I have a 2006 vibe that is worth 14,000 dollars according to kelly blue book. I want to sell it because I can't afford my $420 a month payment. However, I still owe 21,000 on the car and my negative equity is so great (-7,000) that the car dealers can't make me a deal. ( I am looking to downsize my payments) Should I just sell the car for what it is worth and bite the bullet and continue to make the payments? or just keep it and be cash strapped?
2006-12-05 13:35:53 · 7 answers · asked by matt d 1 in Business & Finance ➔ Personal Finance
Sell it. Sell it. You are 7000 upside down on this item. Sell it privately so you get the best price-car dealers will screw you.
Go to the bank, or better, your credit union and get approved for a loan for 9-10k. After you sell the car for 14k, pay off the loan with 7k and use the last 2-3k to buy some little good used car with no payments. That way you owe 10k instead of 21k. Even if the used car cost you a little more in repairs it will not cost you the 11k you can save by selling the car. Take an extra job, or work overtime, to pay off the new 10k loan quickly. Continue to work extra and save. Then, sell the old used car and get something better-again without payments. The good thing about a 2-3k used car is they don't loose much value over 12 months. My wife and I are saving up for an used Volvo. Our little Christmas present. Next year for Christmas we will sell the Volvo and use our savings for not having a car payment and get something really nice. All paid for with cash.
2006-12-05 14:52:44 · answer #1 · answered by ontopofoldsmokie 6 · 1⤊ 0⤋
The way I see it, you have no choice but to KEEP the car. You're going to eat at least 7 grand? Then have to buy another car on top of that? Everyone makes a bad decision now and again. Not the end of the world. Cars last a lot longer than they used to. You can keep this one long after it has been paid off. Have you ever considered re-financing the car? If your goal is to lower your payments, you may be able to get the term of the loan extended. Talk to your lender first. If they say 'no' try a bank or a credit union. In a couple of years you should end up even. Now, what did you learn from this? PAY CASH! If you can't, buy ONLY what you can afford. There are plenty of perfectly servicable cars that can be had for $5,000 or even less. E.G. the one you're driving right now in about four years. Only you paid $25,000 for it. Buy 'em used, use 'em up!
2006-12-05 19:48:37 · answer #2 · answered by Big R 6 · 0⤊ 0⤋
Sell the car. A car is a terrible money sucker. Talk to the bank first and see if they can help you in your "cash strapped" time.
2006-12-05 13:39:00 · answer #3 · answered by 2010 2 · 0⤊ 0⤋
sell it if u can, if you can't that make sure you get another job and keep up on the maintenance treat her like she is gold
2006-12-05 13:47:06 · answer #4 · answered by 194p$k 2 · 0⤊ 0⤋
Sell it off if you can't affort it, it's a very big commitment, if you try to struggle it off.
2006-12-05 13:45:12 · answer #5 · answered by maggotier 4 · 0⤊ 0⤋
How can you be that far upside down in such a short time?
2006-12-05 16:21:51 · answer #6 · answered by J. C. 6 · 0⤊ 1⤋
just burn it and collect the insurance lol do what you like
2006-12-05 13:53:06 · answer #7 · answered by Anonymous · 0⤊ 0⤋