Automotive Forums

It's a pretty long story, but i NEED help ASAP.

I am 19 years old and have *almost* been licensed for a year. My parents wouldn't let me drive until i was 18 and my mom wouldn't let me drive until i had my own car. So she traded in her suzuki xl7 and got a car for herself and a car for me from a used dealership. My car is a 2002 suzuki aerio in decent condition (24,000 miles; runs prefect; etc.) and it was $8,500.
My mom has HORRIBLE credit. So she has two loans, one for my car and one for hers. (but i have paid every penny of my car over $5,000 i've paid on it and i've had it for 1 year 1 month). I'm not gaining any credit in my name because I have no assets since the car is in her name, and it's hurting her credit to have so many loans (she has more than just the two cars). So I'm really looking to try and get a car in my name. However I still owe $7,200 on the car (with interest) i'm not sure what the pay off is. But I definitly can't afford it.

(I have a very good job but i live far from work and between my high insurance rate (mostly because of my age and minimal driving experience) and the high gas prices i really don't have that much money left over every month to pay more on my car.)

So basically, I definitly can't pay my car off, but i need to get a car in my name. I've decided the only thing to do is trade it in, but i know i'll probably get screwed. If anyone has any advice for me PLEASE help ASAP. I'm looking to trade in my car this week or next week.

Also, if anyone has any advice for cheaper insurance rates or cheaper monthly payments on a car without getting screwed in the long run, please let me know. I'm soo stressed out trying to figure out what to do.

Just an FYI - my car payments now are $215/month and my insurance is $242/month. (my car is titled to my mom, and i'm under her insurance b/c getting insurance on my own is even MORE expensive). And I live in Pennsylvania if that means anything....

Have you tried a simple re-finance?  Frankly, I wouldn't trade it in -- you're upside down on your loan (that means you owe more than it's worth), and while they'll roll your existing loan into your new loan, all that means is you'll be TWICE as upside down in your new car!  Once you go down the "upside down" road, it's very hard to come out of it.

These are your only real options:

1 -- do a re-fi into your name.  You'll build credit, and take a load off your mom.  Start with the bank that has your checking account -- you may get a decent rate for being a good customer.  If that doesn't work, try an online site like Capital One, or E-Loan -- they do re-financing.

2 -- continue as you've been doing, and just do it right next time.

Good luck!  But whatever you do, don't trade!
 

Uh, $2,904 per year to insure a SUZUKI?  Drop that insurance carrier, and when you get a new one, drop collision and comprehensive insurance (it's not cost-effective to have them on a Suzuki), which should cut it in half.

I was paying about $400 per year for my last Nissan.  Or $33 a month.