I have a 2005 Nissan Altima 2.5S with 26k on it. The reason I'm thinking of selling it and getting a cheaper car is that I don't really use the car to its full potential. The car is great, but I'm single with no kids. I use it primarily just to drive from point A to point B. I can afford to make the payments, but would rather lower my costs and put the money towards other things. Right now its worth about 14-15k and I owe about 18k on my loan.
I'm also mechanically inclined and could handle buying a 4-5 year old car in the 6-8k range and doing the maintenance and repair as it needs it.
2006-09-01 05:18:49 · 7 answers · asked by DJR 1 in Cars & Transportation ➔ Buying & Selling
You might not be able to do that though. Some places wont take your car if you owe and if you arent buying a brand new one. I dont think you will be able to sell it for what you owe on it. Car dealerships dont pay nearly what its worth. I have an 06 PT cruiser and we went to do that exact thing and the dealership told us my car is worth 9000!?!?! So needless to say, we kept the car.
2006-09-01 05:27:40 · answer #1 · answered by Brianna'sMomma 5 · 0⤊ 0⤋
First of all, see what your car is worth retail. You will ALWAYS get more for your car if you sell it than if you trade it in. Secondly if you are truly 4000$ negative equity on your vehicle and like another person answered, you will need to tack it on the new vehicle you are going to finance. Is it really worth it to save 10-20 dollars amonth on payments?...Probably not...the next thing is now you are going to be 4000$ negative on the next car to start out you loan....and if you decide to change up the vehicle in a year or two you will be negative on the vehicle PLUS the 4000$ you are ADDING on it now....it is a very bad cycle to get into. I see things like this all the time. It comes to a point where you just can not hide any more negative equity. Also there might be a chance that you can not even hide $4000 in this other vehicle you want to buy...remember you can only OVERBOOK a vehicle by so much...
In my opinion...pay another year off than look to trade up
2006-09-01 07:09:19 · answer #2 · answered by B_Auto 2 · 0⤊ 0⤋
If you trade it in on a new vehicle and the dealer gives you your estimated value, that 4000 will be tacted onto your new loan. So for a 12K inexpensive car you now would be on the hook for 16K. This is still less than you are paying now.
You can also try to sell the vehicle private party. You may have more luck getting closer to your loan amount. Any shortage wold still be your responisibility, but that 12K car would be just 12K.
2006-09-01 05:33:50 · answer #3 · answered by limgrn_maria 4 · 0⤊ 0⤋
Try selling the car yourself for the full 18 K of the loan. Then see where you can go from there. If you get say 16K, you will be able to absorb the 2 K loss when you refinance with a back.
2006-09-01 05:25:16 · answer #4 · answered by redhotboxsoxfan 6 · 0⤊ 0⤋
It is never a good ideal to carry $4,000 upside down to another car, all you are doing is getting upside down in a older car that will probably need repairs and will take the money you plan on saving. Just stay the course or make extra payments until you can clear your car.
My 2 cents worth
Good Luck
2006-09-01 05:38:18 · answer #5 · answered by semi273hemi 4 · 0⤊ 0⤋
what's your funds? that's confusing to signify a motor vehicle without understanding a purpose cost? New/used? good new autos for around $20,000 – Ford Fiesta (as quickly as you get it with a rather good quantity of equipment... sync, alloy wheels etc) Used autos around $10,000 – Mini Cooper, sedan/coupe Infiniti G35, Acura RSX
2016-09-30 06:01:06 · answer #6 · answered by ? 4 · 0⤊ 0⤋
you'd have to roll the negative equity into the new loan, so that would minimize savings
I'd advise you to keep the car
2006-09-03 19:06:04 · answer #7 · answered by Dwight D J 5 · 0⤊ 0⤋
It is not a bad idea. You could invest the money you save.
2006-09-01 05:20:54 · answer #8 · answered by Mike Hunt 5 · 0⤊ 0⤋