Car loans

That kind of gap is totally possible
I’d bet my money it’s a Renault
you didn't really mention what the fine print looked like, whether you just owned the car outright or if there was still a loan hanging over it
just head down to State Farm and check the policy details...

At the end of the day, all big banks care about is one thing—getting that loan repayment on time!
To avoid any messy misunderstandings regarding your payments—say, if you happen to lose your job or face some unexpected career shift—it’s probably a smart move to head down to your local branch, sit down with your personal banker, and set up a standing order for your loan. It just keeps everything smooth and predictable.

In my experience—and please take this with a grain of salt because I'm no banker—you can definitely snag a loan in that situation, BUT YOU’LL NEED A CO-SIGNER, since you don't have that steady, continuous employment history just yet! Maybe try talking to your old employer about verifying your paperwork as if you were still on the payroll? It sounds a bit cheeky, I know—sorry, I shouldn't suggest anything even remotely shady—but hey, worth a shot. Then, once you actually transition over to the new gig, just head down to the bank and see if they can facilitate a transfer of the loan and the payments to your new employer.!

I've been at a major corporation for about 9 months now. I actually just put in my notice because I landed a much better offer (well, more money, let's be honest) and I'll be starting the new role as soon as I finish my final month here. Naturally, the new job will start me out on a 6-month contract before moving me to permanent status. I was wondering if it would be possible to get an auto loan for $10,000?

Kimberly Nguyen said:I mean, I assume they’re looking for some kind of collateral or security measures; co-signers, guarantors...

Honestly, I don't know, I usually lean toward an unsecured loan. Sure, the interest rate might take a bit more of a bite, but you aren't getting hit with all those extra fees—which, let me tell you, add up fast—and you don't have to worry about the bank holding your car hostage under some fiduciary lien.

I’d have to agree with what Kimberly Nguyen said! I would also add that the paperwork is way less of a headache, and you aren't forced into paying for comprehensive insurance if you don't want to!!! Plus, if things go sideways and you hit a rough patch, you aren't stuck in a position where they can just snatch the car away instantly—it actually gives you some breathing room to get your finances back on track and keep making payments while still keeping your wheels.

Interest rates are sitting somewhere between 9 and 11 percent now, whereas they used to hover around the 5 to 7 percent mark. What’s the consensus here... do you think we'll ever see things slide back to the old way, or are we just looking at even higher numbers ahead?

If you look at things from a long-term perspective, you’re looking at an average somewhere around 10%

Given how low interest rates have been lately, it’s going to take quite a while to see things shift back, and considering the direction we're heading, even that 10% mark might end up looking like a pretty sweet deal...

I’m stuck with a seven-year auto loan, and even though I managed to knock out three years of it, I’ve finally hit a wall where I just can't keep up with the payments. I’m already three months behind, and now the interest rates are climbing while the exchange rate fluctuations have basically tanked me—my monthly payment has jumped from $693 to $833. On top of that, the loan includes an extra layer of driver insurance built into my standard policy, valued at what the car originally cost. The whole thing is through JPMorgan Chase, and they’re currently holding the vehicle title.

I need to know if there's any way to just hand the car back to settle the debt, and if so, how that actually works. Are there going to be fees or penalties involved? If anyone has dealt with this before, please let me know, because things are getting pretty desperate over here...

You can't just give the car back to the bank.

Look, you didn't borrow a vehicle from them; you borrowed cash.

It works the same way—you owe money, not a hunk of metal.

Your only real move is to sell the car, pay off whatever gap is left since it's worth less than what you still owe, and then finally close out the loan.

Exactly 😉

By all means, give the sale a shot first, but if you find yourself hitting a wall, you might want to look into the specifics of your comprehensive coverage 😉

I mean, you can't exactly get a car back once it's gone, but if someone loses their job—whether that's actually happening or just a hypothetical situation I guess—the only thing the bank can really come after is the car... right?

I think the real issue is that the interest rate jumped by 25%, and that’s a massive hit to take... I mean, they can just push those numbers up to $1667 without blinking, and you're stuck holding the bag because the government always seems to be backing them... maybe the only saving grace would be if you have collision coverage on the auto loan...

Bryan White3 said:I think the real issue is that the interest rate jumped by 25%, and that’s a massive hit to take... I mean, they can just push those numbers up to $1667 without blinking, and you're stuck holding the bag because the government always seems to be backing them... maybe the only saving grace would be if you have collision coverage on the auto loan...

Well, I guess it depends on which bank you’re using for your car loan? ...because I've actually heard from a few people already that their auto payments shot up like crazy... mine only went up by maybe a few bucks, and my total payment is roughly $433, so this all seems pretty strange to me (my loan is through Wells Fargo) ...

Steven Wells4 said:Well, I guess it depends on which bank you’re using for your car loan? ...because I've actually heard from a few people already that their auto payments shot up like crazy... mine only went up by maybe a few bucks, and my total payment is roughly $433, so this all seems pretty strange to me (my loan is through Wells Fargo) ...

My loan is through Chase, and they always find some excuse involving exchange rate fluctuations to squeeze more out of you. Honestly, I think my biggest screw-up was taking out a loan tied to the Swiss Franc; back then, I wasn't really thinking about how much that could bite me later on.🤷

Bryan White3 said:My loan is through Chase, and they always find some excuse involving exchange rate fluctuations to squeeze more out of you. Honestly, I think my biggest screw-up was taking out a loan tied to the Swiss Franc; back then, I wasn't really thinking about how much that could bite me later on.🤷

And mine is in Swiss francs too... I mean, I did give it some thought, but given the terms I was looking at back then, an American dollar loan just wasn't an option because the rates were way higher... and now I'm actually planning on getting a mortgage through Chase...

If you really don't have any other choice, maybe you could sell your car, and then use that cash to pay down at least part of the principal so your monthly payments aren't such a headache, which might make things a little easier to manage...

Steven Wells4 said:I mean, you can't exactly get a car back once it's gone, but if someone loses their job—whether that's actually happening or just a hypothetical situation I guess—the only thing the bank can really come after is the car... right?

Not quite.

The bank’s first instinct is always to go after the co-signer or guarantor—basically trying to garnish wages.
If that fails, they take the car and auction it off for pennies on the dollar.
Whatever principal is left over? They'll come after you for that with an unsecured judgment.

Steven Wells4 said:And mine is in Swiss francs too... I mean, I did give it some thought, but given the terms I was looking at back then, an American dollar loan just wasn't an option because the rates were way higher... and now I'm actually planning on getting a mortgage through Chase...

If you really don't have any other choice, maybe you could sell your car, and then use that cash to pay down at least part of the principal so your monthly payments aren't such a headache, which might make things a little easier to manage...

Brilliant advice. Either I don't own a car, or I'm paying for one. 😁

mellowraven8 said:Brilliant advice. Either I don't own a car, or I'm paying for one. 😁

Yeah, I hear you...😁 ...but I suppose the real question is what you're actually left with if you've run out of cash and there isn't really a way to make more right now... maybe the only option is renting a car, though I'm not entirely sure how much of a hit that would take on the wallet, especially since it feels like everyone has their own ride these days and most people are probably just stressing over how they're going to manage those monthly payments...

Sell that car and pick up something more affordable. Use the difference to pay down your loan and lower those monthly payments.

Can he even sell it while there’s still an outstanding loan on it?