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Financial Questions About My Truck And Divorce


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Well my ex is wanting me to get her name off the loan so I'm guessing I'll have to refinance the loan. Is that correct. I hate to refinance since I'll be charged interest again so what's the best option:


1.) Go to my bank for a loan

2.) Ask the bank who has my current loan if they would refinance

3.) Use a low interest rate from a credit card check and pay it off, then pay the card off like I was paying on a loan?

4.) other suggestions


The thing that worries me about the credit card check is that they charge interest different than a car loan so I assume I'd be paying more back in the end. Is this correct?


Let me know what you guys think.

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it depends cuz some banks wont refinance an auto loan therefore you need to apply for another one good luck

BTW shouldnt you be done with the auto loan already?


nah. traded in 2001 leased Silverado when I got her in 2004 so I financed it for a long time :banghead:


Yeah I figure they will force me into a new loan with new loan interest added onto what I already owe :banghead: Thanks ex....you F'ing suck bi!@%

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Since you probably only have one to two years left to pay on it (assuming you financed it for 5-6yrs in 2004 you should be about 4yrs into it right?), find a local credit union. The shorter the term the lower the interest rate. If you have two years, ask for a two year loan. See if you can even swing a one year loan payment as well. Worst case, go back to three yrs and pay extra when you can. By joinging a credit union, you will get the best rates if you have good to excellent credit. At least the truck is worth far more than you owe most likely. There are alot of folks out there that owe more on a SUV or truck than what its worth.


The credit card thing is bad two fold. First off interest is charged differently and you will pay more in interest. Secondly, using revolving credit like that can wreck havoc on your credit score. Especially if by writing a check from it puts you over 50% of the credit cards available balance. Doing that could drop your credit score by as much as 20-40points overnight. Also, the less unsecured revolving debt you carry, the better off you are, but that doesnt mean not to have a credit card. Only in moderation.

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Yup you will need to get a loan in your name on the truck; on paper you and your soon-to-be-ex (together) are selling the truck to you (separately).


I would not advise putting the balance due on the truck on a commercial credit card loan, even if it is zero percent for the first year it's almost certainly a recipie for disaster in your situation. But almost all credit card companies do have an auto loan division, and they are more eager to give car loans because unlike credit cards there is collateral (the truck); if you can scrape together enough for a down payment so that you are getting a loan for less than what the truck is worth (on the wholesale market) you will be in a better position of leverage; right now your truck is worth $10-12K wholesale.


Do consider this, the current credit situation is a 2-edged sword - everyone on the TV says that finance companies are very hesitant to lend money - this is only half of the truth, the other part is that these same finance companies are dying and will fall over backwards to sell a 'good' loan to a worthy borrower; these people are very hard-up for business right now and if you can show yourself a good risk in carrying a truck payment then you'll have no problem getting a loan.


In all fairness to you, I will also mention this: if you are upside-down in the truck more than a couple payments then you need to discuss this with your divorce attorney, because she will owe you more than she thinks in the property settlement. If you are $5K upside-down in the loan then half that liability is hers, and she owe's the marriage $2500 before she can leave the union - get $2500 of her property (or cash) and then sell/use that to pay down your truck. I should have done this with my ex, but didn't and I should have.


One last thing, if you have to let the truck go don't kick yourself that hard, because it's just a truck and GM made thousands of them. Well, hundreds if you just limit to the blue trucks :D


Mr. P. :)

Edited by Mr. P. (see edit history)
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i had to refinance my 02 ss camaro when i got divorced in 2004. thank goodness i was in iraq so i had plenty of money when i got home to help. my x went crazy turned into a skeezer while i was in iraq. so i got soul custody of my daughter. my lawyer helped me alot

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Thanks for the info guys. I almost forgot I'm a member of a credit union from my 1st job so I'll check with them and my bank. I've checked with the bank that has the loan on the truck and the only option is to finance a new loan in my name plus they are like many miles away.

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Yeah I figure they will force me into a new loan with new loan interest added onto what I already owe :banghead: Thanks ex....you F'ing suck bi!@%


Unless I'm reading this wrong...it looks like you're under the assumption that you'll have to pay the current interest, plus more once you refinance?


If so, that's not the case.


If you owe $5000 as of today...you refinance exactly $5000, and the interest on the first loan stops the day it's paid off by the new loan.


So nothing will change.


Refinancing will MOST LIKELY save you money, if you can find a better rate.


Unless your current loan has some penalty for early payoff (not a standard thing on car loans)...you can refinance any time...and it'll cost you nothing. You'll pay interest on the original loan up until the day it's paid off by the new one, then you'll pay interest on the new one.



- Brian

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