I wrecked my car and I don't have insurance but I plan to continue to pay off the car loan. Is that smart?
Posted on Mar 29, 2008 under Insurance Information |Considering the fact that no one wants to finance a single person with a car loan already under their name. I tried talking to the bank to see if they would convert the loan into a personal loan so that I could get another car but they refuse. Any advice on this situation?
March 29th, 2008 at 9:54 am
Yes, its smart because you owe it. Next time carry insurance.
March 29th, 2008 at 9:54 am
The lender will want to get their money regardless of the working status of the collateral. If you want to protect your credit score and can manage it, continue paying the loan. If you are a home owner with equity, low LTV, and good DTI ratio you could use the equity in your home to pay off the car loan and stretch the payments over time. This would allow you to pay off the auto loan and possibly get another one. However, discontinuing payments on your auto still won't help your ability to get another loan.
Also, there are millions of lenders who have approved 2 auto loans to a single person if their credit and income warrant it. Hope this helps
March 29th, 2008 at 9:54 am
Very Smart and Responsible.
Your credit is the most important so make sure to make those payments and on time, because without it you won't be able to purchase another car.
You should get something cheap but reliable for now. Maybe a family member can loan you some money to get a car cash, the last thing you want is another loan.
Next time get insurance, unitrin direct is really cheap. Their insuring my 05 nissan pathfinder with full coverage $500 deductible for only $69 a month.
Good Luck
March 29th, 2008 at 9:54 am
After you pay off the loan in full, then you can get another loan and another loan. If you stop making the required payments, then (1) they can sue you and (2) the nonpayment will go on your credit report and you will not be able to get a car loan, a personal loan, credit cards, etc.
If you qualify for a personal loan, you use the money from a personal loan (either from this bank or from another bank) to buy a car. You do not need a "car" loan to buy a car.
You could also use the money from a personal loan to pay off this car loan early, so that you can get another car loan now.
March 29th, 2008 at 9:54 am
Well, you HAVE to. You HAVE to pay off that loan. You OWE it. So yes. Better to pay yourself, than have your wages garnished to pay it, and have legal fees added besides.
My advice? Pay cash for your car. Don't buy a new one - buy the best, older car you can afford - even if it's just $1,000.
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