We have a 03 Windstar and still owe 15,000 on and blue book only lists it at around 8,000. We can no longer afford the 400 + payments and the high gas costs, but to trade it in puts us deeper in debt. We would like to go with a mid sized car since this is the family vehicle and not used for working.
2006-07-09 11:11:36 · 5 answers · asked by rose N 1 in Cars & Transportation ➔ Buying & Selling
What you have to realize is...you're not making payments to keep the Windstar....you're re-paying a loan. You've borrowed a certain amount of money and you'll need to pay it back, regardless of whether you keep the car. It's not the vehicle that you can't afford...it's the loan...and you're stuck with the loan. If you want a more fuel-efficient car, you would need to get one that costs less than the current value of the Windstar so you don't increase the payments you need to make each month.
2006-07-09 11:28:47 · answer #1 · answered by Wilton P 5 · 2⤊ 1⤋
If you owe $15,000 somehow you are going to have to pay $15,000. The value of the car makes it almost impossible to sell or trade right now. You are in a position that dealers call "upside down". You owe more on the vehicle than the current value.
If you try to trade the car, and someone is willing to roll over the negative equity into a new car loan, you are going to end up with payments that are the same or higher! Switching to a mid size car wil not save you that much in gas. The gas savings will not offset the higher payments.
The only thing I can suggest is that you get a second job, and use that money to pay down your debt.
2006-07-09 18:43:19 · answer #2 · answered by fire4511 7 · 0⤊ 0⤋
i see this every single day!!! cars depreciate quicker than you can pay them off.especially if you ; took out a long term loan, put little to nothing down , rolled in a balance from your last loan. you are "upside down" or "in a negative equity situation" a.k.a. "flipped in your trade" . there is no miracle solution. welcome to reality . You are in exactly the same situation as practically every single person that does not have clear title to their vehicle. this is what happens to you unless you put a large down payment in the 1st place . I hope you bought GAP Protection on your loan ..because if your van gets lost, totaled, or stolen......your insurance company will only pay the currant value {$8000} and your loan balance is still gonna be short the other $7000. Guess where that comes from ? You, sorry to be the bearer of bad news , and please don't think I'm being a B**** but really .....I see this every single day. It is a fact of life that
CARS DEPRECIATE QUICKER THAN YOU CAN PAY FOR THEM. Sorry
2006-07-09 18:50:33 · answer #3 · answered by Vicky 7 · 0⤊ 0⤋
You must pay the diff, or you should never expect anyone to give you credit
2006-07-09 18:21:27 · answer #4 · answered by Anonymous · 0⤊ 0⤋
you will need to come up with the difference
2006-07-09 18:16:07 · answer #5 · answered by Kato 3 · 0⤊ 0⤋