Archive for September, 2008

Loan terms leave woman with one option

Sunday, September 28th, 2008

Dear Terry,
I recently purchased a new car. I am only 20 years old and had never purchased a car before. I asked my parents to help, but they refused. So, my fiance’s mom and dad co-signed for the loan.
I didn’t make the best deal on the car because I didn’t know much about it. Now, I have a car that is too much for me and I can barely afford the payments.

I would like to get rid of this car and find a car that is cheaper so that I can have lower payments. I work at the bank where I got my loan. They said they’ve already stretched out my loan for as long as they can and that the payments are as low as they can go. What are my options in this situation?

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Joblessness makes new loan unlikely

Thursday, September 18th, 2008

Dear Terry,
I drive a 2003 Dodge Durango. I owe about $14,500 on the vehicle. My loan is at 10.25 percent. Unfortunately, I am behind two months on payments of $400 each due to joblessness.

I thought about selling the sport utility vehicle for $7,000 and paying that amount on the bank loan. I will be stuck with another $7,000 to $7,500 to pay it off. I would look for another cheap, affordable car. I need your feedback so I can see what I can do.
— Teri

Dear Teri,
You can’t sell the vehicle for less than you owe without an agreement from the lender, which you’re not likely to get. Since you’re out of work, getting a loan to cover the negative equity on the Durango seems unlikely. Contact the lender to see if it will work with you before it comes time for repossession. (more…)

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Fed leaves rates unchanged

Wednesday, September 17th, 2008

Fed leaves rates unchanged

Untitled DocumentFed leaves rate unchanged

It’s hard to imagine that just a few days ago, this appeared to be a ho-hum Fed meeting. But the events of the weekend put the Fed at center stage and had Wall Street clamoring for an interest rate cut. They didn’t get it.

I, for one, am greatly relieved. And if you are a saver, you should be, too. Since the Fed moved to the sidelines at the end of April, we’ve seen some tidy improvement in CD yields. With the oil price-bubble popping (remember all those who said oil at $140 per barrel was justified based on demand from China and India?), there is hope that inflation pressures will indeed moderate as the Fed has long predicted. So with the horizon looking just a bit brighter for savers, the notion that the Fed would undermine that by cutting interest rates again had to get under your skin. Fortunately, savers won’t be doing any more bailouts either.

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File lemon-law car complaint quickly

Sunday, September 7th, 2008

Dear Terry,
I purchased a 2004 Lincoln LS in November 2004. I have not had a chance to enjoy the car because it has stayed in the shop more than on the road. I believe the car is a lemon. It has been in the shop a total of 35 days.
Now it is back in the shop for a new transmission. The car is under warranty. I told the dealership I want another car because it has been in the shop for two weeks. The dealership told me that I have to keep the car until March before I can get rid of it.

Is this true? And what can I do? I do not want to keep paying for a lemon.

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