trying to buy a car. please help?

Question

I have a 2000 dodge durango 4x4 and I still owe 14,000 on it. It is eating up all my income and i simply cannot afford it. I also am now supporting my mom and a home mortgage (hers) since she can no longer work. I need a really economical car with good mileage. Im thinking of trading in my durango in for something around 9-10,000 dollars and just letting them add on the less value of the durango. That way I'll still have the same balance but my payments will be less and I will save on gas and maintnace. What do you think. Any better Ideas?

Answer 1

I would say keep it. The value on it is probably very low (it's a Dodge)

Answer 2

You want to go to one of the retail sites like www.kbb.com, and get a really good handle on the trade-in value of your Durango. Then, you want to pick an economical car that is just basic transportation (Saturn has 2006 Ions available for $9990 with 0% interest). The best option would be to come up with enough cash to pay off the "upside down" amount on your Durango - so that you don't wind up extending the payments on a 6 year old car for another 5 years. If you can do that, and you get a new Ion, you will have payments of about $225, and you will never be "upside down" again.
The other reason you will want a new car, rather than used is because you will a)get a better interest rate and b) if you can not come up with that much cash, they will let you roll over the upside down amount - whereas on a used car, they likely will not. Good luck.

Answer 3

Remember you might have negative equity. this is commonly called being upside down. If you are indeed upside down you will pay more for the new car than you should. another questions is, how is your credit.

Don't pay 25 dollars per thousand if you can pay 10 to 12 dollars per thousand you might be able to make this thing happen.

Another consideration is full coverage insurance. Will the new car cost more for insurance.

Don't trade the Durango. Sell it. and put any money down on new car.

You'll never get what the Durango is worth. No matter how you spit and shine it, they will try to get you to accept less than what the trade is worth.

Settle on the price of the new car, then work payments. Don't even worry about payments, until you get absoulote bottom dollar for new car and most for trade.

Do your research and don't pay too much.

Answer 4

If I undestand the situation correctly, you owe $14K on a car that probably might get $9K on the open market (depending on the model, condition, etc.). So you're about $5K upside down on the car.

Before you climb deeper into the debt whole, you might want to consider just selling the Durango on the open market and refinancing the balance owed.

You might also think about trading into a shorter lease of an existing vehicle if you're thinking your current financial bind might not be long term - like, if you think you can get out of the current crunch in a year or two.

Just some ideas to bat around, hope this helps.

Answer 5

You're going to take a hit trading in your Dodge, but it will be worth it because you'll save a ton in gas money and maintenance.

Buy a Honda Civic. It's easy to come by a used one that is still in great shape. Just get a report on it so that you know it wasn't in a flood or something really bad like that.

If you have good credit, you may qualify for their 2.9% financing (if it's still being offered). If you can get the low interest, you may be able to get a new Civic for the same payment. Check it out when you're looking. It doesn't hurt to ask.

Honda Accords are nicer, but they cost more. I don't think you're in a position for luxury right now. A used Civic is the best buy on the market.

Answer 6

Do not trade yoru car in at a dealer! be aware there are two prices when quoting the value of a car. There is the dealer price and market price. a car worth $14,000 on the market will only fetch $12,000 or less at the dealer. Thusif you sell it to a dealer or do a 'trade' you will be losing money.

If you can I stronly suggest listing it on cars.com or autotrader and selling it yourself this way you get the maximum value for the car. Pay off your loan then go and purchase some thing more practical.

I made this mistake once The I sold my car to the dealer for $14,000 only to see it back on the dealer lot a day later listed at $18,000 they didn't even wash the car.

Answer 7

It looks like you went into the Durango upside down, meaning you owe more than what its worth. You will probably have to come up with more down.
Do you know of anyone that can maybe take over the payments to the Durango? That you trust?

Answer 8

If you trade your vehicle for a car they have to give you at least what you owe. This way you won't be upside down with the payments. You are going to save of course like you said on a better MPG vehicle. A Toyota Corolla is the best vehicle for MPG that is the least expensive. Better than the Civic. Good Luck

Answer 9

Do a lease on a Honda....Toyota....or Nissan.....go as short a time as you can afford (payments)....this way at the end of the term you will have burned up the negative equity and you can just start over with a clean slate......you will be upside down more then you realize....most lease companies will only carry 110 of the MSRP....so work the best price you can on the "buy" prior to going to lease payments.....do your research and find out how much you are upside down or expect to be.....you will most likely have to come up with some money because of the "carry" rule....but a lease is one way to get out of the deep hole you are in.....really some really good rate factors on Nissa's right now especially Altimas......good luck!!

Answer 10

You will be screwing yourself even harder. When you try to get rid of whatever car you buy, you will end up having the same, if not more negative equity. By some $500.00 beater like an OLD honda with a 4 cylinder and put miles on that.