Is it safe to trade my 2002 VW Jetta in for an upgraded vehicle with negative equity?

Question

I believe the negative equity would be about $3-4,000.

Answer 1

Here's the basics. Any car loses the biggest chunk of its value in the first 2 years, and is usually worth about 50% of its original value in 4 years. The real amount depends on how well you maintained the car during the time you owned it, mileage, and some degree to the popularity of the model in your region.

I can't say it's "safe" to give an additional 3-4K to get a new car that will lose thousands in value the moment you drive it off the lot. Cars (except in rare cases) are not investments. They are depreciating assets.

Ask yourself how much does it cost me per year to own this current car (including any possible car payments, maintenance and repairs) versus a new one (higher car payments, but under warranty so less for repairs/maintenance). A lot of the time, emotion(not logic) is the reason people buy new cars. They just want something newer and nicer than they have. How much more you are willing to pay for newer and nicer is entirely up to you.

Note: If you drive a lot of miles, you are going to depreciate a "new" car a lot faster than an "old" one.

Answer 2

What are you trying to trade?Also how did you arrive at a 3-4,000 negative number?Maybe I can help you.But,I will need more info.If you are in a negative equity situation,there are quite a few options to consider.To learn which is the best for you more info is a must.Contact [e-mail]

Answer 3

how many miles does ur jetta have? there is a warranty that is called emissions warranty dealers do not talk about. its 7years or 70k miles there also could be a warranty extension that applies to your car call and ask a dealer VW , wait call two dealers in your area they will ask for your vin # its on your registration and on your dash left right corner if your the driver, look from outside by windshield. could save you sum$$$$ if its covered under warranty they need to refund your diagnosis charges. if its the oxygen sensor your diag will say bank 1 or bank 2 this is 1- front ox sensor and 2- rear sensor. vacuum will be evap leak (small or large) could just be a hose or fuel cap actually could be many things. a dealer diagnosis will tell you exactly what is bad and needs replaced.

Answer 4

Now comes the hard work to dig yourself out from under the VW. To get back on track you need to find a vehicle that is worth more that you are paying. If you don't unload the Jetta the value will continue to plummit. It is always worth checking the resaleability or any vehicle you purchase. There are such vehicles out there but they are hard to find, it takes legwork.

Answer 5

try holding onto it for another year build some equity so you wont be so 'upside down'. if the jetta is giving you problems, and you can afford the higher payment then that is a different story... but if the jetta is holding up... its cheaper to keep her.

or try selling it privately... you will always get more if you sell your own car... trade in values are crap.

Answer 6

That would be a big mistake. I've been there , done that. Hang on to it for a while no matter how tempting a new car may be. Trading in "upside down" gets you buried every time.

Answer 7

get a second opinion on the value of your trade in, go to a couple of dealerships to see what they value your trade in....also it matters the purchase price on the new vehicle...there are many things to consider...do your homework on the internet..

Answer 8

My experence with this. you get farther and farther in the hole until you end up with a car that doesn't work and sky high payments.....

It is a racket--So they can repo and resell cars.

Answer 9

not sure what you mean by safe...but it will have to do with what you are buying....you will need to buy a car with high residual values

Answer 10

to much