but its a 2 door sedan and i have 2 kids. wasnt bad with 1 kid but its feeling a little crowded now. Any ideas on how i can get another car that is reliable and not cost me an arm and leg each month?
2006-09-17 15:19:10 · 8 answers · asked by Pixie Dust 1 in Cars & Transportation ➔ Buying & Selling
If you are $9000 upside down (meaning that you owe $9000 more on the vehicle than the current market value), your best bet is to keep the vehicle, and pay extra payments (if you can) to get the balance due down. If you trade the car in, you will still be paying on the $9000 balance, and the payments on a new car. That will make the payments much higher than an arm and a leg!!
Sorry!
2006-09-17 15:24:01 · answer #1 · answered by fire4511 7 · 1⤊ 0⤋
The only way to do a deal that upside down and make it somewhat TOLERABLE is to pick a NEW vehicle that you KNOW you can live with for at least 7 years.
Then wait for 0% financing from the bank or dealer. Finance it out for AS LONG as you can and still keep 0%. Chances are, your current auto loan is being charged a greater percentage rate. So, in effect, you save money by financing the $9,000 at 0% rather than your current interest rate.
Do the upside down deal, but KNOW that you are upside down. You are NEVER going to have positive equity in this new vehicle for as long as you own it. But when its paid off, it will be paid off.
Advice on selecting a car: Pick a new car that holds its value. Stay away from a KIA or Dodge. Ford, Chevy, Honda, Jeep, all hold pretty well... That way when its paid off, you might have a couple thousand dollars in it...
Thats the only way to do it, as far as I know.
2006-09-19 17:46:13 · answer #2 · answered by glenspot 3 · 0⤊ 0⤋
Listen for a dealer that advertises that they give you more for your trade. In DFW some dealer advertises 120% KBB value on all trades.
If they say they will pay it off no mater what you owe, they are just making money. Just about anyone will pay it off, but by that they mean you will owe them the difference as well.
The only other thing to do is by a car thats drastically underpriced.
I got my brother-in-law out of a ford escort zx2 that he was $4,000 upside down in, into a 2003 VW Passat V6 4Motion for $13,000. The VW has a NADA value of $20,000, so now he is $3,000 ahead in the new car. Just keep an eye for wholesalers and good deals.
Another benefit of an underpriced car is that you shouldn't have to put a down payment in. The fact that he was still $3,000 ahead of the VW's depreciation curve meant $0 down and a lower interest rate.
2006-09-17 22:26:55 · answer #3 · answered by xturboexpress 3 · 0⤊ 0⤋
You are stuck unless you want a $9,000 loss. That buys lots of braces and breakfast cereal. I would keep driving it until you are not so negative. Consider trying to pay it off early. Take a little extra time since you know you need a few more minutes to get the kids in the car.
2006-09-17 22:22:09 · answer #4 · answered by Cabhammer 3 · 1⤊ 0⤋
Bad news, you are stuck with that car. Unless you want to come up with the 9,000 dollars. The 9 grand must come from somewhere. If a car dealership is telling you they will take care of it for you then you are getting taken advantage of. Trust me, no one is going to be nice and pay the money for you. Good luck, it sounds like you are smart enough to make it work for you.
2006-09-17 22:25:21 · answer #5 · answered by cdfrx 2 · 0⤊ 0⤋
Stick with the car you have until you get out of being upside down. Otherwise you'll be paying off both loans on any new car you buy.
2006-09-17 23:28:30 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You can handle two kids in a two door car. Don't be double stupid.
2006-09-18 00:12:58 · answer #7 · answered by Anonymous · 0⤊ 0⤋
try to maybe refinance your loan...it may help..
but i wouldnt even try to trade it in..your badly upside down..you maybe able to trade it in..but they'll tack the extra onto the new loan..putting you upside down on the new one
2006-09-17 22:29:40 · answer #8 · answered by mommy2savannah51405 6 · 1⤊ 0⤋