Oh no! I think we really screwed up!!! Re: car allowances

[justbroke]

The jeep we have had for 910 days. The interest rate is 9.9. The truck we just purchased in December. Thank you!

Okay, it just didn't add on with the math (43 payments left). If you indeed have had it for more than 910 days, then you can cram it down to the actual "clean retail" value (Kelley Blue Book, Black Book, NADA) and reduce the interst rate to the current Till rate.

(Noting that Till is the current prime lending rate plus a "risk" factor from 1-3%. Typically, the middle risk, 2%, is used. Prime is still 3.25% (WSJ 12/13/2011) so Till with a 2% risk factor is 5.25% right now.)

[basketsbears]

Justbroke thanks for all your help. Do we have to do anything with the new truck payment. Does everything get paid off in 5 years irregardless?

I looked up the value of our Jeep,$14900, average trade in. Our payments would go to $283 from $495 so then we are under tbe allowance for both vehicles. The original loan was for 72 months, we have 42 payments to go.
The clean retail is more than we owe I just noticed. The previous calculation was average trade in.

I'm feeling better now, thank you all. Ill try to behave before we file. ;)

[justbroke]

You can always haggle over whether it is "really "clean retail or not. I haggled in my Chapter 13 over the value, and the lender backed off. However, I wasn't using trade in value. i was using "fair" condition for retail sale. In any event, I think that you'll be okay given that information.

If you are in a 60-month plan (5 years), then yes, you'd amortize the $14,900 over the 5 years.

[keepsmiling]

Excellent news. Looks like this may work out even better than original plan.
Chalk one up for the little guy

[basketsbears]

Excellent news. Looks like this may work out even better than original plan.
Chalk one up for the little guy

Let's hope so! Will know more Thursday.