I currently own a 2001 Ford Escape. I am interested in trading out of my vehicle into a smaller, more gas efficient car. The problem I run into though is negative equaity (or an upside down loan). I owe less than $14,000 on it but it has been appraised anywhere between $5,000-$8,5000 which leaves me anywhere from $5,500-$9,000 to put towards the new vehicle. I have no money to put down and I think I've visited just about every car dealer in Virginia and can't quite find the price range I'd like to be in. I work full-time and also go to college full-time so I really don't have a lot of free time for a second job to support that large payment. Is there any advice or deals that anyone knows of with new cars? Any help would be great. Thanks! :)
2006-09-10 12:15:07 · 7 answers · asked by beckybrowneyes85 1 in Cars & Transportation ➔ Buying & Selling
I currently own a 2001 Ford Escape. I am interested in trading out of my vehicle into a smaller, more gas efficient car. The problem I run into though is negative equaity (or an upside down loan). I owe less than $14,000 on it but it has been appraised anywhere between $5,000-$8,5000 which leaves me anywhere from $5,500-$9,000 to put towards the new vehicle payment. I have no money to put down and I think I've visited just about every car dealer in Virginia and can't quite find the price range I'd like to be in. I work full-time and also go to college full-time so I really don't have a lot of free time for a second job to support that large payment. Is there any advice or deals that anyone knows of with new cars? Any help would be great. Thanks! :)
2006-09-10 12:20:28 · update #1
My advice to you is to think of all the gas you could buy with that $5,500 to $9,000 that you would lose if you traded it in now.
Unless something is seriously wrong with the car, usually when you get upside down it's best to ride things out and wait. Send in some extra money with each monthly payment to make the wait shorter.
2006-09-11 02:48:27 · answer #1 · answered by Mad Scientist Matt 5 · 1⤊ 0⤋
The bad news is that you will probably pay for the negative equity no matter what you do.
One thing that some car dealers do is to let you trade in pretty much whatever vehicle you have toward a new car and will pay off your other loan. The problem with this one is that the dealer will roll the difference on your vehicle into the new loan, so you still have to pay it. The one way this might help is that the loan on the new car may be at a lower interest rate. The bad part of that is that you will still have a negative equity in the new car, and will continue to do so, unless and until you pay off the next loan and the car is still doing good service for little maintenance for some time after you pay it off.
2006-09-10 12:28:39 · answer #2 · answered by brightpool 3 · 2⤊ 0⤋
Listen Bankruptcy is not that bad. If the car is a lemon,I would file and let it go back.
Learn this new cars are the worst mistake you can make. Jobs up and leave the country every day. Pay cash. I never spend more than $2000 for any car or truck. Don't keep up with the Jone's,they are miserable tied down with payments. Only thing to finance is a house or land.
2006-09-10 12:53:42 · answer #3 · answered by Anonymous · 1⤊ 1⤋
Best advice is to keep it and pay it off. Then drive it another year while saving some money for downpayment.
Because trading in now means you'll be driving an older, crappier car while making nearly the same amount as you already are.
Gas prices are the least of your problems.
2006-09-10 18:20:49 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Keep the car or try to sell for $12,000 to keep the negative equity in check.
Check carmax.com to obtain retail prices for Escapes and price yours accordingly.
2006-09-10 12:20:37 · answer #5 · answered by Anonymous · 2⤊ 0⤋
honest answer is your screwed,try to keep the one you have and maintaine it,the mileage on a escape is not that bad compared to another higher car note when they tag the payoff on the end of the car you want.stick with what you have.service it well and it will last.
2006-09-10 12:22:29 · answer #6 · answered by strange_busaman 3 · 1⤊ 0⤋
Re-finance.
2006-09-10 12:20:19 · answer #7 · answered by Anonymous · 0⤊ 1⤋