is our first car and we weren't very knowledgeable about the auto industry! We are just starting to establish our credit, so we have a 7.5% interest rate and we are paying $386/monthly. We would like to trade in our vehicle for something more budget friendly and reliable. We are not really sure on what steps to take, and we don't want to be just told anything by a sales rep. What steps should we take in making the decision to trade in our financed vehicle. Please help us!
Answer
car guy 
car dlr
ahester,
You are in luck because I love to help people BEFORE they do something really dumb or expensive and if you let this car get repossessed for any reason then that is what you will be doing. Seriously.
Here is what I need to know from you in order to give you the benefit of my advice (and have it be correct)
1. What kind of car are we talking about ...I need to know tyhe yr, make, model, trim level ...like "XLT" or "Si" etc, how many miles are on this car, is there any special aftermarket equipment on this car like premium wheels? a power sunroof? DVD? Navigation? A killer stereo? does it have power windows, locks, mirrors, seats etc. and is the upholstery leather or cloth if it's an SUV is it a 4x4 etc. I am going to book this car out and see what it's worth. If you have the VIN # and can send it to me then please send it to my personal email at roadloans@gmail.com...don't post it here.
2. I need to know what the approximate payoff for the car is ...if you have the original contract you signed then I need the amount that shows on line 5 of the contract along with the number of payments you have made and the term of the contract.
3. I really need to know if you bought an extended service contract or GAP insurance or credit life and disability insurance coverages and the amount for each one.
Once I get that info from you then I will come up with a plan to get you guys out of that rig and into something you can afford. Usually with first time buyers the banks don't put themselves in a position to get hurt too badly so I am hopeful that what you owe is fairly close to the cars value.
Lastly, just know that I am with you on this until it's done and if you do something I tell you not to do then you will be doing something that is not in your best interest. Also tell me when you made your last payment and when your next payment is due and if you are past due at all ....and just know that we have all been there and its ok to tell me the cold hard truth.
I will look for your response later this evening so we can have a plan ofaction in place before tomorrow
Roger
The Car Guy
