Recent comments in /f/personalfinance

Snakend t1_jee4ke4 wrote

The bank doesn't get to keep the extra 50k profit. They have to give it to you. So they don't care if there is any profit at all. They just want to clear the loan and be done with it. Why wouldn't you sell the house before they foreclosed? The only reason to ever let the house go back to the bank is if you can't make payments AND you are upside down on the house.

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jcastro777 t1_jee3za2 wrote

The cheapest 2014 Cayman on Autotrader right now has 109k miles and is listed for just under $30k, so even needing suspension work it would probably be worth at least posting it for sale and trying to get 25k for it before selling it to a dealer.

Is 36k the payoff amount quoted from your bank today? Or just the sum of all the future payments. At 11% interest the payoff today is likely thousands less than the sum of all future payments, and is actually what you need to sell the car.

If you don’t want to take the personal loan and don’t need the space you could try selling the minivan and using that money to pay for suspension repairs on the Cayman if it looks like the car is otherwise reliable. Front struts are a pretty common replacement item on most cars around 100k miles, especially performance cars, so this doesn’t seem like it’s an indicator the car will be problematic.

If your credit is good you could try refinancing the Cayman to bring your rate down, it probably won’t drop a whole lot but even 7-8% is better than 11%. Then just pay it off aggressively until the loan balance is below the value of the car and sell it, or if you sell the minivan to fund the suspension repairs keep it until it’s paid off and keep driving it.

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DaemonTargaryen2024 t1_jee3u4t wrote

Think of a 401k or an IRA like an umbrella. Anything done under the umbrella is a nontaxable event (except Roth conversion). Once it leaves the cover of the umbrella it gets hit with taxes.

Just because it has no taxable event doesn’t necessarily make it a good idea though. “Trading” in the 401k will lead to less profits more often than not. If this is part of a purposeful change in asset allocation that’s fine. But if you think you can time the market, think again.

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carpooler42many t1_jee1nxk wrote

My cousin’s husband in the military did something so similar before they married! Don’t beat yourself up, just learn a lesson for the future.
He garaged his Porsche for a few years, received a work bonus , repaired it and then sold at a loss. It’s a party story that gets a winch and a chuckle from anyone who hears it. Everyone makes errors of emotion.

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Whoisntcj t1_jee14cp wrote

  1. Have you checked out how much your payment would be ok to borrow the 16k needed to pay the car off
  2. You essentially need to just pay down the loan on the car . Doesn't matter if you take the loan out or just put extra towards it . But, be warned that waiting until you hit equilibrium will take a while .
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fly_eagles_fly t1_jee0dgz wrote

“Turns out we had some unexpected expenses come up so we will be unable to provide the loan. Good luck with your new business venture!”

Please do yourself a favor and back out. This is a bad situation in the making. If they were able to get the $60,000 then they can figure out the other $15,000

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