How important is credit?

[Political_Chucky]

I need some help, and as every jerk off on here who does this, I turn to the young and ignorant minds of revleft on these subjects:blink:(jk I like most of you)

I have a 2005 Volkswagen Jetta
(piece of shit or her nickname Sucia, which means dirty girl in spanish). I bought the car used about 2-3 years ago without a warranty for 13,000:bored: first year was fine. 2nd year however, my timing belt broke bending all my valves, cost me a round 2,000. The mechanic did a shitty job and later that year some gears broke. Another 2,000. I've replaced my power steering hose 3 times because of how low and easy it is to scrap it and soo much other shit.

Long story short, i've put too much money into the car, and now I need to buy 3 new tires(low profile tires) and a new rim(because on of the tires expanded and actually tore the metal on the rim) with an alignment. I still owe a good 8-9 grand on it and I'm thinking of just letting them take it. I'll be in debt along with other bills I haven't been able to manage because I had just lost my job in june of last year. Any advice, expertise on the situation would be very VERY helpful. Thanks.

[Bright Banana Beard]

We should all help out a comrade, someone should donate him some money to help him out.

[Political_Chucky]

haha don't scare all the people off that could help. I spoke to my parents about it and I'm leaning towards letting my loan default and letting them take it. I'm just hoping they don't garnish my wages when I do find a job.

[Magón]

Shit man, with all the problems you've had with it, what did it look like when you got it?

[KC]

Wow your first mistake was buying a 2005 Volkswagen used for $13,000.

What were you thinking?

First, stop looking at the loan as something that factors into this. That is a mistake that people make when looking into opportunity cost calculations. Sunk costs are already set no matter what, so even considering is pointless.

As an example, say you buy tickets to a baseball game, but then another event comes up with a conflicting time that's free, so you're trying to figure out which one to go to. Factoring the cost of the baseball tickets into your decision is wrong because you've already spent the money on the tickets, so it doesn't matter which one you go to as long as you're choosing the one that's more enjoyable. If you say "well I already bought the tickets so I have to get my money's worth" then you're choosing a potentially less satisfying option for absolutely no reason, as the money was already spent.

Get it? Because that's exactly what you're doing here. So stop taking the loan into consideration entirely.

You can either keep the car, sink more money into it and enjoy all the benefits of having a car, or you can get rid of it and not have to spend more money on it, but no longer have a car.

So choose based on that. Forget about the loan, there's nothing you can do about that. You already spent that money.

For more info on the sunk cost fallacy and why it's fucking with your head right now on this decision check out this article (http://www.thesimpledollar.com/2009/06/08/some-thoughts-on-the-sunk-cost-fallacy/).

[bcbm]

just get as many credit cards as you can and max them out until the economy collapses and you won

[KC]

BTW you can get rid of the car and still pay the loan so your credit isn't ruined. Credit is very important nowadays if you ever want to either purchase a home or take a loan out in the future, and I would highly recommend against assuming that you won't do those down the line.

Why don't you just sell the car, put that amount towards the loan, and then continue paying the little remaining? You could probably sell it used for $5,000-8,000. You'll get it paid off sooner which would bump up your score.

That's probably what I'd do. I'd much rather ditch the car and the headache along with it.

[F9]

I dont know what this credit you damn Amerikkkans talk about, all i know is, give the jeta in and get a Golf!!!And of course dont miss services and oil changes.They really expand the life of your car and save it at least from serious issues(see timing belt broking)

[Ele'ill]

just get as many credit cards as you can and max them out until the economy collapses and you won
:lol:

[Political_Chucky]

Shit man, with all the problems you've had with it, what did it look like when you got it?

http://images02.olx.com/ui/1/50/86/1794486_1.jpg

http://unknown-host.com/for_sale/jetta_interior_1.jpg
http://unknown-host.com/for_sale/jetta_interior_2.jpg

http://www.p3autos.com/uploads/5/0/3/7/5037282/5890165_orig.jpg

Besides that intake in the last engine picture, everything is stock. So who wants to buy it?



You can either keep the car, sink more money into it and enjoy all the benefits of having a car, or you can get rid of it and not have to spend more money on it, but no longer have a car.

So choose based on that. Forget about the loan, there's nothing you can do about that. You already spent that money.
Well when I bought it, it was under kelly blue book price and I hadn't seen the GLI any cheaper for under 70,000 miles. Little did I know was that this year was a bad year for GLI(as every jetta GLI I looked into afterwards had the same exact problems I did at the around the same amount of miles racked up) and when I did a service check, nothing ever came up.

yeah everything you said pretty much makes sense and I pretty much made up my mind b4 this post. But the whole sunk cost fallacy is what plagued me b4 and I wish I had just listened to my intuition and just sold it b4 it was too late. The problem is with selling it is that I've tried to b4, but that was prior to the condition it is in now. At this point, I don't see me really selling the car after all the damage its been through and how unreliable it is. whatever the bank gets from the auction, if any, is going to determine how much I owe in the end.


I dont know what this credit you damn Amerikkkans talk about, all i know is, give the jeta in and get a Golf!!!And of course dont miss services and oil changes.They really expand the life of your car and save it at least from serious issues(see timing belt broking) That is the problem with European cars in America. Everything and anything to do with them is very expensive. I got this car without realizing what I was buying and it was a BIG financial mistake. Also, the jetta's engine(at least this year) is like upside down. It was very hard to find anything specific in the engine unless you knew exactly where it was. Everyone was pretty closed in together so it made everything impossible. All that money spent wasn't even mostly labor costs, it was the costs for all the fuckin parts I had to order overseas. She drove nice in her hey-day, and I broke that backseat in many a times... but time to say farewell sucia.:bored:

[Jalapeno Enema]

KC makes a good point, but don't forget to factor in your future credit/ loan potential.

If you see yourself with another loan/mortgage/lease/etc., in the future, take into account how defaulting a loan now will affect that later.

[Comrade B]

Man, shoulda got yourself a Honda, not to advertise, I have a 2002, works beautiful. But yeah, I haven't had debt/credit problems, but they kick you in the ass is what I am hearin. One of my friends got evicted from a highly damaged house, he tells me every time I give him a ride past the department of loans and reposession (er whatever the shit its called, have yet to get to this point) "see that, that is where you will be spending the rest of your life"

[Dimentio]

Bicycle owns.

Car sucks.

http://www.history.army.mil/books/wwii/7-4/_notes/255a.jpg

[Magón]

Besides that intake in the last engine picture, everything is stock. So who wants to buy it?

Damn, not nearly as bad as I thought it might be. Too bad it's pretty much fucked. You might want to check out some private dealers, see if they'll take something of it, and you can just end up selling it for the parts that are good? I had a friend do that, and since it's a Jetta, you could get a lot of money for the parts that are able to be used as used replacement parts.

Just an idea.


Man, shoulda got yourself a Honda, not to advertise, I have a 2002, works beautiful.

Is it a Civic? If so, you've got one of the most highly sought after, and stolen cars in America! ;)


Bicycle owns.

Car sucks.

http://www.history.army.mil/books/wwii/7-4/_notes/255a.jpg

Bicycle riders, meet Tank riders. :D
http://www.flamesofwar.com/Portals/0/all_images/Historical/Soviet/T34-85_4.jpg

[Political_Chucky]

Damn, not nearly as bad as I thought it might be. Too bad it's pretty much fucked. You might want to check out some private dealers, see if they'll take something of it, and you can just end up selling it for the parts that are good? I had a friend do that, and since it's a Jetta, you could get a lot of money for the parts that are able to be used as used replacement parts.

Well technically, since I don't own the pink slip, I don't think I'm allowed to sell most of the crap in my car(or at least not if I am going to want them to try and sell it). I do find interesting the amp and speakers in the car "just went missing" yesterday...;)




Is it a Civic? If so, you've got one of the most highly sought after, and stolen cars in America! ;)
hahaha exactly. I had a '97 honda accord before my jetta, it was suchhhh a piece of shit, but granted it had 250,000 miles already LMAO. Thats the one good thing about hondas. If you take care of them, they run for YEARS



Bicycle riders, meet Tank riders. :D
http://www.flamesofwar.com/Portals/0/all_images/Historical/Soviet/T34-85_4.jpg[/QUOTE]

:rolleyes: