car with loan is dead

joe_mnApril 28, 2006

my best friend has had some tough luck lately. he bought a car that was worth maybe 3k last fall and had to take out a loan for it. last week the motor died and the final bill is around 3k for a replacement motor. agh. what to do? he could walk away from it, not fix it but keep on paying off the loan. or put the 3k towards another car and hope that car does not fail. or perhaps lease a new car for 3 yrs or so. or fix the car and assume nothing else major will fail. hmm, any ideas?

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jasper_60103

A) pay loan Balance + walk away

sounds tempting, but may not be feasible?

B) pay loan Balance + $3K (cost of repair)

may have to borrow money on yet another risk?

C) pay loan Balance + cost of another used car

may have to borrow money on yet another risk?

D) pay loan Balance + cost of lease

may have to borrow money, but will have a new car/warranty.

Hmmmmm.
I assumed he needs a car. So...
I see option B & C about equally risky.
Anyway, I generally don't like leases, but maybe it's worth looking into?

    Bookmark   April 28, 2006 at 1:36PM
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joe_mn

my friend is tight lipped. turns out he is fixxing it. it was sitting at the dealer for several weeks due to workload and I think they just started on it. not sure where he got the money. so he payed 6k for a car valued at only 3k. now, if it can hold together for the near future.

    Bookmark   April 28, 2006 at 3:14PM
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nancyinmich

My friend in in the same situation, but she bought hers new. The manufacturer is out of business, parts are hard to find, and repairs cost a mint. The number of repairs needed just may be why the manufacturer is out of business! She sometimes has to leave it at the shop and borrow a car until she can get the $ together to pay the repair bill. She can hardly wait to have it paid off and a downpayment saved.

    Bookmark   May 2, 2006 at 12:10AM
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joyfulguy

jasper 60103,

I don't much like leases, either.

Puts most of the high cards into the dealer's hands.

Hard to play poker when you're sitting with 7's and 8's.

o j

    Bookmark   May 4, 2006 at 1:47PM
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bill_h

nancy in mich. i`am just thinking, manufacturer out of buis. a daewoo? if so daewoo was purchased by g.m. all their models are stil sold, just new names the chevy aveo, the suzuki forenza, suzuki verona. so parts and repairs should be able to be found through your local chevy or suzuki dealer. hope that helps

    Bookmark   May 14, 2006 at 7:26PM
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nancyinmich

Thanks Bill, I did see that when I looked up Daewoo to see the model names. I have no idea why she says the car is no longer made. I'll tell her to look at the Chevy info. She bought the car at a Chrysler/Jeep dealer, so maybe she thought it was gone entirely but it was just gone from there.

    Bookmark   May 17, 2006 at 12:30AM
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joyfulguy

In Japanese, the word "Dae" means "Great/large", Korean (homeland of DaeWoo) similar.

Would that mean that one can pitch great woo in such cars?

(Don't know what "Woo" means - in either of those languages. Only half literate, I guess.)

Hope you folks have some fun at work: super stress reliever. But they can't bottle it and sell it - so no one's interested.

ole joyful

    Bookmark   May 17, 2006 at 4:20AM
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