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Author: misssteak One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308881  
Subject: Stupid Car Loan Help Date: 6/14/2007 2:18 AM
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Hi,

I wrote about this as part of another thread (FYI, buying a house is now on the back burner...and also my partner got a different job making about twice what she was making before which is YAY!) but I am struggling with this part now.

A little over a year ago, (like, a month before I got my membership here), I borrowed $9500 from my boss at 5% to buy a 1999 nissan sedan for $8600. I pay $200/month normally, and owe about $7000 on it now.

I am trying to reduce my expenses and I don't really think I want a car that costs that much right now, plus I will be leaving my job in the next 2 - 6 months and it's not clear if the loan will need to be paid back immediately.

I will not replace the car (my partner is now buying the truck on her own since she's rich ;). She will buy the truck when I sell the car (we only need one vehicle in the household. As far as expenses, insurance will go down (we are looking at $3000-$4000 trucks) and gas might go up (though my car gets a dismal 16 mpg in the city!).

The problem is I am upside-down and I can't really tell, but I believe my car is depreciating faster that I am paying it off, so I may be going further into debt each month. I look on CL and the 2001 version of my car (I don't see many 1999s or 2000s) seems to be selling for about $6000!! I checked Kelly Blue Book, which says my car should be worth about $6500.

How do I tell if I am getting further into debt each month or closer to breaking even?

Thanks,

Steak
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